Hawaii firefighters have a new two-year contract giving them 2% pay increases in each of the next two years, one-time bonuses in each of those years and an increase in their regular raises based on years of service.

The government employers and the Hawaii Fire Fighters Association began negotiations in February 2018. When the two sides reached an impasse in June, they agreed to a neutral arbitrator. The arbitrator made a final decision on the new contract April 8.

Because it was decided by arbitration, union members will not vote on the contract.

The union represents roughly 2,000 firefighters from each of the four counties and the state Airport Division’s Crash and Rescue unit. The largest of the employers is the City and County of Honolulu with 1,002 union firefighters.

All four counties and the state must approve the additional funding for the contract.

Mayor Kirk Caldwell, in a letter to the Honolulu City Council last week, said the contract will cost city taxpayers $5.6 million more annually in the first year and $10.2 million in the second year.

In addition to the 2% raises, the contract includes bonuses of between $1,800 and $2,000 each year per employee, as well as an increase in raises given for reaching a certain number of years of service, known as “step movement” raises.

The new contract runs from July 1 to June 30, 2021.

The firefighters’ contract is closely watched because HFFA is the first of several government bargaining units that have contracts expiring June 30.

On Oahu, funding of the new contract is expected to be taken up by the City Council Budget Committee at its meeting at 9 a.m. Wednesday.

A beginning firefighter is now paid $4,591 a month during a one-year probation period. Once past the probation, the firefighter earns $4,966 a month, city officials said.

A 2 percent increase would take that to $4,683 for the probation period and $5,065 post-probation. In the second year of the contract, the rookie firefighter will earn $4,776 during probation and $5,167 after. That’s not factoring in the bonuses and step movements.

“We’re pleased with the outcome,” said Bobby Lee, HFFA president.

Council Budget Chairman Joey Manahan and his committee are cobbling together a $2.8 billion operating budget and will now need to find additional revenue for the salaries, wages and benefits.

“On the whole it looks pretty daunting,” Manahan said. “The Budget Committee is going to have its work cut out for them.” He noted that new contracts with other major units, including those of the Hawaii Government Employees Association and United Public Workers, are outstanding.

City budget officials have already warned Council members that the city’s total contribution to the employee benefits trust fund is expected to rise 13% in the coming year, he said.

Manahan said next year will be particularly challenging because the first segment of the 20-mile East Kapolei-to-Ala Moana Center rail line is expected to come online in December 2020, and the city will need to determine how much operations and maintenance will cost taxpayers.

The Council is expected to make its final decisions on the budget in June.