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Shakopee City Council
February 20, 2024
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| | | | | | | | | FROM: | William H. Reynolds, City Administrator | | TO: | Mayor and Council Members |
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| | | | | | | | Subject:
Public Works Union Contract | | |
| | | | | | | | Policy/Action Requested:
Review and determine action on proposed Public Work's union contract.
The council can approve the contract accepting the terms as negotiated, or it can reject the contract and have staff return to mediation. | | |
| | | | | | | | Discussion:
The City of Shakopee has a long history of supporting its union employees.
In the past, the city council has pledged to pay its employees at the mid-point of their comparable cities, has ensured employees have up-to-date and well-maintained equipment and that the employees are well-trained and cared for. In addition, during the shutdown necessitated by COVID, both administration and council ensured no employees were laid off. Both administration and council also have worked in the past to support employees who have had issues that threaten the ability for them to do their jobs – working to find solutions to keep them actively employed.
In the past, union negotiations have been respectful with a goal of achieving mutual common ground. This often required multiple meetings and frank discussion on issues, but always with the common goal of finding solutions.
This process took a decidedly different path, with the union voting to strike relatively soon after making their full list of demands. Due to this action, the city was forced to assemble an in-depth strike plan and expend time and effort (and a considerable amount of funds) in preparation for a work stoppage.
The effect of this particular process was to encumber real dialogue. The lack of communication effectively failed to maximize the benefit to both our employees and the city as a whole. That is unfortunate for all involved.
Regardless, after multiple mediation meetings, and with the threat of a strike hanging over the city, we have reached a tentative agreement (TA).
On December 5, 2023, staff reviewed with council the status of negotiations and received direction on essentially a last and best final offer. This particular TA exceeded those council-directed maximums in a couple areas in the hopes of coming to an agreement. The decision is ultimately a council decision.
A significant deviation in council's direction was its desire for a 3-year agreement. The current TA is for 2 years. In addition, the TA allows Teamsters members to opt out of the City’s health plan, and increased the council authorized 3% increase between Step 5 and the new Step 6 to a 5% increase. The TA also raises call-in pay from $4.25 to $5.00 an hour.
All other changes are as directed by council including 3% cost of living adjustments (COLA) for year one (1) and two (2) of the contract, and a market rate adjustment for mechanics of 1% in year one (1). It also includes the aforementioned new Step 6. Since it is only a two-year agreement, a 3.5% increase for a third year was left on the table. (The TA also notes that skating rink flooding will occur during regularly scheduled hours and will include overtime if afterhours. The overtime provision has no effect as we will not fill skating rinks after regular hours.)
The union has ratified this agreement. Staff is prepared to move forward in the direction council determines appropriate.
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| | | | | | | | Budget Impact:
The total amount above what was budgeted for in 2024 is $93,122. The actual budget amount for 2023 (with a 3% COLA) is $2,354,680. The TA would increase that to $2,447,813. | | |
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