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PORT OF SEATTLE MEMORANDUM COMMISSION AGENDA Item No. 5d Date of Meeting September 12, 2011 DATE: September 7, 2011 TO: Tay Yoshitani, Chief Executive Officer FROM: Lisa Hornfeck, Manager, Labor Relations SUBJECT: Collective Bargaining Agreement between the Port of Seattle and the International Brotherhood of Electrical Workers, Local Union No. 46, representing Electronic Technicians. ACTION REQUESTED: Request authorization for the Chief Executive Officer to execute a new Collective Bargaining Agreement (CBA) between the Port of Seattle and the International Brotherhood of Electrical Workers, Local Union No. 46, representing Electronic Technicians covering the period from June 1, 2011, through May 31, 2014. The total additional cost to the Port for the first year of the contract is $ 79,281.28 for total wage increase and $7,948.80 for health and welfare, for a total overall increase for year one of $87,230.08 covering all employees. The estimated additional cost for wages and benefits of year two of the contract is $121,300.36, and year three $124,939.37. The total estimated increased cost to the Port for wages and benefits for duration of the three-year contract is $333,469.81. BACKGROUND: This agreement covers forty-six (46) Electronic Technicians in Aviation Maintenance. The current proposal is a three (3) year agreement. SCOPE OF THE AGREEMENT: Term of the Agreement June 1, 2011 May 31, 2014 COMMISSION AGENDA Tay Yoshitani, Chief Executive Officer September 7, 2011 Page 2 of 3 Wages Effective June 1, 2011, this Collective Bargaining Agreement shall provide the following: Effective June 1, 2011: 2% hourly wage increase, to $41.01 per hour Effective June 1, 2012: Base wage rates shall be increased by the sum of one-hundred percent (100%) of the percentage increase in the Consumer Price Index for Seattle with a minimum increase of not less than zero percent (0%) nor more than six percent (6%). Effective June 1, 2013: Base wage rates shall be increased by the sum of one-hundred percent (100%) of the percentage increase in the Consumer Price Index for Seattle with a minimum increase of not less than zero (0%) nor more than six percent (6%). Pension Plan Pension rates remain consistent with the prior Agreement and there is no increased cost to the Port. Effective June 1, 2011, this Collective Bargaining Agreement shall provide the following: Port contribution to the IEBW Pacific Coast Pension Plan shall be fifty cents ($0.50) for all hours compensated. Port contribution to the Puget Sound Electrical Workers Pension Trust shall be three dollars and fifty cents ($3.50) for all hours compensated. Port contribution to the Local 46 I.B.E.W. Retirement Annuity Plan shall be two dollars ($2.00) for all hours compensated. Health and Welfare The parties agreed to remove health care maintenance of benefits language, and share responsibility for future health care cost increases. This Collective Bargaining Agreement shall provide as follows: Employees shall continue to be eligible for benefits under the Puget Sound Electrical Workers Health and Welfare Trust Fund. COMMISSION AGENDA Tay Yoshitani, Chief Executive Officer September 7, 2011 Page 3 of 3 Effective June 1, 2011, through September 30, 2011: Port contributions to this plan shall be seven dollars and twenty cents ($7.20) for each hour worked for each employee. The parties agreed to freeze the health and welfare rate at $7.20/hour for the first two years of the contract. o This is consistent with the rate per hour contained in the prior Agreement and will not increase costs to the Port. o The cost to the Port is an approximately $1,101.60 per employee per month ($7.20/hour*153 hours). Effective October 1, 2011 May 31, 2014: Port contributions to this plan shall be seven dollars and twenty cents ($7.20) for each hour compensated for each employee, with a monthly contribution cap of 155 hours. o The parties agreed to change from hours worked to compensated hours with a cap in order to create a uniform monthly contribution rate. o The cost per employee will be $1116.00 per employee per month, an increase of $14.40 per employee per month ($7.20/hour*155 hours). Future increases to the $7.20 hourly contribution base rate shall be shared by the Port and the employee in the following way: The employee will contribute 50% of any hourly increase up to 10% of the total hourly base rate and the Port will contribute 50% of any hourly increase. Once employee contributions have reached 10% of the total hourly base rate, future increases shall be split 10% paid by the employee and 90% paid by the Port. The employee's share of the monthly contribution will be a pre-taxdeduction subject to the monthly contribution cap of 155 hours. Other Changes None. OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST: Collective Bargaining Agreement between the Port of Seattle and the International Brotherhood of Electrical Workers, Local Union No. 46, representing Electronic Technicians. PREVIOUS COMMISSION ACTIONS OR BRIEFINGS: None.
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