PHILADELPHIA – The City of Philadelphia and approximately 2,300 employees represented by District Council 33 (DC 33) Local 159 and DC 33 Local 1637 today received an arbitration panel’s award for a new contract.
The employees received a three-year contract which covers the period from July 1, 2017 through June 30, 2020. The award covers those members of DC 33 Locals 159 and 1637 who work as correctional officers, maintenance workers, prison trades workers, and youth detention counselors. Because they are categorized as guards, they have a statutory right to interest arbitration.
The employees will receive a stepped wage increase of 3 percent effective retroactively July 2017, 3.25 percent increase effective July 2018, as well as a 3.25 percent increase in July 2019. The award also includes payment modernization elements including direct deposit or a “pay card” for all employees. Over five years, the cost of the contract is estimated at $63 million.
This group of employees was already subject to the DC 33 pension reforms from a 2016 contract. 10,700 employees, or 37 percent, of all City employees are subject to the DC 33 reforms. When DC 33 represented employees are combined with FOP represented employees, 17,300 City employees or 60 percent are currently participating in pension reforms.
State law dictates that some City contracts are decided by a panel of three arbitrators, one selected by the City, one selected by the union, and one neutral arbitrator. The arbitrators hear testimony from numerous witnesses and review exhibits presented by both parties before issuing their decision.
The arbitration panel takes into consideration the City’s requirement to annually adopt a balanced budget and Five Year Financial Plan for continued solvency. In making its decision, the panel considers the City’s budget and “ability to pay arguments” while also taking into account the challenges faced by employees, including working conditions and compensation related to other public safety employees.
The arbitrators’ decision is available on request.