Philadelphia and the city’s largest union, representing more than 7,000 members, signed a four-year labor contract Friday.
AFSCME DC 33, representing streets, sanitation and other municipal workers, will be the first major city union to enter into a progressive tiered pension contribution structure for current members and a stacked hybrid plan for new members, according to Mayor Jim Kenney’s office.
“I want to thank District Council 33 President Pete Matthews and his entire team for their commitment, hard work and dedication to reaching an agreement that is fair to employees but also fair to the taxpayers of this great city,” said Kenney. “Making the pension fund sustainable has been a key goal of my administration from the beginning. Today’s agreement marks a key step in that process.
“Under this agreement, employees who earn more will pay more for their pensions. We believe that this approach will provide needed assistance to our pension fund and also be fair to city employees at every level.”
Additionally, DC 33 employees will receive a stepped wage increase of 3 percent in July of this year, 2017 and 2019 as well as a 2.5 percent increase in July 2018.
The average salary of DC 33 employees is approximately $38,000. The four-year pact also provides additional funds for the DC 33 health fund to continue to provide quality health benefits to city employees.