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 # 4670) DOC ID: 4670
Updated: 7/8/2022 8:20 AM by Alberto Quintanilla Page 1 TEAMSTERS, LOCAL 856 MOU - Consideration of a Resolution Approving a Successor Memorandum of Understanding with Teamsters, Local 856 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: In June 2022, the City of Fremont reached agreement with Teamsters, Local 856 (Teamsters) for a three-year Memorandum of Understanding. The bargaining unit is made up of 76 members. The proposed MOU contains wage and health- benefit increases. The remaining substantive terms of the current MOU are unchanged.
BACKGROUND: The City’s current MOU with Teamsters expired on June 30, 2022. The City’s negotiating team and Teamsters, Local 856 conducted nine negotiating sessions regarding a successor agreement and signed a tentative agreement on June 30, 2022. The City received notice that Teamsters ratified the agreement on July 1, 2022.
DISCUSSION/ANALYSIS: Significant Memorandum of Understanding Provision Changes:
1. Employee Wage:
a) Effective the start of the first full pay period in July 2022, Teamsters members will receive a base wage increase of 5.0%.
b) Effective the start of the first full pay period in July 2023, Teamsters members will receive a base wage increase of 5.0%.
c) Effective the start of the first full pay period in July 2024, Teamsters members will receive a base wage increase of 4.0%.
2. 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).
3. Juneteenth Holiday
a) Effective July 1, 2022 the City of Fremont will commemorate Juneteenth (June 19) as a holiday consistent with the proclamation of this day as a holiday.
Staff Report (ID # 4670) Meeting of July 12, 2022
Updated: 7/8/2022 8:20 AM by Alberto Quintanilla Page 2 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. Wage Increase:
a) Fiscal Year 2022/23 Approximate Anticipated Fiscal Impact: $396,000 (Approximately $238,000 was included in the 2022/23 Adopted Budget) b) Fiscal Year 2023/24 Approximate Additional Anticipated Fiscal Impact:
$396,000
c) Fiscal Year 2024/25 Approximate Additional Anticipated Fiscal Impact:
$317,000
2. Health Benefit Allowance
a) Fiscal Year 2022/23 Approximate Anticipated Fiscal Impact: $58,000 b) Fiscal Year 2023/24 Approximate Additional Anticipated Fiscal Impact:
$97,000
c) Fiscal Year 2024/25 Approximate Additional Anticipated Fiscal Impact:
$77,000
3. Juneteenth Holiday
a) Approximate Anticipated Fiscal Impact: $26,000 in holiday pay in each year of the contract
ENVIRONMENTAL REVIEW: N/A
ATTACHMENTS:
• Draft Resolution Teamsters 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 Teamsters; and direct staff to adjust appropriations in the FY 2022/23 adopted operating budget as necessary to implement the terms of the MOU.