REPORT TO THE CITY COUNCIL
FROM: TJ MILLER, Interim Director
Personnel Services Department
BY: STEPHANIE HERNANDEZ, Principal Labor Relations Analyst
Personnel Services Department
SUBJECT
Title
Actions pertaining to the International Union of Operating Engineers, Stationary Engineers, Local 39 for Unit 1
1. ***Adopt a successor Memorandum of Understanding between the City of Fresno and International Union of Operating Engineers, Stationary Engineers, Local 39 (Local 39), Non-Supervisory Blue Collar, Unit 1 (Subject to Mayor’s veto)
2. ***RESOLUTION: Adopt the Fifteenth Amendment to FY 2023 Salary Resolution No. 2022-152, amending Exhibit 1, Non-Supervisory Blue Collar (Local 39), to provide a salary increase for respective classes as required by the Memorandum of Understanding between the City of Fresno and International Union of Operating Engineers, Stationary Engineers, Local 39 (Local 39) (Subject to Mayor’s veto)
Body
RECOMMENDATION
It is recommended Council (1) approve the attached successor Memorandum of Understanding (MOU) to implement wages, hours and other terms and conditions of employment for City employees in Unit 1, Non-Supervisory Blue Collar, represented by Local 39; and (2) adopt the Fifteenth Amendment to FY 2023 Salary Resolution No. 2022-152 to amend Exhibit 1.
EXECUTIVE SUMMARY
The City and Local 39 reached a tentative agreement on a successor MOU which will replace the MOU that expired on January 1, 2023. The MOU provides for an agreement from January 2, 2023 through June 15, 2025, increases to wages, and other changes in terms or conditions of employment. Though the MOU is retroactively effective, the only term set forth in the proposed MOU that is retroactive is the base salary increase.
Upon Council approval of the Fifteenth Amendment to the FY23 Salary Resolution, Exhibit 1 of the FY24 Salary Resolution will be updated to reflect the amended Exhibit 1 as approved by Council.
BACKGROUND
The City and Local 39 started meeting in August 2022 to work towards reaching agreement on a successor MOU. The parties reached a tentative agreement on June 1, 2023. Members of the Unit ratified on June 20, 2023.
Significant changes to the MOU are summarized below.
• Term: January 2, 2023 through June 15, 2025.
• Wages:
o FY23: 3% wage increase, retroactively effective January 2, 2023.
o FY24: 3% wage increase, effective June 19, 2023.
o FY24: 1% wage increase, effective December 18, 2023.
o FY25: 3% wage increase, effective June 17, 2024.
o FY25: 2% wage increase, effective December 30, 2024.
• Sympathy Strikes: During the term of this agreement, the Union will not condone or support so-called “sympathy strikes” where a strike or work stoppage is declared by another Union.
• Classification and Compensation: The City will conduct a comprehensive classification and compensation study and will implement compensation adjustments up to $2.9 million effective no later than December 30, 2024.
• Health Reimbursement Arrangement (HRA): Benefit expansion to include qualified medical expenses and an increase to the value factor from 40% to 80% of base hourly rate.
• Bilingual Pay: Increase compensation by $50 to $100 per month.
• Safety Shoes and Prescription Safety Glasses:
o Increase voucher amount for regular safety shoes by $50 to a voucher valued at up to $250.
o Increase voucher for specialty safety shoes by $50 to a voucher valued at up to $300.
o Add reimbursement of up to $125 upon receipt of proof of the purchase of prescription safety glasses.
• Standby Pay:
o Increase standby compensation by $0.25 to $1.90 per hour.
o Add a provision for a voluntary and mandatory standby list to cover the standby assignment of an employee absent due to unscheduled leave.
o Allow employees to forfeit their standby assignment to a replacement employee.
o Provide mileage reimbursement for employees on standby who are not assigned a City vehicle.
• P.M. Hours Premium Pay:
o Increase compensation by $0.20 to $1.45 per hour for regular shift hours between 5:00 p.m. and midnight.
o Increase compensation by $0.55 to $2.30 per hour for regular shift hours between midnight and 8:00 a.m.
• Commercial Driver’s License (CDL)/Crane Operator License: Allow employees who possess both a CDL and a Crane Operator License to stack the $100 per month premium pays.
• Surface Water Treatment Facility Pay: Incorporate the $375 per month site pay into base wages for the Senior Water Treatment Plant Operator and the Water Treatment Plant Operator classifications and discontinue the site pay.
• Wastewater Treatment Plant Compensation: Provide a one-time payment for employees who were in the classifications below assigned to the Wastewater Treatment Plant during the timeframe of April 6, 2020 to January 17, 2021, pro-rated based on actual time worked.
o Senior Wastewater Treatment Plant Operator $8,050.00
o Power Generation Operator/Mechanic $7,437.00
o Wastewater Treatment Plant Specialist $6,825.00
o Wastewater Treatment Plant Technician $5,163.00
o Wastewater Treatment Plant Operator-in-Training $4,457.00
• Power Generation Operator/Mechanic (PGOM): Add certificate pay of $100 per month for PGOMs assigned to a water systems environment who are required to obtain and maintain a valid Water Distribution Operator Certificate, Grade DII.
• Code Enforcement/Abatement Team and Solid Waste/HART: Include the Code Enforcement/Abatement Team as eligible for the monthly premium pay; increase the monthly premium pay by $25 to $100 per month; and add a daily rate for those who may be assigned to assist either team.
• Water Treatment Plant Operator: Add Water Treatment Plant Operator to the list of classifications eligible for the Water Treatment Operator & Water Distribution Operator certificate pay.
• Vacation Leave:
o Adjust the years of service maximum accrual: 340 hours for less than 10 years; 420 hours for more than 10 years but less than 20 years; and 480 hours for 20 or more years.
o Adjust the monthly accrual amounts: 11.33 hours for more than 8 years but less than 14; 13 hours for more than 14 years but less than 20; and 15 hours for more than 20 years.
• Supplemental Sick Leave: Add new leave bank effective July 1, 2023 with an accrual limit of 40 hours per fiscal year and up to a total lifetime maximum of 80 hours.
• Compensatory Time Off (CTO): Allow cash out of any CTO hours upon request and reformat existing language for improvement of readability, clarity, and so all relevant language is located together.
• Contracting Out: Modify timeline for the City to notify the Union of its intent to request proposals for contracting out services performed by Local 39 employees from 30 business days to 30 calendar days.
• Jury Duty: Expand the reassignment to include any employee assigned to a work schedule outside of regular business hours Monday through Friday while attending jury duty.
• Attendance Policy: Allow employees who exhaust Sick Leave to use other available leaves and revise the tardy policy and other language for clarification and ease of application.
• Health and Welfare: Language cleanup to accurately reflect City and employee percentage contributions, remove outdated cost sharing language, and codify the opt out process.
• State Disability Insurance/Paid Family Leave: Language update to include PFL and clarify that employees may use available leave banks for leave integration once Sick Leave is exhausted.
• Overtime: Incorporate Overtime side letter; reformat existing language for improvement of readability, clarity, and so all relevant language is located together; revisions to clarify and refine assignment of overtime for ease of application; expand use of telephone calls to include other communication on personal electronic devices.
• Seniority: Refine language to better clarify that continuous service in class for the purposes of seniority for shift selection and vacation scheduling does not include time the employee left the class due to demotion, permanent promotion, transfer to a different class, or separation from City service.
• Sick Leave: Language updates consistent with state law.
In addition to the above, there was language clean up throughout the MOU.
The City Attorney’s Office has approved the new MOU and Salary Resolution Amendment as to form.
ENVIRONMENTAL FINDINGS
By the definition provided in the California Environmental Quality Act Guidelines Section 15378 this item does not qualify as a “project” and is therefore exempt from the California Environmental Quality Act requirements.
LOCAL PREFERENCE
Local preference is not implicated because this item does not involve public contracting or bidding with the City of Fresno.
FISCAL IMPACT
Approval of the MOU and Salary Resolution Amendment will result in estimated additional salary and benefit expenses of $424,433 to the General Fund and $5,121,269 to All Funds in FY24, and $582,830 to the General Fund and $6,763,825 to All Funds in FY25, for a total of $1,007,263 to the General Fund and $11,885,095 to All Funds for the term of the MOU, which expires June 15, 2025.
Attachments:
City of Fresno and Local 39 MOU - Redline
City of Fresno and Local 39 MOU - Final
Costing for Proposed MOU
Resolution - Fifteenth Amendment to FY 2023 Salary Resolution No. 2022-152
Salary Tables - Fifteenth Amendment to FY 2023 Salary Resolution No. 2022-152 - Redline
Salary Tables - Fifteenth Amendment to FY 2023 Salary Resolution No. 2022-152 - Final