COMMISSION AGENDA MEMORANDUM ACTION ITEM DATE: September 3, 2025 TO: Stephen P. Metruck, Executive Director FROM: Greg Gauthier, Labor Relations Manager Item No. Date of Meeting 8e September 9, 2025 SUBJECT: Port of Seattle - Laborers Local Union 242 affiliated with the Seattle Building Trades Memorandum of Understanding Re: Washington Protected Sick Leave for Emergency Hires, Limited Duration Employees, and Apprentices ACTION REQUESTED Request Commission authorization for the Executive Director to enter into an MOU with Laborers Local Union 242 affiliated with the Seattle Building Trades, allowing the Port to contribute a 2.5% PTO benefit for Emergency Hires, Limited Duration Employees, and Apprentices, as opposed to maintaining and managing the Washington Protected Sick Leave contributions on behalf of those employees. The MOU includes language indemnifying the Port relative to obligations associated with managing and maintaining Washington Protected Sick Leave contributions on behalf of those employees. EXECUTIVE SUMMARY The Port of Seattle and the Laborers Union Local 242 affiliated with the Seattle Building Trades, representing 119 Laborers at the Port of Seattle are parties to a Maintenance Agreement Addendum (MAA) expiring on December 31, 2028; 13 of the 119 Laborers are designated as either Emergency Hires, Limited Duration Employees, or Apprentices. According to the MAA, Emergency Hires, Limited Duration Employees and Apprentices are entitled to accrue and utilize Washington Protected Sick Leave in accordance with the minimum requirements of the Washington Paid Sick Leave Law, (a rate of one hour of paid sick leave for every 40 hours worked or 2.5% of hours worked). Currently, the Port maintains and manages those accruals. Recently, the construction rates negotiated between the Laborers Local 242 and their construction contractors, include a new 2.5% PTO benefit contribution made by employers that corresponds with the employer's obligations under the Washington Protected Sick Leave Law. The contractors now make those contributions on their employees' behalf into a trust managed system that employees can track and utilize. Template revised January 10, 2019. COMMISSION AGENDA - Action Item No. 8e Meeting Date: September 9, 2025 Page 2 of 2 Moving forward, the parties have agreed that instead of the Port maintaining and managing the minimum requirements under the Washington Protected Sick Leave Law on behalf of Emergency Hires, Limited Duration Employees, and Apprentices, the Port will submit those contributions to the designated union trust administered account for those employees. 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 Effective, the first day of the first payroll period after the execution of the MOU, the Port will contribute 2.5% into the union trust administered account on behalf of each Emergency Hire, Limited Duration Employee, and Apprentice. ATTACHMENTS TO THIS REQUEST (1) Memorandum of Understanding PREVIOUS COMMISSION ACTIONS OR BRIEFINGS August 13, 2024, Item 8h: New collective bargaining agreement between the Port of Seattle and the Seattle Building Trades Council on behalf of affiliated local unions. Template revised June 27, 2019 (Diversity in Contracting).