EVERETT — The Everett City Council and the city government’s largest employees union reached a new three-year labor contract that provides union members pay increases of more than 10 percent, as well as modest improvements in their medical plans.

The contract with the American Federation of State, County and Municipal Employees Local No. 113 will boost employee salaries by 3.5 percent in the first year, 5.8 percent in the second year and a sliding-scale increase in the third year pegged to the rate of inflation.

The union represents about 450 of the city’s 1,200 employees. Its membership is drawn from most city departments, including white-collar clerical workers and blue-collar utilities crews.

The union’s last contract expired in January, so the first round of pay raises are retroactive to the first of the year.

Under the contract, a starting custodian next year would earn nearly $38,000 a year and an experienced parking enforcement officer would earn at least $48,000 annually.

The new contract is expected to cost the city about $4.5 million by 2011.

Given the tough economic times, Cameron Johnson, the union’s president, said the contract is fair.

Earlier this month, after ending contract talks, Johnson said some city departments are still feeling the pinch of layoffs and staff reductions through attrition in 2004 and in the mid-1990s.

“I think the city recognizes that we’re pretty lean and mean here, we do a lot with a little compared with a lot of other jurisdictions,” he said.

Sharon DeHaan, Everett’s labor relations director, said the union made concessions, but she declined to give specific examples.

“We had some tussles,” she said. “These things are never easy.”

The base pay of 10 job categories within the city, including custodians and parking enforcement officers, were boosted even higher than other positions to reflect current market conditions.

One change in the new contract extends some of the benefits of union membership to a limited number of seasonal employees in the parks department during the peak summer months.

Those employees can work up to nine consecutive months and accrue vacation time, receive holiday pay and have the first right to return to work the following year.

The city will continue to cover 100 percent of monthly medical, dental and vision insurance premiums for union members and their dependents.

Union members can accrue up to 2.4 weeks of sick leave per year, plus between 2.4 and 3.3 weeks of vacation time.

In related news, the City Council is scheduled to vote on the new three-year contract for the Everett Firefighters Association next week.

Reporter David Chircop: 425-339-3429 or dchircop@heraldnet.com.