Title
Adoption of Resolution Approving a Memorandum of Understanding (MOU) Between the City of Alameda and the International Brotherhood of Electrical Workers (IBEW) for a Forty-Two Month Term Commencing December 27, 2018, and Ending June 30, 2022. (Human Resources 2510)
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
The City of Alameda (the City) has nine labor groups and administers two compensation plans. This includes four Public Safety groups and five miscellaneous groups. Labor agreements with the four Public Safety groups expire in December 2021. The agreements with the five miscellaneous groups and the two Compensation Plans expired in December 2018. The City had reached agreement with the other four miscellaneous groups in late 2018. The terms of the Compensation Plans have also been updated.
The City has now reached agreement on a forty-two month memorandum of understanding (MOU) with IBEW and is recommending approval of the new labor agreement. IBEW members have ratified this agreement.
BACKGROUND
The prior agreement with IBEW, representing 33 positions, expired on December 26, 2018, and negotiations between the City and IBEW commenced in October 2018. As required by law, employee’s salary and benefits continue until a successor agreement is approved.
Negotiations with IBEW focused on providing across the board salary increases as well as equity adjustments for specific classifications in order to keep Alameda competitive in the surrounding electric utility labor market.
The revised MOU represents a 42-month agreement, commencing December 27, 2018, and ending June 30, 2022. IBEW employees have ratified this agreement. Elements of the proposed MOU are summarized below.
DISCUSSION
The proposed MOU provides salary increases as follows: three percent (3.0%) effective the first full pay period following February 1, 2019; three percent (3.0%) effective the first full pay period following January 1, 2020; two percent (2.0%) effective the first full pay period following January 1, 2021; and one percent (1.0%) effective the first full pay period following January 1, 2022.
Equity adjustments for certain classifications are also being recommended. The electric utility labor market is very competitive. In order for the City to be able to recruit and retain skilled employees, an increase in the salaries for the positions listed below is recommended.
Additionally, in June 2021, the City and IBEW will conduct a total compensation survey for the bargaining unit. Effective the first full pay period in January 2022, job classifications, which fall below the median, shall be adjusted to the median with a cap of 5% for any classification.
In recognition of dedication and loyalty to the City and to retain valued employees, the City will provide employees, who have completed 15 years of service, the opportunity to sell back one week of vacation each year and employees, who have completed 20 years of service, may sell back up to two weeks of vacation each year, subject to the IRS rules. Additionally, the City will match a maximum of one percent (1.0%) of employees’ base salary for employees who have completed one year of service and contribute at least one percent (1.0%) of their base salary to a deferred compensation plan account.
The City and IBEW also agreed to increase the number of floating holidays from 3.5 days to 5.5 days. Additionally, the City will provide a half day off for employees on the day before Thanksgiving and a half day off for employees on either Christmas Eve or New Year’s Eve.
The City will continue to make a monthly contribution for employee medical insurance for eligible employees through a contribution to the Flexible Benefit Amount. The IBEW medical contribution amount will remain consistent with the limits implemented in the 2018 plan year.
IBEW and the City also agreed to modify the hours that are covered by the standby provision and allow for System Operators to be placed on standby (voluntary basis) in order to better meet AMP operational needs. The parties also agreed to increase standby pay to two hours of straight time for every eight hour standby shift.
IBEW members who have a commercial driver’s license will receive a supplemental pay in the amount of $65 per month and members may now accrue up to 80 hours of compensatory time off for overtime worked.
IBEW members had previously not participated in the State Disability Insurance (SDI) program, but they have agreed to discuss participation in SDI among the membership and, if they elect to join, the City will begin the process to add IBEW members upon receiving notification of decision. Employees will be responsible for the cost of participation.
The City and IBEW also agreed on language to clarify and update provisions including those on the City’s retirement plan, acting pay, additional duties pay, sick and vacation accruals, MOU overtime, and time spent assisting other agencies during emergencies (mutual aid).
Other clarifying language are included in the proposed MOU. The proposed clarifying language includes provisions necessary to continue to comply with state and federal law; clarifications involving the use of City facilities and property, advance notice, discrimination, and proof of illness. The City and IBEW agreed to further discussions regarding the processing of Catastrophic Leave and State Disability Insurance programs. Unless otherwise noted, all provisions are effective upon Council adoption. A draft MOU is attached as Exhibit 1.
FINANCIAL IMPACT
Labor costs for the IBEW bargaining group are paid out of the Alameda Municipal Power (AMP) Budget. The financial impact of the IBEW MOU in Fiscal Year (FY) 2018-18-19 is approximately $56,000 for the implementation of salary changes. However, since the FY 2018-19 ended, the costs will be recorded in the current fiscal year. All benefit changes will take effect in FY 2019-20. There are sufficient funds in the FY 2019-20 budget to absorb these salary and benefits changes. The financial impact on the FY 2019-20 for wage equity adjustments are approximately $350,000 and approximately $100,000 for other benefits changes, including vacation sell back (40 hours for 15+ year employees and 80 hours for 20+ year employees), 1.0% deferred compensation match, increase to standby pay and Class A driver’s license pay ($65 per month). For FY 2020-21 and FY 2021-22, labor costs will be approximately $410,000 and $350,000, respectively, for salary, equity adjustment, and additional benefits noted above. The total cost for the 42-month contract is estimated at $1.3 million. These costs will be incorporated into future budgets.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is consistent with the Alameda Municipal Code.
ENVIRONMENTAL REVIEW
This action is not a project under Public Resources Code Section 21065 or California Environmental Quality Act (CEQA) guidelines Section 15378 because it does not have potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment.
CLIMATE IMPACT
There are no climate impacts associated with this resolution.
RECOMMENDATION
Adopt a Resolution approving a Memorandum of Understanding (MOU) between the International Brotherhood of Electrical Workers (IBEW) and the City of Alameda for a forty-two month term commencing December 27, 2018, and ending June 30, 2022.
CITY MANAGER RECOMMENDATION
The City Manager recommends approval of the MOU with IBEW.
Respectfully submitted,
Nancy Bronstein, Human Resources Director
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibits:
1. MOU (Redline)
2. MOU
3. Public Utilities Board Resolution