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Acting administrator reports tentative AFSCME 1540 agreement with multi‑year pay increases and health premium changes

Mayor and City Council of Hagerstown · March 17, 2026
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Summary

Acting administrator Don Francis told the council a tentative AFSCME 1540 agreement was ratified that includes pay increases of 3% (FY26), 5% (FY27) and 4% (FY28), changes allowing employer adjustments to employee healthcare premiums up to 25% when necessary, retention of a limited 'me‑too' clause (excluding pay), and bi‑weekly pay implementation; staff will return with the final agreement for council approval.

Acting city administrator Don Francis presented the tentative collective bargaining agreement reached with AFSCME Local 1540 and summarized the key economic and contract provisions.

Francis said the tentative agreement—approved by a union majority vote—includes pay adjustments of 3% for FY26, 5% for FY27 and 4% for FY28. He said healthcare language was negotiated to permit employer adjustments to employee premiums when necessary, with an upper limit of 25% of current employee premium contributions. Francis said the historically rare requirement of a 25% increase is unlikely in ordinary circumstances and that most insurance cost pressure is from reinsurance (stop‑loss) costs.

He also said the final agreement removes pay from the traditional "me‑too" clause but retains a me‑too provision that allows employees to partake of non‑pay stipends or bonuses if those are broadly given. The contract will also move payroll to a bi‑weekly schedule, Francis said. Staff provided a schedule of changes and indicated they will return with the finalized agreement and recommended vote.

Why it matters: the agreement sets multi‑year wage increases, adjusts the structure for managing benefit premium cost pressures, and contains a preserved but narrowed me‑too clause; council will review the final document before formal adoption.