AFSCME Employees Agree To More Concessions

A pay cut, unpaid holidays, healthcare changes, mirroring of health care in retirement and a reduction in pension multiplier are some of the concessions agreed to by the City of Royal Oak AFSCME local #2396.

The City Commission on Monday approved the tentative agreement which covers the two year period of July 1, 2011 to June 30, 2013. The union voted to approve the agreement on Sept. 7, 2011.

Members of the Association have agreed to accept an immediate 2.5 percent reduction in pay; a wage freeze in the second year; moving all members to one health care plan with higher deductibles and more out of pocket costs; mirroring health care at retirement with health care for active employees; decreasing their pension multiplier; and 20 percent health care contribution for employees hired on or after July 1, 2011.

The previous AFSCME Agreement which expired on June 30, 2011, also included concessions.

Mayor James Ellison was pleased. "I know these concessions were tough for our AFSCME employees, but I’m really proud that they stepped up for the second time and gave significant concessions that are very much needed to help reduce the City’s spending."

The 29-member AFSCME bargaining unit is comprised of clerical, building and code enforcement employees and librarians.

AFSCME joins the Professional and Technical Employees Association and the Executive Department Heads in agreeing to a second round of concessions.

The City is hopeful it will soon obtain additional concession agreements from three other non-uniform groups.

There have been no concession agreements with police and fire unions to date.