City hall Reopens as Employees Accept Concessions

In a breakthrough agreement Monday, members of City of Royal Oak AFSCME Local #2396 ratified a tentative agreement, joining the Executive Department Heads and the Professional & Technical Employees Association in agreeing to concessions to help reduce the City’s financial challenges.  The tentative agreement will be presented to the City Commission for its approval next Monday, August 16, 2010.

As part of the Agreement, the employees agreed to take 13 furlough days, five unpaid holidays, pay a portion of their health care, increase their contribution toward their pension by three percent, forego a two percent wage increase and take a reduction in their longevity payments.  The overall savings to the City as a result of the concessions in the one-year Agreement which will expire on June 30, 2011, amounts to approximately 15 percent of their wages.  

Mayor Jim Ellison welcomed the news late Monday.  “I want to thank the AFSCME employees for stepping up and agreeing to take concessions during this difficult time,” he said.  “I know this required major sacrifice on the part of these employees.”  City Manager Don Johnson was also pleased with the ratification.

 “AFSCME has really helped the City in two ways,” he said.  “Not only did AFSCME employees agree to concessions that help reduce our personnel and pension costs, but the agreement provides for the employees to work a 40-hour week.  With more employees available to service the public, I am pleased to announce that City Hall will reopen to the public on Friday mornings. “  

The 35-member AFSCME bargaining unit is comprised of clerical, building and code enforcement employees and librarians.  The unit has seen a reduction its membership by 15 employees in the last five years.

For Immediate Release: City hall Reopens as Employees Accept Concessions

Contact: Donald E. Johnson
City Manager, (248) 246-3200

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