COMMISSION AGENDA MEMORANDUM Item No. ACTION ITEM Date of Meeting DATE: March 11, 2025 TO: Stephen P. Metruck, Executive Director FROM: Greg Gauthier, Labor Relations Manager 8i March 11, 2025 SUBJECT: New 5-year Collective Bargaining Agreement Between the Port of Seattle and the International Union of Operating Engineers (IUOE) Local 302, Representing 135 Operating Engineers in our Aviation Maintenance Department Additional cost over term: $13,738,669 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 the Aviation Maintenance Department, covering the period from June 1, 2023, through May 31, 2028. 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 135 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 employees maintain and operate over nine miles of baggage handling systems and the Port's passenger loading bridges to provide support for our airline customers. The agreement is for five years covering the period from June 1, 2023, through May 31, 2028. The estimated total additional cost for wages, pension, healthcare, and other benefits is $13,738,669. The estimated additional cost per year of the contract is-- Year 1, $1,170,181; Year 2, $2,382,874; Year 3, $3,554,572; Year 4, $4,570,603; Year 5, $5,613,494. 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. COMMISSION AGENDA - Action Item No. 8i Meeting Date: March 11, 2025 Details Page 2 of 3 Term of the Agreement Retroactive to June 1, 2023, through May 31, 2028. FINANCIAL IMPLICATIONS Healthcare Premium Caps Current $1610 2023 $1,520 2024 $1,569 2025 $1,663.14 2026 $1,762.92 2027 $1,868.70 Wages Increase to Base Wage Rate as follows: 2023 7% 2024 6% 2025 5% 2026 4% 2027 4% License/Certification premiums increase from $2.00 to $2.35 per hour. Attachment 2 Pension Remains at 16.5% of gross compensation Vacation Additional Accruals as follows: Full months of continuous service Hire date through 35th month 36th month through 119th month 120th month through 179th month 180th month + Port Vacation Cash Out Language Previous 80 120 160 200 New 90 130 170 210 COMMISSION AGENDA - Action Item No. 8i Meeting Date: March 11, 2025 Page 3 of 3 Other Changes  Adding additional certifications (e.g. HVAC tech) to meet future demands      Amend the Day After Thanksgiving Holiday to Native American Heritage Day Amending gender specific language (e.g. his/her to they/them; Journeyman to Journey Level) Increased annual safety shoe stipend Amended to include Juneteenth into the body of the CBA Language clarifying no benefits paid on lump sum vacation and/or sick leave cashouts ATTACHMENTS TO THIS REQUEST (1) Collective Bargaining Agreement between the Port of Seattle and the IUOE Local 302 (red lined). (2) Exhibit A (Wage Rates) PREVIOUS COMMISSION ACTIONS OR BRIEFINGS October 8, 2019-Commission authorization of previous Collective Bargaining Agreement