As the stock market crashed and major financial firms threatened to collapse on Sept. 16, Local 237 President Gregory Floyd and Mayor Michael R. Bloomberg stood firm with an agreement providing two 4 percent raises over two years to more than 9,000 city workers.

“It’s a timely deal in a tough climate,” said Floyd, emphasizing that the contract’s compounded raise of 8.16 percent not only exceeds the projected rate of inflation (5.4 percent) but also provides an additional annuity of .25 percent with a $200 lump sum contribution to the active and retiree Welfare Funds.

Local 237 negotiators, led by Floyd, brought the historic contract to agreement one day before the end of the old contract, with no givebacks, and may set the pattern for other city employee unions during the greatest fiscal crisis since the Great Depression of the 1930s. “It’s the best contract we’ve had in 10 years,” Floyd noted.

“Today’s agreement allows the city to fairly compensate the members of Local 237, who provide vital city services,” said Bloomberg at a press conference.

Asked whether municipal unions could expect similar terms, the mayor said, “It depends on the chaos in the marketplace and how it works out.” He added that the city had been negotiating with Local 237 “for awhile and it’s in our budget.”

The contract covers 24 months and 13 days from Sept. 13, 2008, through Sept. 25, 2010. It was kept to two years because the market conditions are so uncertain.

Raises take effect Oct. 10, 2008, and Oct. 10, 2009, (October 12 for former Local 832 members), and were delayed 13 days to provide the additional .25 percent equity fund package and a $200 lump-sum payment to the active and retiree welfare funds. Health and pension benefits, vacation and sick pay were all preserved.

At press time, ballots were mailed to Citywide members, including school safety agents, special officers, food service workers and many other titles, for a ratification vote to be counted at headquarters on October 10.