FOR RELEASE: December 8, 2010

Troy City Council Unanimously Approves Contract

with Troy Fire Staff Officers Association

(TROY, MI) – The Troy City Council unanimously agreed to a three-year contract with the Troy Fire Staff Officers Association (TFSOA) at their November 22^nd City Council meeting.

The agreement between the City of Troy and the TFSOA, for the three-year period from July 1, 2011 through June 30, 2014, will result in a 13 percent) savings in the Fire Department’s payroll. The City’s 12 full-time and two part-time TFSOA employees signed a tentative agreement on October 19.

“We realize that Michigan’s unemployment rate continues to rise and reductions in the taxable value of real estate are adversely affecting the City of Troy’s operating revenues,” Assistant Fire Chief and TFSOA Union Steward Keith Lenderman said. “Michigan’s continuing economic distress has led City management to project significant budget short-falls for fiscal years 2011, 2012 and 2013, so the TFSOA wanted to show our support for the community by making reductions to the Fire Department’s payroll.”

The contract, which is one of six the City is seeking to renegotiate with employee groups, includes a five percent wage decrease in the form of furlough days, cost-saving changes to health insurance and the elimination of longevity pay. An early retirement Incentive program will also be offered and will only be implemented if the City saves money as a result the early retirement.

“The TFSOA’s agreement as well as the City Council’s unanimous approval of the three-year contract are critical steps needed to continue the process of the City of Troy fiscal responsibility,” City Manager John Szerlag said. “The economic uncertainty demands that the City of Troy government reduce operational expenses while improving efficiency and effectiveness; and that is exactly what we are doing with the support from our employees.”

City administration has reduced the workforce by 96 full-time employees in the last 6 years. This equates to 20% of the full-time workforce. Troy has the lowest millage rate in the area and one of the lowest per capita rate of employees to residents in Michigan, and numerous measures have been taken thus far to position Troy to implement these cuts to staff and resources with minimal interruption to services. TSFOA three-year contract is the first of the six employee groups in organized labor to agree to cost savings to decrease the City’s payroll expenses.

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