Wait and see union politics has leadership singing “I Love New York” all the way to the bank. Union leaders are cashing in their chips thanks to Mayor Bill de Blasio. More from The WSJ’s Review and Outlook:
Unions refused to negotiate for five years with former mayor Michael Bloomberg, and their refusal has paid off. Union chief Michael Mulgrew stood next to Mr. de Blasio in announcing a new contract and said he couldn’t “thank the mayor enough.”
And no wonder. The deal includes an 8% retroactive raise plus a 10% cumulative bump from 2013 through 2018. The 19.5% compounded pay increase will boost the starting salary to $54,411 from $45,530 and the maximum to $119,565 from $100,049. Teachers will also get a $1,000 signing bonus for approving the contract that rewards their recalcitrance.
The raises will cost the city $5.5 billion, and Mr. de Blasio is touting some $1.3 billion in savings from health care. But the contract includes no employee contributions for premiums, though most American workers pay 20% to 30% of their health costs. The specific cuts will be determined later, which may mean never.