REPORT TO THE CITY COUNCIL
October 23, 2014
FROM: Jeff Cardell, Director
Personnel Services Department
BY: Ken Phillips, Labor Relations Manager
Personnel Services Department
SUBJECT
Title
*** Approve a Side Letter of Agreement between the City of Fresno and Unit 1, represented by the International Union of Operating Engineers, Stationary Engineers, Local 39, amending the Memorandum of Understanding (MOU) provision on payment of health care premiums
Body
RECOMMENDATION
It is recommended that Council approve the attached Side Letter of Agreement between the City and Unit 1, Local 39, implementing an MOU provision which provides for a change in the City payment of health and welfare premiums.
EXECUTIVE SUMMARY
The successor MOU between the City and Local 39 adopted by Council on May 15, 2014, contains a provision that allows renegotiation of the health and welfare benefit if a more favorable benefit is provided to another bargaining unit. Since that time, a number of units have included a more favorable benefit by capping the employee payment of the monthly premium at 30%.
Approval of this Side Letter Agreement will not change the monthly City contribution for health insurance. However, any future increases for employees will be capped at 30% of the monthly premium. If the monthly premium for employees is at 30%, the City will pay 70%.
BACKGROUND
In 2013, the City paid 80% of the monthly health and welfare premium set by the City of Fresno Health and Welfare Trust for the majority of employees. The City contribution rate for new employees with a few bargaining units is 70% of the monthly premium.
Through negotiations of successor MOUs, the City has been pursuing other cost sharing approaches for health and welfare premiums. In the current MOU, Local 39 agreed to a City contribution of 75% of the health and welfare premiums with future increases to be shared equally with 50% paid by the City and 50% paid...
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