TO: Mayor and City Council
THROUGH: Steve Powers, City Manager
FROM: Mina Hanssen, Human Resources Director
SUBJECT:
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Collective Bargaining Agreement between the City and American Federation of State, County and Municipal Employees (AFSCME).
Ward(s): All Wards
Councilor(s): All Councilors
Neighborhood(s): All Neighborhoods
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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, 2018, through June 30, 2021?
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, 2018, through June 30, 2021.
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SUMMARY AND BACKGROUND:
The City began negotiations with AFSCME on March 9, 2018, for a successor collective bargaining agreement. A final tentative agreement on a three-year contract was reached during mediation on August 24, 2018. The employees represented by AFSCME ratified the agreement on October 1, 2018.
FACTS AND FINDINGS:
1. The principle features of the successor agreement are as follows:
A. Term of Agreement: Three years commencing on July 1, 2018, through June 30, 2021.
B. Wage Increase:
Year 1 of agreement:
• Effective and retroactive to July 1, 2018, each step of the wage scale in Appendix A for AFSCME members will be increased by two and one-quarter percent (2.25%).
• Effective upon ratification of the successor agreement, certification and incentive pay changes for select Fleet/Building & Safety classifications.
Year 2 of agreement:
• Effective July 1, 2019, each step of the wage scale in Appendix A for AFSCME members will be increased by two and three-quarter percent (2.75%).
• Effective July, 1, 2019, ten job classifications will receive a selective salary adjustment.
Year 3 of agreement:
• Effective July 1, 2020, each step of the salary schedule for AFSCME members will be increased by two and three-quarter percent (2.75%).
• Effective January 1, 2020, four job classifications will receive a selective salary adjustment.
D. Life Insurance:
• Effective January 1, 2019, life insurance coverage will increase to $50,000 per employee.
E. Collective Bargaining Agreement: The agreement is available online at:
<http://www.cityofsalem.net/Pages/pay-plans-and-labor-contracts.aspx>
2. The approximate financial impact of this recommended settlement for the duration of the agreement is as follows:
Year 1: $1,123,665
Year 2: $2,686,756
Year 3: $4,232,366
The approximate total financial impact over the life of the contract is $8,042,787. It is anticipated the departments will absorb the additional first year cost in its FY 2018-19 budgets. If the cost cannot be absorbed, staff will return late in the fiscal year with a transfer request from contingencies.
Mina Hanssen
Human Resources Director