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PORT OF SEATTLE MEMORANDUM COMMISSION AGENDA Item No. 4f ACTION ITEM Date of Meeting July 14, 2015 DATE: July 7, 2015 TO: Ted Fick, Chief Executive Ofcer FROM: Milton Ellis, Labor Relations Manager /7 6/ SUBJECT: New collective bargaining agreement with the International Brotherhood of Teamsters, Local 174, representing Truck Drivers. Total Port Cost Increase for the Duration of the Agreement: $59,943. Source of Funds: Marine Maintenance Division 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 International Brotherhood of Teamsters, Local 174 (Truck Drivers) covering the period from June 1, 2015, through May 31, 2018, regarding seven (7) Truck Driver employees. SYNOPSIS Good faith bargaining between the International Brotherhood of Teamsters, Local 174, and the Port of Seattle resulted in a fair collective bargaining agreement consistent with the Port's priorities. This agreement covers three years June 1, 2015, through May 31, 2018. The estimated cost of the contract is: year one, $19,199; year two, $19,967; and year three, $20,778, fora total of $59,943. The estimated cost is based on an assumption of two percent (2.0%) increase in wages and a seven percent (7.0%) increase in the cost of health insurance each year of the agreement. We were able to achieve advancements in management rights, such as a management's rights clause and the ability to assign employees to an alternate work schedule. We achieved the right to dene the probationary period as a 120 day period whereas in the past, it was undened. We were able to insert language to indemnify the Port in any action for nonpayment of union dues and we were able to get agreement on Affordable Care Act, reopening bargaining if the Port becomes liable for any excise tax. COMMISSION AGENDA Ted Fick, Chief Executive Ofcer July 7, 2015 Page 2 of 3 BACKGROUND The union negotiates wages with the Associated General Contractors of Washington in the Master Labor Agreement. Under the terms of contract between the Port of Seattle and Local 174 (Truck Drivers), the Port pays eighty percent (80%) of any wage and pension increase derived from the Associated General Contractors of Washington. The seven employees in the bargaining group are all assigned to the Marine Maintenance Division. SCOPE OF THE AGREEMENT Term of the Agreement June 1, 2015, through May 31, 2018. Wages: Effective June 1, 2015, this Collective Bargaining Agreement shall provide the following: Effective June 1, 2015 Eighty-percent (80%) of the combined AGC Wage & Pension increase Effective June 1, 2016: Eighty-percent (80%) of the combined AGC Wage ' & Pension increase Effective June 1, 2017: Eighty-percent (80%) of the combined AGC Wage & Pension increase Health and Welfare Employees in the bargaining unit are covered under the Teamsters Welfare Trust. We were able to achieve contract language to address any excise tax penalty that could arise on the basis of the Affordable Care Act by opening the contract to address any excise tax penalty that could arise during the term of the agreement. Work Schedule Marine Maintenance will have the option of assigning employees in the bargaining unit to a 4/ 103 work shift. Currently all employees are on a 5/83 work schedule. Probationary Period Employees hired in the bargaining unit will now have a twelve month probationary period. Previously, the period was undefined. COMMISSION AGENDA Ted Fick, Chief Executive Ofcer July 7, 2015 Page 3 of 3 Other Changes 0 Management Rights a new Management Rights clause was adopted. 0 Indenmication Port indemnied for any action taken against employees by the Union for non~ payment of dues. 0 Equal Employment The language was updated to comply with state and federal law. o Premium Shift language adopted for employees working 4/103 grave yard shift for Port Construction Services that could result in potential cost saving. FINANCIAL IMPLICATIONS Cost Impact $ Year 1 Pay $10,690 Benets $ 8,508 Total $ 19,198 The estimated total additional cost to the Port for the duration of the contract is $59,943. The total accumulative cost is $2,679,390. Budget Status (1an Source ofFumls The increase in expense is included in the Marine Maintenance Department and Aviation Maintenance Division 2015 budgets. PREVIOUS COMMISSION ACTIONS 0R BRIEFINGS None.
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