TO: Mayor and City Council
THROUGH: Keith Stahley, City Manager
FROM: Krishna Namburi, Deputy City Manager/Enterprise Services Director
Michele Bennett, Human Resources Assistant Director
SUBJECT:
title
Collective bargaining agreement between the City of Salem and the American Federation of State, County and Municipal Employees.
Ward(s): All Wards
Councilor(s): All Councilors
Neighborhood(s): All Neighborhoods
Result Area(s): Good Governance.
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SUMMARY:
summary
The City 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 the City Council approve a three-year collective bargaining agreement between the City and American Federation of State, County and Municipal Employees (AFSCME), for a period from July 1, 2024, through June 30, 2027?
RECOMMENDATION:
recommendation
Approve a three-year collective bargaining agreement between the City and American Federation of State, County and Municipal Employees (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 July 1, 2024, each step of the salary schedule for AFSCME members will be increased by seven percent (7.0%) for cost-of-living adjustment (COLA).
b. Year 2:
• Effective July 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 for both non-exempt and exempt classifications to be increased by four percent (4.0%) for COLA.
c. Year 3:
• Effective July 1, 2026, each step of the salary schedule for AFSCME members will be increased by four percent (4.0%) for COLA.
3. Long Term Disability (LTD) Insurance: Effective January 1, 2025, the LTD plan shall change from employee to employer paid LTD benefit coverage.
4. Shift Differential: The shift differential for night shift (on or after 8:00 p.m. and before 4:59 a.m.) and Facilities Services Custodial Workers (that work after 4:30 p.m. and end before 8:00 a.m.) will increase from five percent (5.0%) to six percent (6.0%) or one dollar and twenty-five cents ($1.25) per hour, whichever is greater, for all hours worked in the shift.
6. Training Pay Incentive: Employees designated as trainers for their units in departments with an HR approved training program will receive five percent (5.0%) of their base wage when assigned a trainee.
7. Commercial Driver License (CDL) Entry Level Driver Training (ELDT) Behind-the-Wheel (BTW) Instructor Program: Select classifications may volunteer to be part of a rotational training program and receive ELDT BTW Trainer pay of five percent (5.0%) of base pay for time actively engaged in CDL training.
8. Tools and Equipment Allowance/ASE and EVT Incentive Pay: Fleet Services Technicians shall be provided a tool and equipment allowance of forty-five dollars ($45.00) per pay period. This allowance will increase by the COLA each year on July 1st. Fleet Service Technician maximum incentive pay for automotive/emergency vehicle technician certifications will increase from thirteen percent (13.0%) to fifteen percent (15.0%).
9. Severance Pay: For eligible career status employees pending potential layoff status may receive severance pay based on continuous uninterrupted employment with the City, ranging from a minimum of two weeks to a maximum of eight weeks base pay only.
10. 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: $4,342,700
Year 2: $7,654,315
Year 3: $10,533,653
The approximate total financial impact over the life of the contract is $22,530,669. It is anticipated the departments will absorb the additional first year cost in their FY 2025 budgets.
Allison Pavelek
Sr. Human Resources Analyst
Attachments:
1. None