As neighboring municipalities struggle to balance staggering costs for mandated health and retirement benefits with dwindling revenues and a two percent tax cap, the Village of Larchmont (VOL) has negotiated a new contract with firefighters that will provide cost savings for years to come.

A year and a half in the making, the VOL has negotiated a five-year contract with the Larchmont Professional Firefighters Association—the union representing the Larchmont Fire Department and career employees—where newly hired union members will contribute more to healthcare and pension costs than in years past.

With average raises for firefighters in the range of 4 percent per year for the last decade, “This rate of wage increase was clearly untenable,” said Larchmont Mayor Josh Mandell.

In the new contract, wage increases will be capped at 1.5 percent per year. 

Additionally, new hires will also contribute 25 percent of their healthcare costs with no cap, unlike current employees who will still contribute 25 percent, but will cap out at $3,500 annually.

And, looking father down the line, newly hired employees will contribute 50 percent to their retirement plans, the largest contribution permitted by New York State Law for civil service employees.

“We literally couldn’t ask for more from the employees,” said Mandell, continuing, “This would represent a gift to future generations who will enjoy turbo-charged tax relief when these employees begin to retire.”

Existing employees will still contribute 25 percent to their retirement plans with no cap.

Although the VOL was able to negotiate with the union this time, concessions can sometimes get more complicated. According to the Taylor Law—a New York State labor relations statute protecting public employees—police and fire unions are given the option of going through binding arbitration if negotiations reach an impasse. An arbitration panel is appointed to make the final decision, which becomes legally binding. 

The last time the VOL went through a binding arbitration, they awarded the police union a 3.7 percent raise, said Mandell.

The board of trustees, however, were unwilling to take credit for the finalized contract.

“Credit should be given to our employees, first and foremost, who now make contributions to their health insurance at a rate that is substantially higher than many municipalities in this area require,” said Mandell.

After the board unanimously approved the contract, Mandell then appointed board member John Komar as the new fire commissioner.