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PORT OF SEATTLE MEMORANDUM COMMISSION AGENDA Item No. 4d ACTION ITEM Date of Meeting January 27, 2015 DATE: January 20, 2015 TO: Ted Fick, Chief Executive Officer FROM: Kim Ramsey, Labor Relations Manager SUBJECT: Collective Bargaining Agreement Extension between the Port of Seattle and the International Longshore and Warehouse Union Local 9 Representing Aviation Operations / Aviation Security. ACTION REQUESTED Request Commission authorization for the Chief Executive Officer to execute an extension memorandum of agreement to the collective bargaining agreement (CBA) between the Port of Seattle and the International Longshore and Warehouse Union Local 9 representing Aviation Operations / Aviation Security covering the period from January 1, 2015, through December 31, 2015. SYNOPSIS This one-year contract extension provides a cost of living wage adjustment for 2015 of 2.1% based on the CPI-U October 2013 October 2014 Seattle/Tacoma/Bremerton and retains all other terms of agreement under the expiring CBA including retention of bargaining unit employees on the Port's medical plan. The estimated cost of this agreement is $128,576. BACKGROUND This MOA is the result of good faith bargaining and has been ratified and executed by the Union. This MOA covers 86 employees who perform critical aviation security, airfield safety and communications work at Sea-Tac International Airport. The current agreement expired December 31, 2014. SCOPE OF THE AGREEMENT Term of the Memorandum of Agreement: January 1, 2015 December 31, 2015 Wages: Effective the first day of the first 2015 pay period, a 2.1% base wage increase. Benefits: Employees in this bargaining unit will remain on the Port's Total Rewards Medical Benefit program for 2015. Other Terms: All other terms remain the same as under the expiring CBA. Template revised May 30, 2013. COMMISSION AGENDA Ted Fick, Chief Executive Officer January 21, 2015 Page 2 of 2 FINANCIAL IMPLICATIONS The cost impact of this agreement is based on the increase in base wages of $91,313; the resulting increase in payroll taxes associated with employee participation in the state's retirement system (PERS), and Social Security and Medicare (FICA) of $15,395; and the increase costs for providing medical benefits under the Port's Total Rewards Medical Benefit program of $21,868. This estimated increase in expense of $128,576 is included in the 2015 budget of the Aviation Division Budget. ATTACHMENTS TO THIS REQUEST The memorandum of agreement The April 1, 2011 December 31, 2014 Collective Bargaining Agreement (CBA) between the Port of Seattle and the International Longshore and Warehouse Union Local 9 Representing Aviation Operations / Aviation Security PREVIOUS COMMISSION ACTIONS OR BRIEFINGS: None
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