NEWS

Wilmington agrees on contract with union

Jenna Pizzi
The News Journal
Councilman Bud Freel speaks at a Wilmington City Council meeting on April 22. The Fire Department is shuffling staffing to address budget concerns.

A pay raise is likely for some Wilmington workers, after the American Federation of State, County and Municipal Employees Local 320 and city officials approved a three-year collective bargaining agreement.

The contract calls for the 150 employees in the Public Works, Streets and Water departments to see a 3 percent cost-of-living salary increase and a one-time payment of either $2,000 or $4,000 per worker, depending on the hire date. The agreement expires June 30, 2018.

"The longer people have been there, the more they will get," said union attorney Lance Geren. "It was important for our members to see a wage increase."

A funding bill for the increases will be introduced by City Council on Thursday. Union members have not had a raise since 2008.

"We worked hard to obtain a long overdue salary increase," said union President Bryant Cottman in a statement. "The mayor had to work with fiscal constraints and I appreciate his team working with us toward a fair deal."

City officials estimate that the cost-of-living increase will cost about $262,684, to be allocated from the city’s projected budget surplus. The one-time payment to employees will cost $546,852 and be funded through the city’s unassigned fund balance, which is carried over from past budget surpluses.

"This contract successfully focused on not only the needs of the employees, but also those of our citizens, as we worked to find measures to improve the city's service delivery practices," said Mayor Dennis P. Williams in a statement.

Geren said the union gave some concessions, especially on health care, with employees taking on more costs.  The employees agreed to pay between 4 percent and 6 percent of their health care premium depending on the plan selected.

Geren said the contract includes a stipulation that union officials and the city will sit down next year and the year after to discuss wages and health care costs.

Geren also represents the city's other AFSCME union, local 1102, which includes 175 office workers and those working in the department of Licensing and Inspection. Those employees will meet Wednesday night to approve or reject a contract with the city.

The city's 250 nonunion employees also are up for a pay bump. Williams has asked the council to approve a 2 percent increase. Those workers, some of whom work in managerial and executive positions in city government and in positions appointed by city officials, would also see a one-time payment of $2,000 or $4,000 depending on the length of time they have worked for the city. Those raises would cost the city $432,000 a year for the annual cost of living increase and about $926,000 for the one-time payment.

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On Thursday, council members will give a preliminary vote to a budget amendment adding funding for these agreements. The matter will then go before the council Finance Committee before coming back to the council for a final vote later this month.

All city employees have been working without a cost-of-living raise since 2008, according to Charlotte Barnes, the city’s human resources director.

The contract for city police officers was recently the subject of arbitration by the state Public Employment Relations Board. The board ruled city police officers should get a 3 percent retroactive pay raise.

The board's ruling in October agreed with the Fraternal Order of Police proposal for four-year agreement covering the period from July 1, 2011, through June 30, 2015.

City officials have appealed the decision and will have a chance to present their case to the board on Nov. 18.

Several other employee unions are still negotiating with city officials.

City Councilman Bud Freel, chairman of the city Budget Committee, has raised concern about the amount of money the city will spend on these contract agreements, much of which will come from the city’s unassigned fund balance.

Freel said that these cost-of-living increases will impact future budgets by increasing salary expenses for the city, meaning other expenses will have to be cut or taxes increased.

Contact Jenna Pizzi at jpizzi@delawareonline.com or (302) 324-2837. Follow her on Twitter @JennaPizzi.