BREAKING NEWS: City Saves $26 Million with New Labor Contract

BREAKING NEWS: City Saves $26 Million with New Labor Contract

Providence Mayor Angel Taveras announced this afternoon that the city has struck a new contract with Local 1033 of the International Laborers’ of North America, saving the city $7 million in the next 18 months and $26 million over four years.

“These are not symbolic cuts: these are real changes that will help us address the fiscal crisis we face, both short and long term. It is never easy to take a pay cut,” Taveras said. “I truly appreciate 1033’s willingness to be a partner in our effort to put Providence back on solid financial footing.”

The contract calls for a pay cut, a three-year hiring freeze, a reduction in longevity, and lower wages for new hires. It also bumps up co-pays for insurance and improves city services, with “no additional overtime,” according to the Mayor’s office.

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“Local 1033 was an honest and forthright partner in this negotiation,” Taveras said. “Leadership came to the table in good faith and with a realistic understanding of the difficult steps we must take to restore Providence’s fiscal health.”

The new contract will be signed tomorrow.