A 2-year agreement with Teamster Local 190 tentatively was reached on Aug. 16, 2011.  The contract is scheduled to be voted on by Teamsters members  the week of Aug. 29th.  Pending approval of that group, the contract now comes to the City Council for ratification.  The contract covers a period from July 1, 2011, through June 30, 2013. 

• A 0% cost of living adjustment (COLA) for fiscal year (FY) 2011 and a 2.5% COLA for FY 12 for Teamsters employees, the same increases as the Council previously approved for the same period for the Montana Public Employees Association -- Billings Police Chapter;
• A $950 City contribution per non-probationary Teamster employee in each year of the contract toward either the ICMA or Nationwide 457 deferred compensation plans, as selected by the employee;
• Standby pay increases of 20 cents per hour for Airport Rescue and Fire Fighter (ARFF) employees from Oct. 1 through March 31 and 15 cents per hour for other Teamster employees in the first year of the contract; and 18 cents per hour for all employees in the second year of the contract;
• Shift differential increases of 10 cents per hour for the afternoon shift (6 p.m. to midnight) and 10 cents per hour for the graveyard shift (midnight to 6 a.m.) for all Teamsters who work those shifts;
• A $130 increase in annual uniform allowances and provision of a rain suit, if requested, for MET Transit drivers;
• Parks and Recreation employees' shifts to be modified from a 6:30 to 3 p.m. shift year-round to a 6 a.m. to 2:30 p.m. shift April 15 through the Friday preceding Labor Day and from 7 a.m. to 3:30 p.m. the rest of the year; and
• Clarifications of safety provisions for all employees and promotional procedures at the Water and Wastewater Treatment plants.

The standby and shift differential pay increases are the first that have been negotiated with Teamsters in about a decade. With a 0% COLA and anticipated significant health insurance premium increases, Teamster employees are expected to take home less pay in FY 2011 than they did in FY 2010.
 
A simple majority vote of the Council Members present is needed for approval.  The revised agreement is attached with additions shown in bold and underlined and deletions shown as strikeouts. 
 

The Council may:

• Ratify the contract; or
• Direct staff to modify the contract, which will lead to renewed negotiations; or
• Decline to approve the contract, which will lead to renewed negotiations.

Additional costs of the proposed contract for each year are expected to be:

Year 1:  Total $405,963

• $950 deferred compensation contribution per non-probationary employee           $361,233
• Standby pay increase                                                                                             $  17,400
• Shift differential increase                                                                                        $  22,000    
• MET  uniforms increase                                                                                           $    5,330

Year 2:  Total $460,180

• 2.5% Cost of Living Adjustment (COLA)                                                                  $439,880
• Standby pay increase                                                                                              $ 20,300

 A 1-year contract with the Teamsters approved by the Council in September 2010 cost $520, 925, including a 2.9% COLA.

Staff recommends that the City Council ratify the contract.