Title
Report regarding a resolution to approve the successor Memorandums of Understanding between the City and the American Federation of State, County, and Municipal Employees (AFSCME) Local 829, Teamsters Local 856 - Mid Management Unit, Teamsters Local 856 - Confidential Unit, and International Union of Operation Engineers (IUOE) Local 39 for July 1, 2021 - June 30, 2022, and a resolution approving associated amendments to the City’s Salary Schedule for Fiscal Year 2021-2022 (Leah Lockhart, Human Resources Director)
label
RECOMMENDATION
Recommendation
It is recommended that Council approve the following resolutions:
1. Resolution approving the successor Memorandums of Understanding between the City and the American Federation of State, County, and Municipal Employees (AFSCME) Local 829, Teamsters Local 856 - Mid Management Unit, Teamsters Local 856 - Confidential Unit, and International Union of Operation Engineers (IUOE) Local 39 for July 1, 2021 - June 30, 2022.
2. Resolution approving amendments to the City’s Salary and Wage Schedule for Fiscal Year 2021-2022
Body
BACKGROUND/DISCUSSION
The City’s regular full-time workforce is organized into seven (7) represented bargaining units, as well as the unrepresented Executive Management Unit. In accordance with the Meyer-Milias-Brown Act (MMBA), the City negotiates agreements with each unit over wages, hours, and other terms and conditions of employment, and such agreements are memorialized in a Memorandum of Understanding (MOU) over a specified term.
In 2021, the MOUs for four of the City’s bargaining units were set to expire on June 30, 2021. Council directed staff to negotiate successor agreements with the American Federation of State, County, and Municipal Employees (AFSCME) Local 829, Teamsters Local 856 - Mid Management Unit, Teamsters Local 856 - Confidential Unit, and International Union of Operation Engineers (IUOE) Local 39 within parameters established by Council. The appointed negotiators met and conferred with each unit, and reached tentative agreements with each, and these tentative agreements were ratified by each unit’s respective membership.
Each MOU is effective for a one-year term, from July 1, 2021 to June 30, 2022, and provides for an across-the board wage adjustment of three percent (3%). This wage adjustment is equal to the wage adjustments contained in agreements with the City’s other three bargaining units whose MOUs expire in June, 2022. This adjustment of three percent (3%) is also contained in the Executive Management Compensation Plan approved by Council for 2017-2022. A summary of negotiated changes for each group is contained as Attachment 1. Resolution (a) contains the final MOUs to be signed by the bargaining representatives upon Council approval.
In addition, the City’s Salary and Wage Schedule (Salary Schedule) is updated at least annually by Council resolution, reflecting any negotiated wage adjustments, changes or modifications to job classifications, and any other wage or salary adjustments as directed by Council. Resolution (b) contains the salary schedule reflecting the three percent (3%) wage adjustment for AFSCME, Mid-Management, Confidential, and IUOE units. In addition, it is recommended that three percent (3%) wage adjustment be applied to all unrepresented part-time hourly classifications, consistent with the City’s past practice of providing equivalent across-the-board wage enhancements to hourly employees. In 2020, hourly employee wages were frozen due to uncertain economic conditions and reduction in staffing due to COVID-19. Wages were increased by one and six-tenths percent (1.6%) as of January 1, 2021 to accommodate adjustments to the Minimum Wage pursuant to the City’s Minimum Wage Ordinance. As a result, a wage disparity was created within certain job classifications containing both full-time and hourly workers. The proposed plan provides further adjustments to hourly classifications that have a corresponding full-time classification with the same title and job description, so that the respective wage schedules are matched once again. Finally, the proposed plan incorporates amendments to the City Manager’s contract, approved by separate Council action, to provide for a three percent 3% salary adjustment in line with other City employees.
FISCAL IMPACT
Appropriations were provided in the Fiscal Year 2021-2022 Operating Budget to accommodate a general wage increase of up to three percent (3%). Therefore, no further appropriations are necessary for this action.
RELATIONSHIP TO STRATEGIC PLAN
This item supports the strategic initiative of Workforce Development and Fiscal Sustainability, ensuring that the City’s compensation plan remains competitive to attract and retain a high-quality workforce while ensuring that financial commitments are within the City’s means.