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STAFF REPORT <br />DATE: March 19, 2024 <br /> CONSENT <br /> <br />AGENDA ITEM: Approve Tentative Agreement with Local 49ers <br />SUBMITTED BY: Karissa Goers, Administrative Services Director <br />REVIEWED BY: Marty Powers, Public Works Director <br /> <br />BACKGROUND: <br />The existing Labor Agreement with the Local 49ers expired on December 31, 2023. City staff and Local <br />49 entered into negotiations starting in Fall 2023. No agreement was reached, so the City and Local 49 <br />entered into mediation on February 28th. A tentative agreement was reached after one day of mediation and <br />the members of the labor union voted to accept the 2024 agreement. <br /> <br />ISSUE BEFORE COUNCIL: <br />Should Council approve the 2024-2026 Labor Agreement with Local 49? <br /> <br />PROPOSAL DETAILS/ANALYSIS: <br />The contract documents the parties’ agreements related to wages and other working conditions and lays out <br />the process for addressing disputes. <br /> <br />The new contract remains consistent with the contract that expired on December 31, 2023, except for the <br />following alterations; <br />- This contract moves from the City’s recent one-year contract with Local 49 to a three (3) year <br />contract, ending December 31, 2026. <br />- The City will cover 90% of the health insurance premium increase for 2024, which is a 1% <br />increase to the City’s current contribution. <br />- Juneteenth will be added to the Holiday list. <br />- Memorial Day and July 4th will be added to holidays where double-time compensation will be <br />paid for hours worked. <br />- Adding a one-time boot allowance for winter boots of $225 in 2025. <br />- Update PTO language per the request of the Minnesota State Retirement System. <br />- Wage increases. The union is requesting to adopt the city’s current 2024 salary range and step <br />plan. They will receive a 3% increase on their current 2023 wages and then be placed at the <br />corresponding step on the City’s 2024 Salary Range and Step Plan. They will move to the next <br />step on January 1st following the City’s annual review period. They are requesting a 3% COLA <br />increase for 2025 and 2026. A wage scale reflecting these changes is attached. This request is <br />consistent with what non-represented employees have received. However, it should be noted <br />that if the 2025 and 2026 COLA increase varies from 3% for non-represented employees, then <br />the City may end up with two salary range and step plans, one for represented employees and <br />one for non-represented employees. <br /> <br /> <br />FISCAL IMPACT: <br />The proposed wage increase has been provided for in the 2024 budget. Additionally, the 2024 budget <br />included an increase for all insurance plans which covers the additional 1% contribution. The 2025 and <br />2026 proposed wages will need to be considered during planning for those budget years. <br />