9.b Staff Report-Labor Agreement with Local 49
Staff Report
Date of Meeting: October 17, 2017
To: City Council
From: Neil Soltis, Administrator
Re: Labor agreement with Local 49
Background: The current labor agreement between the City and IUOE Local No. 49 expires at the
end of 2017. Mayor Maefsky, Councilmember Kronmiller and myself met with the Union regarding
the terms of the successor agreement. The full agreement that follows reflects the terms that wer e
agreed to by both sides of the negotiation teams. The members of Local No. 49 voted to accept the
terms of the agreement on September 26.
Issue: Should the Council approve the terms of the 2018 – 2020 Labor Agreement as negotiated.
Proposal Details: Significant changes from the previous agreement include:
ARTICLE VII – GRIEVANCE PROCEDURE – updated to better reflect the dates for filing
and responses and the results of non-action.
ARTICLE X – OVERTIME – changed to calculate overtime based on work after eight (8)
hours in a twenty four (24) period and over 40 hours within a five (5) day period
Monday through Friday when calculated based on all compensated hours.
ARTICLE XXI – HOLIDAYS - 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 XXIV – UNIFORMS/ BOOT ALLOWANCE – Increased the annual clothing
allowance by $25.00 per year which will allow employees to purchase approved safety
boots and the following work clothing items: jackets, bibs, t -shirts, polos, sweat shirts,
winter hats, gloves and jeans. Additionally the City will provide 5 high visibility t-shirts
each year and replace high visibility jackets as needed with supervisor’s approval.
ARTICLE XXVIII - WAGES AND CLASSIFICATIONS: - Increase all wage rates 3.0% for 2018,
2.75% for 2019, and 2.75% for 2020.
CENTRAL PENSION FUND - The City will enter into a memorandum of understand to
allow for participation in the Central Pension Funds of the International Union of
Operating Engineers with the understanding that all employee cont ributions will be
through payroll deduction and that the City incur no costs beyond payroll
administration.
MINNESOTA STATE RETIREMENT SYSTEM - The City is agreeable to passing a resolution
to memorialize the option for employees directing any severance pay pursuant to
Article XXV to the Minnesota State Retirement System.
LONG-TERM DISABILITY - Bargaining unit members shall receive the same long term
disability benefits as all other city employees.
Fiscal Impact: The wage and fringe benefit impacts are $5,236 in 2018, $4,944 in 2019 and $5,080
in 2020. The additional cost if all 3 employees were called in for 20 hours of overtime on the listed
winter holidays would be $840. The increase in the clothing allowance and cost of safety apparel is
roughly $175. All of these costs have been included in the 2018 budget projections that have been
reviewed by the Council.
Options:
1. Approve the agreement based on the stated terms
2. Reject or modify the agreement and restart the negotiations with Local No. 49
Recommendation: Option 1