PORT OF SEATTLE
MEMORANDUM

COMMISSION AGENDA

Item N0. 51)

Date of Meeting July 12, 2011

DATE:   July 5, 2011

T0:     Tay Yoshitani, Chief Executive Ofcer

FROM:   Lisa Hornfeck, Manager, Labor RelationsV/gl

SUBJECT: Collective Bargaining Agreement between the Port of Seattle and the
International Association of Machinists, Local Union No. 289 representing Parts-
Procurement Representatives.

ACTION REQUESTED:

Request authorization for the Chief Executive Ofcer to execute a new Collective Bargaining
Agreement (CBA) between the Port of Seattle and the International Association of Machinists,
Local Union No. 289 representing Parts-Procurement Representatives covering the period from
January 1, 2011 through December 31, 2013. The total overall additional cost to the Port for the
rst year of the contract is $13,723.00, $11,523.00 for total wage increases covering ail
employees and $2500 for onetime bonus payments to ve employees at the top of the wage
scale.

BACKGROUND:

This agreement covers eleven (11) parts-procurement representative positions in Aviation
Maintenance, which includes ten (10) employees and one open FTE position. Prior to 2008 this
was a non-represented work group. At the time of union certication in 2008 the employees were
compensated according to the non-represented wage scale that included eleven (11) different
hourly wage rates, with a nine (9) dollar hou1ly difference between the highest and lowest 1ate.
Since ce1tication the parties have been moving towa1ds an established uniform
wage 1ate for
the work group comparable with the ma1ket for this type of w01k.

Since certication, the parties have bargained and ratied two contracts, in 2009 and 2010. Due
to economic challenges in 2009, the rst contract was for one year and the paities agreed to a
wage freeze. The second contract was a one year extension of the 2009 contract adopting some
minor language clarications. Hourly compensation continued to track the non-represented
wage
scaie, with wage increases weighted to bring the employees at the lower end of the scale and
employees at the higher end of the wage scale closer to a uniform wage rate. During the second
contract, the number of wage rates reduced from eleven (1 l) to eight (8).

COMMISSION AGENDA
Tay Yoshitani, Chief Executive Ofcer
July 5, 2011
Page 2 of 3

The current proposal is a two (2) year agreement. For the rst year, the wage increases continue
to be weighted towards the bottom of the wage scale. The ve employees at the higher end of the
wage scale will receive a lump sum payment of $500.00 in addition to either no hourly increase
or a very modest increase. The average base wage rate increase is 2.3% for the rst year of the
contract, with a total additional cost to the Port for the ten current employees of $1 1,523.00. This
proposed agreement reduces the number of hourly wage rates from eight (8) to four (4) and
continues to bring the employees toward one uniform hourly wage.

In regards to medical benefits, the prior agreement did not contain a standard maintenance of
benets clause, but included a soft cap on the Port's monthly contribution of $1300 per
employee per month. The cap was oating and the Port's contribution could increase under
certain circumstances. Further, the prior agreement did not contain a mechanism for employees
to pay any portion of the monthly premium if the monthly premium exceeded the cap.

in the current proposal, the parties agree to a rm cap on medical benets of $1300 per month. If
the benets exceed the cap during the first year of the contract, the employees will be
responsible for the increased premium, through a monthly wage deduction.

Due to economic volatility and uncertainty in the health care market regionally and nationally,
the parties agreed to a wage and benet opener the second year. This means wages and benets
for 2012 will be open for negotiations in the fall of 201 1.

The employees will continue in the PERS pension program.

SCOPE OF THE AGREEMENT

Term of the Agreement

January 1, 201.1  December 31, 2012

Wages

Effective January 1, 2011, this Collective Bargaining Agreement shall provide the following;

First year:    An average of 2.3% hourly wage increase, and $500.00 lump sum payment to
employees at the top of the wage scale.

Second Year: To be determined: wages and benets open

Pension Plan:

COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
July 5, 2011
Page 3 of 3

Effective January 1, 2011, this Collective Bargaining Agreement shall provide the following:

o  The Port shall continue to pay the PERS contribution for each employee for the life of the
contract.

Health and Welfare:

Effective January 1, 201 1, this Collective Bargaining Agreement shall provide the following:

0  Remove language that would trigger an increase to the Port's monthly medical benets
contribution.
o  A rm cap of the Port's contribution of $1300 per month per employee.

0 This provides certainty to the Port regarding amount of benefit contribution per
month.
0  If the premium exceeds the monthly cap the employees will be responsible for any
additional cost to be paid through a monthly payroll deduction.
o  This provision, in addition to wages will be open for negotiation the second year of the
contract.

Other Changes:

1.  The adoption of a probationary wage rate.
2.  Memorializing a past and current practice in a Memorandum of Understanding attached
to the contract specifying additional duties and justification of a higher wage rate of a
senior employee. This employee's base wage rate has not increased since the
certication, and he remains at the base wage rate of 2009.
3.  Memorializing in Article 7 the current practice of providing seasonal clothing for weather
as necessary due to the cold temperature in the warehouse during winter, including warm
coats and hats. Appropriate clothing is currently provided for maintenance groups
working in adverse conditions. This contract provision is consistent with current practice
'
and will not increase cost to the Port.
4.  Added a new section, Article 18, expressing the Port's commitment to employee learning
and development opportunities.

OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST:

Collective Bargaining Agreement between the Port of Seattle and the International Association
of Machinists, Local Union No. 289 representing Parts Procurement Representatives

PREVIOUS COMMISSION ACTIONS OR BRIEFINGS:

None.