Operating Engineers, Educational Office Employees ratify new cost-saving contracts with Detroit Public Schools

Steven Wasko at 313-873-4542
Kisha Verdusco at 313-873-8401

Members of two Detroit Public Schools collective bargaining units on Thursday and Saturday ratified new contracts that will save the district more than $2.5 million annually.

Members of the International Union of Operating Engineers (I.U.O.E.) ratified their contract on Saturday. The I.U.O.E. contract results in a $1.2 million dollar concession per year and adoption of the District’s health care plan. The union also accepted and approved each of the Instructional Reform Initiatives (i.e., Priority Schools, Shared-Decision Making, and School-Based Bonus Letters of Agreement) as well as other revisions to the contract.

Members of the Detroit Association of Educational Office Employees will have their salaries frozen for two years under a new three-year contract ratified on Thursday. The DAEOE concessions total $1.3 million.

Overall, the District anticipates up to $47 million in annual savings from changes to employee benefit packages. The district is offering one package to all employees, rather than benefit packages tailored for specific bargaining units. This package includes two HMOs, two PPO options through Blue Cross, vision and dental coverage. The HMO and dental plans require employee cost sharing of 10 percent of the monthly premium.

Employees who choose one of the PPO plans must pay 10 percent plus the difference between the cost of the HMO and the PPO. All health plans have co-payments and pharmacy co-payments.

The district’s collective bargaining agreement with the Detroit Federation of Teachers, ratified in December, saves the district $118.1 million over the three years of the contract and includes $28.6 million in health care savings per calendar year for DFT alone

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