Resolution adopting negotiated changes to the 2025-2026 LELS (Sergeants) Labor Agreement.

Adoption of the attached resolution.

The City recently negotiated with the LELS (Sergeant) union a two-year labor agreement. Sergeants negotiated to remain on the overall City compensation system. Sergeants did negotiate a one-grade adjustment within the pay plan, requiring a subsequent movement of grade and step progression adjustments. 
 
In order to ensure a higher overall wage increase, changes to the insurance language were negotiated. This includes adjustments to the shared city/employee contribution levels for each insurance plan offered.
 
Substantive changes to the conditions and rules of work for the employees in the bargaining unit are as follows:
 
 Article 6. Sick

• Replace existing language to be in compliance with Earned Sick and Safe Time (ESST) State requirements.
• Language is added to clarify the specific eligibility to participate in the early notification of the retirement program. 

Article 19. Insurance

• Negotiated a new City/Employee premium contribution level for each plan offered:

 Article 20. Health Savings Account

• Add additional language which allows for a City contribution to an HSA for the employees who elect the $5,000 High Deductible Health Plan, which is calculated based on the difference of the monthly City premium contribution between the $3,300 HDHP and the $5,000 HDHP.
• One-time incentives for those who switch from a non-high-deductible health plan to a high-deductible health plan. The regular monthly City HSA contribution will instead be paid in two lump sums (January and July) in the year they choose to change plans.

 Article 22.  Wages

• Employees will remain on the overall City Compensation pay plan. 3% general wage increase over 2024.
• Negotiated to move one grade up within the pay plan, PM4 to PM5.
• Transition to the new grade the first pay period of 2025, employees will transition to the new PM5 grade at a new specified step outlined within the contract. As part of this transition, employees will forego additional step progression in 2025. Step progression will resume in 2026.
• On average, employees will see a 9% increase in 2025.

 Article 22.  Wages

• Effective January 1, 2026, employees will contribute 50% of the mandatory payroll tax associated to MN Paid Family Medical Leave. The City will contribute the remaining 50% of the mandatory payroll tax.

 Article 23.  State of Emergency

• Add the Mayor to the list of those to declare a state of emergency.

 Article 26.   Duration

• The agreement shall be effective as of January 1, 2025, and shall remain in full force and effect until December 31, 2026.