Hartford’s firefighters union is the first major bargaining unit to ratify a new contract, which is expected to save the city approximately $17 million by 2020, Hartford Mayor Luke Bronin announced Monday.
The city’s deal with Local 706, which still needs the approval of city councilors, is expected to save $1.5 million in the current fiscal year and $3.5 million in the coming year, which will put a dent in a projected deficit that has climbed to approximately $50 million.
At a press conference at city hall Monday afternoon, Bronin said it’s difficult to calculate the future impacts precisely, but the city believes the deal would save an additional $500,000 in savings in each of the remaining years.
He said the deal falls in line with his previously stated goal of achieving $12 million in union concessions. That may be unlikely to happen in the current fiscal year, as he’d hoped, but if other bargaining units agree to similar terms, it should add up to about $12 million next year, he said.
Bronin said the deal will save money well into the future, assuming subsequent union contracts keep the terms.
Bronin secured a four-year wage freeze, the implementation of a high-deductible health plan and an increase in employee pension contributions.
Under the expired contract, firefighters contributed 8 percent of their pay towards their pension. But under the new deal, they would pay 11 percent.
In addition, firefighters with less than 10 years service would have to reach 25 years of service to retire, instead of 20.
The pay scale for new hires would be reduced by 10 percent, and new hires would pay 2 percent towards a healthcare trust that would fund a healthcare stipend upon retirement, which the city says would “effectively eliminate” its liability for funding retiree health care.
The mayor said he isn’t worried that the deal will deter people from applying to be firefighters. Approximately 700 people expressed interest in positions with the department this year, he said.
“I think that interest is going to remain strong,” he said. “It’s still a great job with great benefits and it’s a noble calling.”
Correction: A previous version of this story stated incorrect information about Hartford firefighter pensions. The contract that expired in June did not include overtime payments in pension calculations. The new agreement, which needs city council approval, also excludes overtime, but increases the employee contribution to 11 percent.
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