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IV.6. Approval of 2018-2020 Union Contract with AFSCME; Lenz June 18, 2018 City Council Report 2018-079 Approval of 2018-2020 Union Contract with AFSCME Proposed Action: Staff recommends the following motions: Move approval of the 2018-2020 Contract with AFSCME. This will ratifiy a three year contract with AFSCME. Overview This is the City’s first contract with AFSCME as the union representative; previously this group was the Hopkins Municipal Employees Association (HMEA). We went through a union clarification process with the State’s Bureau of Mediation Services as part of the reorganization. As a result, there were some members removed and some members who were put into the bargaining unit. The contract calls for a 2.75% wage increase effective January 1, 2018 and a 3.0% for 2019 and 2020. We have restructured insurance to three levels of coverage (Single, Single +Spouse/Children and Family) the City’s contribution was also increased for all three levels. For 2019 and 2020, the contract agrees to increase the premiums based on the total increase amount for the cheapest available plan. Primary Issues to Consider  What other economic issues are included in the new contract?  How does this agreement fit with the 2018 Budget? Analysis of Issues What other economic issues are included in the new contract?  As a result of the union clarification process, IT Technicians are now included in this group. They will now receive standby pay for their time on-call this adds approximately $12,000 in unexpected cost to the contract. Unit clarification occurred after standby language had already been agreed to.  The contract includes two weeks of paid paternity leave effective 1/1/2019; we plan to extend to all city staff.  The contract includes three days of paid bereavement leave; we plan to extend the policy to all city staff. How does this agreement fit with the 2018 Budget? The cost of the basic contract is within budget; the additional cost for IT on-call was not planned, however staff believes we should be able to find the funds needed for this year’s budget. Alternatives 1. Approve the contract. Page 2 2. Do not approve the contract. Staff would have to renegotiate the contract. Staff recommends Alternative #1. _____________________ Ari Lenz, Assistant City Manager Financial Impact: $ 140,939.19 Budgeted Y/N: _Y___ Source: Varies Notes: Full copy of contract available upon request.