DATE: August 20, 2024
TO: Mayor and City Council
FROM: Director of Human Resources
SUBJECT: Adopt a Resolution Approving the Memorandum of Understanding between the City of Hayward and the International Federation of Professional and Technical Engineers - Local 21 and Authorizing Staff to Execute the Agreement
RECOMMENDATION
That Council adopts the attached resolution (Attachment II) approving the Memorandum of Understanding (“MOU”) between the City of Hayward and the International Federation of Professional and Technical Engineers, Local 21(“Local 21”) bargaining unit for the period of July 1, 2024, through June 30, 2027.
SUMMARY
The current Local 21 MOU expired on June 30, 2024. The attached resolution will allow staff to execute a successor agreement with Local 21 for the term of July 1, 2024, through June 30, 2027. The new agreement will grant cost of living (COLA) salary adjustments totaling thirteen percent (13%) over the three-year contract term, the addition of continuous service pay (CSP), increase meal allowance to seventeen dollars ($17.00), the addition of the Juneteenth holiday, add an annual City deferred compensation contribution benefit match of up to three thousand dollars ($3,000.00), for members as defined by PEPRA, enhance the Callback premium and Standby Pay, increase the Health and Wellness allowance to seven hundred and twenty dollars ($720.00), add management leave up to eighty (80) hours per calendar year for Fair Labor Standard Act (FLSA) Exempt classifications, and increase professional development reimbursement to four hundred and twenty dollars ($420.00). The new contract also includes operational, administrative, and legal language updates.
BACKGROUND AND DISCUSSION
During the term of its prior contract with Local 21, the City worked hard to achieve and maintain fiscal sustainability. Though the City continues to face the challenges of growing pension and retiree health liabilities, the City also recognizes the need to provide competitive salary increases as part of any successor contract to maintain the ability to recruit and retain employees. To do so, and to help mitigate growing costs, the City sought to maintain its cost-sharing structure for major employee benefits, including health and retirement. As detailed below, the City was able to achieve both goals in the proposed contract.
To maintain its market position and provide employees with salary adjustments that reflect the growing cost of living in the Bay Area, the sole major economic adjustment in the contract is the agreed-upon COLA salary adjustments. These adjustments are scheduled to be implemented during the pay period including July 1, 2024, and include the following:
Six percent (6%) salary adjustment effective July 1, 2024.
Four percent (4%) salary adjustment effective July 1, 2025.
Three percent (3%) salary adjustment effective July 1, 2026.
This structure provides the City with a period of fiscal stability as it continues to navigate the impacts of the COVID-19 pandemic, while also providing employees with significant, competitive salary increases over the full contract term.
The City agreed to complete a total compensation survey in advance of the next round of contract negotiations. The City also agreed to update the 2023 salary surveys for specific classifications by December 31, 2025, and in addition, the parties agreed to meet and discuss the results of the updated survey no later than March 31, 2026. Importantly, the proposed contract maintains existing employee contributions toward the Employer’s share of retirement costs, medical benefits, dental and vision plans.
The parties also agreed to several operational, administrative, and legal updates to the contract. Of note, is the City addition of (i)Reproductive Loss Leave as mandated by State law, (ii) an increase in bereavement leave benefit to five (5) paid days, (iii) addition of language for employees accepting layoff in lieu of “bumping” or filling a vacation position shall receive a severance, and (iv) Change eligibility for Advancement in Step for existing and new employees.
The table below summarizes the key proposed changes in the new MOU:
Table 1: Key Proposed Changes
MOU Section
Updated Language
Effective Date
Contract Duration
3-year term:
July 1, 2024 – June 30, 2027
July 1, 2024
MOU Cleanup Language
MOU Clean-up language throughout
July 1, 2024
1.02 Union Security
The City agrees to provide written notice at least ten (10) days before the effective date of an employee’s transfer into the bargaining unit. The Union shall be afforded thirty (30) minutes to meet with all employees hired or transferred into positions represented by the bargaining unit.
July 1, 2024
3.05 Employee Options
Employees accepting layoff in lieu of “bumping” or filling a vacation position shall receive a severance of one (1) week of pay for every year of service, no more than four (4) weeks of pay. An employee who chooses to receive severance shall not be placed on the reemployment eligibility list as set forth in this Article.
July 1, 2024
4.02 Overtime Work
Update language for Employees who work more than forty (40) hours in the defined workweek, and whose classifications are designated as non-exempt, shall be entitled to receive overtime pay in accordance with the FLSA. Employees whose classifications are designated as exempt are not entitled to overtime pay.
July 1, 2024
5.00 Special Pay and Allowances
Section 5.02 Meal Allowance:
Increase Meal Allowance from $15.00 to $17.00
July 1, 2024
Section 5.04 Callback Premium:
An employee who is called in to work outside of their regular working hours shall receive a callback premium in the amount of time and one-half (1.5x) their regular rate of pay with a guaranteed minimum of two (2) hours of pay.
July 1, 2024
NEW Section 5.05 Family Counselors Standby Pay:
A Family Counselor on assigned standby shall be provided with a cellular telephone at the City's expense.
A Family Counselor on standby who is called in to work shall receive, in addition to the standby allowance provided above, compensation at the overtime rate for work actually performed with a guaranteed minimum of two (2) hours work or two (2) hours pay at the overtime rate.
July 1, 2024
NEW Section 5.11 Continuous Service Pay Tiers:
15 years – 2.5%
20 years – 2.5%
25 years – 2.5%
Maximum premium of 7.5%
July 1, 2024
8.03 Eligibility for Advancement in Pay
Change eligibility for Advancement in Step for Current Employees as follows:
Step Time-in-Step
A Six (6) months
B Six (6) months
C One (1) year
D One and a half (1 ½) years
E ----
Change eligibility for Advancement in pay for Future Employees (on or after July 1, 2024) as follows:
Step Time-in-Step
A Six (6) months
B One (1) year
C One (1) year
D One (1) year
E ----
July 1, 2024
9.03 Deferred Compensation
Effective July 1, 2024, for employees defined as PEPRA, the City shall match contributions up to three thousand dollars ($3,000.00) annually to the deferred compensation account.
July 1, 2024
10.01 Salaries
FY2025 – six percent (6%) COLA
July 1, 2024
FY2026 – four percent (4%) COLA
July 1, 2025
FY2027 – three percent (3%) COLA
July 1, 2026
Salary Surveys
The City shall update the 2023 salary surveys for the following classifications by December 31, 2025:
Airport Operations Specialist
Audio Video Specialist
Hazardous Materials
Certified Latent Print Examiner
Community Program Specialist
Family Counselor
Fire Protection Counselor and
Sustainability Technician
Parties agree to meet to discuss the results of the updated survey no later than March 31, 2026.
Begin the bidding and selection process by February 1, 2025, and complete by March 21, 2026.
11.01 Holidays Observed by the City
Add Juneteenth to the list of existing City observed holidays.
July 1, 2024
14.01 Bereavement and Reproductive Loss Leave
Increase bereavement leave from 3 paid days to 5 paid days.
Add Reproductive Loss Leave. Reproductive loss events include failed adoption, failed surrogacy, miscarriage, stillbirth, or unsuccessful assisted reproduction.
Full-time Employees are allowed a maximum of twenty (20) days for reproductive loss in a twelve (12) month period if multiple events of reproductive loss occur. Full-time employees may utilize the initial five (5) paid workdays for an initial event. The remaining fifteen (15) allowable reproductive loss days are unpaid.
Part-time employees who work a continuous schedule of twenty (20) or more hours per week shall be granted bereavement or reproductive loss leave with pay as necessary on the same basis as full-time employees, except that the leave shall be prorated based on the number of hours worked July 1, 2024
14.13 Management Leave
Employees who are classified as FLSA Exempt are eligible to receive up to eighty (80) hours of management leave per calendar year.
Additionally, Employees may cash out up to eighty (80) hours of management leave each calendar year.
Employees may cash out up to an additional forty (40) hours of management leave and/or vacation leave, for a total of one-hundred twenty (120) hours of leave, each calendar year as outlined in the MOU.
July 1, 2024
NEW 18.09 Diversity, Equity, and Inclusion
The City and the Union recognize the value of creating and maintaining a diverse, equitable, and inclusive workforce. The parties commit to working together during the term of this contract to build on and advance the City’s diversity, equity, and inclusion goals.
July 1, 2024
NEW 18.10 Hayward Thrives
Local 21 members are dedicated to supporting Hayward’s success. Employees are encouraged to use their Professional Development and Health and Wellness reimbursements at Hayward business wherever possible, helping to strengthen our community. Hayward thrives when we work together.
July 1, 2024
18.11 Health and Wellness
Increase and enhance Health and Wellness Benefits as follows:
For full-time employees an increase in health and wellness from six hundred dollars ($600.00) to seven hundred and twenty dollars ($720.00). This reimbursement may be made in a lump sum or may be used for recurring monthly expenses.
Part-time employees who work less than forty (40) hours per week shall be eligible to receive a maximum of thirty ($30.00) per month for expenses associated with health and wellness programs.
July 2, 2024
18.12 Professional Development Reimbursement
Increase Professional Development Reimbursement benefits as follows:
From three hundred and fifty dollars ($350.00) to four hundred and twenty dollars ($420.00).
July 1, 2024
FISCAL IMPACT
The total proposed changes will result in an estimated fiscal impact of $3,178,684 across all funds, over the three-year contract period (FY 2025-FY 2027). Of this amount, the fiscal impact to the General Fund is approximately $1,740,214 over the contract period when compared to projections in the City's General Fund budget model for the same three-year period (FY 2025-FY 2027). FY 2025 budget adjustments will be reflected in the mid-year review.
STRATEGIC ROADMAP
This agenda item is a routine operational item and does not relate to one of the Council’s Strategic Roadmap.
NEXT STEPS
If adopted, Human Resources staff will finalize the agreement, the City Manager will execute the agreement, and the Finance Department will implement the above changes in coordination with HR.
Prepared by: Marisa Guerrero, Human Resources Manager
Recommended by: Brittney Frye, Director of Human Resources Approved by:
__________________
Dustin Claussen, Interim City Manager