City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 menlopark.gov City Council
REGULAR MEETING AGENDA
Date: 1/14/2025
Time: 6:00 p.m.
Location: Zoom.us/join – ID# 832 1285 7140
City Council Chambers
751 Laurel St., Menlo Park, CA 94025
EARLY STAFF REPORT RELEASE NOTICE
Pursuant to the requirements of City Council Procedure #CC-11-0001, the following staff report is being released 7 days in advance of the City Council meeting:
Receive and file report on labor relations and receive public input on upcoming labor negotiations with the Menlo Park Police Sergeants’ Association (Staff Report #25-002-CC) This notice is posted in accordance with Cal. Gov. Code §54954.2(a) or §54956. Members of the public can view electronic agendas and staff reports by accessing the city website at menlopark.gov/agendas and can receive notifications of agenda postings by subscribing at menlopark.gov/subscribe. Agendas and staff reports may also be obtained by contacting the City Clerk’s Office at 650-330-6620. (Posted 1/6/2025)
Administrative Services
City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 menlopark.gov
STAFF REPORT
City Council
Meeting Date: 1/14/2025
Staff Report Number: 25-002-CC
Regular Business: Receive and file report on labor relations and receive public input on upcoming labor
negotiations with the Menlo Park Police Sergeants’
Association
Recommendation
Receive and file report on employee compensation and receive public input on upcoming labor negotiations with the Menlo Park Police Sergeants’ Association (PSA).
Policy Issues
This report is prepared in accordance with City Council Procedure #CC-11-0001, public input and outreach regarding labor negotiations (Attachment A).
Background
The PSA represents the classification of sworn police sergeants. The current memorandum of understanding (MOU) has a contract duration from July 1, 2022, through June 30, 2025. The PSA bargaining unit represents nine full-time positions funded in the fiscal year 2024-25 budget.
Analysis
This report transmits personnel and process information to members of the City Council, the subject bargaining unit, and the public to inform upcoming labor negotiations with the PSA.
Labor contract negotiations are governed by the Meyers-Milias-Brown Act (MMBA), Government Code §3500. MMBA requires that local agencies meet and confer in good faith regarding wages, hours, and other terms and conditions of employment with representatives of recognized collective bargaining units. MMBA further requires that the City fully consider proposals made by collective bargaining unit representatives before arriving at a determination of policy or course of action.
Negotiable items with direct costs
Table 1 provides total baseline personnel expense categories for each employee group, including the Service Employees International Union Local 521 (SEIU), American Federation of State, County and Municipal Employees Local 829 (AFSCME), Menlo Park Police Officers’ Association (POA), PSA, and unrepresented management and confidential employees to help quantify the financial impacts of desired changes by either negotiating party. Confidential employees are generally provided the same benefits as AFSCME. While the PSA agreement expires June 30, 2025, §2.1 of the PSA collective bargaining agreement provides a fixed differential between base pay in POA and PSA personnel. If base pay increases for POA, PSA receives an automatic increase. All items are open to negotiations.
Staff Report #: 25-002-CC
City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 menlopark.gov Attachment B contains a detailed expenditure breakdown for PSA, and Attachment C provides a summary of negotiated salary adjustments by labor agreement. Attachments D and E provide web links to the City’s labor agreements and salary schedule. The elements of each column in Table 1 are defined in greater detail below:
Full-time equivalents. There are 287.5 authorized full-time equivalents (FTEs) in the fiscal year 2024-25 budget, not including the five City Councilmembers. FTE is defined as one individual working 40 hours per week or receiving a flat salary. Positions scheduled to work less than 40 hours per week are shown as a fraction of 1.0. Specifically, a position scheduled to work 30 hours per week is considered 0.75 FTE and a position scheduled to work 20 hours per week is considered 0.5 FTE. Temporary employees, employees working fewer than 20 hours per week or 960 hours per year, only receive benefits mandated by State or Federal law and are not included in the FTE count.
Base pay. Base pay is the pensionable wage for all budgeted FTEs, filled or vacant. Base pay for each employee may change due to negotiated general salary increases (GSIs), market-based equity adjustments or annual merit-based performance adjustments.
Special pays. The City provides special pays to POA and PSA personnel that may be added to pensionable wages. POA can earn special assignment pay including canine, detective, motorcycle, school resource officer and field training officer. Both POA and PSA may qualify for longevity pay between 2 to 8% of their base pay for 7 to 20 years of service, bilingual pay of $1,950 per year, night shift differential of 2% of their Table 1: Fiscal year 2024-25 baseline personnel costs by group Employee
group
Funded
FTEs
Base
pay
Special
pays
Allowances Retirement
Health
and
welfare
Other
fringe
benefits
Total
Represented non-sworn personnel
SEIU 156.75 14,179,705 n/a n/a 4,740,428 5,665,176 679,747 24,916,830 AFSCME 52.75 7,016,574 n/a n/a 2,361,784 1,907,298 273,584 11,449,703 Subtotal 209.5 21,196,278 n/a n/a 7,102,212 7,572,474 953,330 36,366,533 Represented sworn personnel
POA 35 4,993,583 383,149 36,400 2,074,399 1,275,120 211,601 8,888,359 PSA 9 1,642,268 232,029 9,360 866,045 327,888 73,713 3,121,412 Subtotal 44 6,635,851 615,178 45,760 2,940,444 1,603,008 285,314 12,009,771 Unrepresented
Confidential 6 715,748 n/a n/a 234,938 218,592 40,219 1,186,012 Management* 28 5,304,170 n/a 173,705 2,041,389 1,309,392 252,203 8,952,668 Subtotal 34 6,019,917 n/a 173,705 2,276,328 1,527,984 292,422 10,138,680 Grand total 287.5 33,852,047 615,178 219,465 12,318,984 10,703,466 805,844 58,514,984 *Management includes sworn and non-sworn personnel.
Staff Report #: 25-002-CC
City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 menlopark.gov base pay, and Police Officer Standards and Training (POST) certification of 5 to 10% of their base pay based on the level achieved.
Allowances. Allowances are generally not pensionable wages and are provided to offset employee costs incurred in the exercise of their duties. Allowances for maintaining uniforms for Classic employees (Tiers 1 and 2) are pensionable, whereas they are not pensionable for PEPRA (Tier 3) employees (see retirement section below). Additionally, an automobile allowance of $6,000 per year is available for POA and PSA employees assigned to the detective unit if they use their personal vehicle instead of a dedicated City vehicle.
Retirement. Retirement includes CalPERS costs incurred by the employer for the defined benefit pension plan. All regular employees are enrolled in CalPERS per California Public Employees’ Retirement Law Chapter 3 Article 1, and do not earn Social Security credits while working for the City of Menlo Park.
Retirement costs also include matching deferred compensation funds.
There are cost differentials between the various pension tiers. As a result of Measure L (November 2010), the City amended its contracts with CalPERS to provide a lower pension benefit to employees hired after a certain date (Tier 2). Statewide changes in CalPERS also took effect Jan. 1, 2013, to introduce a further decrease in pension benefits for “New” employees hired on or after the effective date. “New” refers to the employee’s tenure in CalPERS, rather than their tenure with an organization. The “New” employees subject to this lower benefit are referred to as Public Employee Pension Reform Act (PEPRA) employees or, at times, Tier 3 employees.
Web links to the most current pension actuarial reports are available in Attachments F through I, and Attachment J provides a web link to CalPERS’ webpage on PEPRA. The “miscellaneous plan” applies to all non-sworn personnel, blending Tiers 1, 2 and PEPRA, and is large enough to require a discrete plan due to the number of active and retired members. The three plans titled “safety plan” are segmented based on benefit level and are pooled with similar small employers offering the same benefit to sworn personnel.
Included in the actuarial reports are the Unfunded Accrued Liability (UAL), which grows in years when CalPERS’ investments earn less than the planned benchmark. This can cause large swings in the amount the City owes CalPERS in future years to pay for retirees’ pensions, which has resulted in higher retirement costs for fiscal year 2024-25.
Health and welfare. Health and welfare primarily reflect cafeteria plan contribution for employees to select a medical insurance plan offered by the Public Employee’s Medical and Hospital Care Act (PEMHCA), administered by CalPERS. In addition to medical, this column also includes City-paid dental and vision coverages for eligible employees and their dependents. Due to a methodological error, medical expenses were overstated in the fiscal year 2024-25 annual budget across all employee groups. Updated (reduced) numbers will be incorporated into the mid-year budget amendment anticipated to be brought to the City Council in February 2025.
Other fringe benefits. Other fringe benefits include life insurance, accidental death and dismemberment (AD&D) insurance and Medicare.
Negotiable items with indirect costs
In addition to the direct costs outlined above, indirect costs items are also open to negotiation. Either side may seek changes in other factors subject to MMBA, such as paid time off (e.g., holidays), tools and equipment, employee engagement and retention efforts, and professional development opportunities.
Staff Report #: 25-002-CC
City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 menlopark.gov Roles during labor contract negotiations
The following provides an overview of major roles in the process to promote understanding of the labor contract negotiation process:
• City Council. The City Council designates the City’s chief negotiator, authorizes the City’s initial bargaining position, considers proposals made by collective bargaining unit representatives through the chief negotiator, and ultimately approves a successor agreement. City Council receives data, analysis, and recommendations from the city manager and designated City staff. City Council Procedure #CC-11- 0001, establishes early release requirements for all matters about labor negotiations. Other than approving the successor agreement, the City Council may elect to hold all labor negotiations discussions in closed session.
• Chief negotiator. The City retains labor attorney Charles Sakai from Sloan Sakai to advise on personnel matters, including on all issues under MMBA and to serve as chief negotiator during labor agreement discussions. Mr. Sakai prepares all proposals, counter-proposals, and tentative agreements and is authorized to execute tentative agreements consistent with negotiating authority granted by City Council.
Mr. Sakai also consults the city manager, or designee, on workplace impacts of proposals, counterproposals and tentative agreements. • City manager. The city manager is responsible for the efficient administration of all City services, and administration of the City Council approved budget. In the negotiations process, the city manager advises City Council and the chief negotiator on management matters subject to MMBA. The city manager also advises on recruitment and retention tools, employee engagement, and emerging trends in regional workforce management. The city manager designates city staff to support the chief negotiator. • Designated City staff. Labor negotiations can be a time-intensive process requiring significant preparation, coordination, analysis and follow-up work. The city manager typically will assign the assistant city manager, administrative services director, human resources manager, and a management analyst to support the process. To the greatest extent possible, information about labor negotiations is limited to individuals authorized by the city manager, such as how a proposal might impact operations. • Collective bargaining unit’s chief negotiator. Each bargaining unit identifies a chief negotiator. The City’s negotiating team commits to communicating only with the bargaining unit’s chief negotiator unless otherwise authorized by the bargaining unit’s chief negotiator. • Collective bargaining unit’s negotiating team. Each bargaining unit identifies a negotiating team of active City employees to advise their collective bargaining unit’s chief negotiator through the labor contract negotiations process. The negotiating team typically meets amongst itself and is also present during all negotiation meetings.
Negotiations calendar and process
City management will provide City Council with its recommended bargaining position and strategy at their Jan. 28 closed session. Time on the City Council’s tentative agenda is reserved for closed sessions at each regular meeting after that to ensure City Council agenda capacity for labor negotiation conversations.
City Council will provide the City negotiator with direction to engage the units under the MMBA requirement to negotiate successor agreements with recognized employee groups. The first meeting between the two parties typically includes:
• Introductions
• Ground rules for negotiations
• Future meetings and time constraints
Staff Report #: 25-002-CC
City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 menlopark.gov • Discussion of material contained in this report
• Discussion of any additional information requests from the bargaining unit • Preliminary discussion of interest areas on both sides The City’s chief negotiator will provide the City Council with a negotiation strategy and initial bargaining authority recommendation. The chief negotiator will brief the City Council in closed session as necessary after that.
The following calendar identifies tentative key dates that impact negotiation of the successor agreement before the current agreement’s term ends. The exact dates may vary depending on the progress of the negotiations.
• Jan. 6 – City staff releases report on negotiations with PSA • Jan. 6-14 – Members of the public offer their input on the City’s negotiations position for City Council consideration
• Jan. 28 – City Council meets in closed session, confirms negotiating teams, and provides initial bargaining authority to chief negotiator
• Jan. 29 – April 30 – City and PSA negotiate successor agreement • May 15 – Estimated deadline for PSA membership to ratify tentative successor agreement for effective date of July 1
• May 23 – Staff release report for ratified tentative successor agreement with PSA • June 10 – Public meeting for City Council consider ratification of a successor agreement with PSA effective July 1. This timeline would allow the final terms of the PSA agreement to be incorporated into the fiscal year 2025-26 annual budget anticipated to be adopted June 24.
If the parties cannot agree on a successor agreement, the terms of the existing agreement remain until modified pursuant to State-mandated impasse procedures or successful negotiation of a successor agreement.
Resource available to City Councilmembers
Attachment K, “Understanding the Labor Negotiations Process produced by the Institute for Local Government,“ further describes the roles, process and requirements of labor negotiations.
Impact on City Resources
There are no impacts on City resources as a result of receiving input on this issue. The cost of negotiating each contract is estimated at approximately $30,000 inclusive of the chief negotiator’s fees and internal staff time. Additional consulting services may be required depending on the scope of negotiation. City Council will meet in closed session to provide direction to the City’s negotiating team. The negotiators will meet and confer with the PSA negotiation team to reach a tentative agreement before the current agreement term ends. Once a tentative successor agreement is ready for City Council ratification, the fiscal impact of that tentative agreement will be released 15 days before the City Council vote at a public meeting.
Environmental Review
This action is not a project within the meaning of the California Environmental Quality Act (CEQA) Guidelines §§ 15378 and 15061(b)(3) as it will not result in any direct or indirect physical change in the environment.
Staff Report #: 25-002-CC
City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 menlopark.gov Public Notice
Public notification was achieved by posting the report 7 days prior to the City Council meeting of Jan. 14.
Attachments
A. City Council Procedure #CC-11-0001
B. Fiscal year 2024-25 baseline personnel costs for PSA C. Summary of current MOU wage adjustments
D. Hyperlink – Labor agreements: menlopark.gov/laboragreements E. Hyperlink – Salary Schedule: menlopark.gov/salaryschedule F. Hyperlink – Miscellaneous plan CalPERS actuarial valuation report as of June 30, 2023:
calpers.ca.gov/docs/actuarial-reports/2023/menlo-park-city-miscellaneous-2023.pdf G. Hyperlink – Safety plan Tier 1 CalPERS actuarial valuation report as of June 30, 2023:
calpers.ca.gov/docs/actuarial-reports/2023/menlo-park-city-safety-2023.pdf H. Hyperlink – Safety plan Tier 2 CalPERS actuarial valuation report as of June 30, 2023:
calpers.ca.gov/docs/actuarial-reports/2023/menlo-park-city-safety-police-second-tier-2023.pdf I. Hyperlink – Safety plan PEPRA CalPERS actuarial valuation report as of June 30, 2023:
calpers.ca.gov/docs/actuarial-reports/2023/menlo-park-city-pepra-safety-police-2023.pdf J. Hyperlink – Public Employees’ Pension Reform Act: calpers.ca.gov/page/about/laws-legislationregulations/public-employees-pension-reform-act K. Understanding the Labor Negotiations Process produced by the Institute for Local Government
Report prepared by:
Charla Freckmann, Human Resources Manager
Brittany Mello, Administrative Services Director
City of Menlo Park City Council Policy
Department
City Council Page 1 of 1
Effective Date
03/02/2011
Subject
Public Input and Outreach regarding Labor Negotations
Approved by
City Council
03/01/2011
Procedure #
CC-11-0001
PURPOSE
To incorporate public input into the labor negotiations process.
BACKGROUND
The City Council has expressed a desire to improve public communication and outreach on labor relations to the extent reasonably possible.
POLICY
A regular business item shall be placed on a Council agenda in advance of formal labor negotiations that includes an opportunity for the public to comment. At least seven days prior to this meeting, staff shall post a report that contains relevant information on employee salaries and benefits, as well as the methodology used to determine a competitive and appropriate compensation package. As part of this process, a concerted effort shall be made to request public comment on the negotiations parameters.
As a general rule, staff shall engage the services of a labor attorney to participate in formal labor negotiations with bargaining units representing permanent employees.
During labor negotiations, public comment will be provided prior to the entry into closed session to discuss labor negotiations, in accordance with State law. At the conclusion of the closed session, the Council shall report out any action taken, including in the record the individual votes taken and the characterization of the deliberations. In addition, at some point in the negotiations process, staff shall submit a public report to Council that provides a general status of labor negotiations and that allows for public input prior to concluding negotiations.
Staff shall prepare and make public a staff report, at least fifteen calendar days prior to Council consideration of a tentative agreement or implementation resolution for any bargaining unit, that provides full details and costing associated with the recommended action, shall schedule the matter as a regular business item and shall provide an opportunity for the public to comment.
ATTACHMENT A
Type Total
Salary
Base $1,566,009
General Salary Increase (GSI) $46,980
Merit $29,278
Salary Total $1,642,268
Special Pays
Special Assignment $7,207
Police Officer Standards and Training (POST) Certification $142,869 Longevity $81,953
Special Pays Total $232,029
Allowances
Uniform $9,360
Auto -
Allowances Total $9,360
Retirement
Employer Share: CalPERS Tier 1 $465,178
Employer Share: CalPERS Tier 2 -
Employer Share: CalPERS PEPRA $23,611
Employee Share: CalPERS Tier 1 -
Employee Share: CalPERS Tier 2 -
Employee Share: CalPERS PEPRA* ($9)
Unfunded: CalPERS Tier 1 $337,130
Unfunded: CalPERS Tier 2 -
Unfunded: CalPERS PEPRA $40,134
Retirement Total $866,045
Healthcare
Medical $298,188
Dental & Vision $29,700
Healthcare Total $327,888
Other benefits
Life, Accidental Death and Dismemberment (AD&D), Long-Term Disability (LTD) Insurance $16,644
Medicare $27,177
Other benefits Total $43,821
PSA Total $3,121,412
*Employee cost share toward employer’s contribution (0.005%) Fiscal year 2024-25 baseline personnel costs -
Menlo Park Police Sergeants' Association (PSA)
ATTACHMENT B
ATTACHMENT C
Bargaining Unit MOU Term General Salary Increase (GSI) / Market-Based Adjustments
Service Employees'
International Union
Local 521 (SEIU)
7/11/23 – 6/30/26
• July 2023: $2,000 lump-sum payment; reduction in CalPERS cost share by 4%; market-based equity adjustments for those below market by 5%
• July 2024: 1.5% GSI; reduction in CalPERS cost share by
2.67% to 0%
• July 2025: 3.5% GSI
American Federation of
State, County, and
Municipal Employees
Local 829 (AFSCME)
11/14/23 – 6/30/26
• November 2023: $2,000 lump-sum payment; reduction in
CalPERS cost share by 4%
• July 2024: 2.13% GSI
• January 2025: market-based equity adjustments for those below market by 5%
• July 2024: reduction in CalPERS cost share by 2.04% to 0% • July 2025: 3.5% GSI
Menlo Park Police
Officers' Association
(POA)
9/1/24 – 8/31/27
• September 2024: 3.0% GSI; 2% market-based equity
adjustment
• February 2025: new top salary step added 5% above existing top step
• September 2025: 3.0% GSI
• September 2026: 3.0% GSI
Menlo Park Police
Sergeants' Association
(PSA)
7/1/22 – 6/30/25
• July 2022: $2,000 lump-sum payment
• Tied to POA increases to maintain the current minimum base pay differential of 15% between top step Police Corporal and top step Police Sergeant:
• July 2022: 3.0% GSI
• July 2023: 3.0% GSI
• September 2024: 3.0% GSI; 2% market-based
equity adjustment
• February 2025: new top salary step added 5%
above existing top step
Unrepresented
Management
Indefinite
(Last Updated: 9/8/24) • September 2024: salary range increase of 7.5% (no GSI) Confidential Employees N/A • Tied to AFSCME increases
SEIU Temporary
Employees Unit 10/26/08 - 10/22/11*
• October 2008: 2% increase to hourly rate
• Subsequent wage increases tied to permanent SEIU unit increases
*Expired term; MOU remains in place until a successor agreement is adopted Table 1: Summary of Current Memoranda of Understanding (MOUs) Wage Adjustments LOCAL GOVERNMENT 101
1400 K Street, Suite 205 • Sacramento, CA 95814 • 916.658.8208 F 916.444.7535 • www.ca-ilg.org The Institute is grateful to Dr. Rhonda Albey for preparing this piece. Dr. Albey has worked in labor relations for Los Angeles County since 1990.
Additional Resources
The Institute has two glossaries to assist
local officials as they engage with
constituents, bargaining representatives
and each other about labor relations and
public pension issues:
• Labor Relations Terminology:
http://www.ca-ilg.org/post/laborrelations-terminology
• Public Pension Terminology:
http://www.ca-ilg.org/post/publicpension-terminology
Understanding the Labor Negotiations Process
August 17, 2012
Under California law,1
when county or city employees
are represented by a union, the agency must negotiate
with that union regarding their pay and benefits,
working hours, and working conditions. This paper
explains the key elements of that process.
Roles
Elected officials determine the agency’s bargaining
position and consult with staff throughout the
negotiation process. Agency staff report back to
decision-makers about the face-to-face negotiations’
progress and any impediments to reaching agreement.
Before Bargaining
Prior to meeting with the union, the agency’s negotiators will meet with elected officials to discuss how to proceed. Having this meeting well in advance of negotiations gives elected officials time to consider relevant issues and develop a set of questions.
Early conversations also give staff time to compile necessary information for decisionmakers. Examples of such information may include:
• Anticipated increases in current employee expenditures • Money available for salaries and benefits
• Cost of salary and benefit enhancements
• What comparable employers are paying
• Turnover statistics
Just as elected officials need time and information to make well-informed decisions, staff will need time to prepare and provide accurate information. As with any issue, limited staff resources may make it advisable to prioritize information requests.
Conversations about the agency’s initial bargaining position typically take place in closed session.
2 The agency’s negotiators will share their understanding of what it will take to
ATTACHMENT K
Understanding the Labor Negotiations Process 2012
Institute for Local Government www.ca-ilg.org 2
Expect to be Misquoted
People tend to hear what they
want to hear.
Someone may say something like
“I’ll speak to the negotiating
team,” and mean exactly that –
they’ll speak to them.
The employees may hear “He/she
will speak to the negotiating team
and tell them to give us what we
want.”
Some strategies for minimizing
miscommunication are to take
notes during the discussion and
not to meet with union
representatives alone.
The Process Can Be
Rough
During the negotiations process,
the union may organize
demonstrations and/or phone and
e-mail campaigns. Discourse may
become bullying and emotional.
Don’t take it personally – it’s all
part of the process. Both sides
may need to show they are doing
their job. Union negotiators need
to show their members that they
are fighting for them and elected
officials need to show they are
working hard for the community.
reach agreement with the union. The agency’s governing body will then give negotiators an initial bargaining position.
During Bargaining
No matter how reasonable the agency’s initial bargaining position is, it is unlikely that the union will immediately accept it.
The negotiation process is unpredictable. The
agency’s negotiators may have misread the union’s
priorities and goals. Union representatives may
have misread the employees’ mood. New issues
may arise. There may be internal divisions within
the union. These challenges may make it impossible
to get agreement within the original parameters
authorized.
Working with the Agency’s Negotiators. As
challenges arise, the agency’s negotiators may ask
for modifications in the bargaining position. This is
normal in the course of any type of negotiation, as
each party learns more about the interests of the
other. Multiple meetings with the negotiating team
may be necessary.
Modifications may not involve increases in total
expense. An example is moving money from benefits
to salaries (or vice-versa). Another example is if
decision-makers have authorized higher increases for
some position classifications than others, employee
representatives may ask to even increases out.
Meeting with Union Officials. As negotiations
continue, the union may seek meetings with individual
elected official(s) to discuss the agency’s bargaining
position. As with any group of constituents, an elected official can choose to meet with them or not. If an
elected official does meet with union officials, the
official should be clear that the official is not speaking on behalf of the governing body.
A word of caution about meeting with employees
without their union representative during labor
Understanding the Labor Negotiations Process 2012
Institute for Local Government www.ca-ilg.org 3
An Expired Contract
is not the Same as
No Contract
If the contract has expired
and agreement has not been
reached on a new one, the
agency must maintain the
status quo until there is a
new agreement.
negotiations: such meetings can lead to an unfair labor practice accusation of “direct dealing.”3 Avoid any action that makes it appear that the agency is interfering in the union’s relationship with the employees it represents.
If the elected official meets with union representatives, it is helpful to share the conversation with the agency’s bargaining representatives. The conversation may provide insights that will help the agency’s negotiators move the process forward.
If Agreement Is Reached
The agreement still has to be ratified by the rank and file. The union may feel it needs to sell the agreement as a victory for its members. The union may post flyers or e-mails trumpeting their win over management.
For their part, elected officials may hear concerns from constituents that the agency is spending too much on employee salaries and benefits. Agency officials are well-advised to be moderate in their public discourse relating to the agreement. Anything that might be construed as bragging about the agency’s victory in the bargaining process may jeopardize the agreement. The employees won’t ratify the agreement if they think it is a bad deal or their representatives weren’t
sufficiently aggressive on their behalf.
A helpful practice can be a public statement that
does not validate either extreme, but says
something to the effect that “We reached a deal to
provide adequate public services at reasonable
cost.”
If Agreement Cannot Be Reached
What happens if the agency can’t reach an agreement? There are procedures under state law for resolving impasse. A local labor relations resolution may provide further guidance on procedures.
Mediation
A mediator may be brought in to try and resolve differences between the agency and the union. Mediators have no authority to impose a settlement, but can be useful in helping the parties look at the problem from a new perspective and to move past personal differences. The state Division of Mediation and Conciliation can provide a mediator.
Fact-finding. Whether or not mediation occurs, the union may request fact-finding as a next step. With the assistance of the Post Agreement Issues
While the agency will not have to
negotiate during the term of the
agreement, issues may arise
between negotiations that may
require changes.
Understanding the Labor Negotiations Process 2012
Institute for Local Government www.ca-ilg.org 4
This resource is a service of the Institute for Local Government (ILG) whose mission is to promote good government at the local level with practical, impartial, and easy-to-use resources for California communities. ILG is the nonprofit 501(c)(3) research and education affiliate of the League of California Cities and the California State Association of Counties. For more information and to access the Institute’s resources on Local Government 101 go to http://www.ca-ilg.org/localgovt101.
The Institute thanks the following individuals for their review and input into this resource:
• Holly Brock-Cohn, Human Resources Director, City of Alameda • Casey Echarte, Assistant Human Resources Director, City of San Mateo • Eraina Ortega, Legislative Representative, Employee Relations & Human Resources, California State Association of Counties
• Delores Turner, Assistant City Manager, Administrative Services Department, City of Emeryville The Institute welcomes feedback on this resource:
• Email: [email protected] Subject: Understanding the Labor Negotiations Process • Fax: 916.444.7535
• Mail: 1400 K Street, Suite 205 ▪ Sacramento, CA ▪ 95814 Public Employee Relations Board (PERB), a fact-finding panel is appointed which reviews both parties’ proposals, holds hearings and ultimately recommends a settlement.
Unilateral implementation. After exhausting the impasse procedure and holding a public hearing, the agency may impose its final financial offer upon the employees.
Management cannot force the union to accept a whole new contract.
Unilateral implementation cannot be used to impose work rule or operational changes and can only be implemented for one year. After that year, or during the year, if the union indicates it has a significant change in its position, the agency must bargain again with the union to try and reach a mutual agreement.
Understanding the Labor Negotiations Process 2012
Institute for Local Government www.ca-ilg.org 5
References and Resources
1 California Government Code 3500, known as the Meyers-Milias-Brown Act, (MMB) requires negotiation in good faith with the recognized employee representative on specified subjects. It also permits local agencies to adopt their own rules and regulations for the governance of labor relations. 2 See Cal. Gov’t Code § 54957.6, which provides:
54957.6. (a) Notwithstanding any other provision of law, a legislative body of a local agency may hold closed sessions with the local agency's designated representatives regarding the salaries, salary schedules, or compensation paid in the form of fringe benefits of its represented and unrepresented employees, and, for represented employees, any other matter within the statutorily provided scope of representation.
However, prior to the closed session, the legislative body of the local agency shall hold an open and public session in which it identifies its designated representatives.
Closed sessions of a legislative body of a local agency, as permitted in this section, shall be for the purpose of reviewing its position and instructing the local agency's designated representatives.
Closed sessions, as permitted in this section, may take place prior to and during consultations and discussions with representatives of employee organizations and unrepresented employees.
Closed sessions with the local agency's designated representative regarding the salaries, salary schedules, or compensation paid in the form of fringe benefits may include discussion of an agency's available funds and funding priorities, but only insofar as these discussions relate to providing instructions to the local agency's designated representative.
Closed sessions held pursuant to this section shall not include final action on the proposed compensation of one or more unrepresented employees.
For the purposes enumerated in this section, a legislative body of a local agency may also meet with a state conciliator who has intervened in the proceedings. (b) For the purposes of this section, the term "employee" shall include an officer or an independent contractor who functions as an officer or an employee, but shall not include any elected official, member of a legislative body, or other independent contractors. 3 See Cal. Lab. Code § 1156; Ruline Nursery Co. v. Agricultural Labor Relations Bd., 169 Cal. App. 3d 247, 266, 216 Cal. Rptr. 162, 172 (1985)
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