TO: Chair and Housing Authority Commissioners
THROUGH: Keith Stahley, Executive Director
FROM: Krishna Namburi, Deputy City Manager/Enterprise Services Director
Michele Bennett, Human Resources Assistant Director
SUBJECT:
title
Collective bargaining agreement between the Salem Housing Authority (SHA) and the American Federation of State, County and Municipal Employees.
Ward(s): All Wards
Commissioners(s): All Commissioners
Neighborhood(s): All Neighborhoods
Result Area(s): Good Governance
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SUMMARY:
summary
The Salem Housing Authority (SHA) began negotiations with the American Federation of State, County and Municipal Employees (AFSCME) on February 21, 2024, for a successor collective bargaining agreement. A final tentative agreement for a three-year contract was reached during mediation on October 1, 2024. The employees represented by AFSCME ratified the agreement on October 23, 2024.
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ISSUE:
Shall Salem Housing Authority Commission approve a three-year collective bargaining agreement between SHA and AFSCME for a period from July 1, 2024, through June 30, 2027?
RECOMMENDATION:
recommendation
Approve a three-year collective bargaining agreement between SHA and AFSCME for a period from July 1, 2024, through June 30, 2027.
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FACTS AND FINDINGS:
The principal features of the new agreement are as follows:
1. Term of Agreement: Three years commencing on July 1, 2024, through June 30, 2027.
2. Wage Increase:
a. Year 1:
• Effective October 1, 2024, each step of the salary schedule for AFSCME members will be increased by four percent (4.0%) for cost-of-living adjustment (COLA).
b. Year 2:
• Effective October 1, 2025, the salary schedule will be squared across pay steps, then a market adjustment applied to all non-exempt classifications of one percent (1.0%), and then each step of the salary schedule for AFSCME members will be increased a minimum of two percent (2.0%) to a maximum of four percent (4.0%), based upon the Federal Social Security Insurance (SSI) increase as of December 2024. Exempt classifications will get an individual step increase if they do not get the full effect of the SSI increase.
c. Year 3:
• Effective October 1, 2026, each step of the salary schedule for AFSCME members will be increased a minimum of two percent (2.0%) to a maximum of four percent (4.0%), based upon the Federal Social Security Insurance (SSI) increase as of December 2025.
3. Health Insurance: Effective the first paycheck in December 2024, the SHA employee paid contribution for health insurance premiums will increase from three percent (3.0%) to five percent (5.0%).
4. Long Term Disability (LTD) Insurance: Effective January 1, 2025, the LTD plan shall change from employee to employer paid LTD benefit coverage.
5. Collective Bargaining Agreement: The FY 2025 - 2027 agreement is posted under “Labor Contracts - AFSCME” online at: Pay Plans and Labor Contracts | Salem, Oregon (cityofsalem.net)
The approximate financial impact of this recommended settlement for the duration of the agreement is as follows:
Year 1: $120,519
Year 2: $123,487
Year 3: $126,543
The approximate total financial impact over the life of the contract is $370,550. It is anticipated SHA will absorb the additional first year cost in its FY 2025 budget.
Allison Pavelek
Sr. Human Resources Analyst
Attachments:
1. None.