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PR- 090-04
April 20, 2004


New Contract for 121,000 Civilian Employees of the City of New York

Mayor Michael R. Bloomberg and Lillian Roberts, Executive Director of District Council 37, AFSCME, AFL-CIO, and its affiliated locals, announced a tentative settlement, subject to ratification, on an overall economic agreement covering 121,000 civilian employees of the City of New York. 

The settlement represents the framework for successor collective bargaining agreements, and generally covers the thirty-six month period from July 1, 2002 through June 30, 2005.

“The members of District Council 37 make New York City work,” Mayor Bloomberg said.  “Today’s agreement is a good deal for DC 37 and a good deal for the City.  It allows the City to provide fiscally responsible raises that recognizes DC 37’s members tremendous efforts in improving the quality of City services.”     

“We have delivered the best possible contract we could for our members,” said Executive Director Roberts.  “This economic agreement is the second agreement in an overall wage and benefit package that we have put together for our members over the past year.  It provides fair wage increases, which our members need.”

The principal features of the Agreement include:

  • A one-time $1,000 lump sum cash payment per employee effective upon ratification.
  • A 3% general wage increase effective as of the first day of the 13th month of the contract, which was July 1st 2003, to be paid upon ratification. 
  • A 2% general wage increase effective starting the first day of the 25th month of the contract (July 1st, 2004), which will be funded by productivity improvements and other operational savings. 
  • An additional 1% will be paid over the third year of the contract subject to mutual agreement by the City and DC 37 upon attaining sufficient productivity savings which may include a reduction in the utilization of sick-leave, work-rule modifications and other productivity efforts.    

Cost to the City:

  • The $1,000 per employee cash payment totals $73 million in City funds.
  • The 3% retroactive general wage increase totals $98 million annually.
  • The 2% plus 1% has no cash cost to the City since they are funded fully through productivity improvements and other operational savings.
  • Time and leave modifications for newly hired employees provide savings to the City and fund a portion of the terms and conditions of this Agreement.
  • Joint Labor Management Committee on Productivity Initiatives which shall have as its underlying premise that increased productivity and operational improvements are a means of generating savings (efficiencies) to be applied to compensate employees in a time of fiscal austerity.

“The City’s commitment to attain fiscally prudent settlements has been coupled with the Union’s aim to achieve fair treatment and compensation for its members,” Mayor Bloomberg said.  “Lillian Roberts has delivered a broad-based economic agreement that will provide much deserved wage increases and other benefits for DC 37 and its Locals.  I also want to thank Deputy Mayor Marc V. Shaw, Lillian Roberts and her negotiating staff, Labor Commissioner James F. Hanley, First Deputy Commissioner Pamela S. Silverblatt and their team, and Mark Page, Director of the Office of Management and Budget, and his staff for all of their efforts in reaching this Agreement.”


Edward Skyler / Jordan Barowitz   (212) 788-2958

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