Mayor Eric Adams and the New York City teachers’ union on Tuesday announced a tentative five-plus-year deal that calls for annual raises of between 3% to 3.5%, recurring retention bonuses, and the creation of a virtual learning program.

The bonuses would start at $400 beginning next year and grow to $1,000 by 2026. According to city officials, the bonuses would then continue in perpetuity. The agreement would also raise the starting salaries of teachers from $61,000 to $72,000 for teachers with a bachelor’s degree and from $69,000 to $81,000 for those with a master’s degree.

A recurring retention bonus that extends beyond the life of the contract marks a first-of-its-kind benefit for the teachers’ union, known as the United Federation of Teachers.

As was the case with the two previous union deals, Adams — a retired NYPD officer — did not seek any significant labor concessions, a decision that will open him up to criticism amid future budget deficits and an uncertain economy.

“It’s a missed opportunity for productivity savings,” said Ana Champeny, vice president of research at the Citizens Budget Commission, a fiscal watchdog group. “The question is what are the choices the city is going to have to make to maintain a balanced budget and pay for all these raises.”

At the same time, the mayor faces widespread attrition among city workers. Since the pandemic, many school districts across the country have been struggling to retain and hire new teachers.

“I made it clear that we were going to ensure that our city employees see salaries and benefits that they deserve because I am one of them,” Adams said during the news conference at City Hall.

The deal, which was reached early Tuesday morning, followed months of negotiation. With roughly 120,000 members, the teachers’ union is one of the city's largest and most politically powerful labor groups. Teachers and other union members have been working under an expired contract since September 2022

City officials said the contract's total cost would be more than $6 billion.

The agreement must be ratified by the union’s members. If it is approved, the teachers’ union would become the third to strike a collective bargaining agreement with Adams, following District Council 37, the largest municipal workers union, and the Police Benevolent Association, the largest police union.

New York City follows pattern-bargaining, in which the first union to reach an agreement establishes the framework for raises and other benefits for other labor groups. In this case, the Adams administration is following two patterns: one for civilian city workers and another for uniformed employees, such as police officers, firefighters and sanitation workers.

But introduction of remote work, which was a concession Adams made with municipal workers, has allowed city workers whose jobs cannot be performed remotely to argue for additional compensation.

Teachers had also tried to push back on what they said were overly burdensome administrative rules and requirements, such as excessive testing. According to an email circulated by the union immediately after the mayor’s announcement , the tentative agreement “provides teachers with greater flexibility over their administrative and other non-teaching duties.”

The deal also allowed Adams to fulfill one campaign promise: the creation of a virtual learning program as part of the contract deal. The new initiative would expand virtual learning options, making some courses available remotely for students who can only attend on nights and weekends. Teacher participation would be voluntary, officials said.

Adams and city officials said it would serve students unable to attend a traditional school day because of work or other commitments.

But Joshua Freeman, a labor historian at CUNY, said the measure could become controversial given that remote learning was widely panned by families and students during the pandemic.

“Are we walking away from face-to-face high school?” he said. “What’s entailed for teachers and students? This is a whole different area.”