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.