SOUTH BEND, Ind. -- The details aren't set in stone just yet, but the union that represents the custodians, mechanics, and engineers of the South Bend School system have agreed on a Memorandum of Understanding with the School Board.

The American Federation of State, County and Municipal Employees (AFSCME) has been bargaining with the South Bend Community School Corporation (SBCSC), and it appears that they have now found common ground, with the SBCSC trustees approving the memorandum at the board meeting on June 29.

According to the new agreement, custodians' minimum hourly rate increases from $19.30 to $21 through June 30, 2027, then increases again to $21.50 in July 2027. For high school engineers the minimum hourly rate goes from $22.72 to $25 this year and $25.50 next year.

It also makes the pay raises retroactive to the beginning of 2026, so the employees should see the increases on paychecks beginning in July.

SBCSC's Chief Financial Officer Ahnaf Tahmid said, "I think this is a beautiful idea, because it will let the legal team work on the bargaining situation while our employees do not suffer," Tahmid said. "They get the pay immediately."

According to district official, they must still finalize the collective bargaining agreement, which will then come back before the board for final approval.