Some Philadelphia city employees are going to receive their first raise in five years. Rank and file union members will be left out.
About 5,500 city employees will see a 2.5 percent wage increase on Oct. 1. The workers are mostly those not covered by city unions, such as those who work for Mayor Michael Nutter, City Council and the courts. A few union supervisors will get them too.
Normally these workers get pay hikes tied to union contracts. Deputy Mayor Everitt Gillison says the city can’t wait any longer for the unions to agree to a deal.
“These folks will have been taken care of for the time being that they are in right now and we can say to those that remain,” said Gillison. “It’s time for you to make a choice what are we going to do and let’s negotiate.”
Budget Director Rebecca Rhynhart says the wage increases will come with higher health insurance co-pays and pension contributions which could eat up much of the raises for some of the workers.
Under the plan, new hires would get a less generous hybrid pension. It combines a traditional guaranteed benefit (but at a lower level) with a 401(k)-style “defined contribution” plan.