To: Commissioners
From: Ted Fick, Chief Executive Officer
Date: November 11, 2015
Re: Quality Jobs direction for Airport Dining and Retail leases
On November 25, 2014, the Port Commission adopted a motion regarding quality jobs, service and
employment continuity within the Sea-Tac Airport Dining and Retail (ADR) program. The motion
provided policy direction for development of a robust ADR program with expanded business
opportunities along with support for creation of stable employment paying living wages with good
benefits.
For leases expiring in 2015 or later, the Port intends to utilize a combination of prime lessees/operators
and direct leases with small, local, and/or disadvantaged businesses. The motion directed the Chief
Executive Officer to incorporate the following expectations as elements of the solicitation for airport
dining and retail leases:
• Quality jobs, including living wages, paid time off and health care benefits
• Participation in an employment continuity pool
• Good-faith discussions with labor organizations representing incumbent employees.
On November 5, 2013, voters in the City of SeaTac adopted Proposition 1 which established minimum
standards for wages and minimum standards for paid leave and sick and safe time for workers in the
hospitality and transportation industries within the city. On August 20, 2015, the state Supreme Court
ruled in the case of Filo Foods, LLC et al vs the City of SeaTac (Case No. 89723-9) that the city’s
Ordinance No. 13-1020 extends to transportation and hospitality workers at Sea-Tac Airport.
Based on the Supreme Court’s decision, the staff will interpret the Commission’s Quality Jobs
expectations to require the following from respondents to future airport dining and retail lease
opportunities:
• For 2016, wages shall be paid at the rate of $15.24 per hour. The wage rate shall be adjusted on
January 1 of each year by the rate of inflation. The increase shall be calculated to the nearest
cent using the CPA for urban wage earners and clerical workers, CPI-W, or a successor index, for
12 months prior to each September 1 as calculated by the US Department of Labor.
• Payment of sick and safe time, which shall be accrued at the rate of one hour for every 40 hours
worked.
• Provide health insurance to full-time employees, consistent with the Affordable Care Act.
As stated in the November 25, 2014 motion, the criteria for selecting a prospective operator shall
include the commitment by prospective prime operators/lessees to hire employees and by other
prospective operators to interview from the Employment Continuity Pool before considering applicants
outside the Pool.
ITEM NO: _6g_Attach A
MEETING DATE: February 27, 2018
COMMISSION AGENDA
Ted Fick, Chief Executive Officer
November 11, 2015
Page 2
The CEO will implement the Commission’s expectations regarding quality jobs, service and employment
continuity in Requests for Proposals, Competitive Evaluations or contracting processes.
On November 24
th
the Commission is scheduled to address a proposal to change the Port’s policy
regarding street pricing to enable Airport Dining and Retail tenants to adjust to the wage and benefit
expectations and regulations. Details of that proposal will be in a separate Commission memo.
