By Mike Dunn

PHILADELPHIA (CBS) – The Nutter Administration has decided not to appeal two years of pay raises awarded by an arbitrator last month to the police union.

For the final two years of its five-year deal with the city, the FOP last month was awarded raises of three-percent in each year, and a one-percent hike in stress pay. The Nutter Administration now has decided not to go to court to fight the deal.

Top aides say with the pension reforms, the right to furlough and other provisions of the original deal, the entire five-year package is affordable.

Solicitor Shelley Smith says the decision was not made simply to avoid further labor strife like the mayor’s ongoing contract battle with firefighters:

“We’re trying to get to the right place for all of the taxpayers,” she said. “We recognize sometimes people don’t like that. But we’re okay with that. And we’re prepared to handle it. So animosity is not a factor.”

Bill Gault of the firefighters union Local 22 said he was pleased for the FOP, but called Nutter’s appeal of the firefighter’s contract “a direct slap in the face.”