PORT OF SEATTLE
MEMORANDUM

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COMMISSION AGENDA              Item No.      4c

ACTION ITEM              Date of Meeting   April 12, 2016

DATE:   April 6, 2016

TO:     Ted Fick, Chief Executive Ofcer

FROM:  David Freiboth, Senior Director of Labor Relations
Milton Ellis, Labor Relations Manager
Greg Gauthier, Labor Relations Manager 

SUBJECT: New cOllective bargaining agreement with the Pacic Northwest Regional Council
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of Carpenters, representing carpenters.

Total Port Cost Increase for the Duration of the Agreement: $238,058
Source of Funds:   Marine Maintenance and Aviation Maintenance Department

ACTION REQUESTED

Request Commission authorization for the Chief Executive Ofcer to execute a new collective
bargaining agreement (CBA) between the Port of Seattle and the Pacic Northwest Regional
Council of Carpenters, Local 30, representing the Marine Maintenance and Aviation
Maintenance Department, covering the period from January 1, 2016, through December 31,
2018, and affecting 37 positions, including regular fulltime carpenters, millwrights, and
piledriver employees. -

SYNOPSIS

Good faith bargaining between the Pacic Northwest Regional Council of Carpenters, Local 30,
and the Port of Seattle resulted in a fair collective bargaining agreement consistent with the
Port's priorities.  This agreement is for three years covering the period from January 1, 2016,
through December 31, 2018. The estimated total additional cost for wages and benet increases
is $238,058. The estimated additional cost per year of the contract is: year one, $58,305; year
two, 92,381; and year three, $87,373. The cost is based upon a 2.6 percent increase in wages in
year one and a 4.0% increase in wages in year two as provided in the Associated General
Contractors of Washington agreement and we estimate a 4.0% increase in year three.  In
addition, the cost consists of no increase in health insurance in years one and two as provided in
the Associated General Contractors of Washington agreement and we estimate no increase in
health insurance in year three since the rate has remained the same within the last six years.i


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Associated'General Contractors of Washington wages and health insurance rates are attached.

COMMISSION AGENDA
Ted Fick, Chief Executive Ofcer
April 6, 2016
Page 2 of 4

The agreement provides for an adjustment in the paid time off accrual to align with Port policy.
In addition, the limits on paid time off accumulation were modied from a 24 month accrual to
480 hours to align with Port policy.  Paid Time Off accrual for emergency employees was
modied for emergency employees who convert to regular employees to determine their
appropriate paid time off accrual rate within the previous 180 days. In the latter instance, the
emergency employees would not earn accruals for the time that they were emergency employees.
Voluntary cash out procedures were modied to comport with those of non-represented
employees. The bereavement leave provision was modied to align with Port policy which
requires employees to have been employed for (30) days before qualifying for bereavement
leave. The agreement also provides for Affordable Care Act protections.

BACKGROUND

The Pacic Northwest Regional Council of Carpenters is a party to a Master Labor agreement
with the Associated General Contractors of Washington. This bargaining group negotiates their
wages and health and welfare benets with the Associated General Contractors of Washington as
reected in their Master Labor Agreement. The Port of Seattle pays fulltime equivalent (FTE)
employees eighty-eight percent (88%) of the wages negotiated in the Master Labor Agreement,
and provides employees in this bargaining group with vacation and holidays. All emergency
employees in this bargaining group are paid at 100% of that scale, but receive no vacation and
holidays. The 37 employees in the bargaining unit are assigned to provide services at Marine
Maintenance Department and the Aviation Maintenance Division.

SCOPE OF THE AGREEMENT

Term of the Agreement

Retroactive to January 1, 2016, through December 31, 2018.

Wages:

Wages paid at eighty-eight percent of the Master Labor Agreement with the Associated General
Contractors ofWashington.

COMMISSION AGENDA
Ted Fick, Chief Executive Ofcer
April 6, 2016
Page 3 of 4

CLASSIFICATIONS                            EFFECTIVE


Carpenters

Millwrights

Piledrivers

0  Port pays eighty-eight percent (88%) on the basis of the Master Agreement

0  Salary increases from the Master Labor Agreement are provided in June of each year of the
agreement
* 2018
0  Salary increase for 2016 is 2.6%; 2017, 4.0% and       estimated 4.0%.

Health and Welfare:

The contract provides for any Affordable Care Act protections stating that if the Carpenter's
Trust is subject to an excise penalty, the parties will meet and discuss the impact.

Paid Leave

Paid Time Off  Rates of Accrual

The paid time off accrual rates were modied to align with Port policy.

Limits on Accumulating Paid Time Off

The twentyfour (24) months limit on paid time off accrual was modied to 480 hours to align
with Port policy.

Paid Time Off Accruals for Emergency Employees who convert to Regular Employees
Emergency employees who convert to regular employees will only have their hire date adjusted
for purposes of determining their appropriate paid time off accrual rate, rather than earning
accruals for their time spent as an emergency employee.

Voluntary Cash-Out of Paid Time Off Heurs

Procedure for cashing out paid time leave was modied to align with port policy reecting the
same process followed by nonrepresented employees.

COMMISSION AGENDA
Ted Pick, Chief Executive Ofcer
April 6, 2016
Page 4 of 4

Other Changes

0    Waiting period of thirty (30) days toqualify for bereavement leave for new employees

0    Non-discrimination language was updated to comport with state and federal law

0     Elimination of long-term care benet that is no longer offered by the Port.

FINANCIAL IMPLICATIONS

Cost Impact $

Pay -  $45,198  $77,242  $81 ,164

Benets        $13,107    $15,138    $ 6,209

Total           $58,305     $92,381     $87,373


The estimated total additional cost to the Port for the duration of the contract is $238,058.

Budget Status and Source ofFunds

The increase in expense is included in the Marine 'Maintenance Department and Aviation
Maintenance Division 2016 budgets.

ATTACHMENTS TO THIS RE UEST
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(l)  Carpenter Classifications and Wages
(2)  Draft Collective Bargaining Agreement

PREVIOUS COMMISSION ACTIONS OR BRIEFINGS

None