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 Salem Police Employees’ Union.
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 successor collective bargaining agreement between the City and Salem Police Employees’ Union (SPEU), for a period from July 1, 2017, through June 30, 2020?
RECOMMENDATION:
recommendation
Approve a three-year successor collective bargaining agreement between the City and Salem Police Employees’ Union (SPEU), for a period from July 1, 2017, through June 30, 2020.
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SUMMARY AND BACKGROUND:
The City began negotiations with SPEU on November 14, 2016, for a successor collective bargaining agreement. A final tentative agreement for a three-year agreement was reached during mediation on July 26, 2017. The employees represented by SPEU ratified the agreement on August 31, 2017.
FACTS AND FINDINGS:
1. The principle features of the successor agreement are as follows:
A. Term of Agreement: Three years commencing on July 1, 2017, through June 30, 2020.
B. Wage Increase.
Year 1 of agreement:
• Effective July 1, 2017, each step of the salary schedule for SPEU members will be increased by one and one-half percent (1.5%).
• Effective January 1, 2018, each step of the salary schedule for SPEU members will be increased by one and one-half percent (1.5%).
• Effective July 1, 2017, select premium and extra duty pay will increase to three percent (3.0%).
• Effective upon ratification of the successor agreement, a new premium pay for Drug Recognition Experts (DRE) will be three percent (3.0%).
Year 2 of agreement:
• Effective July 1, 2018, each step of the salary schedule for SPEU members will be increased by one and one-half percent (1.5%).
• Effective January 1, 2019, each step of the salary schedule for SPEU members will be increased by one and one-half percent (1.5%).
• Effective July 1, 2018, select premium and extra duty pay will increase to four percent (4.0%).
Year 3 of agreement:
• Effective July 1, 2019, each step of the salary schedule for SPEU members will be increased by one and one-half percent (1.5%).
• Effective January 1, 2020, each step of the salary schedule for SPEU members will be increased by one and one-half percent (1.5%).
• Effective July 1, 2019, select premium and extra duty pay will increase to five percent (5.0%).
C. Health Insurance Premium: Effective in the first pay period of December 2017, for the benefit plan year beginning January 2018, each employee shall contribute $55.00 per pay period towards the cost of health insurance coverage.
D. Floating Holidays: Effective January 1, 2018, an additional floating holiday (eight hours per year) will be granted to each employee.
E. Collective Bargaining Agreement: The agreement is posted online at: <http://wwwcityofsalem.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: $483,741
Year 2: $1,137,536
Year 3: $1,899,108
The approximate total financial impact over the life of the contract is $3,520,385. It is anticipated the Police Department will absorb the additional cost beyond that included in the FY 2017-18 budget for the first year of the agreement. 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
Attachments:
None.