Template revised September 22, 2016.
COMMISSION
AGENDA MEMORANDUM
Item No.
8g
ACTION ITEM
Date of Meeting
November 29, 2022
DATE: November 29, 2022
TO: Stephen P. Metruck, Executive Director
FROM: Mikel O’Brien, Interim Senior Director of Labor Relations
Matthew Bullock, Labor Relations Manager
SUBJECT: New Memorandum of Understanding between the Port of Seattle and the Seattle
Building and Construction Trades Council and its Affiliated Unions; Laborers Local
Union, Local No. 242 and International Union of Operating Engineers, Local No. 302
Total Port Cost Increase for the Duration of the Agreement: $51,527.00
ACTION REQUESTED
Request Commission authorization for the Executive Director to execute a new Memorandum of
Understanding (MOU) between the Seattle Building and Construction Trades Council and its
Affiliated Unions, representing Laborers and Operating Engineers at Port Construction Services
(PCS) covering the period from December 1, 2022, through December 31, 2023.
EXECUTIVE SUMMARY
Good faith bargaining between the Seattle Building and Construction Trades Council and its
Affiliated Unions, and the Port of Seattle resulted in a fair collective bargaining agreement
consistent with Port’s priorities.
There are currently ten (10) Laborers and two (2) Operating Engineers employed at the Port who
regularly work for PCS. Laborers are generally involved in construction and engineering
operations using a variety of hand and power tools. Operating Engineers are generally involved
in the piloting vehicles necessary to perform the work all other heavy construction and
engineering operations.
Prior to this agreement, Local 242 represented Laborers and Local 302 representing Operating
Engineers working at PCS were not covered by a Collective Bargaining Agreement between the
Port of Seattle and Laborers Local Union, Local No. 242 and International Union of Operating
Engineers, Local No. 302. Wages, health coverage, and pension, unless otherwise modified by
the terms of the agreement, are paid in accordance with the terms negotiated between the
Laborers Local Union, Local No. 242 and International Union of Operating Engineers, Local No.
302 and the Association of General Contractors (AGC).
COMMISSION AGENDA – Action Item No. 8g Page 2 of 3
Meeting Date: November 29, 2022
Template revised September 22, 2016; format updates October 19, 2016.
This MOU is for thirteen months covering the period from December 1, 2022, through December
31, 2023. The estimated total additional cost for wages and benefit increases over the term is
$51,527.00.
The cost is based on an annual wage and benefit increases of an estimated 4% each year of the
CBA
1
and with the assumption of similar hours worked by each of the two current employees.
The cost also consists of the additional costs associated with an annual safety shoe stipend for
each employee.
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
December 1, 2022, through December 31, 2023.
FINANCIAL IMPLICATIONS
Wages
Classification
Current
Rate
6/1/2023
Base
Hourly Rate
(* +4%
estimated
increase)
Laborer
$43.90
$45.66*
Operating
Engineer
$52.72
$55.09
Health and Welfare
The Port currently contributes $7.55 per hour worked to the Laborer Health and Welfare on
behalf of each employee. The Port currently contributes $7.67 per hour worked to the Operating
Engineer Health and Security on behalf of each employee.
Pension
1
Wage rate, health insurance contributions, pension contributions, apprenticeship contributions all subject to the
terms of the agreement between the AGC and Local 242 and Local 302; current figures only negotiated between
those parties until 5/31/2024.
COMMISSION AGENDA – Action Item No. 8g Page 3 of 3
Meeting Date: November 29, 2022
Template revised September 22, 2016; format updates October 19, 2016.
The Port currently contributes $5.30 per hour worked to the Laborer Pension Trust fund on behalf
of each employee. The Port currently contributes $14.40 per hour worked to the Operating
Engineer Pension Trust fund on behalf of each employee.
Notable Items in the new CBA
• Bi-weekly pay and direct deposit
• Grievance procedure
• Paid Parental Leave language
• Education and development opportunities
• Commuter trip Reduction language
• Annual safety shoe stipend
Laborer
Impact $
Year 1
$40,177
TBD
$40,177
Operating Engineer
Impact $
Year 1
$9,669
$4,488
$14,157
The estimated total cost to the Port of Seattle for the duration of the contract is $51,527.00.
ATTACHMENTS TO THIS REQUEST
(1) Memorandum of Understanding
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
None