TRAVERSE CITY — Unionized Traverse City firefighters have a new contract.
City commissioners at Monday's meeting approved a new five-year deal, capping months of negotiations. The union ratified the deal last week.
Firefighters were working under the terms of their last contract, which expired in June.
The new deal includes a 2 percent pay increase effective July 1 of 2009, 2010 and 2011. Firefighters will receive back pay to satisfy the 2009 hike, City Manager Ben Bifoss said.
Wage increases in July of 2012 and 2013 will be determined by inflation and could range up to 4 percent.
Those increases are in line with raises negotiated by other city employee unions, Bifoss said.
Firefighters also will get an "improved" dental plan and see life insurance bumped from $10,000 to $50,000.
A factor used to determine firefighters' pensions proved a sticking point in commission discussion and led Commissioner Mike Gillman to cast the lone dissenting vote against approving the contract.
The new contract increases the pension factor — a figure that's combined with an employee's years of service and wage level at retirement to determine pension — from 2.5 to 2.8 percent.
Firefighters are supposed to contribute enough toward their pension to make up for the increase, but Gillman contends the city "almost undoubtedly" will end up losing money on the deal.
"Actuarily covering it and actually covering it are two different things," he said, referring to actuaries who help craft the pension formulas.
Bifoss agreed with Gillman, but said the city could lose bigger if the city wound up on the losing side of an arbitrator's ruling on the matter.
Union representatives within the fire department couldn't be reached for comment Monday night.
Region
TC firefighters get new contract
Approval ends months of negotiations
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Video: 'Taps' at Memorial Day service at Oakwood Cemetery
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Get to work without using your car
- Monday, May 28, 2012
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City to discontinue spring cleanup
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Terry Wooten: WWII soldier's story told in poems
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Memorial Day events
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Travel season begins
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Underwater archaeology school returns to NMC
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Paving under way on 6.5-mile stretch of Leelanau Trail
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July 4 to sparkle for years to come
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GT Road Commission won't renew Gillis' contract
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