8d. Memo
CBA Port of Seattle Firefighters
COMMISSION AGENDA MEMORANDUM Item No. 8d ACTION ITEM Date of Meeting September 27, 2022 DATE: September 8, 2022 TO: Stephen P. Metruck, Executive Director FROM: Mikel O’Brien, Interim Senior Director of Labor Relations Milton Ellis, Labor Relations Manager SUBJECT: New Collective Bargaining Agreement between the Port of Seattle and the International Association of Firefighters, Local 1257, representing Firefighters at the Port of Seattle Total Port Cost Increase for the Duration of the Agreement: $2,967,985 ACTION REQUESTED Request Commission authorization for the Executive Director to execute a new collective bargaining agreement (CBA) between the Port of Seattle and the International Association of Firefighters, Local 1257, representing Firefighters at the Port of Seattle covering the period from January 1, 2022, through December 31, 2024. EXECUTIVE SUMMARY Good faith bargaining between the International Brotherhood of Teamsters, Local 1257, representing Firefighters and the Port of Seattle resulted in a fair collective bargaining agreement consistent with Port’s priorities. The IAFF, Local 1257 Firefighters bargaining unit consists of 92 employees consisting of 66 Firefighters, 17 Captains, 5 Battalion Chiefs, 1 Fire Alarm Inspector, 1 Fire Mechanic, 1 Training Chief and 1 Fire Marshall. Members of the bargaining group provide Emergency Services for Aircraft Rescue Fire Fighting, Structural Fire Fighting, Emergency Medical Incidents, Hazardous Material Response, Confined Space Rescue, Fire Prevention Activities involving Building Inspection, Fueling Inspection, Construction Inspection and all other fire safety oversight for the Port of Seattle Properties on and around Sea-Tac Airport. This agreement is for a three-year period from January 1, 2022, through December 31, 2024. The estimated total additional cost for increase is $2,967,985. Members of the bargaining group will receive a six and a half percent (6.5%) increase in wages in the first year of the agreement and a cost-of-living increase in the second and third year of the Template revised September 22, 2016. COMMISSION AGENDA – Action Item No. 8d Page 2 of 4 Meeting Date: September 27, 2022 agreement. Members of the bargaining group also changed medical plans within Northwest Firefighters Trust by moving from a high premium low deductible health plan to a low premium high deductible health plan. The change resulted in saving for the Port, thereby allowing the Port to make contributions to a Voluntary Employees’ Beneficiary Association (VEBA) plan for Fighters in which members of the bargaining group who are employee only will receive an annual Port contribution of $2,078 and members who are employee dependent will receive an annual Port contribution of $4,078 to their VEBA account, which includes all administrative cost. All contributions will be used to offset medical expenses. The total cost also includes a one hundred dollar ($100) per month Port contribution to the Medical Expense Reimbursement Plan (MERP) of each employee in the bargaining unit effective the second year of the agreement. MERP contributions are accessible for Firefighters post retirement and are used to outset medical expenses. Day shift Battalion Chiefs will be paid the same as the Shift Battalion Chiefs under the agreement effective the second year of the agreement. This only impacted three members of the bargaining group. The seniority provision of the contract was modified to distinguish between lateral firefighters and new recruits. The holiday provision for Day Shift Firefighters was modified to include Martin Luther King holiday in exchange for one of the four floating holidays for Day shift Firefighters. All other provisions in the collective bargaining agreement remain the same. JUSTIFICATION RCW Chapter 41.56 requires the Port of Seattle to collectively bargaining wages, hours and conditions of employment with the exclusive bargaining representative designated by the employees. DETAILS Term of the Agreement – January 1, 2022, through December 31, 2024. FINANCIAL IMPLICATIONS Wages Classification Current Rate Effective Effective Effective 1/1/22 1/1/23 1/1/24 Base Base Base Hourly Rate Hourly Rate Hourly Rate (6.5%) (Est. 3.0%) (Est. 3.0%) Firefighter A $8,805/Month $9,377/Month $9,658/Month $9,948/Month Captain $10,390/Month $11,065/Month $11,397/Month $11,739/Month Battalion Chief $12,151/Month $12,941/Month $13,329/Month $13,729/Month Template revised September 22, 2016; format updates October 19, 2016. COMMISSION AGENDA – Action Item No. 8d Page 3 of 4 Meeting Date: September 27, 2022 Wage Members of Local 1257 received a six and a half percent (6.5%) wage increase in the first year of the agreement. In addition, members of the bargaining group will also receive a cost-of-living increase in the second and third year of the agreement. Health and Welfare Members of the bargaining group are currently enrolled in the Northwest Firefighters Trust, Plan 100, medical insurance plan which is a high premium, low deductible plan. Effective the second year of the agreement, members of the bargaining group will move to NWFFT medical plan 1500 which is a low premium, high deductive medical plan resulting in savings for the Port. Members of the bargaining group will also enroll in a VEBA plan effective the second year of the agreement where the Port will make annual contributions of $2,078 per single employee and $4,078 per employee dependent, which includes all administrative cost. There was no increase in health insurance in the first year of the agreement. There is an estimated five percent increase in health insurance in the second and third year of the agreement. Members of the bargaining group are currently contributing a range between $0 for employee only and $126.84/month for full family toward the cost of their medical insurance. Effective the second year of the agreement, members of the bargaining group, except for employee only, will commence making a ten percent (10%) monthly premium contribution toward the cost of health insurance. Other Changes • Effective the second year of the agreement, the Port will contribute one hundred dollars ($100) per month per employee toward the Medical Expense Reimbursement plan (MERP) for Firefighters. Firefighters will be able to use the savings associated with the MERP contributions to offset medical expenses post retirement. • Effective the second year of the agreement, the Battalion Chief day shift rate will be the same as the Battalion shift rate. This change will impact three Day Shift Battalion Chiefs. • The seniority provision of the contract was modified to distinguish between lateral firefighters and new recruits. • The holiday provision for Day Shift Firefighters was modified to include Martin Luther King holiday in exchange for one of the four floating holidays for Day shift Firefighters. Template revised September 22, 2016; format updates October 19, 2016. COMMISSION AGENDA – Action Item No. 8d Page 4 of 4 Meeting Date: September 27, 2022 Cost Impact $ Year 1 Year 2 Year 3 Benefits $0 -$25,485 $53,003 Total New Money $656,700 $305,980 $385,926 Total Cumulative $656,700 $962,680 $1,348,605 Cost The estimated total additional cost to the Port of Seattle for the duration of the contract is $2,967,985. ATTACHMENTS TO THIS REQUEST 1. Collective Bargaining Agreement PREVIOUS COMMISSION ACTIONS OR BRIEFINGS None. Template revised September 22, 2016; format updates October 19, 2016.
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