Today, Mayor Bill de Blasio will announce/is announcing/announced wage increases to $15 an hour for public employees and employees of nonprofits that are contracted by the City of New York to provide social services. This increase will be fully effective by the end of 2018. The costs will reportedly total $238 million through fiscal year 2020—$36 million for public employees, mostly represented by District Council 37 and the Communication Workers of America (CWA), and $202 million for nonprofit employees.
The announcement is concerning for two reasons. First, the added costs to New York City taxpayers will come without any additional service or productivity improvement in return. (CBC warned of this in an op-ed published Monday.) Second, it establishes a troubling pattern of making contracts more costly mid-stream: it is second enhancement of DC37’s settled labor contract and the latest alteration of existing contracts with vendors to make them more costly.