CR 2000-68 Approve 2000-2001 Local 49 Contract
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April 12, 2000 ,:--~' ~ Council Report 2000-68
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APPROVE 2000-2001 LOCAL 49 CONTRACT
Proposed Action
Staff recommends that the Council approve the following motion: Move approval of the 2000-2001
Contract for the public works employee's union, Local 49.
This action will ratify a two-year contract with Local 49.
Overvielv
We have completed negotiations with Local 49 for 2000 and 2001. The contract calls for a 2% wage
increase effective January 1, 2000 and a 1 % wage increase effective July 1, 2001. The contract also
contains a 3% wage increase in 2001. In addition each employee who has a Commercial Driver's
License (CDL) and is required to submit to random drug and alcohol tests will receive $25.00/month.
There is an increase of $10.00 per month for health, life, and dental insurance in 2000 for employees
with single health insurance and $50.00 per month for employees with family health insurance. There is
an identical benefit increase in 2001.
. Primary Issues to Consider
. How does this agreement fit in with the 2000 budget?
. How does this agreement compare to other contract settlements for 2000 in tern1S of wage and
benefit increases?
. What is the Unifonn Settlement Forn1?
Supportin~ Information
. A copy of the contract is available from the Assistant City Manager.
. A copy of the state Uniform Settlement Form.
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J. nes' A. Genellie
_~stant City Manager
Financial Impact: $ $55,680 Budgeted: YIN Yes Source: General and Utility Funds
Related Documents (eIP, ERP, etc.):
e Notes: Amount in excess of budget will come from contingency
Council Report 2000-68
. Page 2
Analysis of the Issues
. How does this agreement fit in with the 2000 budget?
The City budgeted 2.5% for cost of living adjustments and $10.00 per month for benefit increases.
The total cost of the proposed settlement is approximately $14,000 more than what was budgeted.
One-half of the difference is due to the increase in insurance benefits. The City experienced dramatic
increases in health insurance costs after the budget was put together. The additional money is not
unreasonable given the insurance increase.
The other half of the difference is due to the $25.00 per month given to each employee with a CDL.
This payment is intended to compensate for the inconvenience of maintaining this license with its
Federal requirements for random dmg and alcohol testing. Agreement to this provision enabled the
City to achieve a two-year contract.
. How does this agreement compare to other contract settlements for 2000 in tem1S of wage and
benefit increases?
Settlements for other cities have generally been in the range of 3%. The insurance increase is
equivalent to the $30 per month that HMEA settled for. This is in the range of increases for other
cities. The 3% wage increase for 2001 is in line with what other cities havc settled multi-year
e contracts for.
. What is the Unifonn Settlement Form?
The Unifonn Settlement Form is a fonn mandated by the state of Milmesota, which must be
presented to the City Council which each contract settlement. The increase shown on this fonnl11ay
differ from the percentage increase listed above because the settlement fonn contains such items as
henefit increases, the increase in state pension due to the wage increases, and any step increases,
which individual union members may receive during the course of the contract. It is presented for
your information.
Alternatives
1. Approve the contract. Retroactive pay and benefit increases will be inclmled in the next payroll.
2. Do not approve the contract. Staff would have to renegotiate the contract.
S taffrecommends Altemati ve # 1.
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