BOARD MEETING DATE: September 8, 2006
AGENDA NO. 14

Approve Amendment of Office Clerical and Maintenance Bargaining Unit MOU with Teamsters Local 911

SYNOPSIS:

The three-year labor agreement between AQMD and Teamsters Local 911 with respect to the Office Clerical and Maintenance bargaining unit left open to negotiation salary and health benefits cap adjustments in the second and third years of the contract term.  Agreement has been reached on adjustments for the remaining two years of the contract that are consistent with adjustments approved by the Board for other agency employees.  This agreement has been ratified by bargaining unit members.  This action is to present the ratified agreement to the Board for approval as an amended three-year MOU.

COMMITTEE:

Not Applicable

RECOMMENDED ACTION:

Authorize AQMD’s chief negotiator to sign the ratified amendment to the MOU between AQMD and Teamsters Local 911 covering the Office Clerical and Maintenance bargaining unit.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

On January 6, 2006, the Board approved an MOU with Teamsters Local 911 covering the Office Clerical and Maintenance (OCM) bargaining unit for the period July 1, 2005, through June 30, 2008.  The agreement included a consumer-price-index (CPI) salary adjustment of 4.8% retroactive to July 2005 and an 8% benefits cap adjustment in September 2005.  Any additional salary and benefit adjustments during the term of the MOU were subject to negotiation.  Agreements approved by the Board on the same date covering all other employees provided salary and benefits adjustments for the entire three-year contract period and included a six-month salary adjustment delay during the first year of the agreement and required employees to pay more of their retirement contribution.  The second and third years included CPI-based adjustments of 3 to 4% in July, as well as adjustments to the benefits cap.

Agreement has been reached with Teamsters Local 911 on salary and benefit adjustments for OCM employees for FYs 2006-07 and 2007-08, as described below.  These adjustments have been ratified by bargaining unit members.

Proposal

The terms of the ratified OCM agreement include, for the second year of the contract, the same 8% adjustment to the benefits cap, effective September 1, 2006, that was approved for all other employees and a salary adjustment of 2.7% effective January 1, 2007.  For the third year of the agreement, the benefits cap adjustment is the same 9%, effective September 1, 2007, that the Board approved for all other employees and the salary adjustment, depending on movement in the CPI, would be between 2.6 and 3.7% on October 8, 2007, as shown in the attached MOU amendment.

The salary and benefits adjustments provided for in this MOU amendment result in an economic value for the entire three-year OCM package that is equivalent to, but does not exceed, that provided all other AQMD employees.

Resource Impacts

The cost of this amendment for FYs 2006-07 and 2007-08 is approximately $623,500 – $685,700, depending on the FY 2007-08 CPI-based salary adjustment.

Attachment

MOU Amendment

MEMORANDUM OF UNDERSTANDING

TECHNICAL AND ENFORCEMENT AND
OFFICE CLERICAL AND MAINTENANCE UNITS

July 1, 2005 – June 30, 2008

ARTICLE 3

SALARIES      …

Section 2.  For classes in the Office Clerical and Maintenance Unit, the parties agree jointly to recommend to the AQMD Board that said Board adopt and implement the salaries shown in the table of rates in Appendix B of this Agreement and as described below to be applicable to employees in this unit.  The following percentage increase shall become effective on the dates indicated:

July 4, 2005             4.8%

January 1, 2007        2.7%

October 8, 2007      Pursuant to the chart below, based on
                             consumer price index movement for all urban
                             consumers for the local Los Angeles-
                             Riverside-Orange County index from April 1,
                             2006, to March 31, 2007, rounded to the
                             nearest 0.1%:

If CPI is:                  adjustment will be:
≤   3.0%                            2.6%
     3.1%                            2.7%
     3.2%                            2.8%
     3.3%                            3.0%
     3.4%                            3.1%
     3.5%                            3.2%
     3.6%                            3.3%
     3.7%                            3.4%
     3.8%                            3.5%
     3.9%                            3.6%
≥   4.0%                            3.7%

The parties agree, further, that for classes in the Office Clerical and Maintenance Unit, the parties will begin negotiations no later than May 2, 2006, and May 1, 2007, with respect only to any further annual salary and benefit cap adjustments during the term of this contract.

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ARTICLE 17

GROUP INSURANCE
(Health, Dental, Life,      …
and Vision Insurance)

Section 3.  For employees in the Office Clerical and Maintenance Unit, effective September 1, 2005, the total monthly contribution to be paid by AQMD for health, dental, life, and vision insurance shall be an amount not to exceed $864.09.  Any further adjustments to this amount will be subject to negotiations pursuant to provisions contained in Article 3, Salaries.  Effective September 1, 2006, the total monthly contribution to be paid by AQMD for health, dental, life, and vision insurance shall be an amount not to exceed $933.22.  Effective September 1, 2007, the total monthly contribution to be paid by AQMD for health, dental, life, and vision insurance shall be an amount not to exceed $1,017.21.

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