Template revised September 22, 2016.
COMMISSION
AGENDA MEMORANDUM
Item No.
6h
ACTION ITEM
Date of Meeting
September 10, 2019
DATE: July 1, 2019
TO: Stephen P. Metruck, Executive Director
FROM: David Freiboth, Senior Director of Labor Relations
Matthew Bullock, Labor Relations Manager
SUBJECT: New collective bargaining agreement between the Port of Seattle and the
International Association of Machinists and Aerospace Workers, Local 289,
representing Inventory Specialists
Total Port Cost Increase for the Duration of the Agreement: $189,302
ACTION REQUESTED
Request Commission authorization for the Executive Director to execute a collective bargaining
agreement between the Port of Seattle and the International Association of Machinists and
Aerospace Workers, Local 289, representing Inventory Specialists at the Port of Seattle covering
the period from January 1, 2019, through December 31, 2021.
EXECUTIVE SUMMARY
Good faith bargaining between the International Association of Machinists and Aerospace
Workers, Local 289, representing Inventory Specialists and the Port of Seattle resulted in a fair
collective bargaining agreement (CBA) consistent with Port’s priorities.
There are currently ten Inventory Specialists employed at the Port of Seattle who are assigned
to Aviation Maintenance Department at the Distribution Center (DC) warehouse, or other
assigned DC satellite locations. Inventory Specialists perform various functions of receipt,
storage, delivery of parts, processing and procurement of goods and services in compliance
with Port policy and procedures.
This agreement is for three years covering the period from January 1, 2019, through December
31, 2021. The estimated total additional cost for wages and benefit increases is $189,302. The
estimated additional cost per year of the contract is: year one, $30,376; year two, $61,225, and
year three $97,701.
The cost is based upon a cost of living increase plus of 3.1 percent in wages in year one of the
agreement; an estimated cost of living increase of 3.0 percent in year two of the agreement;
and an estimated cost of living increase of 3.0 percent, plus an additional 1.0 percent in years
COMMISSION AGENDA – Action Item No. Page 2 of 3
Meeting Date: September 10, 2019
Template revised September 22, 2016; format updates October 19, 2016.
one, two and three of the agreement. The cost also consists of an estimated health insurance
increase of 5.0 percent in year three of the agreement.
Other changes consist of deleting language in the Union Security Clause regarding mandatory
Union membership in compliance with Federal law; increase employee contribution for medical
insurance; modification of the sick leave and the Family Medical Leave provisions to comply
with state law; and the Union participation in the employee orientation program in accordance
with state law.
JUSTIFICATION
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 January 1, 2019, through December 31, 2021.
FINANCIAL IMPLICATIONS
Wages
Classification
Current
Rate
Effective
1/1/19 Base
Hourly Rate
(+3.1%
COLA) +1.0%
Effective
1/1/20 Base
Hourly Rate
(+3.0%
Estimated
COLA) + 1.0%
Inventory
Specialist
$28.70
$28.98
$30.14
Wage
Employees were provided with a cost of living increase for each year of the three year
agreement based on the Seattle/Tacoma/Bellevue CPI-U (All Urban Consumers) October to
October Index which represented 3.1 percent for October 2018-October 2019 (effective
January 1, 2019); an estimated 3.0 percent CPI for October 2019-October 2020 (effective
January 1, 2020); and an estimated CPI for October 2020-October 2021 (effective January 1,
2021). Employees also will receive an additional one percent (1.0 percent) above COLA in years
one, two and three of the agreement.
COMMISSION AGENDA – Action Item No. Page 3 of 3
Meeting Date: September 10, 2019
Template revised September 22, 2016; format updates October 19, 2016.
Health and Welfare
Members of the bargaining group are currently enrolled in Machinist Medical Plan 15 where
they are contributing ($25/employee; $50/employee & spouse or children; $75/employee &
family) per month toward the cost of their medical insurance. The contract provides for an
increase in the amount of premium share paid by employees ($35/employee; $70/employee &
spouse or children; $105/employee & family) in year three of the agreement.
New Employee Orientation
The Union will now have up to 30 minutes to meet with new employees during the new
employee orientation in accordance with state law.
Other Changes
The sick leave provision was modified to conform to the new Washington State sick
leave law.
The Family Medical Leave provision was modified to conform with the Washington Paid
Family and Medical Leave Act.
The Union Security Provision language regarding mandatory union membership was
deleted to comply with Federal law.
Cost Impact $
Year 1
Year 2
Year 3
Pay
$26,922
$27,342
$28,435
Benefits
$3,454
$3,508
$8,040
Total New Money
$30,376
$30,850
$36,475
Total Cumulative
Cost
$30,376
$61,225
$97,701
The estimated total additional cost to the Port of Seattle for the duration of the contract is
$189,302.
ATTACHMENTS TO THIS REQUEST
1. Collective Bargaining Agreement
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
None.