Template revised September 22, 2016.
COMMISSION
AGENDA MEMORANDUM
Item No.
4f
ACTION ITEM
Date of Meeting June 13, 2017
DATE: June 6, 2017
TO: Dave Soike, Interim Chief Executive Officer
FROM: David Freiboth, Sr. Director, Labor Relations
Mikel O’Brien, Sr. Labor Relations Manager
SUBJECT: Collective Bargaining Agreement Extension between the Port of Seattle and the
Teamsters Local No. 117 representing Rental Car Facility Bus Drivers.
Additional cost over term:
$814,767
ACTION REQUESTED
Request Commission authorization for the Chief Executive Officer to execute a new collective
bargaining agreement between the Port of Seattle and the Teamsters Local Union No. 117,
representing the Rental Car Facility Bus Drivers, covering a period from March 15, 2016,
through March 14, 2019.
EXECUTIVE SUMMARY
Good faith bargaining between Teamsters Local No. 117 and the Port of Seattle resulted in a
fair collective bargaining agreement consistent with the Port’s priorities. The estimated total
additional cost for wages and benefits, including paid time off, pension and estimated health
care benefits, for the duration of the three-year agreement is $814,767. The estimated
additional cost per year of the contract is: year one, $161,122; year two, $301,996; and year
three, $351,767. The increased estimated cost in the second year of the contract is largely due
to the implementation of a $2.00 per hour premium for baggage handling/passenger
assistance.
JUSTIFICATION
There are 49 positions in the bargaining unit, including full-time, part-time, and relief bus
drivers and up to 9 seasonal drivers. The parties have concluded negotiations and seek
authority for execution of the collective bargaining agreement. RCW Chapter 41.56 requires the
Port of Seattle to collectively bargain wages, hours and working conditions with the exclusive
bargaining representative designated by the employees.
SCOPE OF AGREEMENT
Term of the Agreement
March 15, 2016, through March 14, 2019.
COMMISSION AGENDA – Action Item No. 4f Page 2 of 2
Meeting Date: June 13, 2017
Template revised September 22, 2016; format updates October 19, 2016.
FINANCIAL IMPLICATIONS
Wages
Effective March 15, 2016, this collective bargaining agreement shall provide the following wage
scale: $18.50 at entry through $24.00 after six years. Wages will be adjusted by 3% on
3/15/17 and by 100% of the 2017 CPI-U annual average (0-6%) on March 15, 2018.
Effective September 15, 2016, RCF Bus Drivers will receive a $2.00 per hour premium for
baggage handling for hours worked.
Benefits
The employees are currently on Teamsters Plan A for health care, a 90/10 plan. Effective the
month following execution of this agreement, the employees will move to Teamsters Plan B, an
80/20 plan. The employees will receive a temporary reprieve from a premium share until
January of 2019 and the Port will begin contributing to the Teamsters 9 month Disability Waiver
in exchange for moving to the less expensive medical plan.
Leave
While employees accrue Paid Time Off (PTO), they do not currently have sick leave or extended
illness leave. This agreement provides employees up to 24 hours of Extended Illness Leave per
year. The agreement also incorporates the Port’s Paid Parental Leave benefit.
Cumulative Cost Impact $
Year 1
Year 2
Labor
$161,122
$348,066
Benefits
0
-$46,070
Total
$161,122
$301,996
Annual Budget Status and Source of Funds
RCF Customer Facility Charges (CFC) 2016, 2017, 2018 and 2019, and future operating budgets
of the Rental Car Facility Transit Operations.
ATTACHMENTS TO THIS REQUEST
1. Collective Bargaining Agreement between Port of Seattle and Teamsters Local No. 117
representing Rental Car Facility Bus Drivers.
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
None