Item Coversheet

*4.A.2.


Shakopee City Council
October 3, 2017


FROM:Jennifer Gabbard
TO:Mayor and City Council
Subject:
Resolution 7934, ratifying the Teamsters Union Contract for 2017-2019
Policy/Action Requested:

Approve resolution 7934.

Recommendation:

Approval of Resolution 7934, ratifying the Teamsters Union Contract for 2017-2019. This represents an equitable agreement in line with other agencies, keeping us competitive in the employment marketplace, and recognizing the excellent work of our public works department.

Discussion:

The contract with the Teamsters union expired on December 31, 2016. The City has held multiple negotiating meetings with representatives of the Teamsters union to arrive at the attached contract. 

 

The negotiated contract includes the following:

1.    Article 3 – Definitions

We defined what a seasonal employee was, and that we could have employees that work from April to October of each year.

 

2.    Article 9 – Work Schedules

We agreed to provide as much advance notice as possible of unusual circumstances that require work.

 

3.    Article 10 – Overtime

We moved the date that we buy down comp time to one that is more administratively functional.

 

Additionally, we agreed on new provision about how the city provides overtime for its employees under this contract, and what the agreed upon process is.

 

 

4.    Article 12 – Early Call-In Pay

We agreed on wage increase for early call-in pay. It went from $3.00 an hour to $4.25 an hour.

 

5.    Article 15 – Discipline

We agreed on sunset terms for discipline, which is a best practice.

 

6.    Article 22 – Vacations

We agreed to new terms for scheduling vacations.

 

7.    Article 25 – Sick Leave

We agreed to allow an employee who has a Sick Leave Bank balance to convert those hours over to the Post-Employment Health Care Savings Plan at a conversion rate of 3 to 1 hours.

 

8.    Article 26 – Post-Employment Health Care Savings Plan

We corrected the amount that is provided to employees on a monthly basis for having our health insurance. It had previously been $25, but was increased to $35 in 2015.

 

9.    Article 28 – Coveralls/Uniforms/Footwear

We agreed on new terms for uniforms. Increased the footwear allowance to $175 per year, and will now allow footwear accessories to be a part of the footwear allowance.

 

10.  Article 31 – Wages

We agreed on a 3% general wage increase each year of the contract, and we feel that a 3% wage increase for each year of the contract is a reasonable increase, based on some concessions made by the union for the new contract.

 

Additionally, we cleaned up the locations of some of the information in this article that was elsewhere in the contract. We also provided an opportunity regarding a wage reopener, if needed.

 

11.  Article 33 – Duration

We agreed to a three-year duration for the new contract. It would be valid January 1, 2017 to December 31, 2019.

 

12.  Appendix A – Wages

The amounts listed in Appendix A were increased 3% over the 2016 rates, each year of the life of the contract.

 

13.  Appendix C – Post Employment Health Care Savings Plan (HCSP)

The union had already voted to increase their HCSP payroll contributions.

 

We also updated the City’s contribution to the HCSP, which went from $25 to $35 in 2015. 

Budget Impact:

Funding for the 3% wage increase for 2017 is available within the current 2017 budget. The wage increases for 2018 and 2019 will need to be planned for in their respective budgets. 

 

Footwear allowance has a budgetary impact of $625 per year, $1,875 for the life of the contract. 

 

The changes to the uniform article is a cost savings for the city. 

 

The budgetary impact for early call-in pay in 2017 is $2,971.27. The budgetary impact for 2016 would have been $5,945.72.

ATTACHMENTS:
Description
Resolution 7934 - Ratifying the Teamsters Union Contract 2017-2019
Red-Lined Teamsters Contract 2017-2019
Final Teamsters Contract - 2017-2019