The City of New York and its largest teachers? union, the United Federation of Teachers, have made good progress on several contentious issues and sources say that the parties are close to finalizing a deal. The nine year deal resolves a dispute which lasted over five years and will include more than $3 billion in back pay. The back pay is based on annual raises of 2% per year, but the deal also includes savings for the city through changes to how health insurance is paid for. The details of the deal have not been finalized and it has not been officially announced, but when it is, it will still require the approval of the 100,000 school employees as well as of city officials.
See "New York Said to Be on Verge of 9-Year Deal With Teachers? Union", Steven Greenhouse, The New York Times, April 30, 2014