A 3.5-year contract with the township Department of Public Works employees, members of a Teamsters union, has been approved by the Township Committee, awarding retroactive pay increases of 1.5 percent as of July 2011, and another 1.5 and 2 percent raises in July 2012 and July 2013.

The new contract will expire at the end of June 2014. Contract negotiations had dragged on after the previous contract expired at the end of 2010.

The department's was shortstaffed during negotiations, but Township Administrator Bruce McArthur said the approval of a new contract means the township can move to hire five replacement workers. Three previously existing positions will not be filled, he said on Thursday.

The Township Committee voted 3-1 on Wednesday to approve the retroactive pact, which runs from  Township Committeeman Scott Spitzer dissented, and Deputy Mayor Mary Pavlini was absent.

One of the changes in the new contract is that annual increases are moved to July of each year, reducing contracted pay for current employees, McArthur said.

Other changes are a new wage scale for new hires and the end of longevity pay for those workers, he said. Overall, the wage budget for the entire department — where 28 employees currently are covered by the contract — will remain less than in 2010 even through the first half of 2014, McArthur said.

"By having a new pay scale, it creates a more sustainable salary structure moving forward," McArthur said in an email on Thursday.

Through attrition, the township has eliminated three open positions that will not be budget for in 2012, he said. Currently, three laborer jobs have been posted, and one mechanic's position, he said.

Also during Wednesday's meeting, township officials praised DPW workers for working especially long hours to clean up storm debris following the Oct. 29 snowstorm.

"We have a well run public works department and I appreciate the commitment and hard work of our public works employees year-in and year-out," Spitzer said in an email on Thursday in response to a question of why he had voted against approving the contract. He said the employees show professionalism and a commitment to excellence.

"This collective bargaining agreement was negotiated over an extended period of time and in good faith by both sides," Spitzer said, adding he is pleased the contract is concluded and the township and employees can move on. "However, the totality of the contract terms for this collective bargaining agreement are less favorable to the Township and our residents than I believe are warranted," he said in the email.

Highlights in the contract, according to McArthur, are:

• Contract through June 2014
• 1.5, 1.5, and 2 percent increases for 2011, 2012, and 2013
• Pay increase date now July 1 of each year
• $1,000 payment to incumbents at contract signing
• New guide for new hires
• Elimination of longevity payments for new hires
• Sick time does not count toward overtime calculation, except for emergency call in
• Meal provision if working past 5 p.m.
• Sick leave capped at $15,000; incumbents capped at balance within the contract period