Agenda Item
DATE: 8/12/2025
TO: HONORABLE MAYOR AND CITYCOUNCIL
FROM: JOAN MALLOY, CITYMANAGER
SUBJECT: ADOPT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UNION CITY APPROVING AND
ADOPTING THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITYOF UNION CITYAND THE OPERATING ENGINEERS LOCAL 3, MANAGEMENT EMPLOYEES GROUP FOR THE PERIOD OF JANUARY 1, 2025 THROUGH DECEMBER 31, 2027, AUTHORIZING THE CITY MANAGER TO EXECUTE
THE MEMORANDUM OF UNDERSTANDING ON BEHALF OF THE CITY AND APPROVING AN
AMENDMENT TO THE CITY'S SALARY SCHEDULE IN CONFORMANCE WITH CALIFORNIA CODE OF REGULATIONS, TITLE 2, SECTION 570.5
EXECUTIVE SUMMARY
Staff recommends that the City Council adopt the attached resolution approving and adopting the Memorandum of Understanding (MOU) between the City of Union City (City) and the Operating Engineers Local 3, Management Employees Group (OE3-MEG) for the period of January 1, 2025 through December 31, 2027, authorizing the City Manager to execute the MOU on behalf of the City and approving an amendment to the City’s Salary Schedule in conformance with California Code of Regulations, Title 2, Section 570.5.
STRATEGIC PLAN ALIGNMENT
This action supports Strategy 8 of Goal B, Governance and Organization Effectiveness, by ensuring salaries are competitive in order to retain talented staff and to provide an attractive recruiting environment.
BACKGROUND
The City and the Management Employees Group (MEG) initiated negotiations in August 2024 to address the existing MOU that covered the period of January 1, 2022 through December 31, 2024. In September 2024 MEG initiated a decertification and recognition procedure to be represented by Operating Engineers Local 3 (OE3). On March 11, 2025, the City Council adopted Resolution No. 2025- 030 recognizing OE3 as the exclusive bargaining representative for MEG and the group is now known as OE3-MEG. Staff and OE3- MEG have been negotiating in good faith for the successor Memorandum of Understanding (Successor MOU) since April 2025. Both parties have reached a tentative agreement on matters related to wages, hours, and other terms and conditions of employment, consistent with the authority provided by the City Council, as reflected in the Successor MOU.
DISCUSSION
The Existing MOU expired on December 31, 2024. OE3-MEG membership ratified the Successor MOU on August 6, 2025. The Successor MOU does not become effective until approved by the City Council. The deal points of the Successor MOU are as follows:
General Language Clean Up and Corrections: These were made throughout the MOU regarding job titles, union name, sentence structures and punctuation.
SECTION 1.00 RECOGNITION: Updates the list of classifications to reflect changes in titles for “Budget Manager/Purchasing Agent”, to “Accounting Manager”, and the “Youth & Family Services Manager” to “Community Services Manager”.
SECTION 1.01 DUES DEDUCTION: Add language to conform with dues deduction procedures.
SECTION 2.0 COMPENSATION:
· Cost of Living Adjustments: Provides cost of living adjustments of 3% per year that will become effective the first full pay period following Council approval of this agreement, and then thereafter effective the first full pay period in January 2026, and the first full pay period in January 2027.
· Market Equity Adjustments: Provides a one-time market equity adjustment of 2% effective the first full pay period following Council approval of this agreement for all classifications in the OE3-MEG unit and also brings any remaining classifications more than 7.5% below market median to 7.5% below market median.
· Salary Surveys: Clarify language on completing the City’s salary survey byAugust 31, 2027 for timeliness in negotiations.
SECTION 3 LEAVE: Updates to various leaves, as identified below:
ADMINISTRATIVE LEAVE: General cleanup of terms, removal of outdated terms and clarification of sell back provisions.
BEREAVEMENT LEAVE: Adds “Designated Person” as eligible for employee to use one day of bereavement leave.
OCCUPATIONAL INJURYLEAVE: Updates qualifying language for use of occupational injury leave.
PERSONAL LEAVE: Revise language and clarifies eligibility for the conversion of sick leave to personal leave.
SECTION 6.9 VACATION: Revise and/or remove outdated language, clarifies eligibility for sellback of vacation leave and inserts vacation scheduling language for vacation approvals.
SECTION 6.0 INSURANCE COVERAGE: A. Health and Welfare Coverage: Increases the monthly allowance from $2,000 to $2,200, effective the first pay date of the month following Council approval of this agreement. Effective the first pay date of 2027, this amount increases from $2,200 to $2,250. Increases the “In Lieu” amount for those waiving enrollment due to alternative medical coverage from $300 per month to $350 per month, effective the first pay date of the month following Council approval of this agreement.
FISCAL IMPACT
The estimated cost of this Successor MOU is projected to be an additional $238,000 annually over the life of the contract.
RECOMMENDATION
Staff recommends that the City Council adopt the attached resolution approving and adopting the Memorandum of Understanding (MOU) between the City of Union City (City) and the Operating Engineers Local 3, Management Professional Union (OE3-MEG) for the period of January 1, 2025 through December 31, 2027, authorizing the City Manager to execute the MOU on behalf of the City and approving an amendment to the City’s Salary Schedule in conformance with California Code of Regulations, Title 2, Section 570.5.
Prepared by:
JASON CASTLEBERRY, HUMAN RESOURCES DIRECTOR
Submitted by:
JASON CASTLEBERRY, HUMAN RESOURCES DIRECTOR
ATTACHMENTS:
Description Type
Draft Resolution Resolution
ExhibitA - OE3-MEGMOURedlined Exhibit
Exhibit B- Classification and Compensation Plan Exhibit REVIEWERS:
Department Reviewer Action Date
Human Resources Castleberry, Jason Approved 8/8/2025 - 4:12 PM City Manager’s Department Malloy , Joan Approved 8/8/2025 - 5:48 PM