Council Communication

Ratification of new agreement with the Laborers Union
Meeting Date:	June 21, 2005		Primary Staff Contact:	Michael Franell 488-5350 franellm@ashland.or.us
Department:	Administration		Secondary Staff Contact:	Tina Gray, 552-2101 grayt@ashland.or.us
Contributing Departments:	Human Resources
Approval:	Gino Grimaldi

Statement: The labor agreement with the Laborers Union Local 121, who represent most of our public works employees expires June 30, 2005. We have reached tentative agreement on the terms of a successor contract.

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Background: The City has 5 separate collective bargaining groups plus its unrepresented employee group. Three of the five contracts are up for renewal this year. The City and the Laborer's Union have been meeting since the end of February to try and negotiate a successor contract. The Laborer's Union Local 121 voted to approve the tentative agreement last week. The agreement is being brought to the Council with a recommendation from management staff for ratification. The basic changes from the agreement are as follows: 1. Under the existing agreement, vacation accruals start at 80 hours per year. Accruals increase by steps every 4 to 5 years, with the top step providing for an annual accrual of 168 hours of vacation time. This is proposed to change to 80 hours per year for the first year of employment. Then each year after that, vacation accruals will increase by 6 hours per year until the employee reaches a maximum annual accrual of 184 hours. 2. The sick leave accrual cap will increase from 880 hours to 960 hours. 3. The agreement will specify the employee may use up to five days of accrued sick leave per year to care for ill or injured immediate family members. 4. Each employee in the bargaining unit will receive a $67 per month wage increase July 1, 2005, a $68 per month wage increase January 1, 2006 and a wage increase equivalent to the all US CPI-W, not less than 2% nor more than 4% on July 1 of the two remaining years of the agreement. The agreement may be reopened on wages only if the annual change in CPI is less than 2% or more than 5%. 5. The City will reimplement certification pay. Those already receiving certification pay under grandfathered rights in the existing contract will not receive additional unless they obtain another qualifying certification. 6. Each employee will begin participating in their health insurance costs by paying 5% of the premiums through payroll deduction. 7. The City will offer the employees in the bargaining unit a Section 125 Plan, permitting the pretax contribution of the employee's share of the health insurance premiums and allowing the employees to participate in the medical flexible spending accounts and dependent care accounts. 8. The agreement will be for a three year term.

Related City Policies: The City has a policy of providing its employees with a fair, competitive salary and benefit package.

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Council Options: The Council can ratify the agreement as presented. The Council can reject the agreement and provide staff direction as to the objectionable provisions.

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Staff Recommendation: Staff recommends the Council ratify the new labor agreement as presented.

Potential Motions: I move the Council ratify the proposed labor agreement between the City of Ashland and the Laborers Union Local 121 as presented.

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Attachments: Click on the PDF file link below to view the following attachments:    • Proposed Labor agreement.

Laborers Union Agreement.pdf (140.5KB)

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