The City Council is being asked to approve a tentative agreement for the renewal of a labor contract between the Teamsters - Local 190 and the City of Billings.  This negotiated agreement will replace the one that was in effect from July 1, 2018, through June 30, 2021.  Staff recommends City Council approve the proposed collective bargaining agreement with the Teamsters - Local 190.

The Consumer Price Index (CPI-U) during the months both parties were negotiating increased 4.2% in April, 5% in May, and 5.4% in June from the same month, a year ago.    Almost all positions at the City are advertised “open until filled”, still resulting in small applicant pools.  Some positions are advertised for weeks and even months without a qualified applicant.  The City is not alone, but it is more critical than ever that pay remains competitive.  The increased CPI-U coupled with recruitment and retention difficulties were the main drivers in negotiating the following changes. 

The City began negotiations on April 28, 2021, and met several times before reaching a tentative agreement with the Teamsters on July 7, 2021.  Both parties agreed to extend the contract past June 30, 2021, in an effort to reach a new agreement.  The Teamsters' members voted in favor of accepting the tentative agreement on August 10, 2021.  If approved by City Council, then the contract will go into effect retroactively from July 1, 2021, and continue through June 30, 2024.

Changes to the collective bargaining agreement include:

• A 3.0% cost of living adjustment (COLA) for the first year of the contract, effective retroactively to July 1, 2021;
• A 3.0% COLA for the second year of the contract, effective July 1, 2022;
• A 3.0% COLA for the third year of the contract, effective July 1, 2023;
• Standby pay will increase from $1.75 per hour to $2.00 per hour;
• Graveyard Shift Differential pay (Midnight to 6:00 a.m.) will increase from $0.95 per hour to $1.25 per hour;
• Employees will be eligible to take their two Personal days in 15 minute increments, instead of full-day increments;
• The City will provide $75 every other year to an employee who must purchase prescription safety glasses in order for them to perform their job duties safely;
• The City will provide Compensatory time (at straight time), instead of vacation time, as an incentive for its employees who maintain good attendance.  The incentive will be calculated every 4 months, instead of annually, beginning July 1, 2021;
• For the purposes of computing overtime, sick leave will not be considered hours worked.  Sick days taken during the workweek will be excluded from hours worked when calculating overtime.  Hours worked beyond a normal shift are paid at the overtime rate;
• If an employee is disciplined and suspended without pay, then the employee shall be restricted from cashing out any compensatory time during the current pay period, and the pay period immediately after the initial disciplinary period.
• Formalized the holiday for the day after Thanksgiving in lieu of the Columbus Day holiday;
• Updated Military Leave language to mirror state statute;
• Updated Safety language to include: obey all Federal, State, and local laws;
• The City agreed to increase the boot allowance from $130 to $150 annually with the additional language: Employees separating from service within 60 days are not authorized to purchase new safety shoes without preapproval from their supervisor.  If an unauthorized purchase is made during this time, then the employee will reimburse the City for the cost;
• Updated language regarding notification to the Union by the City regarding new hires;
• Clarified the shift bidding process in Solid Waste Collections and Landfill;
• Clarified MET Transit language to state: All blocks of work will have no more than two start times;
• Revised Memorandum of Understanding regarding cold weather gear to include not only Solid Waste and Street/Traffic, but also Distribution and Collection, and Water and Water Reclamation employees.  The employees will be provided $140 every other year, instead of $65 every year to purchase either a coat, a bib overall, a coverall, or a sweatshirt;
• Eliminated Treatment Technician I and II classifications resulting in some employees being reclassified to Treatment Technician III's;
• Communication Center employees will be provided 12 hours of rest between consecutive 16-hour shifts;
• Police Support Specialists will be reclassified from grade C39 to C47.

A copy of the contract is available for review in the City Clerk's office.
 

City Council may:

• Approve the contract as presented, with a cost of living adjustment effective retroactively to July 1, 2021;
• Postpone action on the contract to obtain additional information; or
• Deny approval of the contract, forcing both parties to resume negotiations.

The costs associated with implementing this contract are as follows:

• The cost of living adjustment (COLA) will cost approximately $766,743 in each year of the contract.
• The cost of increasing Standby pay from $1.75 per hour to $2.00 per hour is $14,000 in each year of the contract.
• The cost of increasing Graveyard Shift Differential pay from $0.95 to $1.25 is $15,000 in each year of the contract.
• The cost of increasing the boot allowance from $130 to $150 is $5,000 in each year of the contract.
• The cost to reclassify the Police Support Specialists from grade C39 to C47 is approximately $45,000.
• The cost to reclassify the Water Treatment Technician I and II job classifications to Treatment Technician III is approximately $34,000.

As you are aware, the FY22 budget included a 2% COLA; however, if this contract is approved then the City Council will be asked to approve a budget amendment to account for the additional 1% in wages.  The 1% budget adjustment for Teamsters' employees is $255,581.

While not directly related to the Teamster contract, staff will also request a budget amendment consistent with the Teamsters' increase for Non-bargaining employees.  The 1% budget adjustment for Non-bargaining employees is $240,319.