City Labor Agreements Approved
On March 10, the City Council approved labor agreement extensions with Local 284, Amalgamated Transit Local 1310, Communications Workers of American Local 4640. Also approved were agreements with Police Command Local 39, EA (Clerical, Technical, Supervisory, and Engineering Association), Department Directors, Division Heads, and Confidential Employees. Approximately 2/3 of the City’s total work force of 492 employees are covered under these agreements. Not included in the agreements approved on March 10 are those for Firefighters Local 487 and Police Patrol Local 9, which were excluded from the collective bargaining provisions of the state budget adjustment bill.
Our preliminary estimate is that in 2012 the City will experience a $1.7+ million reduction in state revenue transfers. As a result of the labor agreement extensions, we estimate the following fiscal impacts for the 2012 City budget year:
- Projected reduction in state revenues for 2012: $1.7+ million
- Reduced City expenditures for employee retirement contributions: $850,000
- Reduced City expenditures for employee health premium payments: $30,000
- Increased City expenditures through 1.5% CPI wage adjustment: $95,000
- Reduced future City expenditures through health plan design flexibility: $300-400,000
- Retention of City federal transit funding: $1.7 million annually
The agreements approved by the City Council included the following terms:
- The labor agreement is extended from the date of ratification through June 30, 2013.
- Effective January 1, 2012, employees shall contribute 6 1/2&% and effective January 1, 2013, employees shall contribute 8% of the monthly premium payments toward health insurance.
- Effective upon ratification of the agreement, the City can make changes in the health plan design of its health insurance program and may change its health insurance provider without bargaining the impacts of such changes.
- All employees shall pay the employee share of WRS at such time as the employer is prohibited from paying the employees’ share by State law. Any future employer contributions toward the employees’ share must be bargained, as permitted by State law. Based on recent action by the Wisconsin Legislature, we anticipate these payments will begin with the last pay period this month.
- Effective July 1, 2011, employees receive a 1.5% wage increase or CPI, whichever is greater. Effective July 1, 2012, employees receive a 1.5% wage increase or CPI, whichever is greater.
- For Telecommunicators Local 4640, for the purposes of shift assignment, there will be 3 teams consisting of: Midnights/Night Overlap; Days; and Day Overlay/Afternoons, with only one person per team allowed off per day.
- For Transit, Local 1310, the regular hours of employment for General Bus Mechanics are to be 40 hours per week and scheduled from Monday through Saturday without the use of overtime.
- For Local 284, the City can assign work at Hobbs Municipal Ice Arena to City workers not members of Local 284.