AUBURN — After months of contentious negotiations, the Auburn teachers union and the School Committee have agreed to two new labor contracts for the city’s 300 teachers.

The contracts were unanimously approved by the School Committee Wednesday night. Teachers voted 174-2 for the contracts last week.

The first contract is for this fiscal year, which ends June 30; the second is a three-year contract for 2016-2019.

For the first year of this fiscal year’s contract, the cost to taxpayers is $558,000, which was included in the school budget approved by voters Tuesday. The cost for the first year of the three-year contract will be $612,758.

Both contracts provide beginner teachers with 3 percent raises for this year and next year, and increases wages for all other teachers. Teachers agreed to pay more in health insurance premiums, recognizing that the days of employers paying the full costs of health care are gone, Carl Bucciantini, president of the Auburn Education Association, said.

“We’re thrilled. It’s a relief to have it done,” he said. “This is the best package that most people can remember.”

Having a contract goes a long way with teachers feeling respected, he said.

Superintendent Katy Grondin said she’s pleased the contracts are settled. She said it shows the administration values teachers.

“We recognize they’re our most valuable asset working with our students,” she said.

It’s a change from March, when both sides were seeking arbitration and legal representation.

On April 5, teachers filled the City Council Chamber during a School Committee meeting. For 90 minutes teachers listed grievances, including that they weren’t respected.

A teacher survey given to the committee also showed that 71 percent of teachers were unhappy.

“This year they worked without a contract,” Grondin said. “That causes stress and tension. I hope teachers see through conversation and dialogue we can work together. We’re all in the business for the same reason, to do what’s best for students.”

One of the School Committee’s goal was to raise salaries and make Auburn schools competitive. In recent years teacher raises have been small, three years ago teachers went without a raise.

“We have lost ground,” Grondin said.

Beginning teachers will receive $4,000 more this year, going from $30,600 to $34,118. In 2018-19, beginning teachers salaries will be $36,562.

On the other end, a veteran teacher with a master’s degree will be paid $59,435 this year, up from $57,703. In 2018-19, that teacher will earn $63,691.

Another goal was to lower health care costs for taxpayers and put more money into salaries, Grondin said. The savings in the first year of the three-year contract will be $54,000, Grondin said. Over the next three years, single teachers with no children will no longer get health care without paying premiums as they now do.

Premiums paid by teachers without children will go from zero to 10 percent; teachers with children will pay 15 percent instead of 7 percent.

Premiums paid by teachers with a spouse and children will continue to pay 20 percent if the spouse has no other insurance option, 30 percent if the spouse has an option.

Another sticking point both sides couldn’t agree on is who gets laid off.

Old contract language said it’s based on seniority. But a new state law says teacher effectiveness must also be considered.

“The sticking point was how large a part teacher effectiveness will play in reduction of force,” Bucciantini said.

“There is no agreement there,” Grondin said. Both sides agreed to have arbitrators decide. That decision will be binding.