8b. Memo
CBA Teamsters 174
COMMISSION AGENDA MEMORANDUM Item No. 8b ACTION ITEM Date of Meeting October 25, 2022 DATE: October 19, 2022 TO: Stephen P. Metruck, Executive Director FROM: Greg Gauthier, Labor Relations Manager Mikel O’Brien, Interim Sr. Director, Labor Relations SUBJECT: New Collective Bargaining Agreement Between the Port of Seattle and the Teamsters Local 174 Representing Truck Drivers at Marine Maintenance and Port Construction Services (PCS) Additional cost over term: $133,755.69 ACTION REQUESTED Request Commission authorization for the Executive Director to execute a new collective bargaining agreement between the Port of Seattle and Teamsters Local 174, representing Truck Drivers at both Marine Maintenance and Port Construction Services, covering the period from June 1, 2022, through May 31, 2024. EXECUTIVE SUMMARY Good faith bargaining between the Port of Seattle and the Teamsters Local 174 resulted in a fair collective bargaining agreement consistent with the Port’s priorities. The bargaining unit consists of seven Truck Drivers at both Marine Maintenance and PCS. Employees in this bargaining unit may operate dump trucks, flatbeds, tilt-deck, or drop-down trailers and may also pick up or delivery materials. The agreement is for two years covering the period from June 1, 2022, through May 31, 2024. The estimated total cumulative additional cost for wages, pension, healthcare, and other benefits is $133,755.69. The estimated cumulative additional cost per year of the contract is Year 1, $42,748.26; Year 2, $92,007.43. The costs are based on a year 1 wage increase of 6%, and a year 2 increase based upon CPI-U (0-6%) + ½ of a percent, a $0.25 per compensable hour pension increase in Year 2, a 4% estimated health and welfare trust fund premium increase in year 2, and an increase of $30 to the employee’s monthly health and welfare premium contribution by the end of term. Template revised September 22, 2016. COMMISSION AGENDA – Action Item No. 8b Page 2 of 3 Meeting Date: October 25, 2022 JUSTIFICATION RCW Chapter 41.56 requires the Port of Seattle to collectively bargain wages, hours and working conditions with the exclusive bargaining representative designated by the employees. SCOPE OF THE AGREEMENT Term of the Agreement June 1, 2022, through May 31, 2024. DETAILS Term of Agreement—June 1, 2022, through May 31, 2024 FINANCIAL IMPLICATIONS Wages Classification June 1, 2022 6% Truck Driver $38.50 Crew Chief $41.77 Cost Impact $ Term of Agreement (1 Year) Pay $653,510.71 Benefits $318,285.69 Total $971,796.39 The estimated total cost of this Agreement to the Port of Seattle over the term of the agreement is $1,993,851.951. Pension, Medical, Retirement (RWT) Pension contributions per hour compensated Year 1 Year 2 Pension $11.68 $11.93 1 Based upon being fully staffed and with an estimated 6.5% wage increase in YR2 Template revised September 22, 2016; format updates October 19, 2016. COMMISSION AGENDA – Action Item No. 8b Page 3 of 3 Meeting Date: October 25, 2022 Medical Employees are eligible for Teamsters Plan A and will make the following contributions towards their healthcare monthly: • Year 1 $802 • Year 2 $100 Teamsters Retirees Welfare Trust Plus XL Plan The Port will contribute $94.85 to the monthly cost of the plan, employees will contribute the remainder through pre-tax monthly payroll diversion. Other Changes • Incorporated Juneteenth holiday. • Mutual agreement between the parties to promote equity, diversity, and inclusion. • Gender specific language amended. • Increased employee healthcare monthly premium contributions. • MOU regarding the Port’s Vaccination Policy, HR-34 ATTACHMENTS TO THIS REQUEST (1) Collective Bargaining Agreement (red lined) PREVIOUS COMMISSION ACTIONS OR BRIEFINGS June 11, 20219—Commission authorization of previous Collective Bargaining Agreement between the Port of Seattle and the Teamsters Local 174 representing Truck Drivers at Marine Maintenance and Port Construction Services (PCS). 2 Currently $70.00 Template revised September 22, 2016; format updates October 19, 2016.
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