Mayor Michael R. Bloomberg today announced that New York City will provide nearly $25 million in salary increases in Fiscal Year 2009 for approximately 36,000 employees at 1,000 social service agencies throughout the five boroughs. Additional increases of 2 percent and 4 percent over the following two years will be provided through productivity initiatives that will generate savings of $90 million by fiscal year 2011, and will be re-invested in worker salaries. The savings will raise salaries for social workers, cooks, custodians, clerical aides, drivers, youth workers and other employees who work at agencies that contract with the Administration for Children's Services, the Department for the Aging, Department of Homeless Services, Department of Youth and Community Development, and the Human Resources Administration.

"Through the City's collaboration with our human services agencies, we plan to identify ways to do more with less so that the hard work of taking care of New York's most vulnerable residents - our children, seniors, and homeless - can be rewarded," said Mayor Bloomberg. "This agreement not only benefits the thousands of committed professionals who have dedicated their lives to helping others, it also gives vital support and expertise to the New Yorkers who need it most."

The principal features of the agreement include:

• A 3 percent increase in direct employee salaries effective July 1, 2008.
• A 2 percent compounded general wage increases effective July 1, 2009, which will be funded by productivity improvements and other operational savings.
• A 4 percent compounded general wage increase effective July 1, 2010, also to be funded by productivity improvements and other operational savings.

"Ensuring the strength of the care-giving community is a critical investment in the future of New York City," said Deputy Mayor for Health and Human Services Linda I. Gibbs. "Each day, the City works closely with our human service providers to develop and implement innovative strategies to address complex issues like poverty, homelessness, teen pregnancy, a fast-growing senior population and child abuse. It is vital that our progress and reform continues."

"This COLA agreement is a true testament to the growing recognition of the important role not-for-profit social service agencies play in the provision of services to our City's most vulnerable populations," said Human Services Council Executive Director Michael Stoller. "We thank Mayor Bloomberg for once again making this critical investment in support of the poor and those in need in the New York City community."

Under the agreement, a public-private task force that will represent vendors and the agencies involved will identify mechanisms for achieving savings though productivity measures, quantifying savings for them, and implementing these measures for Fiscal Years 2010 and 2011. If savings are not sufficient to achieve these increases, the increases will be limited to the amount of savings achieved.