Mayor Jim Gray and officials from the union that represents the majority of Fayette County corrections officers signed a deal Tuesday that will save the city an estimated $1.2 million over four years.

Gray and members of the Fraternal Order of Police Town Branch Lodge 83 reached a collective bargaining agreement Jan. 23, but the contract had to be approved by the city council before it could be signed. The council approved the contract Thursday, and the signing ceremony was Tuesday morning.

The $1.2 million in savings comes from concessions made by the union, which represents corrections officers and sergeants at the Fayette County jail. Concessions included pay freezes, a reduction in vacation, holiday and sick time, and a reduction in health care contributions for the first two years.

Benefits will increase in the third and fourth years, officials have said. The city also agreed to some investments, including tuition benefits at Midway College and improvement in benefits paid for a death in the line of duty.

The contract was the second of six public safety union contracts to be finalized. Negotiations continue with unions representing lieutenants and captains at the jail; majors in the Division of Fire; officers and sergeants in the Division of Police; and police lieutenants and captains.

The union that covers 488 firefighters, lieutenants and captains reached an agreement with the city in September.