BOARD MEETING DATE: June 4, 2010
AGENDA NO. 38

PROPOSAL:

Approve One-year Labor Contract with Teamsters Local 911 and Approve Comparable Terms for Non-Union-Represented Employees

SYNOPSIS:

AQMD management and representatives of Teamsters Local 911, representing the Technical & Enforcement and Office Clerical & Maintenance Bargaining Units, have reached agreement on a new one-year labor contract. Consistent with Board direction, this contract provides no salary increases or other cost changes beyond an adjustment to AQMD’s monthly contribution toward health benefits, effective September 1, 2010, to maintain current levels of health benefits and a technical revision to the overtime provisions to ensure union represented AQMD employees are treated equitably in the accounting of overtime hours. Bargaining unit members have ratified this agreement, and this action is to present the ratified contract to the Board for approval. This action is also to approve the same adjustment to AQMD’s contribution toward health benefits to maintain benefits levels for all non-union-represented employees, also effective September 1, 2010. This action requires an appropriation of $1.349 Million to the FY 2010-11 Budget.

COMMITTEE:

Not Applicable

RECOMMENDED ACTIONS:

1. Authorize the Executive Officer to sign the ratified one-year memorandum of understanding (MOU) between AQMD and Teamsters Local 911, covering employees in the Technical & Enforcement and Office Clerical & Maintenance Bargaining Units. Teamster MOU changes are shown in Attachment A. All other MOU provisions remain unchanged from July 1, 2009-June 30, 2010, MOU.
   
   
2. Adopt the Resolution in Attachment B, amending AQMD’s Administrative Code to approve, for all non-union-represented employees, the same sixteen percent adjustment to the agency’s health benefits contribution as included in the labor contract, shown in Attachment C.
   
   
3. Appropriate $1.349 Million from the Undesignated Fund Balance to the FY 2010-11 Budget, Salaries and Employee Benefits Major Object.
    

Barry R. Wallerstein, D.Env.
Executive Officer

Background

On July 10, 2009, the Board approved a new one-year labor contract through June 30, 2010, for both the Technical & Enforcement and the Office Clerical & Maintenance Units, represented by Teamsters Local 911. AQMD management has reached agreement with this union, consistent with Board guidance, for a successor agreement for the period July 1, 2010, though June 30, 2011, and this agreement has been ratified by bargaining unit members.

Also, on July 10, 2009, the Board approved, for non-union-represented employees, comparable adjustments to those approved for union-represented employees.

Proposal

In recognition of the current economic environment, a one-year labor agreement was negotiated—and subsequently ratified by bargaining unit members—that include no salary or other cost changes beyond maintenance of employees’ current levels of health coverage by a sixteen percent adjustment in AQMD’s monthly contribution toward health insurance premiums, effective September 1, 2010 and a technical revision to the overtime provision. Apart from these adjustments, MOU changes shown in Attachment A reflect only updates to the agreement and a new authorized agent for AQMD management. All other MOU provisions remain the same as in the current MOU.

Attachment C reflects revisions to the Administrative Code that provide the same sixteen percent adjustment in AQMD’s contribution toward health insurance premiums, effective September 1, 2010, to maintain current levels of health coverage for all non-union-represented employees.

Negotiations for a successor MOU with the Professional employees are continuing.

Resource Impacts

The cost for FY 2010-11 of this maintenance of health benefits for AQMD employees represented by Teamsters Local 911 and for all non-union-represented employees is approximately $1.338 M, and the cost of the technical overtime revision is $11,000.

Funding for this adjustment requires an appropriation of $1.349 M to the FY 2010-11 Budget from the Undesignated Fund Balance.

Attachments (EXE, 63k)

Attachment A – Changes to Teamster MOU

Attachment B – Resolution

Attachment C – Administrative Code Amendment