The final deal

After a close vote and charges that the final deal was more than the city could afford, Mayor David Miller went on the offensive, lauding the newly approved deals.

He said that over the next five years the city will reduce its labour costs by $140 million by phasing out the sick bank benefit and offering wage increases that are lower than what unions were getting in the old contracts.

He said 5,000 employees are over 55 and will be retiring soon and replaced by new hires who will automatically be on the new plan.

The mayor was backed up on these figures by city manager Joseph Pennachetti who stood beside him at a press conference following the vote.

Pennachetti said the liability is currently as $120 million if the city was to pay out all currently banked sick days by the two union locals.

“It was going to be about $220 million in about five years,” Pennachetti said.

Employees who are eligible to continue to bank sick days will
have the option of continuing to accumulate 18 sick days a year and
have them all paid out upon retirement. For those who qualify, union
workers will have the option of having their existing banked sick days
paid out if they switch to the contact’s new short term disability plan
that offers a maximum of six months sick pay annually. New hires will
automatically be put on the new short term disability plan.

Both locals also rececived pay increases of 1.75 in 2009, 2 percent in
2010 and 2.25 in 2011