4c

PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      4c 
ACTION ITEM               Date of Meeting   September 13, 2016 
DATE:    September 6, 2016 
TO:      Ted Fick, Chief Executive Officer 
FROM:   David Freiboth, Senior Director of Labor Relations 
Kim Ramsey, Labor Relations Manager 
SUBJECT:  New collective bargaining agreement with  the International Association of
Machinists and Aerospace Workers, Local 289, representing Inventory Specialists 
Total Port Cost Increase for the Duration of the Agreement: $120,559 
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, Local 289, covering the period from January 1, 2016,
through December 31, 2018, and affecting 11 Aviation Maintenance Inventory Specialists. 
SYNOPSIS 
The Port and the International Association of Machinists and Aerospace Workers, Local 289 
worked collaboratively and in good faith to reach this successor CBA designed to meet the
shared priorities of the parties. This three year CBA covers the period from January 1, 2016,
through December 31, 2018. The estimated total additional cost for wages and benefit increases
is $120,559. The estimated additional cumulative cost per year of the contract is: year one,
$20,110; year two, $33,345; and year three, $67,103. 
The base wage for Inventory Specialists is currently seven percent (7%) below market based the
average of seven local public sector employers with comparable positions and published private
sector wage data for comparable positions. For that reason the agreement includes annual cost of
living increases as well as market adjustments that total 7% over the life of the agreement. 
Additionally, employees will transition from a high premium, 100% coverage medical plan to a
lower premium 80/20 plan comparable to the Port's Cigna Deductible Plan. With this agreement,
43% of represented employees (6 of 21 bargaining groups) will be on a medical plan similar in
plan design to the Port's Cigna Deductible Plan with respect to co-insurance. 
Additionally, the Parties made agreements to modify the existing CBA to update out dated
provisions. 

Template revised May 30, 2013.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
September 6, 2016 
Page 2 of 5 

BACKGROUND 
Employees represented under this collective bargaining unit work in the distribution center
located adjacent to Sea-Tac Airport. They are responsible for the procurement of maintenance
materials  and services to support 14 aviation maintenance crafts and provide materials
management of a central distribution center and 32 satellite storerooms. The position of
inventory specialist encompasses three key areas of responsibility: procurement, craft support
and warehouse. 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, 2016, through December 31, 2018. 
Wages: 
Upon implementation              Each bargaining unit employee shall receive a onetime
lump sum payment in the amount of $800 
Effective January 1, 2016:             Base wage rates shall be increased by the sum of 
one hundred percent (100%) of the Consumer Price
Index for Seattle, Tacoma, Bremerton  (CPI-U) 
October 2013 to October 2014, with a 0% minimum
and a 6% maximum plus 1.8%. 
Effective January 1, 2017:             Base wage rates shall be increased by the sum of 
one hundred percent (100%) of the Consumer Price
Index for Seattle, Tacoma, Bremerton  (CPI-U) 
October 2014 to October 2015, with a 0% minimum
and a 6% maximum plus 3%. 
Effective January 1, 2017:             Base wage rates shall be increased by the sum of 
one hundred percent (100%) of the Consumer Price
Index for Seattle, Tacoma, Bremerton  (CPI-U) 
October 2015 to October 2016, with a 0% minimum
and a 6% maximum plus 2.2%.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
September 6, 2016 
Page 3 of 5 

Health and Welfare 
Upon implementation employees will transition to IAM Plan 15 Medical (an 80/20 plan) and
retain current IAM dental and vision plans as follows: 
BENEFIT          RATES 
Machinist H&W Plan 15 
Employee               $588.33 
Employee/Spouse           $1323.73 
Employee/Family           $1853.24 
Employee/Child(ren)         $1117.84 
Vision Services Plan 1           $11.81 
Dental                    $174.46* 
*new rate may apply after 9/2016 
The Port agrees to pay one hundred percent (100%) of premiums for IAM Plan 15 for Plan year
2016-2017 and 2017-2018.
Increases in premiums for Machinist Plan 15 for Plan year 2018-2019 shall be shared on the 
basis of medical coverage designation as follows: 
Employee Only             $25/month 
Employee/Spouse or Child(ren)   $50/month 
Employee/Family            $75/month 
Other Changes 
Modifications in Article 1  Recognition, Scope and Hiring - adds language
referencing employee rights under RCW 41.56 and establishes a six (6) month
probationary period. 
Modification in Article 5  Seniority  adds language clarifying leave approval process 
Modifications in Article 7  Safety and Sanitary Conditions  increases annual safety
shoe allowance from $100 to $120 consistent with other maintenance crafts. 
Modifications in Article 14  Rates of Pay  establishes upon implementation a
working lead with expanded duties with a 10% pay premium and excludes the lead from
the forklift training instructor premium. 
Modifications in Article 15  Additional Shifts  updates start times ranges for day
shift and second shift.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
September 6, 2016 
Page 4 of 5 
Modifications in Article 18  Learning and Development  adds language that
supports employee participation in internal internship program 
Modifications in Article 19  Leaves  consolidates under one article paid and unpaid
leave benefits under current Port policy 
Modifications in Article 28  Non-Discrimination  updates language to current Port
standard 
MOU  maintains red circle rate for senior employee that continues to provide
supervisory responsibilities (no change from prior contract) 
Other non-monetary housekeeping changes 
APPENDIX A  PAY RATES 
Job Title                   Eff. Date                         New Hourly Rate 
DC Inventory Specialist,
Probationary                     Upon implementation           $ 25.11 
DC Inventory Specialist                   1/1/16                $ 25.88 
1/1/16 to implementation of 
DC Inventory Specialist, Lead         Article 14 (b), see below           $ 27.17 
DC Inventory Specialist, Lead   Upon Implementation Per Article 14 (b)      $ 28.47 

CURRENT RATE 
Job Title               Employees    Average Pay (Hourly)    Minimum Pay (hourly) 
DC Inventory Specialist       11                  $25.47             $ 25.13 
The new agreement brings the minimum rate to $25.31. These employees work 40 hours per
week. 
FINANCIAL IMPLICATIONS 

Cost Impact          Year 1        Year 2        Year 3       Totals 
Labor               24,219       $38,364      $62,767     $125,350 
Benefits                $-4,109         -$5019        $4,336       -$4,792 
Totals      $20,110         $33,345       $67,103      $120,558

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
September 6, 2016 
Page 5 of 5 

The estimated total additional cumulative cost to the Port for the duration of the contract is
$120,558. 
Budget Status and Source of Funds 
The increase in expense is included in the Aviation Division 2016 budget; to be included in 2017 
and 2018 budgets. 
ATTACHMENTS TO THIS REQUEST 
Collective bargaining agreement 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
None.

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