The Three Rivers City Commission has ratified a new, three-year contract with Department of Public Services employees represented by the Teamsters Union.

Action on the pact came at the end of Tuesday evening’s (December 1st) commission meeting following a closed session to discuss union negotiations.

The agreement covers nine full-time workers and three part-time employees.

In post-meeting comments, City Manager Joe Bippus said, “The big thing for the city was the insurance.  We’re teaming up with a Teamsters Union consortium that covers three states.  We’re part of a bigger pool now so it’s lowered our premiums.  But the big change is that employees now will be required to pay their co-pays, $1,200 deductible, and additional prescription costs.  Those are big expense items.”

Bippus noted that, in response to those changes, full-time employees will get a three percent raise each year of the contract.  Additionally, there are some changes with part-time employees.  The scope has been narrowed so that part-time employees who do Equipment Operator 1 and Equipment Operator 2 work will be allowed to be in the union.  Other part-time workers will not be in the union.

According to Bippus, part-time employees will be given a raise from $10.31 per hour to $12 an hour.

Bippus said that – under the new contract – the city will save $141,000 a year just on rates and the rates are guaranteed for three years.  Also, a $500,000 potential liability for the city under the previous insurance program is gone.

Noting the combination of cost saving and cost sharing under the new agreement, Bippus said that employees pay more, but the city pays less in premiums.  “The employees also share in the cost, reducing the city’s overall, out-of-pocket expense and liability.  That’s why we gave them the three percent raise.”

The contract was ratified earlier by the union.