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Home My WebLink About10B - Sergeants Labor Agreement MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: CITY COUNCIL AGENDA REPORT FEBRUARY 18, 2003 10-B Susan Walsh, Assistant City Manager CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING THE MAYOR AND CITY MANAGER TO EXECUTE THE 2003-2005 LABOR AGREEMENT BETWEEN THE CITY OF PRIOR LAKE AND MINNESOTA TEAMSTERS PUBLIC AND LAW ENFORCEMENT EMPLOYEES' UNION, LOCAL 320 Historv: The Sergeants bargaining unit currently representing 2 employees (since 1 position is vacant) was formed in 1994. The existing labor agreement was a three-year agreement covering the years 2000-2002. The negotiation process for 2003 and beyond began in December 2002, and we have held four negotiation sessions to negotiate a Labor Agreement to address wages and conditions of employment in accordance with the Public Employee Labor Relations Act (PELRA). The negotiation process was complicated by the fact that our analysis show the sergeants to be below market by 3 percent. To further exacerbate matters, circumstances arose prior to bargaining which deprived sergeants of certain forms of overtime that they have traditionally received. Fashioning an economic agreement which addressed these issues while remaining aware of State funding cuts made this a particularly difficult negotiation. Current Circumstances: The primary objective in the negotiations has been twofold: (1) to develop a long-term agreement which will provide some level of ongoing labor peace; and (2) to achieve an agreement which is reasonable economically and prudent from a language perspective. The labor agreement for which Council ratification is requested under this agenda item meets both criteria. Shown below is a summary of the proposed three-year agreement with Teamsters, Local 320, covering the years 2003, 2004 and 2005. A complete copy of the Labor Agreement is available in my office for your review. This document is not included because of the volume of the agreement. Proposed Amendments to the Aqreement: Duration: Three years (2003-2005) Wage Adjustments: 2003 - 3% annual increase 1 % market and loss of overtime adjustment 2004 - 3% annual increase 1 % market and loss of 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 H:IPERSONNELIUNIONSISERGEANT\CC ~lRII'I'OO)~a..lI5(0(EfWTRACT.DOC overtime adjustment 2005 - 3% annual increase 1 % market and loss of overtime adjustment Health Insurance Increase for 2003 - $25 per month ($545) Family Coverage: 2004 - $40 per month ($585) 2005 - $65 per month ($650) Term Life Insurance The cap for employer contribution was raised from $11.00 to $11.30 a month Article 13.2 - Overtime Assignments, The police chief in his/her sole Subsection B - Amended to include the discretion may require the junior following sentence: sergeant to work the overtime unless the police chief determines that a patrol officer can fill the shift. Article 13.7 - Overtime - Amended to Any unused compensatory time wili include the following sentence: be paid out in the second paycheck in December. Article 16.1 - Clothing Allowance - The Clothing Allowance changed from base amount was adjusted to reflect the $679 per year to $728 per year Consumer Price Index adjustment from based on CPI adjustments. 2000 to 2002. Article 30 - Working Out of Class - the City Employees assigned to the position proposed this in the event it is appropriate of Sergeant Investigations shali for a sergeant to supervise/work in the receive an additional five (5%) investigations unit. percent of their base pay. Article 33 - Policy on Drug and Alcohol The union and city elected not to Testing for sergeants. have the policy as part of the labor agreement. The following language is included in the new contract: The parties acknowledge that the Employer plans to adopt a poiicy on drug and alcohol testing. The parties agree that the Employer has the right to adopt such a policy under Article V and that the poiicy need not be a subject of bargaining between the parties. ISSUES: With regards to wages, the City of Prior Lake has historically paid around the average for similar sized cities within the metro area. In negotiating and in reaching a tentative agreement on wages for the sergeants, we took into consideration the following factors: market, internal equity and loss of potential overtime. In the past, the sergeants have generally received the same increase in pay that patrol officers received. A recent external market comparison of cities similar in size (Stanton 6 cities) showed that Prior Lake sergeants were H:IPERSONNEL\UNIONSISERGEANT\CC AGENDA RPT FOR 2003-05 CONTRACT.DOC underpaid by an average of 3% for the year 2002, and their wages are in the lower half of Stanton 6 sergeant wages reported for the year 2002. The additional 1 % over and above the 3% for each of the years will help address market over the next three years. Historically, sergeants were included in the seniority list for bidding department overtime. The police officers' union (LELS) put the city on notice that they would no longer allow sergeants to perform police officers' work. Administration concurred, from a legal position, with LELS. Subsequently starting in January 2003, sergeants can no longer bid for police officer overtime, but there will be opportunity for receiving overtime for filling a vacant sergeant shift. Generally speaking, sergeant overtime pay is minimal. For health insurance, the sergeants union will receive the same monthly increase represented in the 2003-2005 LELS Labor Agreement and in the 2002-2004 AFSCME Labor Agreement for years 2003 and 2004.Since we received an 11.1 % premium increase for 2003, and staff anticipates double digit increases for 2004 and 2005, we believe that a $65 a month increase for the year 2005 is equitable and economically feasible for the City and the employees. Since it is the City's position on health insurance to have equal benefits, the $65 a month increase for the year 2005 will set the standard for negotiations with AFSCME union employees and for nonunion employees. Staff's recommendation to increase the cap for the city's contribution for term life insurance from $11.00 to $11.30 a month is consistent with the police officers' union and nonunion employees. The face value of the term life insurance is $50,000, which is included in the current labor agreement. Amendments to Article 13.2, Article 13.7, Article 16.1 and Article 30 will provide clarification to the new contract. The city attorney has reviewed or drafted these modifications, and staff recommends that the new labor agreement reflect the new language as set out above. Unlike LELS, the sergeants union did not want the Drug and Alcohol Testing Policy incorporated into the labor agreement. The policy is the same one that the city attorney drafted for the police officers but will not be subject to bargaining. FISCAL IMPACT: The 2003 operating budget has adequate funds to administer the contract including wage increase and health insurance and life insurance contribution increases. Funds for 2004 and 2005 will be budgeted according to wage and benefit terms set out in the agreements. CONCLUSION: Labor agreements typically do not provide complete satisfaction to either party. However, this agreement represents an equitable conclusion of bargaining as a result of good faith efforts by both groups to reach an agreement that meets the needs of both parties. Perhaps, most significant, the settlement allows both parties to focus on delivering services to our customers for the next three years rather than on labor negotiations. ALTERNATIVES: The City Council has the following alternatives: 1. Approve the Resolution ratifying the three-year agreement. 2. Deny the Resolution H:IPERSONNELIUNIONS\SERGEANTlCC AGENDA RPT FOR 2003-05 CONTRACT. DOC RECOMMENDED MOTION: 3. Adjourn into closed session to discuss the proposed changes. Alternative #1 - Approve the Resolution Ratifying the 2003 - 2005 Labor Agreement between the City of Prior Lake and Minnesota Teamsters Public and Law Enforcement ployees' Union, Local No. 320, and authorizing the Mayor and ity Mana r t execute the Labor Agreement. H:\PERSONNELIUNIONSISERGEANTlCC AGENDA RPT FOR 2003-05 CONTRACT. DOC RESOLUTION 03-' ZS ~F o~~ A RESOLUTION RATIFYING THE 2003-2005 LABOR AGREEMENT NNES BETWEEN THE CITY OF PRIOR LAKE AND MINNESOTA TEAMSTERS PUBLIC AND LAW ENFORCEMENT EMPLOYEES' UNION, LOCAL 320 Motion By: ~L Second By: Jj) WHEREAS, the Public Employees Labor Relations Act as amended requires that the City negotiate with the exclusive bargaining representative for groups of essential and non-essential employees; and WHEREAS, Minnesota Teamsters Public and Law Enforcement Employees' Union, Local 320, represents Prior Lake Sergeants; and WHEREAS, negotiations have taken place which have resulted in an agreement for 2003, 2004 and 2005; and WHEREAS, the employees who make up the Minnesota Teamsters Public and Law Enforcement Employees' Union, Local 320, bargaining unit have ratified said agreement; and WHEREAS, the agreement becomes effective on January 1, 2003. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA that: 1. The recitals set forth above are incorporated herein. 2. The City Council hereby ratifies the agreement between the City of Prior Lake and Minnesota Teamsters Public and Law Enforcement Employees' Union, Local 320, January 1, 2003 through December 31, 2005. 3. The Mayor and City Manager are hereby authorized to execute the referenced agreement. PASSED AND ADOPTED THIS 18th DAY OF FEBRUARY, 2003. Haugen , Haugen Blomberg Blomberg LeMair LeMai, Petersen Petersen Zieska Zieska YES NO City Manager, City of Prior Lake 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372.1714/ Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER