Template revised September 22, 2016.
COMMISSION
AGENDA MEMORANDUM
Item No.
8i
ACTION ITEM
Date of Meeting
May 24, 2022
DATE: May 24, 2022
TO: Stephen P. Metruck, Executive Director
FROM: Mikel O’Brien, Interim Senior Director of Labor Relations
Greg Gauthier, Labor Relations Manager
SUBJECT: New Collective Bargaining Agreement Between the Port of Seattle and the
International Association of Machinists and Aerospace Workers (IAM&AW), Local
289, Auto Machinists
Total Port Cost Increase for the Duration of the Agreement: $4,232,466.87
ACTION REQUESTED
Request Commission authorization for the Executive Director to execute a new collective
bargaining agreement (CBA) between the Port of Seattle and the International Association of
Machinists and Aerospace Workers, Local 289, representing Auto Machinists at the Port of
Seattle covering the period from July 1, 2021, through June 30, 2026.
EXECUTIVE SUMMARY
Good faith bargaining between the International Association of Machinists and Aerospace
Workers, Local 289, and the Port of Seattle resulted in a fair collective bargaining agreement
consistent with Port’s priorities.
There are currently thirty- three (33) Auto Machinists employed at the Port who are assigned to
both Marine and Aviation Maintenance Automotive and bus facilities. Auto Machinists perform
preventive maintenance, repair, rebuild, and tune-up work on a diverse fleet comprised of over
800 Port of Seattle vehicles and equipment powered by gasoline, diesel, natural gas, electric and
hybrid engine/drive systems in support of Port of Seattle operations at Marine Maintenance and
at Sea-Tac International Airport.
This agreement is for five years covering the period from July 1, 2021, through June 30, 2026. The
estimated total additional cost for wages and benefit increases is $4,232,466.87. The estimated
additional cost per year of the contract is: year one, $134,870.60; year two $546,406.66; year
three $941,638.94; year four $1,146,865.82; year five $1,462,684.85.
COMMISSION AGENDA – Action Item No. 8i Page 2 of 3
Meeting Date: May 24, 2022
Template revised September 22, 2016; format updates October 19, 2016.
The cost is based upon the following cost of living increases
1
Year 1 No increase
Year 2 CPI-U (0-6%) + 2%
2
Year 3 CPI-U (0-6%) + 0.5%
Year 4 CPI-U (0-6%) + 2%
3
Year 5 CPI-U (0-6%) + 0.5%
The cost also includes estimated healthcare premium increases of 5% each year, increased safety
shoe stipends, and the employers required hourly pension rehabilitation contribution of $11.46
for all hours compensated.
Other changes include the addition of the Juneteenth holiday, enhanced vacation accrual
formulas, a change to a lower cost medical plan in 2024, a re-opener in the event of a reduction
to the Port’s required hourly pension rehabilitation plan contributions, enhanced funeral leave,
enhanced sick leave
4
, and overpayment recovery language.
JUSTIFICATION
RCW Chapter 41.56 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 July 1, 2021, through June 30, 2026.
FINANCIAL IMPLICATIONS
Wages
Classification
Current
Rate
Effective
7/1/2022
Base
Hourly Rate
(+8%)
Auto-Machinists
$43.54
$47.02
1
Increases in years 2 through 5 were calculated at highest CPI-U values; if CPI-U is less than 6% on any given year,
the estimated costs should be less based upon the model used.
2
February 2021 to February 2022 CPI-U 8.1%; Employees to receive max 6% CPI-U + 2% for an 8% increase
3
Plus 2% bargained in conjunction with the employees moving to a less expensive healthcare plan
4
One additional day of sick leave
COMMISSION AGENDA – Action Item No. 8i Page 3 of 3
Meeting Date: May 24, 2022
Template revised September 22, 2016; format updates October 19, 2016.
Health and Welfare
Members of the bargaining unit are currently under the IAM&AW Medical Plan 10 where they
contribute one hundred dollars ($100) per month toward the cost of their medical insurance. The
current total monthly healthcare premium cost is $2,138.00. On July 1, 2024, members of the
bargaining unit will switch to IAM&AW Medical Plan 14, which is currently 18% less expensive
than the current plan.
Pension
Members of the bargaining group are enrolled in the Western Metal Industrial pension plan
where they currently share in the cost of improving this pension plan by contributing one
hundred dollars ($100) per month. The Port’s contribution for each hour compensated is
currently $19.41
5
.
Impact $
Year 1
Year 2
Year 3
Year 4
Year 5
$ 5,118.29
$284,290.44
$545,266.33
$869,902.37
$1,154,770.49
$129,752.30
$ 262,116.23
$396,372.60
$276,963.46
$307,914.36
$134,870.59
$546,406.67
$941,638.93
$1,146,865.83
$1,462,684.85
The estimated total additional cost to the Port of Seattle for the duration of the contract is
$4,232,466.87.
ATTACHMENTS TO THIS REQUEST
1. Collective Bargaining Agreement
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
Commission Authorization for Executive Director to Approve CBA February 26, 2019
5
$7.96 for pension contribution plus $11.46 contribution to the pension rehabilitation plan