February 23, 2015
Agreement with resident physicians conforms with the established pattern, including 10 percent raises over seven years and unprecedented health care savings
Nearly 75 percent of City workforce now under contract agreements
NEW YORK—Mayor Bill de Blasio today announced that the City of New York has reached a tentative contract agreement with the Committee of Interns and Residents/SEIU Healthcare, which covers 2,039 medical and dental residents training at Health and Hospitals Corporation facilities.
To date, the de Blasio administration has reached contract agreements with nearly 75 percent of the City workforce that had previously been working under expired contracts.
Today’s agreement is consistent with the established civilian pattern and requires no new funding over previous budgetary projections. The proposed seven-year, four-month contract would begin, retroactively, on October 26, 2010 and expire on February 25, 2018.
The agreement includes additional benefits that are fully funded out of the pattern cost and four-month contract extension, a new childcare benefit, investments in the Patient Care Trust Fund, and one-time bonuses.
The agreement also includes the unprecedented health care savings agreed upon with the Municipal Labor Committee, ensuring that these raises are affordable and responsible for the City and its taxpayers.
The terms of the agreements must be approved by the union’s full in-service membership.
“Today’s agreement provides fair, responsible wage increases to the resident physicians who provide critical care to New Yorkers around the city,” said Mayor Bill de Blasio. “When we took office, every contract was expired—and now, nearly 75 percent of our workers are under contract agreements that give our employees the raises they deserve while protecting taxpayers.”
“Interns and residents play a critical role in HHC’s successful patient safety initiatives and are a vital part of our public health care system,” said Dr. Ram Raju, President and CEO of the New York City Health and Hospitals Corporation. “We are very happy for our CIR colleagues, and thank the Mayor and the Office of Labor Relations for their role in finalizing this contract.”
“CIR and HHC have a strong, collaborative partnership. Our negotiated agreement will benefit New York City patients, their doctors, and the communities we serve,” said CIR President Dr. David Eshak. “The investment into the CIR Patient Care Trust Fund is just one example of how we’ve used our collective voice at the table to improve quality and patient care across the city.”
“This is a victory for both the HHC residents and CIR as a whole,” said CIR Regional Vice President Dr. Taiwo Odufunade, an emergency medicine resident at Jacobi Medical Center. “It proves the immeasurable strength our union has when we all stand together. This contract increases salaries and gives our members a new child care benefit that is both progressive and makes residency just a little easier.”
In total, the MLC and the City have agreed to secure $3.4 billion in health care savings through Fiscal Year 2018, and $1.3 billion in savings every year thereafter. The City and the municipal unions are securing cost-cutting measures, aimed at bending the curve of rising health care costs for the first time. These savings are guaranteed and enforceable by arbitration.
For the 2010 to 2017 round of bargaining, employees will receive increases based on the established pattern:
July 1, 2014: 3.03% (equal to three 1 percent increases, compounded)
April 26, 2015: 1.50%
April 26, 2016: 2.50%
April 26, 2017: 3.00%
The agreements also include a one-time $1,000 ratification payment.
The total cost of the tentative agreement is covered by the pattern settlement and will require no new funding above previous budgetary projections.
Gross Cost: $68.3 million
Stabilization Fund & Health Savings: ($32.8 million)
Net Cost: $35.5 million