WESTBROOK – The Westbrook City Council gave its initial approval Monday to a three-year contract between the city and the employees in what is termed the “General Unit.”

The contract calls for pay hikes for each year, but savings to the city in health insurance and pension costs.

The so-called “General Unit” covers 32 positions in city government, including employees in such positions as clerical, accounting, library services, community services, code enforcement and supervisory personnel in the Public Services Department. The council voted 6-0 (Council President Brendan Rielly absent) to give its preliminary approval to the contract. The council must vote on the contract a second time before it becomes final. The time for the second vote has not yet been scheduled.

Councilors had been briefed on the contract and all of the city’s ongoing negotiations in an executive session prior to the vote, and there was no public comment from the council on the new contract.

The city is in negotiations with all of its unions, and is still bargaining with representatives from the Westbrook Fire/Rescue Department union, the Westbrook Police Association, the Westbrook Public Services unit and the Westbrook Public Safety Dispatchers.

The General Unit contract runs retroactively, from July 1, 2012, through June 30, 2015.

According to City Administrator Jerre Bryant, officials are pleased with the contract.

“Our objectives during this round of labor negotiations has been to better manage our benefit costs, particularly in the categories of health insurance and pensions,” Bryant said. “I am pleased to report we have made significant advances in these areas, negotiating changes in our employee health insurance program that will immediately lower premiums by 19 percent while preserving current benefit levels for our employees.”

Liam Gallagher, the city’s human resources generalist, said the savings in health insurance will be realized by switching insurance plans while keeping the same provider. Gallagher said the new plan, which provides the same level of coverage, has a premium that is 19 percent lower than the current premium, and that savings will be passed onto the employees. Gallagher added that the city will still be paying 88 percent of the premium for employee health insurance and the employee will pay 12 percent.

Gallagher said that while the new plan has a $500 deductible, where the previous plan had none, the employees would be covered by a city-funded health reimbursement account, which will cover 75 percent of the deductible and other costs incurred by the employee.

Bryant said the city negotiated changes in the structure of pensions that would lower the city’s cost by 25 percent for all employees and by 40 percent for all city employees hired after Jan. 1, 2013.

Gallagher said the savings in the pension come in a lowering of the city’s contribution to those employees who choose to participate in the city’s 401(a) program. He said employees have a choice between the Maine Public Employees Retirement System, which sets the employer contribution level for the city, and the local program.

Gallagher said for those who choose the local program, the city contributes 10 percent of an employee’s salary into the account, with no requirement of any contribution on the employee’s behalf.

Under the new contract, Gallagher said, the city would match at a 3-1 ratio all contributions of existing employees, up to a limit of 7.5 percent of an employee’s salary. Any employee hired after Jan. 1 will see a 2-1 contribution from the city, up to a limit of 6 percent, Gallagher said.

While the city is realizing some cost savings, the contract calls for increased wages, as well. Bryant said in the first year of the contract, wages will go up by 2.5 percent, then 2.25 percent in the second year of the contract and 2 percent in the third year.

Even with salaries going up in all three years, the city is still saving money with this new contract, Bryant said.

“The savings in health insurance and pension costs more than cover these (wage) increases for a net expenditure savings over the three years of the contract,” he said. “We are very pleased with the results of this labor contract negotiation, (and we) feel the city has achieved significant savings and future cost controls while maintaining very competitive wages and benefit packages for our municipal employees.”

Bryant told the council that all of the city’s union contracts expired on June 30, and the city has been in negotiations for approximately 10 months. While he did not have a specific timetable for when the other contracts would be settled, he did say that the city’s administration hoped to bring more contracts to the council for approval in January.

Councilors also set a date for a public hearing on changes to Westbrook’s comprehensive plan.

The council will hear public comment on the proposed changes on Monday, Feb. 4, at 7 p.m. in room 114 of Westbrook High School.