Contact: | Sunny Mindel / Michael Anton | (212) 788-2958 |
Mayor Rudolph W. Giuliani today announced that the Administration has reached
agreement with the Municipal Labor Committee (MLC) that will achieve significant
savings to the City while providing improved health and other benefits to all
City workers. This agreement marks the first time that such benefits have been
addressed in the initial phase of the collective bargaining process, and also
the first time that such benefit issues have been resolved for all unions simultaneously.
"This historic agreement is a major step toward new contracts for all City unions," Mayor Giuliani said. "Now that the important task of resolving health benefits has been accomplished for all unions, the City is free to bargain individually with the various unions on their contracts. I want to thank Deputy Mayor Bob Harding and Labor Commissioner Jim Hanley for the hard work in reaching this deal, and also staff at the Office of Labor Relations and the Office of Management and Budget. I also want to thank Randi Weingarten, Chair of the MLC; MLC Secretary Lee Saunders; Norman Seabrook, Chair of the Uniformed Forces Coalitions; and all the members of the Committee for working with the City to get this deal concluded."
The modifications to City employee contracts agreed to include:
A historic agreement between the City and the MLC to jointly sponsor legislation changing the period after which retiree health insurance benefits vest from 5 years of membership to 10.
Payment to the City of $95 Million from the Stabilization Fund and other sources.
Restructuring the City's cost of funding health insurance to achieve savings to the City of $100 Million in FY 2003 and $100 Million in FY 2004.
Exemption from the City's obligation to pay $35 Million to the Stabilization Fund in both FY 2001 and FY 2002.
A $200 rate increase to the Welfare Funds effective the last day of the new contract, and two lump sum cash payments, to be paid for by existing union funds, to each union-administered welfare fund of $125 and $100 per employee and retiree for the first two years of the contract.
Two drug premium subsidy cash payments of $50 and $75 per employee and retiree, to be paid for by existing union funds.
Improvements to health insurance benefits, to be paid for by existing union funds.
Expanding the TransitChek program to the Board of Education, at no additional cost to the City.