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Canton Township, police officers reach 3-year pact By TIFFANY L. PARKS OBSERVER Staff Writer October 31, 2008

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Presentation on theme: "Canton Township, police officers reach 3-year pact By TIFFANY L. PARKS OBSERVER Staff Writer October 31, 2008"— Presentation transcript:

1 Canton Township, police officers reach 3-year pact By TIFFANY L. PARKS OBSERVER Staff Writer October 31, 2008

2 Three Year Contract Township officials approved a 3-year contract for Canton's police officers Tuesday night. The negotiations between the township and the Police Officers Association of Michigan spanned about four months. The contract is for July 1, 2008 through June 30, "We had various meetings," said Finance Director Rick Eva. "I think it's a reasonable contract for both the police officers and the township. There was give and take between the two." Unlike past contracts, where a 3-percent salary increase was pegged for each year, the new agreement calls for a 3-percent raise the first year, followed by a 2.5-percent raise the second year and a 2-percent raise the third year.

3 Its the Economy! It's the economy that is driving that," said Eva, adding that another change calls for all new police officers to pay 5 percent of their health care costs. The police officer's agreement is similar to the new contract recently approved for Canton firefighters. Officials will negotiate the contract for its clerical workers next. "It's an ongoing process," Eva said, noting that the township negotiates with seven unions, including two that represent command officers in the police department.

4 Expenditures The Economics Simple factor supply and factor demand. Labor $ MP MC How can they raise wages? Are the workers more productive?

5 Also Full costs are wages + fringe benefits. In most public employers, fringe benefits are about 20 to 25% on top of wages. What do fringes include? –Social Security/Medicare – about 7.65% –Health Benefits – about 10% –Others include retirement benefits Making the workers pay 5% of their health care costs, reduces their full benefits by 0.05*10% or about ½ of 1%. This reduces wage increases by about ½ % per year.


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