HomeMy WebLinkAbout2006-26323 Reso
RESOLUTION NO. 2006-26323
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA RATIFYING A THREE YEAR LABOR
AGREEMENT BETWEEN THE CITY OF MIAMI BEACH AND THE
AMERICAN FEDERATION OF STATE, COUNTY AND MUNICIPAL
EMPLOYEES, LOCAL 1554, FOR THE PERIOD FROM MAY 1, 2007,
THROUGH APRIL 30, 2010, AND AUTHORIZE THE MAYOR AND CITY
CLERK TO EXECUTE THE AGREEMENT.
WHEREAS, the City Manager is herein submitting to the Mayor and City Commission the
attached Labor Agreement recently negotiated between the City of Miami Beach, Florida and the
American Federation of State, County and Municipal Employees (AFSCME), Local 1554, the
bargaining agent certified by the Public Employees Relations Commission (PERC) for the employees
covered by said agreement; and
WHEREAS, the previous Labor Agreement was for a three year period from May 1 2004,
through April 30, 2007; and
WHEREAS, the AFSCME bargaining unit has ratified the attached Labor Agreement and
the City Manager recommends that the City Commission ratify and authorize the execution of the
Labor Agreement between the City and the AFSCME Union.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the attached Labor
Agreement between the City of Miami Beach and AFSCME Local 1554 for the period covering
May 1, 2007, through April 30, 2010, is hereby ratified and the Mayor and City Clerk are authorized
to execute the Agreement.
PASSED AND ADOPTED this 6thdayof September
ATTEST:
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CITY CLERK
Robert Parcher David Dermer
APPROVED 1S TO
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Date
COMMISSION ITEM SUMMARY
Ke Intended Outcome Su orted:
Attract and maintain a quality workforce.
Issue:
Shall the City of Miami Beach ratify the three (3) year labor agreement between the City of Miami
Beach and AFSCME?
Item Summa IRecommendation:
Adopt the resolution. This Resolution will provide AFSCME employees with an across the board cost-
of-living increase (COLA) of 6% for the first pay period ending in May 2007; 5%(Or the first pay period
ending in May 2008; and 4% for the first pay period ending in May 2009, and will include the same
increases to the minimum and maximum of the salary ranges. Upon ratification, the resolution
effectuates pension ordinance No. 2006-3504 and retiree health ordinance No. 2006-3505. In
addition the new contract allows Management to change the start and end times for shift differential
pay to provide more efficient City services; changes the delivery date for uniforms from January to
April of each year to allow for timely issuance; adds language on safety equipment which increases
employee safety, increases employee accountability, reduces loss and workers compensation claims;
limits the City's obligation to discuss the effects of contracting out to lay-off situations; allows the City
the flexibility to utilize the contractually allotted temporary employees in those classifications where
they are most needed; includes confirmatory language that employees who leave the City's employ
prior to contract ratification are not eligible for new contractual benefits; adds a "me-too" with the
CW A union for COLA and pension items only; adds three re-openers for discussion after May 1 , 2007
for: (1) Essential Personnel and the landfall team as they relate to the City's emergency preparedness
efforts; 2 shift bid s stem; and 3 a cleanin allowance as deemed a ro riate b the Cit .
Advisory Board Recommendation:
I
Financial Information:
Source of Amount Account Approved
Funds: 1 $1,200,620 Included in various
Departmental salary budgets for
year 1
2 $1,168,548 Included in various
Departmental salary budgets for
year 2
3 $1,117,660 Included in various
Departmental salary budgets for
year 3
OBPI Total $3,486,827 Included in various
Departmental salary budgets
Financial Impact Summary:
Ci Clerk's Office Le islative Trackin
Linda Gonzalez, Labor Relations Director
Si n-Offs:
Department
Linda Gonzale
r
Assistant Cit~
Ramiro Inguanzo
City Manager
Jorge M. Gon
m
~
MIAMI BEACH
AGENDA ITEM
DATE
(9 MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfLgov
COMMISSION MEMORANDUM
FROM:
Mayor David Dermer and Members of the City Commission
Jorge M. Gonzalez, City Manager ~.....r- --x-
September 6, 2006 {I U
TO:
DATE:
SUBJECT:
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA RATIFYING A THREE YEAR LABOR AGREEMENT
BETWEEN THE CITY OF MIAMI BEACH AND THE AMERICAN FEDERATION
OF STATE, COUNTY AND MUNICIPAL EMPLOYEES (AFSCME) LOCAL 1554,
FOR THE PERIOD FROM MAY 1, 2007 THROUGH APRIL 30,2010, AND
AUTHORIZE THE MAYOR AND CITY CLERK TO EXECUTE THE AGREEMENT.
ADMINISTRATION RECOMMENDATION:
Adopt the Resolution.
BACKGROUND:
On August 18, 2006, after three (3) negotiation sessions, negotiators for the City and the
American Federation of State, County and Municipal Employees (AFSCME), Local 1554,
successfully concluded negotiations for a three-year collective bargaining agreement. This
is the first time in the City's recent history that AFSCME contract negotiations have been
completed prior to the expiration date of the previous contract. Therefore, all employees in
the bargaining unit will receive their cost of living increases (COLA) immediately as outlined
in the new contract, and without the need to make retroactive pay adjustments. The early
contract completion allows a seamless transition between the old and new contract,
enhances employee morale, and accentuates the City's strong commitment to positive labor
relations.
The AFSCME membership held a ratification vote on the proposed Agreement on August
24, 2006. The final vote was 126 in favor and 41 opposed. (Seventy-five percent (75%) of
the voting members were in favor of the proposed Agreement.)
While negotiators for the City and the Union were obliged to represent the best interest of
their respective stakeholders, the shared goal was to produce an Agreement that was
equitable as to competitive compensation and working conditions. The following is a
summary of the most significant changes from the previous Agreement:
Waaes
The term of the Agreement will extend for three (3) years from May 1,2007 through April 30,
2010. Consistent with the current consumer price index, (CPI), effective with the first payroll
period ending in May 2007, bargaining unit employees will receive a six percent (6%) COLA
increase. In addition, effective with the first payroll period ending in May 2008, bargaining
unit employees will receive a five percent (5%) COLA increase. Finally, effective with the
first payroll period ending in May 2009, bargaining unit employees will receive a four percent
(4%) COLA increase. The minimum and maximum of the salary range for each position in
AFSCME will be adjusted accordingly each year of the contract. (The contract cost for the
three year COLA is approximately $1,450,811).
Pension and Retiree Health
Upon ratification and commission approval, the new pension ordinance No. 2006-3504 and
retiree health ordinance No. 2006-3505 will become effective. In addition, the City will
extend a new ninety (90) day window for the early out provision to the AFSCME, which will
become effective ten (10) days after the second reading of the amendment to the pension
ordinance. The ordinance also amends the death benefit for the AFSCME bargaining unit to
make it the same as the CW A and GSA bargaining units, by changing the eligibility age for
dependent children from twenty-five (25) to twenty-two (22). (The contract cost for the
pension ordinance is $2,036,016 and was previously incorporated in the total cost of the
pension ordinance that went before the City Commission on March 8, 2006).
Pension Highlights for employees hired on or after April 30, 1993:
. Reducing the retirement age from 60 to 55;
. Improving the vesting requirement from 10 years to 5 years;
. A two-year pension buy-back will be made available for employees with
government, military or similar private sector experience;
. Improving the Final Monthly Average Earnings (FAME) from a calculation ofthe
average of the three highest years to the average of the two highest years;
· Reducing the employee pension contribution from 10% to 8%;
· Allow employees the option of a partial lump sum distribution;
· Allow employees promoted from classified to unclassified positions, the option
to remain in the classified pension system;
· Employees who have reached their maximum pension benefit accrual (80%
based on years of service) but who have not yet reached retirement age will
continue to contribute to the pension plan, but only for that portion of their
salary which is incrementally higher than their salary at the time they reached
their maximum pension benefit accrual.
Pension Highlights for employees hired prior to April 30, 1993:
. A two-year pension buy-back will be made available for employees with
government, military or similar private sector experience;
· Employees who have reached their maximum pension benefit accrual (90%
based on years of service) but who have not yet reached retirement age, will
continue to contribute to the pension plan, but only for that portion of their
salary which is incrementally higher than their salary at the time they reached
their maximum pension benefit accrual;
· A two-year early out window for those Tier A Classified employees ages 48 and
49 which allows employees to retire early, but with no additional service credit;
· Allow employees the option of a partial lump sum distribution;
· Allow employees promoted from classified to unclassified positions, the option
to remain in the classified pension system.
· A 10% cap be placed on pensionable overtime for AFSCME employees.
Retiree Health Highlights:
The new retiree health insurance language incorporates an irrevocable election to continue
health benefits with a City contribution and incorporates a fixed stipend based on the
employee's years of seNice at retirement:
. Any bargaining unit member who is eligible for retiree health benefits from the
City must make a one time irrevocable election to continue receipt of health
benefits via the City's plan at the time that the employee terminates City
employment. Also, if a member initially elects to continue under City health
insurance, but thereafter discontinues or is discontinued from such coverage,
then the retiree may resume coverage only at their own expense, without any
employer contribution whatsoever.
· Employees hired on or after ratification of this Agreement, will be entitled to a
City contribution against the cost of continued health insurance coverage in the
City's health insurance plan after retirement (or separation) from City
employment, as set forth in this section. If an employee is hired on or after the
Agreement is ratified and remains employed until reaching eligibility for normal
retirement, and elects to continue insurance coverage under the City's health
plan, they shall upon receipt of normal retirement benefits also receive an
additional separate supplemental monthly stipend payment in the initial amount
of $10.00 per year of credited seNice, up to a maximum of $250.00 per month
until age 65, and $5.00 per year of credited seNice up to a maximum of$125.00
per month thereafter. There shall be no other City contribution toward the cost of
continued health insurance coverage for such employees and this benefit shall
be paid only during the life of the retiree.
Other Economic and Contractual aareements
Temporary Employees
Contract language has been added which allows the City the flexibility to utilize the
contractually allotted temporary employees in those classifications where they are most
needed.
Contracting Out
The new contract language clarifies the City's obligation to discuss the effects of the
decision to use subcontractors with the Union only in the event that it would result in lay-offs
to any bargaining unit members.
Safety Equipment
Contract language has been added to enhance employee safety while also increasing
employee accountability and reducing loss for issued safety equipment.
Unit Members Who Leave City Prior To Ratification
Clarification language has been added to confirm that AFSCME members who leave the
City's employ prior to ratification of this Agreement will not be eligible for any wages or
benefits under the new Agreement.
Shift Differential
The contract language has been modified as it relates to the start of the required shift
differential pay. The adjustment allows City crews the ability to provide seNices at an earlier
time and complete them as early as possible thereby minimizing any inconveniences and
providing more efficient service. The afternoon shift start time was adjusted accordingly.
Uniforms
In order to ensure that uniforms are delivered in a timely manner and in accordance with
procurement guidelines, the uniform delivery date was moved from January to April of each
year.
Re-openers & "Me-too's"
This contract includes a "me-too" with the CW A union specifically for COLA and pension
items. In addition, there is re-opener language with AFSCME on three (3) items for further
discussion on or after May 1,2007. These items include: (1) Essential Personnel and the
landfall team as they relate to the City's emergency preparedness efforts; (2) shift bid
system; and (3) a cleaning allowance as deemed appropriate by the City.
CONCLUSION:
The Administration recommends that the Mayor and City Commission adopt the Resolution
to implement the collective bargaining adjustments negotiated between the City of Miami
Beach and American Federation of State, County and Municipal Employees (AFSCME),
Local 1554, for the period covering May 1, 2007 through April 30, 2010.
JMG\RI\LG\mr
F:\LABO\LABORREL\Labor Relations\Commission MemoslAFSCME commission memo for 2007-2010 contract,doc