Norwich - The City Council on Monday unanimously approved a three-year contract with the city Public Works employees' union that calls for raises of 2 percent per year retroactive to Aug. 1, 2011, but drastically cuts future retirement benefits for employees hired after Nov. 1 of this year.

The contract runs from July 1, 2011, through June 30, 2014, but the wage increase the first year starts one month later, in agreement with other union contracts that included the same concession.

The contract covers 56 employees in the United Public Services Employees' Union, said city Human Resources Director Brigid Marks.

For retirees hired after Nov. 1, 2012, the city no longer will pay medical and dental benefits, and those retirees will only be able to cash in 50 accumulated sick time days, rather than the 100 days current employees will be allowed to claim.

Also in the contract, the city agreed to incur increased insurance cost share of 1 percent per year retroactive to Aug. 1, 2011.