5c

PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      5c 
ACTION ITEM               Date of Meeting   December 3, 2013 
DATE:    November 27, 2013 
TO:      Tay Yoshitani, Chief Executive Officer 
FROM:   Milton Ellis, Labor Relations Manager 
SUBJECT:  Collective Bargaining Agreement with the International Association of Machinists
and Aerospace Workers, AFL-CIO, District Lodge 160, Local Lodge 289, Parts
Procurement. 
Total Port Cost Increase for the Duration of the Agreement: $48,946. 
Source of Funds:   Aviation Maintenance Department 
ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to execute a new collective
bargaining agreement (CBA) between the Port of Seattle and the International Association of
Machinists and Aerospace Workers, AFL-CIO, District Lodge 160, Local Lodge 289 (Parts
Procurement) covering the period from January 1, 2013, through December 31, 2015, and
affecting 11 positions, including regular full-time Distribution Center Inventory Specialists
employees. 
SYNOPSIS 
Good faith bargaining between the International Association of Machinists and Aerospace
Workers, AFL-CIO, District Lodge 160, Local Lodge 289 (Parts Procurement), and the Port of
Seattle resulted in a fair collective bargaining agreement consistent with the Port's priorities.
The estimated total additional cost for wages and benefit increases is $48,946. The estimated
additional cost per year of the contract is: year one, $22,628; year two, $13,132; and year three,
$13,185.
The agreement provides for the Port providing a limit on monthly benefit contribution of $1,300
for the duration of the agreement which amounts to employees paying a monthly premium of
12.8% toward health benefits.  Employees in the bargaining group will also be allowed to
participate in the Port of Seattle's deferred compensation program. The agreement removes a
description of the duties and responsibilities of the DC Inventory Specialist position from the
contract thereby allowing the Port to modify duties and responsibilities if needed. Although all
employees in the bargaining group are assigned to first shift, if at any time employees in the
bargaining group are assigned to either second or third shift, the agreement increases shift
Template revised May 30, 2013.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
November 27, 2013 
Page 2 of 4 
premiums from 7.5% to 10%, second shift, and from 10% to 15%, third shift, consistent with
other bargaining groups with the Port. The agreement also clarifies the calculation of overtime
for employees assigned to work four 10-hour shifts  from 10 to 13 hours at time and a half and
any time worked beyond 13 hours will be paid at double time.  Employee wages were
maintained at market. 
BACKGROUND 
The Public Employment Relations Commission certified this bargaining unit as represented by
the International Association of Machinists and Aerospace Workers, AFL-CIO, District Lodge
160, Local Lodge 289, in 2008. There are currently eleven positions within the bargaining unit,
including all full time employees, who are assigned to the day shift. They are assigned to the
Aviation Maintenance Department at the Distribution Center (DC) Warehouse where they
perform a miscellany of functions related to receipt, storage, delivery of parts, processing and
procurement of goods and services for the Aviation Maintenance Department DC Warehouse.
PROJECT JUSTIFICATION 
RCW Chapter 41.56 requires the Port of Seattle to collectively bargain wages, hours and
working conditions with the exclusive bargaining representative designated by the employees. 
SCOPE OF THE AGREEMENT 
Term of the Agreement 
Retroactive to January 1, 2013, through December 31, 2015. 
Wages 
The eleven DC Inventory Specialist are compensated on four different pay grades. The lowest
pay grade (Grade 4) which consists of eight employees received a three percent (3.0%)
percentage increase in year one of the agreement and a COLA in years two and three. The three
highest pay Grades received a one-time cash pay-out rather than a percentage increase since their
salary rate was above that of the lowest pay grade. 
CLASSIFICATIONS                           EFFECTIVE 
DC Inventory Specialist                  June 1,    June 1     June 1 
2013     2014       2015* 
Grade 4                            $24.46    COLA     COLA 
Grade 3                            $24.60    COLA     COLA 
Grade 2                            $25.38    COLA     COLA

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
November 27, 2013 
Page 3 of 4 
Grade 1                            $28.67    COLA     COLA 

Pay Grades 2 and 3 received a one-time cash pay-out of $950 in first year of the contract and
will receive the equivalent value of a COLA tied to Grade 4 as a one-time cash pay-out in the
second and third year of the agreement. 
Pay Grade 1 received a one-time cash pay-out of $700 in first year of the contract and will
receive the equivalent value of a COLA tied to Grade 4 as a one-time cash pay-out in the
second and third year of the agreement. 
Benefits 
The employees in this bargaining group are all enrolled in the IAM&AW Local 289 Trust for
health insurance. The IAM&AW, Local 289, Trust has one composite rate for premium. For the
2013 contract year, the premium rate per employee is $1,492.53.  The Port capped its monthly
health insurance premium contribution to $1,300 per month per employee for the duration of the
agreement. Therefore, employees in the bargaining group are contributing approximately 12.8%
per month out of pocket premium cost  for health insurance.  This percentage employee
contribution will vary depending upon the IAM&AW, Local 289, medical rates for the second
and third year of the agreement. The Port's exposure however on health insurance premium
contribution howeverwill remain capped at $1,300 per month per employee for the term of the 
agreement. 
Deferred Compensation 
Employees will be allowed to participate in the Port of Seattle deferred compensation program.
Although the Port will not match contributions made on behalf of employees in the bargaining
group since such benefit is only provided to non-represented employees, employees in the
bargaining group will however be able to take advantage of some of the other benefits offered by
the plan. 
Classifications 
A description of the duties and responsibilities of the DC Inventory Specialist was removed from
the agreement thereby allowing the Port to modify the duties and responsibilities of the position
when necessary to address operational needs. 
Other Changes 
Increase in premium pay for second and third shift 
Overtime pay for employees on 4/10ths schedule provided at time and a half for work
beyond 10 hours up to 13 hours and double time for any work performed after 13 hours

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
November 27, 2013 
Page 4 of 4 
FINANCIAL IMPLICATIONS 

Cost Impact $      Year 1      Year 2      Year 3 
Pay            $19,364     $11,237     $11,283 
Benefits          $3,265      $ 1,895      $ 1,902 
Total            $22,628     $13,132     $13,185 

The estimated total additional cost to the Port for the duration of the contract is $48,946. 
Budget Status and Source of Funds 
The increase in expense is included in the Aviation Maintenance Division 2013 and 2014 
budgets. 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
None.

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