Fremont City Council Meeting: 01/06/26 07:00 PM
3300 Capitol Avenue Div/Dept: Human Resources
Fremont, CA 94538 Category: Labor Relations
SCHEDULED
Sponsors:
COUNCIL STAFF REPORT (ID # 5609) DOC ID: 5609
Updated: 12/31/2025 10:23 AM by Alberto Quintanilla Page 1 TEAMSTERS, LOCAL 856 MOU - Consideration of a Resolution Approving a Successor Memorandum of Understanding with the Teamsters, Local 856 (Teamsters)
Contact Persons:
Name: Tina Gallegos Brian Stott
Title: Human Resources Director Assistant City Manager
Div/Dept: Human Resources City Manager's Office
Phone: 510-494-4652 510-494-4660
E-Mail: [email protected] [email protected]
Executive Summary: In December 2025, following completion of the meet-and-confer process and mediation, the City of Fremont (City) and the Teamsters, Local 856 (Teamsters) concluded labor negotiations for a successor Memorandum of Understanding (MOU). The bargaining unit consists of 71 members. The proposed MOU incorporates modest compensation and health-benefit allowance increases (inclusive of a parity clause), an increase to the maximum accrual limit for sick leave bank hours, the addition of classifications eligible for bilingual pay and vest allowance, additional comp swaps for eligible classifications, along with non-economic clarifying language edits to uniform allowance, meal periods, and bereavement leave sections. All other substantive provisions of the MOU will remain unchanged.
BACKGROUND: The City’s MOU with Teamsters expired on June 30, 2025. Following multiple negotiation sessions, the City presented its Last, Best, and Final Offer (LBFO) to Teamsters on August 22, 2025. On September 22, 2025, Teamsters notified the City that they were declaring impasse and requesting an impasse meeting, which took place on October 24, 2025. After no agreement, the parties mutually agreed to mediation, which took place on December 17, 2025.
As a result of mediation, the parties reached a tentative agreement. Consistent with that outcome, the City Council is being asked to approve the successor MOU, effective December 28, 2025 (the start of the first full pay period following Teamster’s ratification of the tentative agreement), through June 30, 2026. California Government Code Section 3505.1 requires the City Council to vote on the proposed successor MOU at a duly noticed public meeting.
DISCUSSION/ANALYSIS: The significant changes in the proposed successor MOU include:
1. Employee Compensation:
a) Effective the start of the first full pay period following Teamsters ratification of the tentative agreement, Teamsters members will receive a base wage increase of 1.3%.
2. Health Benefit Allowance:
Council Staff Report (ID # 5609) Meeting of January 6, 2026 Updated: 12/31/2025 10:23 AM by Alberto Quintanilla Page 2 a) Effective the first of the month following Teamsters ratification of the tentative agreement, the unit’s health benefit allowance will be increased by $100 per month (from $2,700 per month to $2,800 per month).
b) Effective January 1, 2026, the unit’s health benefit allowance will be increased by an additional $100 per month (from $2,800 per month to $2,900 per month).
3. Parity or “Me Too”:
a) If, during the term of this Memorandum of Understanding, the City grants an across-the-board wage increase to another bargaining unit greater than the
1.3% provided in Article 2, Section 2.1, the City agrees to extend the equivalent general wage increase to all Teamsters classifications listed in Appendix A. This provision does not apply to increases that are the result of any market equity increases or increases based on internal relationships (e.g., compaction). This provision will sunset at 11:59 p.m. on June 30, 2026.
b) If, during the term of this Memorandum of Understanding, the City grants a larger Health Benefit Allowance increase to another bargaining unit, the same allowance shall be granted to Teamsters classifications listed in Appendix A.
FISCAL IMPACT:
1. Compensation Increase:
a) Fiscal Year 2025/26 Anticipated Fiscal Impact: $58,443
2. Health Benefit Allowance:
a) Fiscal Year 2025/26 Anticipated Fiscal Impact: $60,000
Staff will return to the City Council with recommended adjustments to the FY 2025/26 Adopted Budget reflecting the terms of the approved successor MOU.
ENVIRONMENTAL REVIEW: The proposed approval of a successor MOU is exempt from and not subject to review under the California Environmental Quality Act (CEQA) because, without limitation, it is not a “project” as defined in CEQA Guidelines Section 15378(b)(2) and/or 15378(b)(5), and it can be seen with certainty that the action has no possibility of causing a significant effect on the environment under CEQA Guidelines Section 15061(b)(3), each as a separate and independent basis for CEQA compliance.
LINKS: None
ATTACHMENTS:
• Resolution - Teamsters Memorandum of Understanding
RECOMMENDATION: Adopt a resolution approving the tentative agreement reached with the Teamsters, Local 856 (Teamsters) for a successor MOU and authorizing the City Manager to execute an MOU for the period of December 28, 2025, through June 30, 2026.