HomeMy WebLinkAbout5.E.5. Public Works Union Contract Ratification
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CITY OF SHAKOPEE
Memorandum
TO: Mayor and City Council CONSENT
FROM: Mark McNeill, City Administrator
SUBJECT: Public Works Union Contract Ratification
DATE: March 16, 2006
INTRODUCTION:
The Council is asked to ratify a three year agreement with Teamsters Local 320, which
would provide for a labor agreement with the Public Works union. This will run from
January 1, 2006 through December 31, 2008.
BACKGROUND:
,
Over the course of the past several months, the City has met with the Public Works union
to.negotiate a three year contract.
Tentative agreement has been reached, which would provide for the following changes:
1. Three year contract, providing a 3% wage increase on January 151 of each
year.
2. A change in the employee work schedule to 6:30 a.m. to 2:30 p.m., year
around. (Currently, employees work 6:00 a.m. to 2:00 p.m. during
summer months).
3. A limit on the number of hours of comp time that can be carried over from
one year to the next. While employees will continue to be limited to 80
hours of comp time in the bank at anyone time, those hours will be bought
down to 40 at the end of each payroll year.
4. The probationary period for new employees will be increased from the
current 6 months to 12 months, bringing it in line for the probationary
period for all other (non civil service) employees.
5. Implementation ofthe Post Employment Health Care Savings Plan,
currently offered to all non-contract employees.
6. The addition ofa $120 safety shoe/bootallowance to be provided every
other year.
7. Lead workers will be paid $1.50 above their normal rate of pay for each
hour that they are in that position, rather than $.60 above the Step 8 rate of
pay.
.
8. The introduction of premium pay for employees obtaining specified
licenses or certificates.
BUDGET IMP ACT:
The 3% increase was budgeted in the 2006 operating budget. Other changes have
varying impacts:
. The buy back of comp time hours reduces the City's liability for this accrued
expenditure. Any accrued liability as of December 31,2005 is funded in the
employee benefits internal service fund.
. The elimination of the lump sum separation pay will save the City between
15% and 18% of the salary of a long time employee who leaves the City. The
implementation of the Post Employment Health Care Savings Plan offers tax
advantages and an accelerated sick leave buyout to that employee.
. The $120 boot allowance will cost the City $2280 for the 19 union employees.
Funding for this will have to come from the departmental budget. Employees
will be required to purchase their safety shoes/boots from the City-approved
vendor. While this provision is a benefit to the employee, it also reduces the
City's work comp liability by providing OSHA-approved shoes to be worn on
the job.
. Premium pay -there will be some union employees who will qualify for this
immediately - two sewer workers, and a pesticide/fertilizer applicators. We
estimate a cost of approximately $2100 during the first year. In future years,
as more employees receive the specialized training and the Public Works
certificate, those costs will rise (the number of employees times $.75 per
hour). Again, these costs will need to come from the Public Works budget.
Relationship to Visioning:
This supports Goal D-"Vibrant resilient and Stable."
RECOMMENDATION:
I recommend that the Union contract be ratified. The Union has voted to accept.
ACTION REQUIRED:
If the Council concurs, it should, by motion, ratify a three year contract with Public
Works Local 320 of the Teamsters Union, for the period January 1, 2006 through
December 31,2008.
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Mark McNeill
City Administrator