COMMISSION AGENDA MEMORANDUM ACTION ITEM Item No. Date of Meeting 8g June 9, 2026 DATE: June 2, 2026 TO: Stephen P. Metruck, Executive Director FROM: Milton Ellis, Assistant Director of Labor Relations SUBJECT: New Collective Bargaining Agreement Between the Port of Seattle and the International Brotherhood of Teamsters, Local 763, Teamsters, Representing Police Commanders Total Port Cost Increase for the Duration of the Agreement: $505,681 ACTION REQUESTED Request Commission authorization for the Executive Director to execute a new collective bargaining agreement between the Port of Seattle and the International Brotherhood of Teamsters, Local 763, representing Police Commanders at the Port of Seattle Police Department covering the period from January 1, 2026, through December 31, 2028. EXECUTIVE SUMMARY Good faith bargaining between the International Brotherhood of Teamsters, Local 763, representing Police Commanders and the Port of Seattle resulted in a fair collective bargaining agreement consistent with the Port's priorities. There are currently eight (8) Police Commanders employed at the Port of Seattle who are assigned to the Port of Seattle Police Department. Police Commanders are part of the Port of Seattle Police Department command staff and supervise the day-to-day activities of Port of Seattle Police Sergeants and Police Officers. This agreement is for three years, covering the period from January 1, 2026, through December 31, 2028. The estimated total additional cost for wages and benefit increases is $505,681. The estimated cumulative cost per year of the contract is: year one, $90,404 year two $266,318, and year three, $505,681. . The cost is based upon a four percent (4.9%) wage increase in year one of the agreement (based on a differential of 25% over Sergeant A); a four percent (4.0%) wage increase in year two of the agreement; and a Cost-of-Living increase in year three of the agreement. COMMISSION AGENDA - Action Item No. 8g Meeting Date: June 9, 2026 Page 2 of 4 The cost also consists of a 4.5% increase in health insurance in year one, and an estimated 5.0% increase in health insurance in years two and three of the agreement. Other changes consist of a modification of the awarded time provision where members of the bargaining group will be allowed to cash out up to thirty-five (35) hours for the term of the contract; all cash out and lump sum payments associated with pension and benefit contributions shall be addressed in accordance with law; members of the bargaining group will be eligible to test at the Exercise Science Center (ESC) for physical fitness; Other changes include employees paying an additional $15 per month in employee premium share for a total of $160 per month effective upon ratification of the agreement. The Port increased its contribution of the Pacific Coast Benefits Trust supplemental pension from $1.40 per hour compensated to $1.50 per hour compensated for members in the bargaining unit. The Teamsters Retiree Welfare Trust provision was modified to reflect a monthly contribution of fifty dollars ($50). JUSTIFICATION RCW Chapter 41.56 requires the Port of Seattle to collectively bargain wages, hours, and conditions of employment with the exclusive bargaining representative designated by the employees. DETAILS Term of the Agreement Retroactive to January 1, 2026, through December 31, 2028. FINANCIAL IMPLICATIONS Wages Classification Current Rate Effective 1/1/26 Base Hourly Rate negotiated +4.0%) adjusted to 4.9% to maintain differential of Effective 1/1/27 Base Hourly Rate (4.0%) Effective 1/1/28 Base Hourly Rate (Estimated 3% COLA) COMMISSION AGENDA - Action Item No. 8g Meeting Date: June 9, 2026 Page 3 of 4 25% above Sergeant A Police Commander $97.91/hour $102.70/hour $106.81/hour $110.01 (Estimate) Employees were provided with a four percent (4.0%) increase in year one of the agreement ; a four percent (4.0%) increase in year two of the agreement; and an estimated cost-of-living increase of three percent (3.0%) in year three of the agreement based on the Seattle/Tacoma/Bellevue CPI-U (All Urban Consumers) October to October Index in year three of the agreement. Health and Welfare Members of the bargaining group are currently enrolled in Teamsters Medical Plan A where they are contributing one hundred twenty-five dollars ($150) per month toward the cost of their medical insurance. The contract provides for an increase in the amount of premiums share paid by employees of $15 effective upon ratification of the agreement between the parties. Total employee medical contribution will therefore increase to $165 per month in year three of the agreement. Pacific Coast Benefits Trust Supplemental pension The Port increased its contribution to the Pacific Coast Benefits Trust supplemental pension from $1.40 per hour compensated to $1.50 per hour compensated for all members of the bargaining unit effective upon ratification between the parties. Other Changes • Cash out of up to thirty-five (35) hours of award time for the term of the agreement. • All cash out and lump sum payments associated with pension and benefit contributions shall be addressed in accordance with law • Members of the bargaining group are eligible to test at the Exercise Science Center (ESC) for physical fitness. COMMISSION AGENDA - Action Item No. 8g Meeting Date: June 9, 2026 Page 4 of 4 Cost Impact $ Pay Benefits Total New Money Year 1 $ 75,324 $ 15,079 $ 90,404 Year 2 $ 146,511 $ 29,403 $ 175,915 Year 3 $ 197,033 $ 42,329 $ 239,362 Total Cumulative Cost $ 90,404 $ 266,318 $ 505,681 The estimated total cumulative cost to the Port of Seattle for the duration of the contract is $505,681 ATTACHMENTS TO THIS REQUEST 1. Collective Bargaining Agreement PREVIOUS COMMISSION ACTIONS OR BRIEFINGS None