10.b Local 49 Union Contract Staff Report
Date of Meeting: November 21, 2023
For: Honorable Mayor and Council
From: Kyle Morell, City Administrator
Subject: Local 49 Contract Negotiations
Background:
Local 49 represents the City’s public works maintenance workers. Their current contract
expires at the end of 2023. The City’s negotiation team, consisting of the City Administrator
and councilmembers Kronmiller and Lubke, met with the union on September 18 to negotiate a
new contract. During that session, the City and the Union reached a tentative agreement on a
new contract. The union has voted on and approved the changes.
Current Proposal:
The proposed changes are as follows:
Article 14.1 Discipline will be expunged after 36 months instead of 60
Article 21.1 Juneteenth was added as a holiday, and Columbus Day was
removed.
Article 27 The city will contribute $1,872 annually ($.30 per straight hour
worked per employee) to the Local 49 training center in Hinckley.
This allows employees to use the facility free of charge instead of
paying per class.
Article 29 6% market adjustment, effective January 1, 2024
3.5% COLA, effective January 1, 2024, 2025 and 2026
Article 29.3 Licensure Pay increases to a maximum of $.75 per hour for up to
3 additional licenses.
Article 30 The contract is effective from January 1, 2024, through December
31, 2026
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The new contract is attached for your review and consideration.
Options:
1) Approve new contract with Local 49
2) Reject new contract with Local 49
Recommendation:
Option 1
Attachments:
Local 49 Contract, January 1, 2024 – December 31, 2026
LABOR AGREEMENT
BETWEEN THE
CITY OF SCANDIA
-AND-
INTERNATIONAL UNION OF OPERATING ENGINEERS
LOCAL No. 49
January 1, 2024 through December 31, 2026
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INDEX
Article Page
Article I Purpose of Agreement .............................................. 2
Article II Definitions …………………………………. ................. 2
Article III Recognition .............................................................. 3
Article IV Union Security .......................................................... 3
Article V Employer Security .................................................... 4
Article VI Employer Authority ................................................... 4
Article VII Employee Rights-Grievance Procedure ................... 5
Article VIII Savings Clause ........................................................ 7
Article IX Work Schedules ....................................................... 8
Article X Overtime Pay ............................................................ 8
Article XI Call Back .................................................................. 9
Article XII Legal Defense .......................................................... 9
Article XIII Right of Subcontract ................................................. 9
Article XIV Discipline .................................................................. 9
Article XV Seniority ................................................................... 11
Article XVI Probationary Periods ................................................ 11
Article XVII Safety ....................................................................... 11
Article XVIII Job Posting ............................................................... 11
Article XIX Health Benefits ......................................................... 12
Article XX Life Insurance ........................................................... 12
Article XXI Holidays .................................................................... 12
Article XXII Funeral Leave .......................................................... 13
Article XXIII PTO .......................................................................... 14
Article XXIV Uniforms/Boot Allowance ......................................... 15
Article XXV Severance Pay ......................................................... 15
Article XXVI On-Call Position ........................................................ 15
Article XXVII Training Center………………………………………….16
Article XXVIII Waiver ....................................................................... 16
Article XXIX Wage Schedule ......................................................... 16
Article XXX Duration ..................................................................... 17
Signatures ................................................................. 18
MOU- Central Pension Fund ……………………… 19
LABOR AGREEMENT
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BETWEEN
THE CITY OF SCANDIA
AND
INTERNATIONAL UNION OF OPERATING ENGINEERS,
LOCAL No. 49,
ARTICLE I – PURPOSE OF AGREEMENT
This AGREEMENT is entered into between the City of Scandia, hereinafter called the
EMPLOYER, and Local No. 49, International Union of Operating Engineers,
hereinafter called the UNION. The intent and purpose of this AGREEMENT is to:
1.1 Establish certain hours, wages, and other conditions of employment;
1.2 Establish procedures for the resolution of disputes concerning this
AGREEMENT’S interpretation and/or application;
1.3 Specify the full and complete understanding of the parties; and
1.4 Place in written form the parties’ agreement upon terms and conditions of
employment for the duration of this AGREEMENT.
The EMPLOYER and the UNION, through this AGREEMENT, continue their
dedication to the highest quality of public service. Both parties recognize this
agreement as a pledge of this dedication.
ARTICLE II – DEFINITIONS
2.1 UNION: The International Union of Operating Engineers, Local No. 49.
2.2 EMPLOYER: The individual municipality designated by this AGREEMENT is
the CITY OF SCANDIA.
2.3 UNION MEMBER: A member of the International Union of Operating
Engineers, Local No. 49.
2.4 EMPLOYEE: A member of the exclusively recognized bargaining unit.
2.5 BASE PAY RATE: The Employee’s hourly pay rate exclusive of any other
special allowances.
2.6 SENIORITY: Length of continuous service with the EMPLOYER.
2.7 SEVERANCE PAY: Payment made to an Employee upon honorable
termination of employment.
2.8 OVERTIME: Work performed at the express authorization of the EMPLOYER
in excess of forty (40) hours within a five (5) day period.
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2.9 CALL BACK: Return of an Employee to a specified work site to perform
assigned duties at the express authorization of the EMPLOYER at a time other
than an assigned shift. An extension of or early report to an assigned shift is
not a call back.
2.10 STRIKE: Concerted action in failing to report for duty, the willful absence from
one’s position, the stoppage of work, slowdown, or abstinence in whole or in
part from the full, faithful and proper performance of the duties of employment
for the purpose of inducing, influencing, or coercing a change in the conditions
or compensation or the rights, privileges or obligations of employment.
ARTICLE III – RECOGNITION
3.1 The EMPLOYER recognizes the UNION as the exclusive representative
pursuant to Minn. Stat. §179A.12, subd. 10 of a bargaining unit certified by the
Minnesota Bureau of Mediation Services, BMS Case No. 15PCE0312, and
described as:
All Maintenance Workers, Equipment Operators, Snowplow Operators, Parks
Wastewater Operators, Street, Sewer/Water employees employed by the City
of Scandia, Minnesota, who are public employees within the meaning of Minn.
Stat. §179A.03, subd. 14, excluding clerical, supervisory and confidential
employees.
3.2 In the event the EMPLOYER and the UNION are unable to agree as to the
inclusion or exclusion of a new or modified job class, the issue shall be
submitted to the bureau of mediation services for determination.
ARTICLE IV – UNION SECURITY
In recognition of the UNION as the exclusive representative the following shall apply:
4.1 The UNION shall obtain written authorization from all Employees within the
certified bargaining unit for the deduction of union dues established by the
UNION in accordance with the provisions of Minn. Stat. §179A.06, subd. 3.
4.2 The EMPLOYER shall deduct each payroll period an amount sufficient to
provide the payment of dues established by the UNION from the wages of all
Employees within the certified bargaining unit authorizing in writing such
deduction. The UNION will inform the EMPLOYER as to the amount of
membership dues and initiation fees, which amounts will not change more than
once per calendar year. Initiation fees, dues and other assessments shall
commence thirty-one (31) days from the date of employment.
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4.3 Administrative Dues: Effective January 1, 2021 the Employer will, upon
written notification of the individual employee, deduct from the pay of such
employee the working dues assessment. These dues will be deducted at ten
cents ($.10) per hour, not to exceed 40 hours per week. All money collected by
the Employer, as provided here, shall be remitted, along with the reporting form
which states the employee’s name, last four digits only of social security
number, hours worked, and amount of working dues owed, to Local 49’s office
located at 2829 Anthony Lane South, Minneapolis, Minnesota 55418, not later
than the 15th day of the month following the month in which deductions were
made.
4.4 The UNION may designate certain Employees from the bargaining unit to act
as stewards and shall inform the EMPLOYER in writing of such choice.
4.5 The UNION agrees to indemnify and hold the EMPLOYER harmless against
any and all claims, suits, orders or judgments, including attorney fees and
costs, brought or issued against the EMPLOYER as a result of any action taken
or not taken by the EMPLOYER under the provisions of this Article.
ARTICLE V – EMPLOYER SECURITY
5.1 The UNION agrees that during the life of this AGREEMENT it will not cause,
encourage, participate in or support any strike, slow down, other interruption of
or interference with the normal functions of the EMPLOYER.
5.2 Any Employee who engages in a strike may have their appointment terminated
by the EMPLOYER effective the date the violation first occurs. Such
termination shall be effective upon written notice served upon the Employee.
5.3 An Employee who is absent from any portion of the Employee’s work
assignment without permission, or who abstains wholly or in part from the full
performance of the employee’s duties without permission from the Employee’s
EMPLOYER on the date or dates when a strike occurs is prima facie presumed
to have engaged in a strike on such date or dates.
5.4 No Employee shall be entitled to any daily pay, wages or per diem for the
days on which the Employee engaged in a strike.
ARTICLE VI – EMPLOYER AUTHORITY
6.1 The EMPLOYER retains the full and unrestricted right to operate and manage
all manpower, facilities, and equipment; to establish functions and programs;
to set and amend budgets; to determine the utilization of technology; to
establish, modify, eliminate, or otherwise change the organizational structure;
to select, direct, and determine the number of personnel; to establish work
schedules; and to perform any inherent managerial functions, duties and/or
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responsibilities. Except as clearly limited by the express terms of this
Agreement, the right of the EMPLOYER in all respects to manage its business,
operations, and affairs shall be unimpaired. The enumeration of rights and
duties listed in this Agreement shall not be deemed to exclude other inherent
rights and management functions not expressly reserved in this Agreement,
and all management rights and management functions not expressly delegated
in this Agreement are reserved to the EMPLOYER.
ARTICLE VII – EMPLOYEE RIGHTS – GRIEVANCE PROCEDURE
7.1 Definition of a Grievance: A grievance is defined as a dispute or
disagreement as to the interpretation or application of the specific terms and
conditions of this AGREEMENT.
7.2 Union Representatives: The EMPLOYER will recognize representatives
designated by the UNION as the grievance representatives of the
bargaining unit having the duties and responsibilities established by this
Article. The UNION shall notify the EMPLOYER in writing of the names of
such UNION Representatives and of their successors when so designated.
7.3 Procedure: The employee and the City shall attempt to adjust all grievances
which may arise during the course of employment in the following manner:
An effort shall first be made to adjust the grievance informally between the
employee and supervisor. If the grievance cannot be resolved through informal
discussion, then the grievance shall be resolved in conformance with the
following procedure:
Step 1. An EMPLOYEE OR REPRESENTATIVE OF THE UNION claiming
a violation concerning the interpretation or application of this AGREEMENT
shall, within twenty-one (21) calendar days after such alleged violation has
occurred, present such grievance to the EMPLOYEE'S supervisor as
designated by the EMPLOYER. The EMPLOYER-designated
representative will discuss and give an answer to such Step 1 grievance
within ten (10) calendar days after receipt. A grievance not resolved in Step
1 and appealed to Step 2 shall be placed in writing setting forth the nature
of the grievance, the facts on which it is based, the provision or provisions
of the AGREEMENT allegedly violated, and the remedy requested and shall
be appealed to Step 2 within ten (10) calendar days after the EMPLOYER-
designated representative's final answer in Step 1. Any grievance not
appealed in writing to Step 2 by the UNION within ten (10) calendar days
shall be considered waived. Grievances involving suspension or a dismissal
may, by mutual agreement of the EMPLOYER and the UNION, commence
at Step 3.
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Step 2. If appealed, the written grievance shall be presented by the UNION
and discussed with the EMPLOYER-designated Step 2 representative. The
EMPLOYER-designated representative shall give the UNION the
EMPLOYER'S Step 2 answer in writing within ten (10) calendar days after
receipt of such Step 2 grievance. A grievance not resolved in Step 2 may be
appealed to Step 3 within ten (10) calendar days following the EMPLOYER-
designated representative's final Step 2 answer. Any grievance not
appealed in writing to Step 3 by the UNION within ten (10) calendar days
shall be considered waived.
Step 3. If appealed, the written grievance shall be presented by the Union and
discussed with the City Council. The City Council shall give the UNION the
Employer’s answer in writing within fifteen (15) calendar days after receipt of
such Step 3 grievance. A grievance not resolved in Step 3 may be appealed
to Step 4 within ten (10) calendar days following the City Council's final answer
in Step 3. Any grievance not appealed in writing to Step 4 by the UNION within
ten (10) calendar days shall be considered waived.
Step 4. A grievance unresolved in Step 3 and appealed in Step 4 shall be
submitted to the Minnesota Bureau of Mediation Services. A grievance not
resolved in Step 4 may be appealed to Step 5 within ten (10) calendar days
following the EMPLOYER'S final answer in Step 4. Any grievance not
appealed in writing to Step 5 by the UNION within ten (10) calendar days shall
be considered waived.
Step 5. A grievance unresolved in Step 4 and appealed in Step 5 shall be
submitted to arbitration subject to the provisions of the Public Employment
Labor Relations Act of 1971, as amended. The selection of an arbitrator
shall be made in accordance with the "Rules Governing the Arbitration of
Grievances" as established by the Public Employment Relations Board.
In place of the Arbitrator selection process as outlined in the Public
Employment Labor Relations Act, the UNION and EMPLOYER may select an
Arbitrator by mutual agreement.
7.4 Unless mutually agreed, no grievance shall be considered by the arbitrator
which has not been duly processed in accordance with the grievance
procedure and appeal provisions.
7.5 Arbitrator's Authority
a. The arbitrator shall have no right to amend, modify, nullify, ignore, add to,
or subtract from the terms and conditions of this AGREEMENT. The
arbitrator shall consider and decide only the specific issue(s) submitted in
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writing by the EMPLOYER and the UNION, and shall have no authority to
make a decision on any other issue not so submitted.
b. The arbitrator shall be without power to make decisions contrary to, or
inconsistent with, or modifying or varying in any way the application of
laws, rules, or regulations having the force and effect of law. The
arbitrator's decision shall be submitted in writing within thirty (30) days
following the close of the hearing or the submission of briefs by the
parties, whichever be later, unless the parties agree to an extension. The
decision shall be binding on both the EMPLOYER and the UNION and
shall be based solely on the arbitrator's interpretation or application of the
express terms of this AGREEMENT and to the facts of the grievance
presented.
c. The fees and expenses for the arbitrator's services and proceedings shall
be borne equally by the EMPLOYER and the UNION provided that each
party shall be responsible for compensating its own representatives and
witnesses. If either party desires a verbatim record of the proceedings, it
may cause such a record to be made, providing it pays for the record. If both
parties desire a verbatim record of the proceedings the cost shall be shared
equally.
7.7 Choice of Remedy - If, as a result of the EMPLOYER Proposal in Step
4, the grievance remains unresolved, and if the grievance involves the
suspension, demotion, or discharge of an employee who has completed
the required probationary period, the grievance may be appealed either
to Step 5 of Article VIII or a procedure such as: Civil Service, Veteran's
Preference, or Fair Employment. If appealed to any procedure other than
Step 5 of Article VIII the grievance is not subject to the arbitration
procedure as provided in Step 5 of Article VIII. The aggrieved employee
shall indicate in writing which procedure is to be utilized — Step 5 of
Article VIII or another appeal procedure — and shall sign a statement to
the effect that the choice of any other hearing precludes the aggrieved
employee from making a subsequent appeal through Step 5 of Article VIII.
ARTICLE VIII – SAVINGS CLAUSE
8.1 This AGREEMENT is subject to the laws of the United States, the State of
Minnesota, and the signed municipality. In the event any provision of the
AGREEMENT shall be held to be contrary to law by a court of competent
jurisdiction from whose final judgment or decree no appeal has been taken
within the time provided, such provision shall be voided. All other provisions of
this AGREEMENT shall continue in full force and effect. The voided provision
may be renegotiated at the request of either party.
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ARTICLE IX– WORK SCHEDULES
9.1 The sole authority to create and/or modify work schedules is vested with the
EMPLOYER. The normal work day for an Employee shall be eight (8) hours,
the normal hours of operation will be 7:00 a.m. to 3:30 p.m. The normal work
week shall be forty (40) hours Monday through Friday.
9.2 Service to the public may require the establishment of regular shifts for
Employees on a daily, weekly, seasonal, or annual basis other than the normal
7:00 a.m. to 3:30 p.m. work shift. Service to the public may require the
establishment of regular work weeks that schedule work on Saturdays and/or
Sundays. The EMPLOYER shall give seventy two hours (72) advance notice
to the Employees affected by the establishment of work days different from the
Employee’s normal eight (8) hour work day.
9.3 In the event that work is required because of unusual circumstances such as
(but not limited to) fire, flood, snow, sleet, tree removal from roadways,
breakdown of municipal equipment for facilities or equipment failure in the
wastewater system, no advance notice need be given as required in section
9.2. It is not required that an Employee working other than the normal work
day be scheduled to work more than eight (8) hours; however, each Employee
has an obligation to work overtime or call backs if requested unless unusual
circumstances prevent him/her from so working.
ARTICLE X – OVERTIME PAY
10.1 Hours worked in excess of eight (8) hours within a twenty four (24) hour period
Monday through Friday or forty (40) hours within a five (5) day period Monday
through Friday will be compensated for at one and one-half (1-½) times the
Employee’s regular base pay rate, or at discretion of management,
compensatory time off at the rate of one and one-half (1-½) hours off for each
hour of overtime worked.
10.2 All overtime must be approved by the Employee’s direct supervisor or designee
in advance of such work. Any Employee who works overtime without prior
approval may be subject to disciplinary action in accordance with Article XIV
Discipline.
10.3 For the purpose of calculating overtime compensation, overtime hours worked
shall not be pyramided, compounded, or paid twice for the same hours worked.
10.4 For purposes of calculating overtime, any Employee who performs work
outside the bargaining unit will be paid subject to a weighted average between
the two wage scales multiplied by 1.5.
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10.5 Employees may accumulate up to a maximum of eighty 80 hours of
compensatory time. Unused accrued compensatory time at the end of each
calendar year may be carried over to the next calendar year.
10.6 For purposes of calculating overtime, all compensated hours including PTO,
holidays or compensatory time shall be considered hours worked. Workers
Compensation will not apply as hours worked for purposes of calculating
overtime.
ARTICLE XI – CALL BACK
11.1 An Employee called in for work at a time other than the Employee’s normal
scheduled shift will be compensated for a minimum of two (2) hours pay at one
and one-half (1-½) times the Employee’s base pay rate.
ARTICLE XII – LEGAL DEFENSE
12.1 Employees involved in litigation because of negligence, ignorance of laws, non-
observance of laws, or as a result of employee judgmental decision may not
receive legal defense by the municipality.
12.2 Any employee who is charged with a traffic violation (other than speeding),
ordinance violation or criminal offense arising from acts performed within the scope
of employment, when such act is performed in good faith and under direct order of
the employee’s supervisor shall be reimbursed for reasonable attorney’s fees and
court costs actually incurred by such employee in defending against such charge.
ARTICLE XIII – RIGHT OF SUBCONTRACT
13.1 Nothing in this AGREEMENT shall prohibit or restrict the right of the EMPLOYER
from subcontracting work performed by employees covered by this AGREEMENT.
ARTICLE XIV – DISCIPLINE
14.1 The EMPLOYER will discipline Employees only for just cause. Any disciplinary
actions in the Employee’s personnel file will be expunged after thirty-six (36)
months of the initial occurrence, unless the same discipline has occurred more
than once within thirty-six (36) months.
14.2 The EMPLOYER may elect to use progressive discipline with any Employee in the
certified bargaining unit. Disciplinary action may include potential action, up to and
including termination of employment, based on the nature and severity of the
infraction, the conditions surrounding the incident, and any past history of
discipline. There may be circumstances that warrant deviation from the suggested
order or where progressive discipline is not appropriate. The EMPLOYER has the
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sole authority to choose the appropriate discipline and nothing in this
AGREEMENT implies that an Employee in the certified bargaining unit has a
property right to the job that he/she performs.
14.3 Documentation of any disciplinary action taken will be placed in the Employee’s
personnel file with a copy provided to the Employee and Union Representative.
14.4 The following are descriptions of the type of disciplinary action the EMPLOYER
may take against an Employee in the certified bargaining unit:
14.5 Oral Reprimand: This measure will be used where informal discussions with the
Employee’s supervisor have not resolved the matter. All supervisors have the
authority to issue oral reprimands without prior approval. Oral reprimands put the
Employee on notice that the performance or behavior needs to change and what
that change must be. Oral reprimands shall be documented in the file with the
date issued, summary of the discussion and any corrective action needed.
14.6 Written Reprimand: A written reprimand is more serious and may follow an oral
reprimand when the problem is not corrected or the behavior has not consistently
improved in a reasonable period of time. Serious infractions may require skipping
either the oral or written reprimand, or both. Written reprimands are issued by the
supervisor with prior approval from the City Administrator. A written reprimand will:
(1) state what happened; (2) identify the policy, directive or performance
expectation that was not followed; (3) provide history, if any, on the issue; (4) state
goals, including timetables, and expectations for the future; and (5) indicate
consequences of recurrence.
14.7 Suspension With or Without Pay: The City Administrator may suspend an
Employee without pay for disciplinary reasons. Suspension without pay may be
followed with immediate dismissal as deemed appropriate by the City Council,
except in the case of veterans. Qualified veterans will not be suspended without
pay in conjunction with a termination. The Employee will be notified in writing of
the reason for the suspension either prior to the suspension or shortly thereafter.
An Employee may be suspended or placed on involuntary leave of absence
pending an investigation of an allegation involving that Employee. The leave may
be with or without pay depending on a number of factors including the nature
and/or severity of the allegations. If the allegation is proven false after the
investigation, the relevant written documents will be removed from the Employee’s
personnel file and the Employee will receive any compensation and benefits due
had the suspension not taken place.
14.8 Demotion and/or Transfer: An Employee may be demoted or transferred if
attempts at resolving an issue have failed and the City Administrator determines a
demotion or transfer to be the best solution to the problem. The Employee must
be qualified for the position to which they are being demoted or transferred. The
City Council must approve this action.
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14.9 Salary: An Employee's salary increase may be withheld or the salary may be
decreased due to performance deficiencies. The City Council must approve this
action.
14.10 Discharge: The City Administrator, with the approval of the City Council, may
discharge an Employee for substandard work performance, serious misconduct,
or behavior not in keeping with EMPLOYER’S standards.
ARTICLE XV – SENIORITY
15.1 Seniority will be the determining criterion for transfers, promotions and lay-offs
when all other qualification factors are equal.
ARTICLE XVI – PROBATIONARY PERIODS
16.1 All newly hired or rehired Employees within the certified bargaining unit will serve
a six (6) month probationary period.
16.2 All Employees who are reassigned into the certified bargaining unit from a prior
position, in which the employee has not yet served a probationary period with the
EMPLOYER, will serve a six (6) month probationary period.
16.3 At any time during the probationary period a newly hired or rehired Employee may
be disciplined and/or terminated at the sole discretion of the EMPLOYER.
16.4 At any time during the probationary period an Employee who was reassigned to
the certified bargaining unit or promoted within the certified bargaining unit may be
demoted or reassigned to the Employee’s previous position at the sole discretion
of the EMPLOYER.
ARTICLE XVII – SAFETY
17.1 The EMPLOYER and the UNION agree to jointly promote safe and healthful
working conditions, to cooperate in safety matters and to encourage Employees to
work in a safe manner.
ARTICLE XVIII – JOB POSTING
18.1 The EMPLOYER and the UNION agree that permanent job vacancies within the
designated bargaining unit shall be filled based on the concept of promotion from
within provided that applicants:
18.1.1 Have the necessary qualifications to meet the standards of the job
vacancy; and
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18.1.2 Have the ability to perform the duties and responsibilities of the job
vacancy.
18.2 Employees filling a higher job class based on the provisions of this ARTICLE shall
be subject to the conditions of ARTICLE XVI (PROBATIONARY PERIODS).
18.3 The EMPLOYER has the right of final decision in the selection of Employees to fill
posted jobs based on qualifications, abilities and experience.
18.4 Job vacancies within the designated bargaining unit will be posted for five (5)
working days so that members of the bargaining unit can be considered for such
vacancies.
ARTICLE XIX – HEALTH BENEFITS
The employees are eligible for coverage from the Operating Engineers, Local No.
49 Health and Welfare Fund (Health and Welfare Fund). The terms of the Trust
Agreement establishing the Health and Welfare Fund is hereby incorporated as a
part hereof. The Employer agrees to make monthly contributions to the Health and
Welfare Fund and provide all full time employees with Local 49’s bargaining
premium health insurance, with the Employees responsible for twenty percent
(20%) of the cost of their health insurance premium.
ARTICLE XX – LIFE INSURANCE
20.1 The City shall provide $15,000 life insurance policy for all eligible employees and
pay the monthly premium. An eligible employee is one regularly scheduled to work
by the EMPLOYER for forty (40) hours or more per week.
20.2 Long Term Disability: Bargaining unit members shall receive the same long term
disability benefits as all other city employees.
ARTICLE XXI – HOLIDAYS
21.1 Holidays are defined as:
New Year’s January 1
Martin Luther King Day Third Monday in January
President’s Day Third Monday in February
Memorial Day Last Monday in May
Juneteenth June 19
Independence Day July 4
Labor Day First Monday in September
Veteran’s Day November 11
Thanksgiving Day Fourth Thursday in November
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Day after Thanksgiving Fourth Friday in November
Christmas Eve Day December 24
Christmas Day December 25
21.2 If a holiday falls on a Saturday, the day before shall be observed as the holiday. If
a holiday falls on a Sunday, the day after shall be observed as the holiday. In the
event Christmas Eve falls on either a Saturday or Sunday the Friday before
Christmas Eve shall be the holiday. In the event Christmas Eve falls on a Friday,
the day before shall be observed as the holiday.
21.3 Employees are entitled to Holiday pay, which is eight hours of pay given whether
or not the employee works on the Holiday.
Employees called in to work on the following Holidays: Memorial Day,
Independence Day, Labor Day and Juneteenth shall receive time and one half (1-
½) the employee’s regular rate of pay in addition to the holiday pay.
21.4 Employees called in to work on the following Holidays: New Year’s Day, Martin
Luther King Day, Presidents Day, Veterans Day, Thanksgiving Day, Day after
Thanksgiving, Christmas Eve Day and Christmas Day shall receive double time
(2) the employee’s regular rate for all hours worked in addition to the holiday pay.
ARTICLE XXII – FUNERAL LEAVE
22.1 Funeral leave shall be granted to full-time Employees as follows:
Four (4) days in each case of the death of:
Employee’s parents or stepparents;
Employee’s spouse, or person regarded as such;
Employee’s children, stepchildren or foster children;
Two (2) day in each case of the death of:
Employee’s siblings or stepsiblings;
Employee’s grandparents or stepgrandparents;
Employee’s grandchildren or stepgrandchildren;
Parents or stepparents of the Employee’s spouse or person regarded as such;
Siblings or stepsiblings of the Employee’s spouse or person regarded as such;
One (1) day in each case of the death of:
Employee’s aunt, uncle, niece, or nephew, including step relations;
Grandparents or stepgrandparents of the Employee’s spouse or person
regarded as such;
Grandchildren or stepgrandchildren of the Employee’s spouse or person
regarded as such.
22.2 Funeral Leave will be at the Employee’s regular rate of pay and shall not be
counted against the Employee’s PTO. Upon approval of the supervisor, the
Employee may choose to use PTO to extend the funeral leave. The City
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Administrator may determine the length of leave for any case not meeting the
above guidelines.
ARTICLE XXIII – PTO
23.1 Paid Time Off (PTO)
23.2 Paid Time Off shall accrue according to the following schedule for regular full-
time Employees:
Completed
Years of
Employment
PTO hours
accrued per
year
PTO days (8 hr.)
accrued per year
0 – 1 132 16.5
2 – 4 168 21
5 – 9 192 24
10 – 14 216 27
15+ 240 30
23.3 An Employee shall not have more than 480 hours of PTO accrued at any time.
Any PTO accrued over 480 hours shall be converted to a contribution to MSRS.
Such conversion into MSRS shall be capped at forty (40) hours accumulation per
year. The conversion shall take place once a year in the second week of
December.
23.4 Employees may not use PTO until it has been credited to the employee’s bank in
the payroll system.
23.5 Accumulated PTO cannot be transferred from one Employee to another.
23.6 PTO shall not be earned by an Employee during leaves of absence without pay
when such leaves are in excess of ten (10) consecutive working days. An
Employee receiving either short term or long term disability insurance is
considered to be on leave without pay for the purposes of this section.
23.7 Probationary Employees will accrue PTO and may use PTO in conjunction with
this article, but shall not receive payment for unused PTO if the employee is
terminated during the probationary period.
23.8 PTO may be used in increments of 30 minutes or more so long as the employee(s)
have notified their immediate supervisor or equivalent within thirty (30) minutes
prior to the start of the work day or during the work day. Any PTO exceeding one
(1) day must be scheduled in advance with the Employee’s immediate supervisor,
unless taken due to illness or emergency.
23.9 PTO will take two forms:
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• planned time off which will be scheduled in advance with the supervisor's
approval;
• unplanned time off which will require notification of the supervisor within 30
minutes of the employee's scheduled work day if the employee is not at work,
or notification of the supervisor before leaving work.
23.10 The unused balance of PTO shall be paid to an Employee leaving the city in good
standing at the pay rate the Employee is earning at the time of separation from
employment.
ARTICLE XXIV - UNIFORMS/ BOOT ALLOWANCE
The City will provide each employee an annual clothing allowance of $325.00 per
year which will allow employees to purchase approved safety boots, jackets, bibs,
t-shirts, Polos, sweat shirts, winter hats, gloves and jeans.
The City will provide standard work gloves. If the employee prefers an alternative
glove it will be paid for out of their clothing allowance.
The City will provide 5 high visibility t-shirts each year. The employee is
responsible for care of the clothing and the Employee recognizes that clothing
must not be worn that does not meet safety standards.
The City will replace high visibility jackets as needed with supervisor’s approval.
ARTICLE XXV – SEVERANCE PAY
Full-time Employees will be paid severance pay as follows:
Employees who leave the employment of the EMPLOYER in good standing by
retirement or resignation will receive pay for unused Paid Time Off as provided by
Article 23 of this agreement. Good standing means the Employee notified an
immediate supervisor a minimum of fourteen (14) days’ notice of their intentions to
terminate or retire from the EMPLOYER. Employees have the option of directing
those dollars into a 457 deferred compensation plan (subject to IRS regulations
and Minnesota law) or (MSRS).
ARTICLE XXVI – ON-CALL POSITION
26.1 Worker on call Policy
a. Local 49 members scheduled to be on-call on weekends shall be
compensated Seventy Dollars ($70.00) per weekend day.
b. Local 49 members scheduled to be on-call on weekdays shall be
compensated Twenty-five Dollars ($25.00) per weekday.
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c. Local 49 members scheduled to be on-call on holidays shall be
compensated Seventy Dollars ($70.00) per holiday day.
d. Any time spent on-call will not count towards hours worked for purposes of
calculating overtime, unless such Employee was actually called to answer
and/or respond to an emergency call. Local 49 members and the Director
of Public Works will make up the schedule to be on-call and carry the pager
on weekends with the final approval by the Director of Public Works.
ARTICLE XXVII – TRAINING CENTER
The Employer agrees to contribute $0.30 per straight-time hour worked, per
bargaining unit Employee, to the Local 49 Training Center. The Employer and
bargaining until Employees will be provided all benefits of the Local 49 Training
Center.
The Employer shall pay this contribution, by the 15th of the following month,
directly to Wilson McShane Corporation at: 3001 Metro Drive, Suite 500,
Bloomington, MN 55425.
ARTICLE XXVIII – WAIVER
28.1 This AGREEMENT represents the complete and total AGREEMENT
between the UNION and the EMPLOYER. Any and all prior agreements,
resolutions, practices, policies, rules and regulations regarding terms and
conditions of employment, to the extent inconsistent with the provisions of this
AGREEMENT, are hereby superseded.
28.2 The parties mutually acknowledge that during the negotiations which
resulted in this AGREEMENT, each had the unlimited right and opportunity to
make demands and proposals with respect to any term or condition of employment
not removed by law from bargaining. All agreements and understandings arrived
at by the parties are set forth in this AGREEMENT for the stipulated duration of
this AGREEMENT. The EMPLOYER and the UNION each voluntarily and
unqualifiedly waives the right to meet and negotiate regarding any and all terms
and conditions of employment referred to or covered in this AGREEMENT or with
respect to any term or condition of employment not specifically referred to or
covered by this AGREEMENT, even though such terms or conditions may not have
been within the knowledge or contemplation of either or both parties at the time
this contract was negotiated or executed.
ARTICLE XXIX- WAGES
29.1 Employees will be evaluated by their supervisors on their anniversary date of
employment consistent with the step increases proposed below and a personal
review of that evaluation will be required between the employee and the
employee’s supervisor. The employee will complete a self- evaluation prior to
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review with supervisor. All employees will be eligible to move to the next step
provided the employee meets the job performance criteria, in the sole discretion of
the City.
Full Time Maintenance Worker
Effective 1/1/24: 6% Market Adjustment +3.50% COLA
Step 1 Start $27.48
Step 2 1 Year Anniversary $29.01
Step 3 3 Year Anniversary $30.59
Step 4 5 Year Anniversary $32.27
Step 5 8 Year Anniversary $33.89
Effective 1/1/25: 3.5% increase
Step 1 Start $28.44
Step 2 1 Year Anniversary $30.03
Step 3 3 Year Anniversary $31.66
Step 4 5 Year Anniversary $33.40
Step 5 8 Year Anniversary $35.08
Effective 1/1/26: 3.5% increase
Step 1 Start $29.44
Step 2 1 Year Anniversary $31.08
Step 3 3 Year Anniversary $32.77
Step 4 5 Year Anniversary $34.57
Step 5 8 Year Anniversary $36.30
29.2 Any work performed by an Employee outside the bargaining unit shall not be
subject to the wage scale included in this Article XXVIII.
29.3 Licensure Pay: Additional $.25 per hour premium for employees holding any of
the following licenses: Service Provider, Class D Wastewater, Class E Water and
Class C Water not to exceed three (3) license premiums per employee. Upon
approval from Public Works Director other licenses may be approved and
compensated $.25 per license per hour.
ARTICLE XXX – DURATION
This AGREEMENT shall be effective as of January 1, 2024, and shall remain in
full force and effect until December 31, 2026, and shall continue in effect from year
to year thereafter unless either party shall give written notice at least sixty (60) days
prior to any anniversary date of its desire to amend or terminate the Agreement.
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IN WITNESS WHEREOF, the parties hereto have executed this AGREEMENT on this
____ day of _________________, 2023.
FOR THE CITY OF SCANDIA: FOR I.U.O.E. LOCAL NO. 49:
____________________________ __________________________
Neil Soltis, City Administrator Jason A. George,Business Manager
____________________________ __________________________
Cory Bergerson, Business Agent
__________________________
Steward
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MEMORANDUM OF UNDERSTANDING
CENTRAL PENSION FUND
CITY OF SCANDIA
The City of Scandia agrees to participate in the Central Pension Fund of the
International Union of Operating Engineers and Participating Employers (“Central
Pension Fund”) in accordance with the terms of the Restated Agreement and
Declaration Trust of the Central Pension, the Plan of Benefits, and this
Memorandum of Understanding.
1. Minnesota Statute § 356.24, Subd. 1(10) expressly authorizes the Employer
to contribute public funds to the Central Pension Fund as a supplemental
pension plan for the employees of a governmental subdivision who are
covered by a collective bargaining agreement that provides for such
coverage.
2. Sections 4.1 of the Restated Agreement and Declaration of Trust of the
Central Pension Fund and 13.01 of the Plan of Benefits only permits
Employer Contributions to the Fund.
3. The Parties agree that the agreed upon Employer contribution amount that
would otherwise be paid in salary or wages will be contributed instead to the
CPF as a pre-tax Employer contribution. Contributions from the Employer will
not be funded from any other source unless agreed upon by the parties.
4. The hourly contribution rate will be applied to every hour compensated (i.e.
hours worked, vacation, holiday and sick time) except for overtime hours
worked. The Employer shall remit this contribution directly to the Central
Pension Fund at P.O. Box 418433 Boston, MA 02241-8433.
5. A contribution of $1.50 per straight time hours compensated prevents annual
Central Pension Fund contributions on behalf of eligible Employees from
exceeding $10,000.00 in a year and therefore complies with the limitations set
forth under Minnesota Statute, §356.24, Subd. 1(10) as amended.
6. For purposes of determining future wage rates, the Employer shall first
restore the amount of the Employer Contribution, which is currently the CPF
contribution rate of $1.50 per hour, then apply the applicable wage multiplier,
then reduce the revised wage by the Central Pension Fund contribution rate.
7. For purposes of calculating overtime compensation, the Employer shall first
restore the amount of the Employer Contribution $1.50 then apply the
applicable 1.5 wage multiplier required under the Fair Labor Standards Act
(FLSA) and the Collective Bargaining Agreement, then pay the resulting
amount for overtime worked.
8. The Parties agree that the Public Employees Retirement Association (PERA)
interprets Employer contributions to the Central Pension Fund as being
included in determining “salary” for the purposes of the public pension.
9. The parties agree to abide by the terms and conditions of the Restated
Agreement and Declaration of Trust and the Plan of Benefits of the Central
Pension Fund.
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10. Effective January 1, 2024, the contribution rate equals $1.50 per straight time
hours compensated.
11. Members, by majority vote, may change the contribution rate at any time
during the life of the Collective Bargaining Agreement. The Union and
Employer will work together to implement member approved changes as soon
as is practicable.
For: City of Scandia For: IUOE, Local No.49
__________________________ ________________________________
Employer: Cory Bergerson, Business Agent
__________________________ ________________________________
Date Date