Town, Public Works Reach 5-Year Contract Agreement

After almost a year, the town concluded contract negotiations with Public Works employees this past Thursday, March 28. Both the town and Public Works voted unanimously to approve a new, 5-year contract for the 17 Public Works union members. The overall agreement is retroactive from July 1, 2012, and will expire July 1, 2017.

Overall, there will be a 2.66% salary increase for Public Works employees over the five years. The rate increase will begin in the third year of the contract, with approximately a 1% increase, and the fifth year will bring another 1% increase.  

Under the new contract, the town has also agreed to contribute to the union's pension plan. The town will also pay $4.3 million unfunded liability over 25 years at 0% interest.  

"We're very happy about this agreement," First Selectman Joe Mazza told Guilford Patch. "Negotiations were long, but this is a fair and reasonable agreement we've come to through collective bargaining."

Mazza stated that when talks first began, two federal legislation acts, including the 2006 Pension Protection Act, stalled progress in the negotiations because the town could simply not budget for the potential increases.

"We called in specialty lawyers to help us," Mazza explained. "We could not make this first option we discussed work. So, we came up with this second option that we've agreed on. The union was willing to opt for a pension versus the rate increases."

Mazza states there are a lot of positives in the agreed upon plan for the town. He explained that the rate of increase is reasonable, and the town is also able to have more control over liability and pension contributions.

"We are able to cap the liability the town will continue to face," Mazza shared. "Since we are fulfilling unfunded liability, we are able to pull out of the pension plan, which before, we had no control over. We are protected from future unknowns. Also, going forward, the new plan gives us the ability to negotiate contributions."

Mazza also explained that under the new contract, the town is required to fund less workman's compensation. 

"For Public Works employees," continued Mazza. "They have the comfort of knowing their pensions are protected. We arrived at a plan now that comes from collective bargaining, and it is a fair deal for the town."

According to The New Haven Register, Human Resources Director Mitchell R. Goldblatt stated that "he feels the contract is 'fair going forward.'"

The new contract was approved in a 5-0 'for' vote by the Board of Selectmen, and a 17-0 'for' vote by Public Works. The agreement will not affect the current proposed budget.