Ann Arbor, AFSCME Reach Tentative Labor Deal
The city's agreement with about 300 workers in AFSCME Local 369 runs through 2028 and awaits a member ratification vote.
Updated on Nov. 2, 2026 in Unions
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The City of Ann Arbor has reached a tentative agreement with AFSCME Local 369, which represents about 300 city workers. AFSCME members will vote to ratify the deal before final city approval.
Why it matters
The previous contract expired in December 2025, and members had received no cost-of-living salary increase since 2024. The new agreement includes increased compensation and improved benefits, which the city says is intended to recruit and retain employees.
The previous contract ended with a 0% raise in its final year, while AFSCME had sought a 12% annual cost-of-living increase over three years. Specific final wage and benefit figures were not disclosed, and the ratification vote outcome remains pending.
The players
AFSCME Local 369
The local chapter of the American Federation of State, County and Municipal Employees that represents about 300 City of Ann Arbor workers in bargaining.
Yousef Rabhi
A Democratic candidate who won the party's mayoral primary and was endorsed by AFSCME during the campaign.
The details
The city announced the tentative agreement on Friday, and AFSCME members will now vote to ratify it. The deal covers the period through 2028 and follows the expiration of the prior contract in December 2025.
Timeline
December 2025: Previous AFSCME contract expired.
2024: Last cost-of-living salary increase for AFSCME members.
Friday: City announced the tentative agreement.
2028: New contract term ends.
Political Context
The 0% raise in the previous contract's final year was tied to the city's COVID-19 budgeting goals, and the new deal reverses that restraint. Union critics have pushed for larger cost-of-living adjustments, with AFSCME seeking 12% annually over three years.
Ann Arbor residents will see whether the city's municipal services are staffed through the 2028 contract term, since the deal is designed to retain and recruit workers. For city workers, the agreement would end a period without a cost-of-living raise that began in 2024.
The takeaway
Labor agreements in local government often reflect budget pressures from earlier years, and the terms of this deal show how those pressures are now being balanced against recruitment needs. Watch the ratification vote to see whether members accept the compensation and benefit changes.
What happens next
AFSCME members are scheduled to vote to ratify the tentative agreement before final city approval.
Further reading
Explore more coverage of Unions to see how this Ann Arbor contract fits into broader labor negotiations.
Source note: This article includes information reported by The Michigan Daily.
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