UPDATED: Largest Providence Union Makes $26M in Concessions

UPDATED: Largest Providence Union Makes $26M in Concessions

Providence Mayor Angel Taveras and the city’s largest employee union today officially signed a new four-year contract.

The contract, for Local 1033 of the International Laborers of North America, saves the city an estimated $26 million over four years—including $2.2 million in the current fiscal year and $4.6 million in the next.

“We understand that the City of Providence must cut spending to address the fiscal crisis we now face. Local 1033 members want Providence to get through this difficult time and emerge stronger,” said Donald Iannazzi, the business manager for Local 1033.

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He added: “Tough times call for tough decisions and we appreciate the opportunity to negotiate with the City and come to an agreement that realizes significant savings while recognizing the important role 1033 members play in making Providence such a great city.”

The agreement affects about 780 city workers, from crossing guards and secretaries to emergency dispatchers—in other words, virtually every worker who is not a firefighter, police officer, or teacher.

Union Concessions

Union concessions included:

■ Forgoing any raises for three years.
■ Health insurance co-pays for those making $50,000 or more will increase to 16.5 percent in 2012, 18 percent in 2014, and 20 percent in 2015. Those making less will start paying 15 percent in 2014.
■ Longevity payments have been reduced by one percent.

UPDATE: Councilmen praise contract

Councilman Kevin Jackson, D-Ward 3, commended the union for all of the concessions it made, especially on its pay. The union is giving up a series of raises it was expecting—one percent that was due January 1, 2011, 2 percent for July 1, 2011, and one percent on January 1, 2012. Also, new hires will earn wages at 15 percent less than the current rate and current members will take a one percent pay cut effective July 1, 2011. 

“I don’t know of any other union that has willingly done that,” Jackson said.

“I think it’s the right step forward. We know there’s no way we can balance the budget on the backs of workers, but it helps,” added Councilman Miguel Luna, D-Ward 9. “I’m really pleased to see 1033 step to the plate saying, ‘We want to help you.’”

But neither is the city putting the budget on taxpayers, said another councilman. “The collaboration between 1033 and the administration sends a clear message that our fiscal woes cannot and will not be solved on the backs of Providence taxpayers,” said Councilman David Salvatore, D-Ward 14.

Luna said he intends to vote to ratify the contract. Jackson said he will need to review it more thoroughly before committing to a vote, but right now, he said it looks “promising.” Salvatore did not specify how he will vote.

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