Newark city employees to get 5 percent raise over 3 years
Maria DeVito
Newark Advocate
NEWARK - After months of contract negotiations, the city of Newark has agreed to give employees a 5 percent raise over three years.
The entire city work force, except for elected and appointed employees, is expected to receive a 1.75 percent raise in 2017 and 2018 and a 1.5 percent raise in 2019, Newark Mayor Jeff Hall said.
After the three increases the city will pay approximately $800,000 more in salaries to roughly 320 employees, Deputy City Auditor Lori Resta said.
Those 320 employees include the firefighters, police officers and non-uniform union employees.
Hall said he knows the city can afford the raises this year, but he doesn't know about the following years. He said layoffs might be possible, but he doesn't know for sure.
He said the city will start working on the 2018 budget in a few months.
"We've solved it other times and we'll do what we have to do," he said.
The International Association of Firefighters Local 109 contract was signed May 23 and the Fraternal Order of Police Local 127 contract is slated to be signed by all parties by next week after it was approved by city council in April. The city accepted a conciliator's recommendations for the the police union raises.
The American Federation of State, County and Municipal Employees union contract is not up until the end of July, but Human Resources Director Mike Buskirk said the city expects quick negotiations because the union has already agreed to similar wages and healthcare benefits.
Raises and policies for non-union city employees are headed to the full Newark City Council after being approved by the personal committee Tuesday.
The police and firefighter union contracts will retroactively be effective Jan. 1 and will last through Dec. 31, 2019.
Hall said the city has to give employees raises to attract quality people to the positions.
"The citizens of Newark are going to have to understand it takes money to run the government," he said.
After the unions settle their contracts, the salaries for chiefs and other employees usually increase proportionally, Hall said.
"When a manager doesn't make anymore or much more than someone under them, the job doesn't work," he said.
In December the police union proposed raises of 3 percent in each year of a three-year contract. The city proposed 0.5 percent raises each year and a fact finder recommended 2 percent raises each year.
More:Council rejects fact-finder's recommendations for FOP
The fact finder report was rejected by city council, causing the police contract to go to an arbitrator. The city and union still couldn't agree and the contract went to a conciliator, which ruled a 5 percent increase over three years.
The firefighter union agreed to the same wage increases.
Most of the contracts only have minor changes, but the city is changing the arrangement it has for health insurance, said Human Resources Director Mike Buskirk.
The city, which is self-insured, decided not to lock in rates for the three years in case changes need to be made, Buskrik said.
A healthcare committee with members from each of the three unions and two non-union city employees meets once a month. The group has to decide unanimously if it wants to change the coverage, such as increasing premiums or reducing the amount paid on benefits.
"If we start getting in the hole where we're having trouble paying the bills then they've been charged with being able to step in and make changes," he said.
The police union decided to have two contracts, Buskirk said. One for regular officers and one for sergeants, Buskirk said, to make sure sergeants needs are represented equally.
mdevito@gannett.com
Twitter: @MariaDeVito13