Police Officers agree to pay cuts and other concessions

The 55 member Royal Oak Police Officers’ Association last Friday ratified a contract which includes pay cuts, reductions in health care benefits, increased employee contributions for pensions and health care and other concessions.   The City Commission voted unanimously on Monday to approve the two year agreement which will run from 7/1/2011 through 6/30/2013.

Mayor James Ellison thanked ROPOA members for their ratification.   “This negotiation process was a long and difficult one for the union and the City, but under the leadership of president Stehlin and his board, officers Zelakiewicz, Van Ochten, Beauchamp and Wolas, the union ultimately decided to follow the path that was best for the City of Royal Oak, and I commend them for that,” he said.
    
“With this contract, every one of our ten bargaining units has given concessions  equal to at least 15% of base wages,” said City Manager Donald E. Johnson.   “Altogether, the new contracts will save us $2.6 million per year.  That's a lot.  I don't know of another city that has done better in negotiations, he said.”  

The tentative agreement with ROPOA follows the pattern of concessions given by all other City bargaining units.  Members 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; 20% contribution for health care premiums; a $10/$40/$80 drug rider; mirroring of prescription drug coverage at retirement with prescription drug coverage for active employees; and increasing their pension contribution to 6 percent.  The ROPOA increased their pension contribution from 2 percent to 5 percent in the previous contract.  The unit also agreed to reduce the pension multiplier for new hires as of June 1, 2012 from 2.8% to 2.5% and final average compensation was changed to the best three years of the last five.

The City of Royal Oak now has settled contracts with all ten bargaining units until June 30, 2013.

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