DATE: November 19, 2024
TO: Mayor and City Council
FROM: Director of Human Resources
SUBJECT: Adopt a Resolution to Execute a Side Letter of Agreement Amending the Memoranda of Understanding (MOU), Article 12.03 Longevity Pay between the City of Hayward (“City”) and the Hayward Fire Chiefs Association (HFCA), to Amend the Effective Date for All Eligible Members
RECOMMENDATION
That City Council adopts the resolution (“Attachment II”) for the side letter of agreement amending HFCA MOU, Article 12.03 Longevity Pay provision between the City and HFCA, to correct the retroactive effective date to June 25, 2018, for all eligible members.
BACKGROUND AND SUMMARY
Continuing Service Pay was added to International Association of Firefighters (IAFF), Local 1909 and Hayward Fire Officers Association (HFCA) MOUs effective July 1, 2018. However, this provision was inadvertently missed in subsequent contract agreements between the City and HFCA, although employees in HFCA were receiving payment for this benefit. The City and HFCA agree that this omission was unintentional. To correct this omission, Section 12.03 Longevity Pay was added to HFCA MOU effective July 1, 2024, through June 30, 2029. This side-letter amends section 12.03 to be retroactive to June 25, 2018 (the pay period that includes July 1, 2018).
As a result, the City and the HFCA have met and conferred on the matter and entered into this Side Letter of Agreement to clarify MOU language with respect to the Longevity Pay provision to ensure continuity with agreements entered into with IAFF and HFOA.
DISCUSSION
The City and the Union have met and discussed in good faith and agree to amend the language in Article 12.03 Longevity Pay to be retroactive to June 25, 2018, effective June 25, 2018, Article 12.03 Longevity Pay shall be amended to state:
Effective June 25, 2018, members of the Association who complete twenty (20) years of service as an employee of the City shall receive a two percent (2%) longevity pay premium on the twentieth (20th) anniversary, and an additional one percent (1%) longevity pay premium on each succeeding anniversary up to and including the member’s thirtieth (30th) anniversary for a total longevity pay not to exceed twelve percent (12%). Effective June 25, 2018 (the pay period which includes July 1, 2018.) Effective July 1, 2024, Members of the Association who complete fifteen (15) years of service as an employee of the City shall receive a two percent (2%) longevity pay premium on the fifteenth (15th) anniversary, and an additional one percent (1%) longevity pay premium on each succeeding anniversary up to and including the member’s twenty-fifth (25th) anniversary for a total longevity pay not to exceed twelve percent (12%).
This agreement shall be effective immediately upon City Council approval and shall remain in effect for the duration of the current MOU contract dates (July 1, 2024, through June 30, 2029), and until otherwise specified by the parties.
FISCAL IMPACT
While the action will amend the contract language that was inadvertently missed in subsequent contract agreements between the City and HFCA, employees in HFCA were receiving payment for this benefit. As a result, there are no fiscal impacts associated with this change.
STRATEGIC INITIATIVES
This agenda item is a routine operational item and does not relate to one of the Council’s Strategic Initiatives.
NEXT STEPS
Human Resources staff will work with Payroll to ensure all eligible employees receive this benefit.
Prepared by: July Cole, Human Resources Manager
Recommended by: Brittney Frye, Director of Human Resources Approved by:
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Dustin Claussen, Interim City Manager
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