HomeMy WebLinkAbout08. Adopt side letter between Central San and Management Group adjusting the 2024 Cost of Living increase from 2.40% to 3.75% effective April 18, 2024Item 8.
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
T HE MA NA G E ME NT G R O UP 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 V – G E NE R A L A ND ME R I T
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 V – General and Merit I ncreases, between the District and Management, states
the f ollowing:
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, the adjustment shall be a minimum of 2.0% and a
maximum of 5.0%. Effective April 18, 2023, A pril 18, 2024, April 18, 2025, and A pril 18, 2026, the
minimum shall be 2.0% with a maximum 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
18, 2024.
April 4, 2024 Special Board Meeting Agenda Packet - Page 41 of 97
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However, in early 2023, the District's other two bargaining units (L ocal #1 and MS C G) requested the
Board reconsider the general increases in light of the high inf lation in 2023. T he Board has considered the
requests 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 ef f ective A pril 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. All f uture general increases
will be granted in accordance with the current language in Article I V – General and Merit 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 $47,400 f or the employees represented by the Management Group.
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
the Management Group adjusting the 2024 cost of living increase outlined in MO U Article I V – General
and Merit I ncreases f rom 2.40% to 3.75% ef f ective A pril 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 - Management Group
April 4, 2024 Special Board Meeting Agenda Packet - Page 42 of 97
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SIDE LETTER AGREEMENT
Between
Central Contra Costa County Sanitary District
And
The Management Group
April 4, 2024
Article IV – General and Merit Increases
The District and Management has met and conferred on March 25, 2024, regarding MOU
Article IV - General and Merit 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 IV – General and Merit Increases.
For the District: For Management:
______________________________ ______________________________
Teji O’Malley Edgar Lopez
Human Resources and Union President
Organization Development Manager
Attachment 1
April 4, 2024 Special Board Meeting Agenda Packet - Page 43 of 97
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