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LTC 203-2007 CWA Contract Negotiations Update~i~~~~~ zoos auc ~o a~ ~~: s4 m M I AM I BEAC H cl~rY cat„-;~s car i=1cr OFFICE OF THE CITY MANAGER NO. 203-2007 LETTER TO COMMISSION TO: Mayor David Dermer and Members of the City Commission ~~~ FROM: Jorge M. Gonzalez, City Manager ,~ DATE: August 29, 2007 SUBJECT: CWA CONTRACT NEGOTIATIONS UPDATE On August 20, 2007, after six (6) negotiation sessions, the negotiation teams for the City and the Communications Workers of America (CWA) successfully reached a tentative agreement and concluded contract negotiations for athree-year collective bargaining agreement for the period of October 1, 2006, through September 30, 2009. Formal negotiations with the CWA began in January 2007. All employees whose classifications are covered by the Communications Workers of America (CWA) collective bargaining agreement (approximately 464 employees) will have an opportunity to vote for contract ratification on Friday, August 31, 2007. Pending a successful ratification vote, a resolution will be presented to Commission on September 5, 2007 for the new agreement. The agreement will amend the pension, leave and salary ordinances in accordance with the new terms and conditions of the contract. The contract negotiations will retroactively allow for the same cost of living adjustments (COLA) that were afforded to the other four (4) collective bargaining units, non-represented and unclassified employees. The COLA adjustment for the CWA will be paid retroactively and effective with the first payroll period ending in October 2006. The COLA will be 6% in Year I of the contract, 5% in Year 2 of the contract and 4% in Year 3 of the contract. The Administration also negotiated a voluntary early retirement option (ERIP) as part of the 2006-2009 collective bargaining agreement with the CWA. Under the new ERIP, bargaining unit members age 47 or older with 25 or more years of credited service as of January 25, 2008, would be eligible for the ERIP. Eligible members would have to elect the ERIP and retire between October 27, 2007, and January 25, 2008. Members who elect the ERIP would receive their accrued benefit underthe MBERP with no penaltyfor early retirement. As negotiated, the new ERIP would also be available to members of the AFSCME and GSA bargaining units.. It is estimated that twenty (20) employees in the civilian bargaining units will be eligible for the ERIP. Of the twenty (20) employees, ten (10) are in the CWA. The actuarial cost for ERIP is approximately $147,420 (for the CWA unit). If all eligible employees in the CWA were to take advantage of the ERIP, the overall savings is estimated at $25,666, due to payroll savings from hiring replacements at entry level salaries versus the higher salaried employees retiring. LTC CWA Contract Negotiations Update August 28, 2007 Page 2 of 2 Due to a market rate analysis conducted by the Human Resources Department, several classifications within Property Management and Code Compliance will be changed to a higher pay grade to remain competitive in the market place. The union time bank has been increased from 1500 to 3000 hours per year. During the term of this contract, the City will re-institute a sick leave sell back program. The purpose of the program is to provide an incentive to use less sick leave time and thereby decreasing the need for overtime to replace sick all outs. In addition, since employees are selling back their sick time throughout the term of the contract instead of at the end of their employment (when the sick time is at its highest value), the overall cost is reduced. The sick leave sell back program would allow the sell back of up to fifty (50) hours each year, as long as the employee retains a minimum of 360 combined sick and vacation leave and meets other necessary requirements as outlined in the program. The maximum number of sick leave hours that may be sold back on each sell back date shall be reduced by one hour for each hour of unscheduled leave (sick time and emergency vacation) the employee used during the applicable annual sell back period (e.g., if an employee uses 10 hours of sick time he is only eligible to sell back forty (40) hours). The new contract increases the maximum payout for vacation at time of separation to 620 hours, which is an increase from the current 480 hours. At the request of the union to standardize the seniority article of the contract, the seniority of all employees in the CWA unit will be measured by the length of time they have been employed by the City, rather than measuring seniority by the time in grade in a particular classification, (as it is currently done in some classifications). The overall cost of the three (3) year collective bargaining agreement with the CWA is $3,527,332. The 2006-2009 percentage cost of the CWA contract is 18.3% as compared to 18.1 % for the IAFF (Fire) contract and 20.4% for the FOP (Police) contract. The completion of the CWA collective bargaining agreement concludes negotiations with City's five collective bargaining agreements for the 2006-2009 contract terms (2007-2010 for AFSCME). If you have any questions or need additional information, please feel free to contact me. JMG/RI/LG F:\labo\LABORREL\Labor Relations\Commission Memos\LTC -CWA contact 2006-2009.doc