Mayor Bill de Blasio has struck a deal with two municipal labor unions representing health care workers and nurses.
The deal comes after years of stalemate. Workers at nearly 150 unions are working under expired contracts.
The agreement with the New York State Nurses Association and 1199 SEIU United Healthcare Workers East was announced Wednesday.
The total cost of the deal is $879.3 million. The unions represent about 10,000 city workers.
Last month, de Blasio reached an agreement with the powerful teachers union and said he believed that deal would set a pattern for other negotiations.
The nurses and health care worker contracts do follow a largely similar structure and includes modest back pay. The unions agreed to health savings to offset costs.
Some unions have balked at the plan and are calling for higher raises.