Panel passes on contract again

September 30, 2004

NH Business Review Staff,

NASHUA – Alderman have delayed action on a proposed three-year contract for the city’s school principals.

The aldermanic budget review committee, on a voice vote earlier this week, indefinitely postponed action on the proposed agreement.

Last month, the finance committee objected to the proposal because it included a $500 annuity for principals. Members said no other city union contract contains such a provision, and including it in the settlement would set a dangerous precedent for the city.

The Board of Education then removed the annuity from the contract but placed the $500 in the third year of the agreement as deferred income for the principals.

Overall, the proposal called for a 12.2 percent increase in pay for principals over three years.

Several committee members said the increase was excessive and voted to kill the deal. It will now go back to the school board for further negotiations.

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