6b Carpenters CBA memo
COMMISSION AGENDA MEMORANDUM Item No. 6b ACTION ITEM Date of Meeting April 23, 2019 DATE: April 18, 2019 TO: Stephen P. Metruck, Executive Director FROM: Greg Gauthier, Labor Relations Manager Mikel O'Brien, Sr. Labor Relations Manager David Freiboth, Sr. Director, Labor Relations SUBJECT: New collective bargaining agreement between the Port of Seattle and the Pacific Northwest Regional Council of Carpenters, representing Carpenters at the Port of Seattle. Additional cost over term: $819,541 ACTION REQUESTED Request Commission authorization for the Executive Director to execute a new collective bargaining agreement (CBA) between the Port of Seattle and the Pacific Northwest Regional Council of Carpenters, Local 30, representing Carpenters in both the Marine Maintenance and Aviation Maintenance Departments, covering the period from January 1, 2019, through December 31, 2021. EXECUTIVE SUMMARY Good faith bargaining between the Port of Seattle and the Pacific Northwest Regional Council of Carpenters, Local 30, resulted in a fair collective bargaining agreement consistent with the Port's priorities. The bargaining unit consists of 28 employees in both the Aviation Maintenance and Marine Maintenance Departments. Bargaining unit positions include regular full-time Carpenters, Millwrights, and Piledrivers. Employees in this bargaining unit perform work at the Port that is consistent with maintenance and construction duties traditionally associated with their respective craft(s) in the region. The agreement is for three years covering the period from January 1, 2019, through December 31, 2021. The estimated total cumulative additional cost for wages, pension, healthcare, and other benefits is $819,541. The estimated cumulative additional cost per year of the contract is Year 1, $139,681; Year 2, $282,930; and Year 3, $396,930. Template revised September 22, 2016. COMMISSION AGENDA Action Item No. 6b Page 2 of 3 Meeting Date: April 23, 2019 The costs are based upon 4.4% average annual wage increases for years one and two, an estimated 3% wage increase in year 3, and 2.8% average annual increases to the healthcare, pension, and apprenticeship hourly contribution rates; as defined by the Area Master Labor Agreement1. Other changes include the introduction of a grievance procedure; alignment with both the Washington Paid Sick Leave Law and Paid Family Medical Leave; the deletion of language in the Union Security Clause regarding mandatory Union membership in compliance with Federal law; and the incorporation of a Management Rights provision. 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 January 1, 2019, through December 31, 2021. FINANCIAL IMPLICATIONS Wages Wages paid at eighty-eight percent (88%) of the Master Labor Agreement between the Pacific Northwest Regional Council of Carpenters and the Associated General Contractors of Washington. Classifications June 1, 2019 June 1, 2020 June 1, 2021 Carpenter $40.41 $42.17 $43.43 Millwright $41.73 $43.49 $44.79 Piledrivers $40.63 $42.36 $43.66 1 Wage, pension, healthcare, and apprenticeship rates are based upon Area Master Agreement rates negotiated between the Pacific Northwest Regional Council of Carpenters, and the Associated General Contractors of Washington. Template revised September 22, 2016; format updates October 19, 2016. COMMISSION AGENDA Action Item No. 6b Page 3 of 3 Meeting Date: April 23, 2019 Paid Leave Extended Illness, currently accrued at .02308 per straight time hour paid, will now be called "Sick Leave" and will be accrued at a rate of .025 per compensable hour. Medical, Pension, Apprenticeship Rates based upon the Master Labor Agreement between the Pacific Northwest Regional Council of Carpenters and the Associated General Contractors of Washington. June 1, 2019 June 1, 2020 June 1, 20212 Health and Security $8.06 $8.16 $8.38 Pension $7.59 $7.95 $8.17 Apprenticeship $0.87 $0.91 $0.94 Other Changes Grievance Procedure Increased safety shoe premium from $100 to $150 Alignment with the Janus Decision regarding Union Security Alignment with the Washington Paid Sick Leave Law Alignment with the Washington Paid Family Leave Law with an administrative waiver Overpayment collection process Incorporated key components of the Letter of 1965 with Building Trades into the CBA ATTACHMENTS TO THIS REQUEST (1) Collective Bargaining Agreement between the Port of Seattle and the Pacific Northwest Regional Council of Carpenters representing Carpenters at the Port of Seattle (red lined). (2) Collective Bargaining Agreement between the Port of Seattle and the Pacific Northwest Regional Council of Carpenters representing Carpenters at the Port of Seattle (union signed). PREVIOUS COMMISSION ACTIONS OR BRIEFINGS April 12, 2016Commission authorization of previous Collective Bargaining Agreement 2 Estimated 2.8% increase Template revised September 22, 2016; format updates October 19, 2016.
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