COMMISSION AGENDA MEMORANDUM ACTION ITEM Item No. Date of Meeting DATE: April 2, 2018 TO: Stephen P. Metruck, Executive Director FROM: David Freiboth, Senior Director of Labor Relations Matthew Bullock, Labor Relations Manager 6d April 10, 2018 SUBJECT: New collective bargaining agreement with the International Brotherhood of Electrical Workers, Local 46, representing Electronic Technicians. Total Port Cost Increase for the Duration of the Agreement: $845,596 ACTION REQUESTED Request Commission authorization for the Executive Director to execute a new collective bargaining agreement between the Port of Seattle and the International Brotherhood of Electrical Workers, Local 46, representing 56 Electronic Technicians assigned to the Port of Seattle Aviation Maintenance division, covering the period from June 1, 2017, through May 31, 2019. EXECUTIVE SUMMARY Good faith bargaining between the International Brotherhood of Electrical Workers, Local 46, and the Port of Seattle resulted in a fair collective bargaining agreement (CBA) consistent with the Port's priorities. This agreement is for two years covering the period from June 1, 2017, through May 31, 2019. The estimated total additional cost for wages and benefit increases is $845,596. The estimated additional cost per year of the contract is: year one, $304,332; and year two, $541,263. The cost is based upon a COLA Seattle/Tacoma/Bremerton CPI-U (0-6%) increase in wages in year one, and an increase of 3.0% in year two of the agreement. The pension contribution increases $0.42 per hour in year one and $0.25 per hour in year two and the annuity contribution is converted from a fixed dollar amount to a percent of wage. The increase to retirement contributions are offset by a 4.4% decrease in the Port's portion of the health insurance premium in year one of the agreement. The sick leave provision of the agreement was modified to comply with new Washington State sick leave law effective January 1, 2018. Template revised September 22, 2016. COMMISSION AGENDA - Action Item No. 6d Meeting Date: April 10, 2018 Page 2 of 3 JUSTIFICATION The 56 Electronic Technicians in the bargaining unit comprise two groups. One group of 18 servicing the airport's Satellite Transit System; the other group of 38 is responsible for maintaining a variety of electronic systems and underlying infrastructure. Chapter 41.56 RCW requires the Port of Seattle to collectively bargaining wages, hours and conditions of employment with the exclusive bargaining representative designated by the employees. DETAILS Term of the Agreement Retroactive to June 1, 2017, through May 31, 2019. FINANCIAL IMPLICATIONS Wages Classification Service Time Effective 6/1/17 COLA Seattle/Tacoma/Bremerton CPI-U (0-6%) (+3.7%) Journeyman Journeyman Entry $42.40 1+ years $47.11 Effective 6/1/18 Base Hourly Rate (+3.0%) $43.67 $48.52 Other Changes • Modified non-discrimination provision to current Port standard. • Incorporated Phone and Computer Consultation Overtime provision. • Removed Variable Annuity provision which longer existed as a Union Trust Fund election. • Incorporated the Port's Paid Parental Leave Policy into the agreement. • Modified Paid Time Off Cash Out provision to current Port standard. • Modified Seniority provision to include Labor/Management committee to review bids for shift between shops. • Increased footwear stipend from $100 to $150. Template revised September 22, 2016; format updates October 19, 2016. COMMISSION AGENDA - Action Item No. 6d Meeting Date: April 10, 2018 Cost Impact $ Pay Benefits Total Year 1 $221,482 $82,850 $304,332 Page 3 of 3 Year 2 $186,224 $50,706 $236,931 The estimated total additional cost to the Port of Seattle for the duration of the contract is $845,596. ATTACHMENTS TO THIS REQUEST 1. Collective Bargaining Agreement PREVIOUS COMMISSION ACTIONS OR BRIEFINGS None. Template revised September 22, 2016; format updates October 19, 2016.