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HomeMy WebLinkAboutItem 10 May 5, 2014 Item No.________ Labor Agreement between the City of Lakeville and Teamsters, Local No. 320 Proposed Action Staff recommends adoption of the following motion: Move to approve the labor agreement between the City of Lakeville and Minnesota Teamsters Public & Law Enforcement Employees Union, Local No 320 for 2014 and 2015. Passage of this motion will result in a two-year labor agreement for the Lakeville Public Works maintenance employees. Overview Staff is recommending a two-year agreement with the Lakeville Teamsters which will take effect January 1, 2014 and continue through December 31, 2015. The Personnel Committee has reviewed the agreement and is recommending its approval. This agreement provides a wage increase of 1.75% for each year of the contract. The 2014 health insurance premiums are identical to those established by resolution for non-union employees. Primary Issues to Consider  What is the average wage increase for comparable cities?  How does the proposed wage compare to other cities?  What additional changes are included in the agreement? Supporting Information  Labor Agreement for 2014-2015 ___________________________________ Human Resources Manager Financial Impact: $____67,568_(2014)___Budgeted: Y/N _Y___ Source: ___various_________ Related Documents (CIP, ERP, etc.): _______________________________________________ Notes: ____Cost of health insurance not included; previously addressed in budget________ Council Report Page 2 Issues to Consider What is the average wage increase for comparable cities? Lakeville compares wage data with eleven cities that have been determined to be similar in size and organizational structure. Those cities with settled contracts have averaged 2 percent increases. How does the proposed wage compare to other cities? The City’s current compensation philosophy is to be at the market average. The table below shows that the Lakeville Teamsters are above the average market rates. We therefore are recommending a 1.75% increase for both years of the contract. In addition to the increase, each member of the bargaining unit will receive $400 in both 2014 and 2015. This settlement is recommended to achieve agreement with the union and work towards bringing the wage closer to the average of our comparable cities. Year Comparable Cities Lakeville 2014 $26.26 - $26.62 $27.19 2015 $26.85 - $27.18 $27.66 What additional changes are included in the agreement? Health insurance contributions for 2015 will be based off of the high deductible plan that is limited to a specific network of clinics. The increase or the decrease of dependent coverage will be split between the employer and the employee. The employer will continue to pay 100% of the single premium of this lower cost plan. Once these dollar values have been established, they will be applied to most other health plans offered by the City. The exception to this application is that no additional contributions will be made to the open network co-pay plan. Other additional language changes have been made to incorporate legislative actions. The agreement:  Broadens the purpose of sick leave to include more immediate family members as required by state statute.  Allows a contract reopener in the event that the contract language no longer meets the requirements of the Affordable Care Act.