One of the highest priorities of the City Council’s financial recovery plan was to regain control of skyrocketing employee medical insurance and retirement contribution costs. After months of negotiations and weeks of mediation facilitated by Micki Callahan, Division Chief of the State Mediation and Conciliation Service, the City of Richmond and four of six public employee unions have reached a tentative agreement that results in the unions taking responsibility for the “employees’ share” of PERS contributions (previously paid by the City) and placing a maximum on the amount the City will contribute toward medical insurance. The unions will receive a commitment for a one time salary increase several years after their previous one.

The agreement is a credit to City Council teamwork, a savvy and professional negotiating team, and to the unions fully appreciating the gravity of the situation and being willing to roll back benefits for the greater good of the City of Richmond.

The only holdouts in the settlement are the firefighters and fire management, both of whom remain in negotiation.