ALTON - The City of Alton’s attorney has not received any notice to strike from the Teamsters 525 union. The City made its most recent offer to the Teamsters on August 15th. The offer provided for a 3% minimum wage increase each year of a four (4) year contract. As provided to the Teamsters 525 union, the offer was: 1. A guaranteed minimum wage increase of: a. 2026-2027 - 3%, b. 2027-2028 - 3%, c. 2028-2029 - 3%, d. 2029-2030 - 3%. e. Should any unit negotiate a higher wage increase, the same negotiated wage increase will be effective for IBT bargaining unit employees. 2. Medical insurance will be “as is” for 2026-2027 contract year.
Thereafter, the Teamsters bargaining unit employees will receive medical insurance benefits under the same terms and conditions as such benefits are provided to other unionized City employees. (i.e., if the City negotiates changes to medical insurance to offset the cost of higher wage increases in other contract negotiations, those changes to the medical insurance program, as well as the higher wage increase, will be applied to the Teamsters unit as well).
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The City provided a fair offer that provided Public Works employees with important protection on the issue of wage increases. If any other union negotiates a better annual wage increase, the City would provide such additional increases to the Teamsters as well. For instance, if the Firefighters negotiated a 3.25% raise each year, the Teamsters would receive the same. Similarly with respect to medical insurance benefits, the city provided that the Teamsters would receive the same coverage that were provided to other unions.
The City’s medical insurance proposal would place all employees, union and non-union, under a modified health insurance program that maintains outstanding insurance benefits for our employees while allowing the City to curb spiraling medical costs. Depending on an employee’s plan choice and circumstances, additional costs would range from zero to minimal. In some instances, the new plan structure would decrease employee costs.
Although the changes would not significantly affect employees’ personal finances, they would allow the City to reduce the projected $2.2 million increase in medical expenses between now and April 2030. Without healthcare plan modernization, costs for health insurance are projected to exceed $8.8 million by 2030. Currently, the average Teamster-represented City Public Works employees makes $64,222 per year, plus payment for any overtime worked.
At 3% per year, the average pay for 2029-2030 would be over$72,000 per year, without accounting for additional earnings from overtime. Even with the proposed changes, the City of Alton would still offer an employee-friendly, cost-controlled medical insurance plan that would be more generous than most comparable communities in our area. In addition to its efforts to mitigate spiraling insurance costs, the City is also trying to manage increased construction costs as we replace and repair essential infrastructure.
Further, the funding from higher levels of government remains uncertain, competitive, and often late. The Mayor, City Council and the city administration are trying to find ways to control costs to protect the vital services we provide and keep tax rates reasonable for citizens.
The City of Alton will continue to bargain in good faith with its union employees. The City values its employees and the hard work they perform in service to the public. The City wants to provide fair wages and benefits for that work but it must spend within its means. The City cannot offer wage and benefit packages that exceed its actual and forecasted revenue. The City also cannot prioritize employee wage increases and benefit enhancements over providing the essential services it must provide the community. Reasonable wage increases and commonsense changes to employee health insurance will help the City continue to provide essential services to the community without taking drastic measures such as tax increases, layoffs, or reductions in services.
