Template revised September 22, 2016.

COMMISSION

AGENDA MEMORANDUM

Item No.

6f

ACTION ITEM

Date of Meeting

October 8, 2019

DATE: October 1, 2019

TO: Stephen P. Metruck, Executive Director

FROM: Greg Gauthier, Labor Relations Manager

David Freiboth, Sr. Director, Labor Relations

SUBJECT: New 5-year collective bargaining agreement between the Port of Seattle and the

International Union of Operating Engineers (IUOE) Local 302, representing 100

Operating Engineers in our Aviation Maintenance Department.

Additional cost over term:

$10,588,657

ACTION REQUESTED

Request Commission authorization for the Executive Director to execute a new collective

bargaining agreement (CBA) between the IUOE Local 302, representing the Operating Engineers

in our Aviation Maintenance Department, covering the period from June 1, 2018, through

May 31, 2023.

EXECUTIVE SUMMARY

Good faith bargaining between the Port of Seattle and IUOE Local 302 resulted in reaching a fairly

negotiated collective bargaining agreement consistent with the Port’s operational priorities.

The bargaining unit consists of 100 employees split relatively evenly between Mechanical Utilities

and Mechanical Conveyance shops. Mechanical Utilities employees maintain and operate various

systems in the airport such as heating, cooling, fire protection, and sanitary sewers. Mechanical

Conveyance Representatives maintain and operate over nine miles of baggage handling systems

to provide support for our airline customers.

The agreement is for five years covering the period from June 1, 2018, through May 31, 2023.

The estimated total cumulative additional cost for wages, pension, healthcare, and other benefits

is $10,593,748. The estimated cumulative additional cost per year of the contract is Year 1,

$657,629; Year 2, $1,469,774; Year 3, $2,184,883; Year 4, $2,816,015; Year 5, $3,460,356.

Contributing factors to the costs include:

• Annual wage increases of 5 percent in each of the first three years, followed by CPI-U

benchmarked increases plus an additional 1 percent in each of the last two years.

COMMISSION AGENDA – Action Item No. 6f Page 2 of 4

Meeting Date: October 8, 2019

Template revised September 22, 2016; format updates October 19, 2016.

• License/Certification premium increases.

• Annual increases to Healthcare premium caps.

Other changes include alignment with both the Washington Paid Sick Leave Law and Paid Family

Medical Leave; alignment with the Port’s Education and Development policy, the incorporation

of the Port’s Paid Parental Leave into the CBA; additional commuter trip reduction benefits, and

the deletion of language regarding mandatory Union membership in compliance with Federal

law.

JUSTIFICATION

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 THE AGREEMENT

Term of the Agreement

June 1, 2018, through May 31, 2023.

FINANCIAL IMPLICATIONS

Paid Leave

Increase in sick leave from 0.03846 on hours worked with an 80-hour annual maximum, to

0.03846 on all hours compensated with no maximum; Separated sick leave into two distinct

banks identified as “Paid Sick Leave” and “Protected Sick Leave.”

Medical, Pension,

Cap

1

Employee Share

• Health Insurance Current $1300 $0

2019 $1347 $0

2020 $1427 TBD

2021 $1515 TBD

2022 $1610 TBD

• Pension— IUOE Central Pension Fund: 16.5% of gross monthly compensation.

Wages

1. License/Certification premiums increase to $2.00 per hour from $0.70 and $1.20

respectively.

1

Amounts over cap are split 50/50 between employee and employer

COMMISSION AGENDA – Action Item No. 6f Page 3 of 4

Meeting Date: October 8, 2019

Template revised September 22, 2016; format updates October 19, 2016.

Wages

Effective

6/1/2018

6/1/2019

1st of Month

after

Execution

6/1/2020

6/1/2021

6/1/2022

Article 8.03 Premium

$1.20

$2.00

Article 8.04 Premium

$0.70

$2.00

Increase

Estimated

Increase*

Estimated

Increase*

Classifications

Current

5.00%

N/A

5.00%

4.00%

Engineer (Journeyman)

(Operating and

Maintenance/Mechanical)

$40.83

$42.87

$45.02

$47.27

$49.16

$51.12

Engineer (Journeyman with/Grade II

License)

(Operating and

Maintenance/Mechanical)

$42.03

$44.07

$46.22

$47.02

$49.27

$51.16

$53.12

Mechanical Maintenance Engineer

(Conveyor Workgroup)

(with Structural Welding AWS Cert)

$41.53

$43.57

$45.72

$47.02

$49.27

$51.16

$55.12

Lead Operating and Maintenance/

Mechanical Maintenance Engineer

(5% above Journeyman Scale)

$42.87

$45.02

$47.27

$49.63

$51.61

$53.68

Lead Operating and Maintenance/

Mechanical Maintenance Engineer

(with Grace II License)

$44.07

$46.22

$48.47

$49.27

$51.63

$53.61

$55.68

Head Operating and Maintenance/

Mechanical Maintenance Engineer

(15% above Journeyman scale)

$46.95

$49.30

$51.77

$54.36

$56.53

$58.79

Head Operating and Maintenance/

Mechanical Maintenance Engineer

(with Grade II License)

$48.15

$50.50

$52.97

$53.77

$56.36

$58.53

$60.79

Chief Operating

Maintenance/Mechanical

Engineer

(25% above Journeyman Scale)

$51.04

$53.59

$56.27

$59.08

$61.45

$63.90

Chief Operating Engineer

(with Grade II License)

$52.24

$54.79

$57.47

$58.27

$61.08

$63.45

$65.90

Technical Reviewer

$46.95

$49.30

$51.77

$54.36

$56.53

$58.79

Technical Reviewer with Grade II

$48.15

$50.50

$52.97

$53.77

$56.36

$58.53

$60.79

Technical Reviewer Conveyor

Workgroup

with Structural Welding AWS Certificate

$48.15

$50.00

$52.47

$53.77

$56.36

$58.53

$60.79

*CPI-U (0% to 6%) plus 1%

COMMISSION AGENDA – Action Item No. 6f Page 4 of 4

Meeting Date: October 8, 2019

Template revised September 22, 2016; format updates October 19, 2016.

Other Changes

• Combining the Baggage System Engineer Function (BSE), Loading Bridge Crew, and

Conveyance systems employees into the same workgroup.

• Alignment with the Port’s Education and Development Policy.

• Alignment with the Washington Paid Sick Leave Law.

• Alignment with the Washington Paid Family Leave Law with an administrative waiver.

• Incorporated the Port’s Paid Parental Leave into the CBA.

• Increases to annual safety shoe stipend.

• Additional Commuter Trip Reduction incentives.

ATTACHMENTS TO THIS REQUEST

(1) Collective Bargaining Agreement between the Port of Seattle and the IUOE Local 302 (red

lined).

PREVIOUS COMMISSION ACTIONS OR BRIEFINGS

January 12, 2016—Commission authorization of previous Collective Bargaining Agreement