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Home My WebLink About05. Approve a tentative agreement with Local One and provide direction on modification of the Memorandum of Understanding Page 1 of 4 Item 5. CENTRAL SAN BOARD OF DIRECTORS POSITION PAPER MEETING DATE: SEPTEMBER 16, 2021 SUBJECT: APPROVE THE TENTATIVE AGREEMENT WITH PUBLIC EMPLOYEES UNION LOCAL ONE AND PROVIDE DIRECTION TO STAFF TO I NCORPORATE THE TERMS OF THE TENTATIVE AGREEMENT I NTO A SUCCESSOR MEMORANDUM OF UNDERSTANDING TO BE BROUGHT BACK TO THE BOARD I N A SUBSEQUENT MEETI NG FOR FI NAL ADOPTION SUBMITTED BY: INITIATING DEPARTMENT: TEJI O'MALLEY, HUMAN RESOURCES AND OFFICE OF THE GENERAL MANAGER - ORGANIZATIONAL DEVELOPMENT HUMAN RESOURCES MANAGER Roger S. Bailey General Manager ISSUE The Public Employees Union Local One (Local One) ratified the terms for a successor Memorandum of Understanding (MOU)with the District, and formal adoption of the terms by the Board of Directors is required. BACKGROUND The District currently has MOUs with three recognized bargaining units, Management Group, Management Support/Confidential Group (MS/CG), and Local One. The Management Group's current MOU will expire on December 17, 2021, and Local One and MS/CG MOUs are set to expire on April 17, 2022. Pursuant to Government Code 3500-3511 and Central San's Employer-Employee Relations Ordinance (Chapter 4.24 of the District Code), the District is required to negotiate all matters related to wages, hours, and other terms and conditions of employment. Representatives of the Board and the Local One bargaining team have reached a tentative agreement on the terms listed in Attachment 1, which would extend all provisions in the current MOU for a five year term September 16, 2021 Regular Board Meeting Agenda Packet- Page 37 of 85 Page 2 of 4 with the exception of the cost-of-living adjustments (COLA)which are detailed in the attachment. The new MOU will be in effect from April 18, 2022 to April 17, 2027. The final language incorporating these changes into the successor MOU will be brought to the Board at a future date for final adoption. ALTERNATIVES/CONSIDERATIONS None. FINANCIAL IMPACTS The proposed net cost impact over the proposed term of the contract (if the CPI reaches the maximum cap of 5% in the first year and 3.75% in the second through fifth years) is approximately$14.4 million. COMMITTEE RECOMMENDATION This item was not reviewed by a Board Committee. RECOMMENDED BOARD ACTION Approve the tentative agreement with Public Employees Union Local One and provide direction to staff to incorporate the terms of the tentative agreement into a successor MOU to be brought back to the Board in a subsequent meeting for final adoption. Strategic Plan re-In GOAL FOUR: Workforce Development Strategy 2—Foster relationships across all levels of Central San ATTACHMENTS: 1. Proposed Local One Tentative Agreement September 16, 2021 Regular Board Meeting Agenda Packet- Page 38 of 85 Page 3 of 4 MEMORANDUM OF UNDERSTANDING By and Between CENTRAL CONTRA COSTA SANITARY DISTRICT And EMPLOYEES'ASSOCIATION,PUBLIC EMPLOYEES' UNION LOCAL 1 2022-2027 Labor Contract Extension This Memorandum of Understanding("MOU")memorializes the agreement by and between Central Contra Costa Sanitary District("the District")and the Employees' Association, Public Employees'Union Local 1 ("Local 1"). The parties have reached mutual agreement to the following,which will extend the current collective bargaining agreement for five years. WHEREAS,the Local 1 and the District are parties to a collective bargaining agreement which is due to expire on April 17, 2022; and WHEREAS, rather than engaging in extensive contract negotiations, the parties desire to enter into an agreement extending the'current collective bargaining agreement until April 17, 2027. NOW, THEREFORE,the parties have met and conferred and agree to the following: 1. Local 1 and the District agree that the present collective bargaining agreement, which expires on April 17,2022, shall be extended until April 17, 2027. 2. Article II, Section 1.4, entitled "General Increases", shall be amended as follows: Eff ntiye A++g%st 1 4 201 8 0...,...levees' ++age.+ doll be adjusted by 3.75-034. Eective ApFA 18,2010, n pAl-18,2020, and April 18, 2021 April 18,2022,:April 18,2023. April 18, 2024, April 18, 2025, and April 18, 2026, employees'.wages shall be adjusted by the change in the Consumer Price Index(CPI)for all Urban Consumers (San Francisco/Oakland/San Jose)during the most recently completed February to.February time period prior to the applicable April. For the first year of the collective bargaining agreement, effective April 18, 2022,if the applicable CPI is less than 2%,then the salary increase will be 2%. If the applicable CPI is greater than 5%, then the salary increase will be 5%. For the remaining four years of the collective bargaining agreement,if the applicable CPI is less than 2%,then the salary increase will be 2%. If the applicable CPI is greater than 3.75%, then the salary increase will be 3.75%. The payment of the first wag o a back to August 18,2018 shall only apply 4e empleyees still empleyed at the time the Board appr-eves this'MOU and shall not imp—aet. a+avaaava -[te vv aaaa ♦+va GG �JDL CO-[Ii00rRTP�C. n+m, eyei4ime, SV)• nasI�QL 'OTfIG n. N ++ ef esempeasatien other-than wage akeady provided by the Distiie4 prior-te Bear-d- 17760242.1 September 16, 2021 Regular Board Meeting Agenda Packet- Page 39 of 85 Page 4 of 4 By the signatures below, all parties agree that the above represents their full and entire agreement with regard to the FIVE-YEAR CONTRACT EXTENSION AGREEMENT'through April 17, 2027. For CENTRAL CONTRA COSTA SANITARY DISTRICT: By: Date:_ C7 Z For EMPLOYEES' ASSOCIATION,PUBLIC.EMPLOYEES' LOCAL 1: By: �i L21CL� Date: r `� 17760242.1 September 16, 2021 Regular Board Meeting Agenda Packet- Page 40 of 85