The Town of Saugerties has entered into a memorandum of agreement with mechanics in the International Brotherhood of Teamsters, Local Union No. 445, ending what supervisor Fred Costello called, “a difficult negotiation, to say the least.”
The new contract with the bargaining unit is more of a series of modifications than a wholesale change, with various adjustments noted throughout a six-page agreement that originally covered the period between January 1, 2022 and December 31, 2024. The new agreement retroactively begins on January 1, 2026 and runs through December 31, 2028.
In the agreement, the annual base salary for heavy equipment operators (HEO), motor equipment operators (MEO) and mechanic’s helpers starting on January 1, 2025 increases by $0.75 per hour, plus an additional 3 percent. The annual base salary for working supervisors — formerly known as “lead men” — increases by $1.25 per hour, plus an additional 3 percent. And the annual base salary for laborers and mechanics will increase by 3 percent.
Effective January 1, 2026 all covered worker salaries will increase by 3 percent; on both January 1, 2027 and January 1, 2028, those salaries will increase by 3.25 percent.
There are also longevity increases connected to employee wages. On their 6th anniversary, employees covered by the contract will receive an extra $1,200, rather than $1,150. Similar increases are seen through an employee’s 29th anniversary – $7,700, up from $5,825 – with the exception of the 10th anniversary, where the longevity payment of $2,000 remains.
Health insurance has also been impacted by the new contract. Instead of a dollar-specific subsidy, the town will now fund a deductible with an 80 percent health reimbursement arrangement (HRA).
Vision care, eliminated in the previous arrangement, will now be covered by a maximum of $225 per year starting last January, and $250 starting on January 1, 2026.
Costello said he and councilman Mike Ivino negotiated the contract on behalf of the town board.
“There were strong emotions on both sides of this,” Costello said. “There was a little bit of division amongst membership as well. And it took longer than we thought.”
But in the end, he said he was happy with the deal.
“I think this is a fair deal for the membership as well as residents,” Costello said. “These are critical employees in the Town of Saugerties…and they’re an important component of the service that town government provides. We think this contract will give them a comparable pay to their peers and it’s well deserved. And I’m happy and a little bit relieved to have the opportunity tonight to ratify this agreement.”
Teamsters Local 445 is the largest labor union in the Hudson Valley, serving over 3,000 members in seven counties, including Ulster. Among the nine divisions represented by the union are construction, public employment, freight, healthcare, warehouse, law enforcement, school bus and transportation, industrial and other miscellaneous employees.
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