City Council approves costs associated with 3 union contracts

LACONIA — About 150 municipal and School Department employees will be receiving pay increases averaging just over 2% under new labor contracts following action by the City Council.

The council on Monday unanimously approved the 1.8 percent cost of living raise and other cost elements of contracts covering the members of the local of the State Employees Association which represents 34 administrative workers in various municipal departments, and the local of the Association of Federal, State, County and Municipal Employees — or AFSCME — which represents 16 city Public Works employees.

Both contracts are for one year and take effect on July 1.

“Because of the uncertainties surrounding COVID the city and the unions agreed to status quo, short-term contracts,” City Manager Scott Myers said. Ordinarily the union contracts cover a period of two or three years, he said. The amount the employees contribute toward the cost of their health insurance remains unchanged under the new contracts, he added. Currently those covered by the contracts pay 15 or 20% of the cost of their insurance premiums, depending on which plan they choose.

Others increased costs include contribution toward the employees’ retirement plan, and their Social Security retirement benefit.

The council also approved unanimously raises averaging just under 2.5 percent and other cost elements in a three-year agreement between the Laconia School District and the Education Assistants of Laconia. That bargaining unit represents 99 paraeducators and secretaries and other clerical workers. That contract also takes effect on July 1.

The council acted on the contract because it approves the bottom line of the School District’s budget.

Myers said additional cost elements in the SEA contract amount to $83,203, and $25,074 in the AFSCME contract.

The added costs of the EAL contract will be $216,928 over the three-year contract period, Superintendent Steve Tucker said Tuesday.

The EAL contract calls for a 2.1 percent pay increase in the first year of the contract, and increases of 2.7 percent and 2.6 percent in the second and third years respectively.

The district continues to pay the entire cost of the union members health insurance, Tucker said.