PORT OF SEATTLE

MEMORANDUM

COMMISSION AGENDA

Item No.

Date of Meeting

November 3, 2009

DATE: October 27, 2009

TO: Tay Yoshitani, Chief Executive Officer

FROM: Lisa Hornfeck, Labor Relations Director

SUBJECT: Request for authorization for the Chief Executive Officer to execute a Collective

Bargaining Agreement between the International Union of Operating Engineers

Local No. 286 representing Operating Engineers in Aviation Maintenance and the

Port of Seattle.

BACKGROUND

This memorandum covers ninety (90) Operating Engineers in the Aviation Maintenance

Division.

SCOPE OF THE AGREEMENT

Term of the Agreement

June 1, 2009 - May 31, 2011

Wages

First Year of Contract: June 2009 – June 2010

Increase of $2.48 per hour

Base rate for Operating Engineer $34.13

This hourly wage increase includes approved 3% wage increase for represented employees, and

money saved from the employee group’s change in Health and Welfare Plan added to hourly

wage. The rate the Port is paying per month, per employee for the new H&W plan is $985.00, a

savings of an average of $250.00 per employee per month. The H&W monthly benefits are

capped for the life of the contract at $1,000.00 per month per employee. If the second year of the

contract the monthly premium increase is above the cap, the employee is responsible for the

increased premium. The combined total of the H&W money and the 3% budgeted increase

equals a 7.8% increase for a Journeyman Engineer for 2009-2010.

Second Year of the Contract: June 2010 – June 2011

COLA between (2% – 6%) + an additional 1%

COLA indexes in the Seattle area have been between 0% - 2% the last year. It is anticipated that

second year of the contract the COLA index will be 2% or under. If that is the case, the wage

increase will be the COLA floor of 2% + an additional 1% = 3% total wage increase. The range

between 2% - 6% was agreed to for consistency with other Port of Seattle contracts and within

the industry. Although it is possible the COLA index will be higher than 2% it is very unlikely to

be significantly so. In addition, since this is a mid-year contract, any increase will be off-set by

taking effect in June, rather than January.

Premium Rate Increases

Premium rate for Operating Maintenance Engineers (Operators in the Boiler Room) increased

from fifty-five cents ($.55) per hour to one dollar ($1.00) per hour, due to the licensing

requirements. There are forty four (44) employees receiving this premium.

Premium Rate for employees on the Loading Bridge Crew who has an all position structural

welding/AWS license as required for the position, increased from twenty-five cents to seventy

cents ($.70). There are seven (7) employees receiving this premium.

Benefits

There is no change to the hourly and monthly pension benefit contribution rates for the duration

of the contract.

As of November 1, 2009, the employees left the Port medical plan and began participating in the

Local 302/612 IUOE Health and Security Fund, to include Medical, Dental and Insurance

Benefits. The current rate is 985.00 per month per employee. The Port contribution is capped at

$1000 for the second year of the contract. If the monthly premium increases, the employees shall

be responsible for the difference.

Summary of Changes:

1. Management Rights Clause added to Article 3.

2. Shift Bid requirement to remain in bid position for a minimum of six months, Article

5.06

This requirement was added to provide some stability to work groups, and restricts the

employees’ ability to bid from shift to shift, for at least a period of six months.

3. Significant clarification of seniority list, combining Boiler Shop and Conveyer Shop for

purposes of layoff and recall. For purposes of shift bidding, priority determined by plant

basis. For purposes of overtime, priority shall be determined by the work group. Article

7.05 was entirely rewritten for clarity and to memorialize the content of a prior MOU

within the CBA.

4. Probation period increased from forty-five (45) days to eight hundred (800) working

hours. This was increased due to the need for additional probation period monitoring, and

also for consistency between work groups on 4/10 hour shifts and 5/8 hour shifts. Article

7.06.

5. Premium rate for Operating Maintenance Engineers (Operators in the Boiler Room)

increased from fifty-five cents ($.55) per hour to one dollar ($1.00) per hour, due to the

licensing requirements. There are forty four (44) employees receiving this premium.

6. Premium Rate for employees on the Loading Bridge Crew who has an all position

structural welding/AWS license as required for the position, increased from twenty-five

cents to seventy cents ($.70). There are seven (7) employees receiving this premium.

7. New Article added requiring employees who bid into a shift in the Industrial Water

Waste Treatment Plant to make a minimum of a two year commitment to remain in the

plant. This commitment is important due to the training required to work in and run the

IWTP, in addition to the desire to have a stable experienced work group in a plant that is

strictly monitored for environmental compliance. Article 8.05.

8. Sub-classification of Utility Worker rate of pay reduced to fifty-five percent (55%) of

Journeyman scale the first year, sixty percent (60%) the second, and sixty five percent

(65%) the third year and beyond. Article 9.02

9. Modification of Light Duty Schedule notice of five days. This allows additional

flexibility in scheduling of employees restricted to light duty to a changed or modified

schedule. Article 12.03a

10. New Article addressing inclement weather weekend on call status for employees in the

IWTP. This provision is intended to reduce the number of overtime hours, and instead

have employees on call to respond to issues if they arise.

11. Overtime MOU clarified and added to the CBA, Article 12.09

12. Vacation accrual modified for longer term employees. Five week vacation accrual for

fifteen years of services, modified from 20 years of service.

13. Health and Welfare Plan change. Savings from benefits added to hourly wage. Monthly

benefits capped at $1,000, employees responsible for any premium increase over the cap

for the duration of this contract.

14. New Article: Sunset Clause for relying on disciplinary documents in the employee’s file

if no new disciplinary conduct for twenty four (24) months, excludes finding of gross

misconduct. Article 21.02

15. Leave without pay increased from two to five days, if management is able to

accommodate the request. Article 27.

16. Footwear stipend of $100.00, changed from $80 reimbursement for footwear.

Consistency with other Bargaining Units

Agreement on the following subjects is similar to those of other labor agreements at the Port:

Shift Differentials

Payroll Period

Management Rights Clause

Vacation Accrual

Utility Worker Rates

REQUESTED ACTION

Request for authorization for the Chief Executive Officer to execute a Collective Bargaining

Agreement between the International Union of Operating Engineers Local No. 286 representing

Operating Engineers in Aviation Maintenance.