HomeMy WebLinkAbout07. Adopt side letter between Central San and MS/CG adjusting the 2024 Cost of Living increase from 2.40% to 3.75% effective April 18, 2024Item 7.
BOARD OF DI RECTORS
POSIT ION PA PER
M E E T ING D AT E:A P R I L 4, 2024
S UB J E C T: A D O P T T HE AT TA C HE D S I D E L E T T E R B E T W E E N T HE D I S T R I C T A ND
MS /C G A D J US T I NG T HE 2024 C O S T O F L I V I NG I NC R E A S E O UT L I NE D I N
MO U A RT I C L E I I – PAY, G E NE R A L I NC R E A S E S F R O M 2.40% TO 3.75%
E F F E C T I V E A P R I L 18, 2024
S UB M I T T E D B Y:
T E J I O'MA L L E Y, HUMA N R E S O UR C E S A ND
O R G A NI Z AT I O NA L D E V E L O P ME NT
MA NA G E R
I NI T I AT I NG D E PART M E NT:
O F F I C E O F T HE G E NE R A L MA NA G E R -
HUMA N R E S O UR C E S
R oger S . B ailey
General Manager
IS S UE
Board of Director’s approval is required to adopt Side L etter agreements with the bargaining units.
B AC K G RO UND
C urrently, MO U A rticle I I P ay – General I ncreases, between the District and MS /C G, states the following:
Effective April 18, 2022, A pril 18, 2023, April 18, 2024, A pril 18, 2025, and April 18, 2026, employees’
wages shall be adjusted by the change in the C onsumer Price I ndex (C P I ) for all Urban Consumers (S an
F rancisco / Oakland/San J ose) during the most recently completed F ebruary to F ebruary time period prior
to the applicable April. E f f ective A pril 18, 2022, if the applicable C P I is less than 2%, than the salary
increase will be 2%. I f the applicable C P I is greater than 5%, than the salary increase will be 5%. Effective
April 18, 2023, A pril 18, 2024, April 18, 2025, and A pril 18, 2026, if the applicable C P I is less than 2%,
then the salary increase will be 2%. I f the applicable C P I is greater than 3.75%, then the salary increase
will be 3.75%.
I n 2023, the applicable C P I was 5.30%, and theref ore, in accordance with the abovementioned MO U
language, the general increase granted to all employees was 3.75%. I n 2024, the applicable C P I is
2.40%, and therefore, based on the MO U language, the general increase should be 2.40% effective April
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18, 2024. However, in early 2023, MS/C G requested the B oard to consider increasing the ceiling ef f ective
April 18, 2023, 2024, 2025, and 2026 f rom the current 3.75% to 5.00%.
T he B oard has considered the request and given that the Consumer P rice I ndex (C P I ) last year was
5.30% (beyond the ceiling of 3.75% by 1.55%) and the C P I this year is 2.40%, the District will agree to
of f er an incremental increase of 1.35% in addition to the 2.40% wage increase which is to be effective
April 18, 2024. T his action will grant a one-time wage increase of 3.75% effective April 18, 2024.
T his change will only apply to the general increase effective April 18, 2024. A ll future general increases will
be granted in accordance with the current language in Article I I Pay – General I ncreases.
ALT E RNAT I V E S /C O NS I D E RAT IO NS
D o not approve the side letter adjusting the cost of living increase. I f this action is not approved, District
employees will receive a cost of living adjustment of 2.4% pursuant to the current language in the MO U.
F I NANC IAL I M PAC T S
T he incremental 1.35% being added to the scheduled general wage increase of 2.40% will result in a
approximate annual cost of $346,700 for the employees represented by MS /C G.
C O M M I T T E E RE C O M M E ND AT IO N
T his item did not go to a committee as it was discussed in closed session on March 21, 2024.
RE C O M M E ND E D B O ARD AC T I O N
Approve Human Resources recommendation to approve the attached side letter between the D istrict and
MS/C G adjusting the 2024 cost of living increase outlined in MO U Article I I Pay – General I ncreases f rom
2.40% to 3.75% effective April 18, 2024.
Strategic Plan Tie-I n
G O A L TH R EE: Workforce Diversity and D evelopment
Strategy 2 - Engage employees and conduct labor relations in a transparent, effective and collaborative
environment, Strategy 3 - Retain skilled workers by investing in resources and opportunities for all employees to grow
and thrive
AT TAC HM E NT S :
D escription
1. S ide L etter Agreement - MS /C G
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SIDE LETTER AGREEMENT
Between
Central Contra Costa County Sanitary District
And
Management Support/Confidential Group
April 4, 2024
Article II – Pay
The District and MS/CG met and conferred on March 25, 2024, regarding MOU Article II – Pay,
General Increases. As a result, the following change has been agreed upon:
•The District has agreed to grant a 3.75% general increase effective April 18, 2024, as
opposed to the 2.40% increase (as determined by the current Consumer Price Index)
that is agreed upon in the current language. The purpose of the increase is to help offset
the gap between the 2023 general adjustment (3.75%) and the rate of inflation for that
year (5.30%).
•This change will only apply to the general increase granted effective April 18, 2024. All
future general increases will be granted in accordance with the current language in
Article II – Pay, General Increases.
For the District: For MS/CG:
______________________________ ______________________________
Teji O’Malley Chris Carpenter
Human Resources and Union President
Organization Development Manager
Attachment 1
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