Item Coversheet

*5.A.5.


Shakopee City Council
March 6, 2024


FROM:William H. Reynolds, City Administrator
TO:Mayor and Council Members
Subject:
Public Works Union Contract
Policy/Action Requested:
Approval of Tentative Agreement
Recommendation:
Approval
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, but especially for union members as they did not maximize their results. 

Regardless, after multiple mediation meetings, and with the threat of a strike hanging over the city, we have reached a second tentative agreement (TA). Council voted against the first TA on February 20, 2024 because it did not meet Council's expectations. This TA does as it includes a 3-year contract. 

This TA allows Teamsters members to opt out of the City’s health plan, established a Step 6 with a 5% increase and raises call-in pay from $4.25 to $5.00 an hour. Cost of living adjustments (COLA) for year one (1) and two (2) of the contract are established at 3% and year three (3) will have a 3.5%. There is also a market rate adjustment for mechanics of 1% in year one (1). 

 

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.

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.
ATTACHMENTS:
Description
Public Works Teamsters Contract Redlined
Public Works Teamsters Contract Final