Administrative
Report
H.23., File # 22-4750 Meeting Date: 9/6/2022
To: MAYOR AND CITY COUNCIL
From: DIANE STRICKFADEN, DIRECTOR OF HUMAN RESOURCES
TITLE
APPROVE A SIDE LETTER AGREEMENT BETWEEN THE CITY OF REDONDO BEACH AND THE
REDONDO BEACH TEAMSTERS UNIT IMPLEMENTING A RECRUITMENT AND RETENTION
BONUS PROGRAM
EXECUTIVE SUMMARY
As part of the FY 2021-22 Strategic Plan, the City Council directed staff to develop a program to help attract and retain Public Works maintenance staff through a recruitment and retention bonus program. Since the COVID-19 pandemic, the Public Works Maintenance Divisions has experienced a labor shortage and increased employee turnover which has significantly affected operations and the Department’s ability to deliver daily services. The purpose of the side letter is to memorialize a program that helps attract new maintenance employees by offering them a $5,000 recruitment “sign on” bonus. The program also provides existing maintenance employees with a retention incentive that is based on work attendance. Existing employees will have the opportunity to earn up to four separate $5,000 bonuses based on meeting the negotiated attendance standards.
City representatives have met and conferred in good faith with the Redondo Beach Teamsters group multiple times since May 2022 to develop the program and side letter. The Teamsters unit has agreed to the terms and conditions of the attached side letter. The attached side letter will amend Article III, Section 2, “Merit Pay” of the Teamsters Memorandum of Understanding (MOU) by describing in detail the provisions of the recruitment and retention bonus program. All other terms and conditions of employment outlined in the existing MOU will remain the same through the duration of the MOU, which is set to expire December 31, 2023.
BACKGROUND
In 2021, the City Council approved the current MOU between the City of Redondo Beach and the Redondo Beach Teamsters Public, Professional and Medical Employees Union Local 911 (Teamsters) with a term from July 1, 2021 to June 30, 2023. Article III “Compensation” of that MOU establishes the terms and conditions of the Teamsters’ pay plan. The attached side letter amends Article III, Section 2, “Merit Pay” by establishing a recruitment and retention bonus incentive program.
The key deal points are as follows:
Term: The Side Letter lasts for the duration of the current MOU, and expires with the MOU on December 31, 2023.
New Teamsters Employees (Sign-on Bonus): Will receive $2,500 in one lump sum upon hire and
H.23., File # 22-4750 Meeting Date: 9/6/2022
New Teamsters Employees (Sign-on Bonus): Will receive $2,500 in one lump sum upon hire and $2,500 after nine months of successful employment. These payments are not reportable as compensation to CalPERS.
Existing Teamsters Employees (Retention Bonuses): Will have the opportunity to obtain up to four bonuses of $5,000 each, based on negotiated attendance standards. The first $5,000 bonus will be paid after side letter adoption, based on attendance standards met between July 1, 2021 and June 30, 2022. The three subsequent bonuses will be paid in six-month intervals (July 1, 2022 - December 31, 2022; January 1, 2023 - June 30, 2023; and July 1, 2023 - December 31, 2023), after meeting the attendance standards set for each six-month period.
The Teamsters unit currently has 66 active employees and represents classifications such as Electrician, Maintenance Worker and Park Caretaker. The side letter was ratified by the Redondo Beach Teamsters on August 25, 2022.
COORDINATION
The Human Resources Department, City Manager’s Office and the City Attorney’s Office coordinated the preparation of the side letter.
FISCAL IMPACT
The recruitment sign-on bonus is anticipated to cost approximately $50,000 this fiscal year, based on current hiring projections. The first retention bonus will cost $220,000, as 44 Teamsters met the attendance standard. $300,000 of funding was appropriated as part of the FY 2021-22 mid-year budget to cover these initial costs. Funding for the remaining bonus periods is available through FY 2021-22 salary savings from Teamsters vacancies that will be carried over as part of the year-end budget process.
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
Side Letter Agreement