CCP 03-24-2009 - Laserfiche WebLink

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0 Of Report Number 09-092 N��1�I Agenda Section VI-11 Council Meeting Date March 24, 2009 the, cil y that woks .for you REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: City Council Approval of the 2009 Master Labor Agreement between the Minnesota Teamsters Public and Law Enforcement Local No. 320 (Public Works and Parks Maintenance Workers) and the City of New Brighton DEPARTMENT HEAD'S APPROVAL: Dean R. Lotter, City Manager Schawn P. Johnson, Assistant to the City Manager CITY MANAGER'S APPROVAL: No comments to supplement this Comments attached Recommendation: To approve the 2009 Master Labor Agreement between the Minnesota Teamsters Public and Law Enforcement Local No. 320 (Mechanics, Public Works/Parks Maintenance Workers) and the City of New Brighton. Legislative History: City staff and the Teamsters Local No. 320. have been in contract negotiations for the past five months. On March 9th, representatives from both parties met with a mediator in attempt to resolve any outstanding contractual issues for 2009. Through the mediation process both side were able to successfully negotiate a contract agreement pending City Council approval. On March 16`I', members of the Local No. 320 held a meeting to review the proposed 2009 labor contract. After reviewing the proposed agreement, the bargaining unit ratified the contract. The following is an overview of the City's proposed agreement between the Minnesota Teamsters Public and Law Enforcement Local No. 320 (Public Works and Parks Maintenance Workers) and the City of New Brighton. Financial Impact: The effective date of the proposed contract is January 1, 2009. The proposed contract would increase wages and insurance benefits for employees that are represented by the Local 320. The proposed budget provides a 3% increase that is retroactive to January 1, 2009. The 3% increase equates to a $21,424 increase in wages for 2009. The contract also provides for a 1.5% market rate adjustment that would go into effect on December 31, 2009. The 1.5% market rate adjustment will keep the maintenance workers in the middle range of pay for comparable cities and will result in an expense of $10,524. The 2009 budget has already incorporated adequate funding to cover the proposed increase in wages and insurance contributions for the fourteen maintenance workers that are members of this bargaining unit. Management deemed it important to negotiate more structured severance language in the union contract. The practice of the City has been to allow an unlimited accrual of sick leave by its employees creating a potentially huge financial liability when it comes to severance pay since the severance pay is based on paying out accrued sick leave and tied to the hourly pay of the employee. As pay increases are given each year, the potential sick leave severance increases too. I:\COUNCIL\REPORTS�2009Wdmin\LocaI320 Maintenance Workers Contracttdoc