Fremont City Council Meeting: 07/12/22 07:00 PM
3300 Capitol Avenue Div/Dept: Human Resources
Fremont, CA 94538 Category: Labor Relations
SCHEDULED
Sponsors:
STAFF REPORT (ID # 4666) DOC ID: 4666
Updated: 7/8/2022 8:12 AM by Alberto Quintanilla Page 1 FREMONT ASSOCIATION OF MANAGEMENT EMPLOYEES MOU - Consideration of a Resolution Approving a Successor Memorandum of Understanding with the Fremont Association of Management Employees (FAME)
Contact Persons:
Name: Tina Gallegos Allen DeMers
Title: Human Resources Manager Human Resources Director Div/Dept: Human Resources Human Resources
Phone: 510-494-4652 510-494-4651
E-Mail: [email protected] [email protected]
Executive Summary: On June 30, 2022, the City of Fremont reached agreement with the Fremont Association of Management Employees (FAME) for a three-year Memorandum of Understanding. The bargaining unit is made up of 122 members and represents a variety of managers throughout the City. The proposed MOU contains wage and health-benefit allowance increases. The remaining substantive provisions of the MOU are unchanged.
BACKGROUND: The City’s current MOU with FAME expired on June 30, 2022. The City’s negotiating team and FAME conducted eight negotiating sessions regarding a successor agreement and signed a tentative agreement on June 30, 2022. The City received notice that FAME ratified the agreement on July 2, 2022.
DISCUSSION/ANALYSIS: Significant Memorandum of Understanding Provision Changes:
1. Employee Compensation:
a) Effective the start of the first full pay period in July 2022, FAME members will receive a base wage increase of 5.0%.
b) Effective the start of the first full pay period in July 2023, FAME members will receive a base wage increase of 5.0%.
c) Effective the start of the first full pay period in July 2024, FAME members will receive a base wage increase of 4.0%.
2. Wage Equity Increase:
a. Effective July 1, 2022 the classification of Sr. Landscape Architect will receive a 4% wage increase to address salary compaction between that classification and a subordinate classification.
3. Health Benefit Allowance:
a) Effective January 1, 2023, the unit’s health benefit allowance will be increased by $150 per month (from $2,350 per month to $2,500 per month). b) Effective January 1, 2024, the unit’s health benefit allowance will be increased by an additional $100 per month (from $2,500 per month to $2,600 per month).
c) Effective January 1, 2025, the unit’s health benefit allowance will be increased by an additional $100 per month (from $2,600 per month to $2,700 per month).
Staff Report (ID # 4666) Meeting of July 12, 2022
Updated: 7/8/2022 8:12 AM by Alberto Quintanilla Page 2
4. Juneteenth Holiday:
a) The City of Fremont will commemorate Juneteenth (June 19) as a holiday consistent with the proclamation of this day as a holiday.
FISCAL IMPACT: In addition to approving the MOU, it is recommended that the City Council direct staff to adjust appropriations in the FY 2022/23 adopted operating budget as necessary to implement the terms of the MOU.
1. Compensation Increase:
a) Fiscal Year 2022/23 Approximate Anticipated Fiscal Impact: $976,000 (Approximately $585,000 was included in the 2022/23 Adopted Budget) b) Fiscal Year 2023/24 Approximate Additional Anticipated Fiscal Impact:
$976,000
c) Fiscal Year 2024/25 Approximate Additional Anticipated Fiscal Impact:
$780,000
2. Wage Equity Increase:
a) Approximate Anticipated Fiscal Impact: $12,000 in each year of the contract
3. Health Benefit Allowance:
a) Fiscal Year 2022/23 Approximate Anticipated Fiscal Impact: $53,000 b) Fiscal Year 2023/24 Approximate Additional Anticipated Fiscal Impact:
$88,000
c) Fiscal Year 2024/25 Approximate Additional Anticipated Fiscal Impact:
$71,000
4. Juneteenth Holiday:
a) Approximate Anticipated Fiscal Impact: $3,000 in each year of the contract
ENVIRONMENTAL REVIEW: N/A
ATTACHMENTS: None.
ATTACHMENTS:
• Draft Resolution FAME MOU
RECOMMENDATION: Adopt a resolution approving the negotiated terms and authorizing the City Manager to execute a three-year Memorandum of Understanding (MOU) for the period of July 1, 2022 through June 30, 2025 between the City of Fremont and the Fremont Association of Management Employees (FAME); and direct staff to adjust appropriations in the FY 2022/23 adopted operating budget as necessary to implement the terms of the MOU.