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INTRODUCTION Employee Relations Summary Employee Groups Negotiations Calendar

1. INTRODUCTION Employee Relations Summary Employee Groups Negotiations Calendar History of Salary & Benefit Improvements Negotiations Process The M.O.U. Roles During Negotiations Communication with Union During Negotiations Parameters: the 1% Number. 2.

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INTRODUCTION Employee Relations Summary Employee Groups Negotiations Calendar

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  1. 1 INTRODUCTION • Employee Relations Summary • Employee Groups • Negotiations Calendar • History of Salary & Benefit Improvements • Negotiations Process • The M.O.U. • Roles During Negotiations • Communication with Union During Negotiations • Parameters: the 1% Number

  2. 2 Employee Relations Program Summary Program Budget Excerpt

  3. 3 The City’s Employee Groups Total= 1075 regular employees

  4. 4 Negotiations Calendar Below is the expected negotiations calendar. Actual negotiation periods may differ. Management salary plan cost-of-living increases traditionally granted in July, salary plan expires 6/30/08 Confidential employees traditionally receive same increase as General Employees

  5. 5 Recent History- Salary & Benefit Increases

  6. Compensation/Benefits • Purpose is to • Recruit great people • Retain great people • Not spend more of taxpayer money than necessary • We seek a compensation that is: • Internally equitable • Competitive (in our labor market) • Affordable/cost effective (#1 budget expense) • Legal/defensible (City Charter, state & federal laws) • Understandable • Appropriate for the City & its workforce • City Compensation • Base salary is frequently lower than private sector • Retirement is HUGE for retention • Medical benefits also very important to retention

  7. 7 Overview of Typical Negotiations Process • Chief Negotiator selected • City: Attorney (sometimes) and Kristy Schmidt • Union: Union Attorney (sometimes) and union president • Negotiating teams selected • Union proposal(s) received, sometimes at first meeting • City’s Negotiators bring proposal(s), with cost and budget info, to Council in closed session • City Administrator may recommend what he thinks City can afford in closed session • Council gives Negotiator cost parameters & authority to reach agreement within those parameters • City and union negotiators meet and attempt to reach agreement within Council’s parameters • Traditional negotiations: Teams meet to exchange proposals, discuss in group, caucus separately, repeat • Interest-based negotiation: Teams work together to identify each team’s interests and options to meet those interests • City Negotiator keeps City Administrator and Council informed of progress (closed session) • Negotiators reach agreement or impasse • If agreement reached, Union employees “ratify” the new MOU • Council approves the new MOU

  8. 8 Memorandum of Understanding (MOU) Required by the MMBA once agreement is reached Equivalent to a private sector collective bargaining agreement Typically covers: Agreements about wages and benefits Agreements about working conditions (work schedules, safety, EEO, etc.) Agreements about City-union relations, management rights, and union rights Procedures for employee grievance resolution, layoff, etc. The membership of the union votes to “ratify” the agreement at a special meeting Council adopts the MOU by Ordinance, which means the terms can supplant inconsistent terms in the Municipal Code (but not the Charter)

  9. 9 ROLE OF CITY NEGOTIATOR • City Negotiators are agents for the City Council • Council sets the direction of negotiations, the Negotiator implements that direction • City Negotiators’ Responsibility is to • Get Direction From The City Council in Closed Session • Keep The City Council Updated on Negotiations • Speak For The City Council In Negotiations • Work with Management to Assess Operational Impacts of Proposals and Minimize Negative Operational Impacts • Determine Bargaining Strategy

  10. 10 ROLE OF CITY COUNCIL • Give Cost Parameters • Council’s cost parameters relate to the value of the total package • Negotiator should be provided considerable flexibility to customize agreements within cost parameters • Receive info from negotiations and provide ongoing direction in closed session • Approve final agreement • Delegate the sole authority to speak for the City Council during negotiations to City’s Chief Negotiator

  11. 11 DIRECT COMMUNICATION WITH THE UNION REGARDING NEGOTIATIONS • You will probably be approached during negotiations • Individual direct communication/negotiations with unions can jeopardize City Negotiator’s ability to represent the full Council at the table • Nevertheless, helpful communication with union representatives is still possible. It is recommended that you: • Listen, without disclosing the Council’s position • Inform them that you will consider the information, but only the City’s Negotiator speaks for the Council as a whole • Bring new information to City’s Negotiator • Council can discuss with City’s Negotiator in closed session

  12. 12 RESOLUTION OF IMPASSE WHAT IF WE CAN’T AGREE? • City Negotiator returns to City Council with final proposals • Mediation (not binding) • City Council may take unilateral action to preserve the status quo or adopt City’s “last, best and final” offer

  13. 13 Estimated cost of a Salary Increase(the 1% number) Frequently the negotiating parameters set by Council are framed in terms of the 1% number. The 1% number is the annual cost (ongoing budget expense increase) of providing a 1% salary increase to all members within a bargaining unit. It includes both the cost of the salary increase, and the additional cost related to the increase in salary-driven benefits, such as PERS, Worker’s Compensation, and Medicare. The 1% number does not include any increased overtime costs. We use it to value the cost of any salary or benefits improvements (e.g., The cost of this medical insurance benefit is equal to a 0.2% salary increase). 1% NUMBER- ESTIMATED FY 2004- 2005

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