School Custodians, NYC Reach Contract Agreement

NEW YORK (AP) -

New York City public school custodians and building engineers on Monday reached a $207.2 million new labor contract with the city.

The contract calls for the 2,000 workers to received 18 percent raises and bonuses of $1,000 retroactive to 2007. It also calls for about $41.1 million in health-care savings. City officials say the cost of the pact will be covered by the current budget.

The city now has contracts with 71 percent of its employees, up from zero a year ago.