Template revised September 22, 2016 . COMMISSION AGENDA MEMORANDUM Item No. 4h REVISED A CTION ITEM Date of Meeting June 13 , 2017 DATE: June 6, 2017 (Revised June 9, 2017) TO: Dave Soike , Interim Chief Executive Officer FROM: David Freiboth, Sr. Director, Labor Relations Greg Gauthier, Labor Relations Manager SUBJECT: Collective Bargaining Agreement Extension between the Port of Seattle and the International Longshore and Warehouse Union Local 9 Representing Aviation Security . Additional cost over term : $1,419,678 ACTION REQUESTED Request Commission authorization for the Chief Executive Officer to execute a new collective Warehouse Union Local 9 representing Senior Access Controllers, Construction Support Specialists, and Full Employee Screeners in the Aviation Security Department covering the period from January 1, 2016, through December 31, 2019. EXECUTIVE SUMMARY Good faith bargaining between the Port of Seattle and ILWU, Local 9 resulted in a fair collective bargaining agreement consistent with the Port’s priorities. The Parties agreed to bifurcate the existing Aviation Operations/Aviation Security Bargaining Unit into two separate bargaining units in order to comport with RCW 53.18 .060 which states that security personnel cannot be included in the same agreement as non - security personnel within a Port district. The estimated total additional cost for wages and be nefit increases is $ 1,419,678 . The estimated additional cost per year of the contract is: 2016/2017, $2 62,150 ; 2018, $ 471,828 ; and 2019, $ 685,700 . The cost is based upon a 4% increase in years 2016 and 2017 for all classifications except Full Employee Screeners, followed by an estimated 2.0% CPI - U increase in years 2018 and 2019. Settlement included wage increase for Full Employee Screeners from $20.37 to $20.45 beginning January 1, 2017; Full Employee Screeners shall not be entitled to the 4% increase in 2017. The cost estimates for Full Employee Screeners is based upon 76 hired as of January 1, 2017, and an additional 84 hired as of January 1, 2018; there are currently 56 as of April 18, 2017. COMMISSION AGENDA – Action Item No. 4h Page 2 of 4 Meeting Date: June 13 , 2017 Template revised September 22, 2016 ; format updates October 19, 2016 . JUSTIFICATION The ILWU, Local 9 Security bargaining unit consists of 55 Senior Access Controllers, 56 Full Employee Screeners, and 13 Construction Support Specialists. Employees in the Aviation Security Bargaining unit work to control and maintain secure access points to the SIDA (airfield and terminal) by airline employees, tenants, contractors, vendors, consultants, government employees, and Port of Seattle employees . 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 ber 31, 2019. FINANCIAL IMPLICATIONS Wages 1 All Classifications except Full Employee Screeners Classification Effective 1/1/2016 Base Hourly Rate (+4%) Effective 1/1/2017 Base Hourly Rate (+4%) 1 Effective 1/1/2018 COLA Seattle/Tacoma/Bremerton CPI - U (0 - 6) Effective 1/1/2019 COLA Seattle/Tacoma/Bremerton CPI - U (0 - 6%) Senior Access Controller Lead $27.47 $28.57 TBD TBD Senior Access Controller $26.17 $27.21 TBD TBD Construction Support Specialist Lead $23.83 $24.78 TBD TBD Construction Support Specialist $23.11 $24.03 TBD TBD Full Employee Screener N/A $20.45 TBD TBD COMMISSION AGENDA – Action Item No. 4h Page 3 of 4 Meeting Date: June 13 , 2017 Template revised September 22, 2016 ; format updates October 19, 2016 . Wage Progression Chart 2 Wage rates for new employees entering into the following classifications shall be based upon the following tiered system. 0 - 12 Months 85% 13 - 24 Months 90% 25 - 36 Months 95% 37+ Months 100% Recognition The Recognition of the new Full Employee Screeners as members of ILWU, Local 9 Security bargaining unit with the ability to renegotiate some of the terms after one year upon request The parties agree that the intent of the agreement will operate to maintain the existing scope of work historically performed by the members of the bargaining unit. Health and Welfare Eligible employees will be provided the option to participate in the same health coverage options as non - represented employee, with a waiver of any rights to negotiate terms of the medical package specifics. New Holiday - Harry Bridges Day E mployees who work on July 28 th of each year shall be paid at time and one half for all hours worked in recognition of Harry Bridges. Other Changes  The rotation of assignments for Senior Access Controllers  Increased training opportunities for qualified Se nior Access Controllers desiring to advance into the Operations bargaining unit by providing a minimum of 5 AAAE certification programs each year to interested candidates  Amending the timeframe for the Union to file directly to a 2 nd step grievance t o 21 days  Bumping rights in the event of a reduction in force for qualified employees from the Operations bargaining unit into the Security bargaining unit 2 Stepped increases for all employees starting into the listed classifications upon implementation of agreement. Senior Access Controller Lead Senior Access Controller Construction Support Specialist Lead Construction Support Specialist COMMISSION AGENDA – Action Item No. 4h Page 4 of 4 Meeting Date: June 13 , 2017 Template revised September 22, 2016 ; format updates October 19, 2016 .  Reasonable suspicion drug testing  An increase in the work shoe reimbursement from 50% of $100 to 100% of $100  Temporary service in a new classification counts towards trial period if selected to new position  Labor Management Committee to include accurate notes and issues of concern to either party are permissible issues for discussion  The parties agree to gather input and discuss job descriptions within 30 days of ratification  Provide employees with 5 working day notice before modifying schedule for training  Incorporating the Port’s Paid Parental Leave Policy into the agreement Cos t Impact $ 3 2016 /2017 201 8 201 9 Total Year over Year Cumulative Cost Labor $168,711 $133,349 $136,016 $438,07 6 Harry Bridges Day 4 $ 11,395 $ 11,481 $11,711 $34,587 Benefits $82,044 $64,848 $66,145 $213,037 Year over Year Total $2 62,150 $209,678 $213,872 $685,700 Total Cumulative Cost $2 62,150 $471,828 $685,700 $1,419,678 ATTACHMENTS TO THIS REQUEST 1. Representing Aviation Security . PREVIOUS COMMISSION ACTIONS OR BRIEFINGS None 3 Cost impacts include the wage/benefit increases for the estimated 76 Full Employee Screeners from 1/1/2017 4 Assumes 55% of employees work on July 28 of each year