Agreement Includes Three Percent Annual Raises, Child Care Trust Fund, Investment in Recruitment and Retention, and New Committee to Explore Flexible Work Options Including Remote Work
New York City Mayor Eric Adams today announced that the city of New York has reached a tentative five-plus year contract agreement with District Council 37 (DC 37), the first major labor contract agreement reached under this administration. This agreement will cover nearly 90,000 municipal employees — or one-fourth of the city’s total unionized workforce.
The tentative agreement is retroactive, beginning on May 26, 2021, and expiring Nov. 6, 2026. It includes wage increases of 3 percent for each of the first four years of the contract, and 3.25 percent in the final year. The agreement also includes a lump sum ratification bonus for all DC 37 members, a major investment in a child care trust fund established and administered by DC 37, dedicated funding for improved retention and recruitment efforts, and a committee to explore flexible work options — including remote work. The parties have also agreed that as of July 1, 2023, every employee covered by this contract will earn at least $18 per hour — a rate which exceeds the minimum wage.
“I am a blue-collar mayor who has stood shoulder to shoulder with working people all my life — to fight for fairer wages, better benefits, and a better quality of life,” said Mayor Adams. “This is the first tentative agreement we have reached under this administration, and it is a great deal for workers and fair to city taxpayers. This wouldn’t have happened without the tireless efforts of our Office of Labor Relations commissioner, Renee Campion, the partnership of DC 37 Executive Director Henry Garrido, and the dedicated members of this great union.”
“Our members held this city together during the pandemic — answering the call of duty during the darkest moments of the past decade,” said DC 37 Executive Director Henry A. Garrido. “Through this contract, we’ve secured long-overdue raises for city workers, protected their premium-free health benefits, and lifted the lowest wages to an $18 minimum. We made changes that will help the city be competitive in its retention and recruitment of workers, including the creation of a child care trust fund and flexible work schedules with telecommuting options. We’re proud of what we’ve accomplished for our members, and we thank Mayor Adams and Commissioner Campion for negotiating a fair and reasonable contract.”
“Thank you to DC 37 Executive Director Garrido for working with the city on this important contract,” said New York City Office of Labor Relations Commissioner Renee Campion. “This contract shows the progress we can make when labor and management work together for the benefit of the city and our employees.”
The total cost of the tentative DC 37 agreement through Fiscal Year 2027 is $4.4 billion, which is offset by funding already in the city’s Labor Reserve, for a net budget impact of $2.9 billion through Fiscal Year 2027.
The tentative agreement includes:
- Flexible Work Committee: The city and DC 37 will establish a committee to discuss options to provide greater flexibility to employees and to enhance employee morale, including remote work, compressed and flexible work schedules, and improved transit benefits. The parties’ goal is to begin a pilot program that includes remote work no later than June 1, 2023.
- Child Care Trust Fund: DC 37 will establish a child care trust fund to provide support for its members with child care needs. As part of this agreement, the city will contribute $3 million per year to the fund.
- Equity Fund: The parties have set aside $70 million to make salary adjustments to help fill hard-to-recruit positions, and will work collaboratively to address those issues. The fund will be administered by a committee including city and DC 37 representatives.
- Pandemic Response Committee: The city and DC 37 will establish a joint committee to discuss issues related to pandemic response, to best prepare the city and its workers for the next pandemic.
- Ratification Bonus: Upon contract ratification by DC 37 membership, eligible members will receive a one-time bonus of $3,000.
DC 37 members will receive the following compounded and retroactive wage increases, representing a 16.21 percent increase across the life of the contract:
- May 26, 2021: 3.00%
- May 26, 2022: 3.00%
- May 26, 2023: 3.00%
- May 26, 2024: 3.00%
- May 26, 2025: 3.25%
The tentative agreement is subject to ratification by DC 37’s membership.
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