The City of Muskego will realize a net savings of about $53,000 in labor after reaching a two-year agreement with the Muskego Police Department (MPD).
MPD employees will realize a 3.5 percent increase in their salaries, however the amount they will pay into their health insurance benefits will rise from 6 percent of their salaries to 9 percent in 2012 and 10 percent in 2013.
The Common Council met Tuesday night first in closed session, and later ratified a new 2012-2013 Collective Bargaining Agreement with the Police Union. The Agreement provides for a total wage and benefit package over the two-year term, which is below the City’s budget, and with an overall reduction in labor costs for Police Department employees, according to a release from the city.
Under the new agreement
- Police employees will receive a 3.5 percent increase in their wage rates for 2012 and for 2013, above that seen in the private sector
- Employees will also pay a 2.95 percent contribution to their retirement (WRS) as of July 1, 2012, and will pay the full employee contribution to WRS, which is projected to be at or above 6 percent in 2013
- The change in contribution will result in a net increase in pay of only about .5 percent per year.
- Employees will pay more towards their health insurance premiums, from a little more than 6 percent in 2011 to 9 percent in 2012 and 10 percent in 2013.
A release from the city explained that "the cost of wages and benefits in 2012 will be lower than budgeted. Further, savings in labor costs over the two years of the contract even with the wage increases, for the same number of employees, is projected at $53,000 as a result of the WRS and insurance concessions."
"Public safety employees (Police and Fire) were made exempt from the Act 10 reforms. Nonetheless, we were able to reach this settlement without the need for mediation," the release stated. "It is consistent with the wage and benefit packages provided to Police Department employees in comparable communities, and we believe it will allow the City to continue to attract and retain high quality employees."