Fremont City Council Meeting: 07/19/22 07:00 PM
3300 Capitol Avenue Div/Dept: Human Resources
Fremont, CA 94538 Category: Labor Relations
SCHEDULED
Sponsors:
STAFF REPORT (ID # 4676) DOC ID: 4676
Updated: 7/14/2022 6:34 PM by Susan Gauthier Page 1
OPERATING ENGINEERS, LOCAL UNION NO. 3 (OE3) MOU - Consideration of a Resolution Approving a Successor Memorandum of Understanding with the Operating Engineers, Local Union No. 3 (OE3)
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 the Operating Engineers, Local Union No. 3 (OE3) for a three-year Memorandum of Understanding. The bargaining unit is made up of 105 members. The proposed MOU contains changes from the prior agreement consisting primarily of wage increases, health- benefit increases, and minor increases to safety and work equipment allowances. The remaining substantive provisions of the current MOU are unchanged.
BACKGROUND: The City’s current MOU with OE3 expired on June 30, 2022. The City’s negotiating team and OE3 conducted seven negotiating sessions regarding a successor agreement and signed a tentative agreement on June 30, 2022. The City received notice that OE3 ratified the agreement on July 7, 2022.
DISCUSSION/ANALYSIS: Significant Memorandum of Understanding Provision Changes:
1. Employee General Wage Increase:
a) Effective July 17, 2022, OE3 members will receive a base wage increase of 5.0%.
b) Effective the start of the first full pay period in July 2023, OE3 members will receive a base wage increase of 5.0%.
c) Effective the start of the first full pay period in July 2024, OE3 members will receive a base wage increase of 4.0%.
2. Health Benefit Allowance Increase:
a) Effective January 1, 2023, the unit’s health benefit allowance will be increased by $150 per month as follows:
o Employee Only: from $1,321 per month to $1,471 per month; o Employee +1: from $2,145 per month to $2,295 per month; and o Employee +2 or more: from $2,657 per month to $2,807 per month. b) Effective January 1, 2024, the unit’s health benefit allowance will be increased by $100 per month as follows:
o Employee Only: from $1,471 per month to $1,571 per month; o Employee +1: from $2,295 per month to $2,395 per month; and o Employee +2 or more: from $2,807 per month to $2,907 per month. c) Effective January 1, 2025, the unit’s health benefit allowance will be increased by $100 per month as follows:
Staff Report (ID # 4676) Meeting of July 19, 2022
Updated: 7/14/2022 6:34 PM by Susan Gauthier Page 2
o Employee Only: from $1,571 per month to $1,671 per month; o Employee +1: from $2,395 per month to $2,495 per month; and o Employee +2 or more: from $2,907 per month to $3,007 per month.
3. Shoe Allowance Increase:
a) Effective the first full pay period in July 2022, the shoe allowance for employees working in the Auto Shop, Construction Inspection, Parks, Public Buildings, Recreation, Streets and Survey sections shall be increased by $75 (from $225 to $300) per fiscal year.
4. Tool Allowance Increase:
a) Effective the first full pay period in July 2022, the tool allowance for the classifications of Fleet Supervisor, Fleet Mechanic I (Heavy and Light), Fleet Mechanic II, and Mechanic Assistant shall be increased by $100 (from $550 to $650) per fiscal year.
5. 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. General Wage Increase:
a) Fiscal Year 2022/23 Anticipated Fiscal Impact: $528,000 (Approximately $317,000 was included in the 2022/23 Adopted Budget)
b) Fiscal Year 2023/24 Additional Anticipated Fiscal Impact: $528,000 c) Fiscal Year 2024/25 Additional Anticipated Fiscal Impact: $423,000
2. Health Benefit Allowance Increase:
a) Fiscal Year 2022/23 Anticipated Fiscal Impact: $7,425 b) Fiscal Year 2023/24 Additional Anticipated Fiscal Impact: $12,375 c) Fiscal Year 2024/25 Additional Anticipated Fiscal Impact: $9,900
3. Shoe Allowance Increase for Specified Employees:
a) Approximate Anticipated Fiscal Impact: $7,000 in each year of the contract.
4. Tool Allowance Increase Specified Employees:
a) Approximate Anticipated Fiscal Impact: $1,000 in each year of the contract.
ENVIRONMENTAL REVIEW: N/A
ATTACHMENTS:
• Draft Resolution OE3 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 Staff Report (ID # 4676) Meeting of July 19, 2022
Updated: 7/14/2022 6:34 PM by Susan Gauthier Page 3
Operating Engineers, Local Union No. 3 (OE3); and direct staff to adjust appropriations in the FY 2022/23 adopted operating budget as necessary to implement the terms of the MOU.