NEWS INFORMATION FROM

THE OFFICE OF MAYOR STEPHEN R. REED
City of Harrisburg
King City Government Center
Harrisburg, PA 17101-1678
Telephone: 717.255.3040

FOR IMMEDIATE USE
April 22 2005

CITY & AFSCME UNION SIGN NEW TWO- YEAR CONTRACT

 

Mayor Stephen R. Reed and representatives from the City’s AFSCME Local 521 today signed a two-year labor contract that will provide over $1.5 million in savings to city taxpayers through late 2006, and includes a wage freeze during 2005 for all management and Local 521 members.

Reed said city managers and union personnel first began negotiating the new agreement in early 2004, and a final vote by the bargaining unit members was taken on the contract in September of last year. The contract was approved by a wide margin of 125 to 48.

The Mayor said highlights of the contract include a wage freeze during 2005 for all local 521 members and city management personnel; a 2% salary increase for all union members in October of 2006; changes in the city’s healthcare benefit which include increased co-pays; a reduction in life insurance amounts; no layoffs of any bargaining unit members through 2006; and changes in overtime and part-time benefits and policies. All together, the changes combine to realize $1,537,830 in savings for city taxpayers.

“This was not an easy contract to reach,” said Mayor Reed, “as very hard decisions had to be made by both of the negotiating teams. In the end, however, it came down to what is right for the taxpayers of Harrisburg, and to their credit AFSCME Local 521 took bold steps in reaching that goal. Our AFSCME workers have always been sensitive to the needs of this community where most of them also live.”

Reed said the city’s overall workforce has declined dramatically during the current era. More than 1200 employees were on the city’s payroll in the early 1980’s and today, including management, AFSCME, police and firefighters, only 647 employees are on staff.

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