Mayor Michael R. Bloomberg and Lillian Roberts, the Executive Director of District Council 37, AFSCME, AFL-CIO, and its affiliated locals, today announced a tentative settlement on an overall economic agreement covering more than 100,000 civilian employees citywide. The settlement, referred to as the "2005 District Council 37 Memorandum of Economic Agreement," is subject to ratification and represents the framework for successor collective bargaining agreements. The settlement covers the 32-month and two-day period that runs from July 1, 2005 through March 2, 2008 and continues the basic parameters for collective bargaining settlements in this round of bargaining, and it establishes new parameters for future periods.

"Every day, the members of DC 37 contribute to welfare and operation of our City," said Mayor Bloomberg. "We have reached a fair labor settlement that serves the needs of both the City and union members. Increased compensation and benefits coupled with a proposal to eliminate the City residency requirement will give a much deserved wage increase and additional flexibility to more than 100,000 union members. Lillian Roberts has again delivered a fair and comprehensive economic agreement for DC 37 and its Locals."

"I am proud that we have achieved a sound and significant raise for the dedicated, hard-working members of District Council 37," said DC 37 Executive Director Lillian Roberts. "I am also pleased that there will be a major infusion of funding into our welfare fund and the easing of residency requirements.  I want to thank the Mayor and his negotiating team for working long and hard with us to come to this agreement."

The principal features of the Agreement include:

• A 3.15% increase on the first day of the contract
• A 2% increase, compounded, on the first day of the 14th month of the contract, and
• A 4% increase, compounded, on the first day of the 20th month of the contract
• A special "Additional Compensation Fund" to address certain unique, specific issues for each of the 56 locals of DC 37.

Additional major features of the Agreement include:

• The parties agree to discuss pension matters in a labor management committee.
• Jointly supported legislation will be introduced to eliminate most residency restrictions such that covered employees will be permitted to reside within the five boroughs of the City of New York and the six contiguous counties: Nassau, Westchester, Suffolk, Orange, Rockland or Putnam.
• Expansion of the highly successful TransitCheck program to include, in addition to the current MTA Surface and Subway lines, other mass transit commutation providers such as LIRR, LI MTA Buses, and MetroNorth.  The parties will continue to discuss expanding this benefit to include other regional mass transit carriers.
• The City will increase its contribution to DC 37's Welfare Fund by $100 per annum effective July 1, 2006.  In addition, a one-time payment in the amount of $166.67 for each covered individual will be paid effective November 1, 2006.
• A Salary Review Panel will be established to review selected titles and occupational groups to determine whether or not salary adjustments or other compensation modifications appear to be indicated.
• Cost-containment initiatives and any City-wide program modifications in the City Health Benefits Program will be discussed with the Municipal Labor Committee consistent with past practice.

The Mayor concluded, "I also want to thank Deputy Mayor Edward Skyler, DC 37 Executive Director Lillian Roberts and her negotiating team, Labor Commissioner James F. Hanley and First Deputy Commissioner Pamela S. Silverblatt and their team, and Mark Page, Director of the Office of Management and Budget and his staff for their efforts in reaching this Agreement."