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2007-26626 ResoRESOLUTION NO. 2007-26626 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, RATIFYING A THREE YEAR LABOR AGREEMENT BETWEEN THE CITY AND THE COMMUNICATIONS WORKERS OF AMERICA (CWA), LOCAL 3178, FOR THE PERIOD FROM OCTOBER 1, 2006, THROUGH SEPTEMBER 30, 2009, AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE AGREEMENT. WHEREAS, the City Manager is hereby submitting to the Mayor and City Commission the attached Labor Agreement, recently negotiated between the City and the Communications Workers of America (CWA), Loca13178, 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 October 1, 2003, through September 30, 2006; and WHEREAS, the CWA 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 CWA 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 and CWA Local 3178 for the period covering October 1, 2006, through September 30, 2009, is hereby ratified, and the Mayor and City Clerk are authorized to execute the Agreement. PASSED AND ADOPTED this5~h~day of September , 2007. ATTEST: ~M CITY CLERK Robert Parcher F:Uabo\LABORREL\Labor Relations\Commission Memos\Resolutions\CWA Resolutio¢ for 2006-2009 co¢tract.doc Matti Herrera Bower Vice-Mayor APPROVED A8 TO FORM d- LANQUAQ~! ~ FOR ION ~ 2 07 COMMISSION ITEM SUMMARY Condensed Title: A resolution of the Mayor and City Commission of the City of Miami Beach, Florida ratifying a three (3) year labor agreement between the City of Miami Beach and the Communications Workers of America (CWA), Local 3178 for the period from October 1, 2006 through September 30, 2009 and authorizing the execution of this Agreement. Key Intended Outcome Supported: (1) Attract and maintain a quality workforce, and (2) ensure expenditure trends are sustainable over the long term. Supporting Data (Surveys, Environmental Scan, etc.): N/A Issue: Shall the City of Miami Beach ratify the three (3) year labor agreement between the City of Miami Beach and Communications Workers of America (CWA)? item ~ummaryiKecommenaation: Adopt the resolution. This Resolution will provide CWA employees with an across the board cost-of-living increase (COLA) of 6% for the first pay period ending in October 2007; 5% for the first pay period ending in October 2008; and 4% for the first pay period ending in October 2009, and will include the same increases to the minimum and maximum of the salary ranges. Implement an Early Retirement Incentive Program (ERIP) whereby bargaining unit members age 47 or older with 25 or more years of credited service as of January 28, 2008, would be eligible to retire. Eligible members would have to electthe ERIP and retire between October27, 2007 and January 28, 2008. Members who elect the ERIP would receive their accrued benefit underthe Miami Beach Employees Retirement Program (MBERP) with no penalty for early retirement. Further, due to a market rate analysis determined by the Human Resources Department, several classifications within the Property Management and Code Compliance will be changed to a higher pay grade to remain competitive in the market place. The union time bank will also be increased to 3,000 hours (from 1,500 hours). Additionally, a new leave settlement program will be implemented to discourage the use of sick call outs, and a sick leave sell back program will be introduced to allow employees to sell back 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 (1) hour for each hour of unscheduled leave (defined as sick and emergency vacation) the employee used during the applicable annual sell back period. The new contract also increases the maximum vacation leave settlement to 620 hours (from 480 hours). Also, 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. Note: The outcome of the CWA ratification vote will not be available until after the agenda goes to print and therefore the outcome of the vote will be provided as a supplemental item. Financial Information: Source of Amount Account Funds: ~ $3,043,579 Total amount of COLAs for the 2006-2009 CWA contract 2 $147,420 To be incorporated in the actuarial estimate to be included in the FY 2008-2009 bud et 3 $336,333 Cost associated with union time bank increase and market rate analysis adjustment which are included in various de artmental sala bud ets over the course of three ears. OBPI Total $3,527,332 Financial Impact Summary: The above is a breakdown of the cost of all items of the 2006-2009 CWA contract. City Clerk's Office Legislative Tracking: Linda Gonzalez, Labor Relations Director Sign-Offs: Department Director Assistant City Manager City Manager Linda Gonzalez Ramiro Inguanzo Jorge M. Gonzalez V ~ MIAMIBEACH U AGENDA ITEM R DATE 4'S'G ~'J m MIAMIBEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor David Dermer and Members of the City Commission FROM: City Manager Jorge M. Gonzalez DATE: September 5, 2007 suB~ECr: 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 COMMUNICATIONS WORKERS OF AMERICA, LOCAL 3178, FOR THE PERIOD FROM OCTOBER 1, 2006 THROUGH SEPTEMBER 30, 2009, AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE AGREEMENT. ADMINISTRATION RECOMMENDATION: Adopt the Resolution. BACKGROUND: On August 20, 2007, after six (6) negotiation sessions, negotiators for the City and the Communications Workers of America (CWA) successfully reached a tentative agreement and concluded contract negotiations for a three (3) year collective bargaining agreement for the period of October 1, 2006 through September 30, 2009. Both the Administration and the CWA worked diligently throughout these sessions to reach common ground on the negotiation proposals made by each side. All employees whose classifications are covered by the Communications Workers of America (CWA) collective bargaining agreement (approximately 464 employees) will have the opportunity to vote for contract ratification on August 31, 2007. The outcome of the CWA ratification vote will not be available until after the agenda goes to print and therefore the outcome of the vote will be provided as a supplemental item. While negotiators for the City and the CWA were obliged to represent the best interests of their respective stakeholders, the shared goal was to produce an Agreement that was equitable to both parties and contained competitive compensation and working conditions. The following is a summary of the most significant changes that resulted from negotiations: Wades The term of the Agreement will extend for three (3) years from October 1, 2006 through September 30, 2009. Consistent with the current consumer price index (CPI), effective with the first payroll period ending in October 2006, CWA bargaining unit employees will receive a six percent (6%) salary cost of living (COLA) increase. Effective with the first payroll period ending in October 2007, bargaining unit employees will receive a five percent (5%) COLA increase. Finally, effective with the first payroll period ending in October 2008, bargaining unit employees will receive a four (4%) cost of living (COLA) increase. The minimum and maximum of the salary range for each position in the CWA will be adjusted accordingly each year of the contract. The contract cost for the three year COLA increase is approximately $3,043,579. Other Economic Issues Early Retirement Incentive Plan (ERIP) A voluntary ERIP may result in overall cost savings to the City, should all eligible employees elect the option to retire early. 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 under the MBERP with no penalty for early retirement. As negotiated, the new ERI P 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. Pay grade changes to Property Management and Code Compliance positions Due to a market rate analysis determined 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. Union Time Bank Due to the size of the bargaining unit, which encompasses approximately 464 employees, the union time bank has been increased from 1,500 to 3,000 hours per year. Other Contractual Agreements Sick Leave Sell Back Program & Leave Settlement 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). Leave Settlement Cap The new contract increases the annual maximum accrual amount of annual leave from 360 hours to 500 hours. In addition, 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. Definition of Seniority At the request of the union to standardize the seniority article, 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). CONCLUSION: The outcome of the CWA ratification vote will not be available until after the agenda goes to print and therefore the outcome of the vote will be provided as a supplemental item. 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 Communication Workers of America (CWA) for the period covering October 1, 2006 through September 30, 2009. JMG/RI/LG T:WGENDA\2007\sep0507\RegularlCommission memo for CWA 2006-2009.doc