Southfield (WWJ) – Labor peace in the Troy school district where the union and the board of education have announced a deal on a new contract.

The district says the two-year deal will save 10-million dollars, ensuring that major programs won’t be slashed.

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Teachers have agreed to invest “substantially” in their own health care coverage and have accepted a two-year freeze in step increases.

“Through our members’ willingness to compromise and work collaboratively, the Troy community can be assured that the district will be fiscally solvent and that students will continue to receive the exemplary educational opportunities they have grown to expect from the TSD,” said Troy Education Association President Tony Lucchi in a statement.

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Superintendent Dr. Barbara Fowler commended teachers for “recognizing the difficult financial situation the district is in.”

“This agreement reinforces our Board’s commitment to fiscal responsibility and displays true compromise between the Board, our excellent teaching staff, and their union representatives,” Fowler said.

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The deal already has been ratified by teachers and approved by the school board.  It will take effect August 15.