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AGENDA RECOMMENDATION |
6.F.
City Council Regular Meeting
- Meeting Date:
- 04/14/2025
Agenda Item:
Resolution adopting negotiated changes to 2025-2026 LELS (Commander) Labor Contract.
Recommendation/Action(s):
Adoption of the attached resolution.
Summary:
The City recently negotiated a two-year labor agreement with the LELS (Commanders) union. As part of the agreement, the Commanders negotiated to be removed from the City's overall compensation system and establish a standalone step-based pay structure. This change was necessary to ensure the position remains market competitive, maintain an appropriate wage differential between Commanders and those they supervise, and comply with Minnesota Pay Equity standards.
Additionally, the agreement includes adjustments to the cost-sharing structure for health insurance premiums between the City and employees. To achieve these goals, the Commanders will receive a total wage adjustment equivalent to a 12% increase from their current placement on the City's pay plan.
Effective January 1, 2026, wage adjustments include a general increase of four percent (4%).
Substantive changes to the conditions and rules of work for the employees in the bargaining unit are as follows:
Article 6. Sick
Article 20. Health Savings Account
Additionally, the agreement includes adjustments to the cost-sharing structure for health insurance premiums between the City and employees. To achieve these goals, the Commanders will receive a total wage adjustment equivalent to a 12% increase from their current placement on the City's pay plan.
Effective January 1, 2026, wage adjustments include a general increase of four percent (4%).
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 follow Earned Sick and Safe Time (ESST) State requirements.
- Establish a cap to the maximum an employee can accumulate sick leave to 960 hours.
- Increase the payout of sick leave upon separation from 25% to 35%.
- Language is added to clarify the specific eligibility to participate in the early notification of the retirement program.
- Negotiated a new City/Employee premium contribution level for each plan offered:
| Single | Family | |||
| Health Plan | City Contribution | Employee Contribution | City Contribution | Employee Contribution |
| Traditional $100 CMM | 90% | 10% | 85% | 15% |
| $3,300 HDHP | 95% | 5% | 90% | 10% |
| $5,000 HDHP | 100% | 100% | 100% | 100% |
Article 20. Health Savings Account
- Add additional language to match non-union employee participation, which allows 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.
- Create a new five-step pay structure, removing the position from the overall City compensation pay plan.
- Overall wage increase of 12% to the new pay structure.
- Removal of any shift differential stipend eligibility.
- Effective January 1, 2026, employees will contribute 50% of the mandatory payroll deduction associated with MN Paid Family Medical Leave. The City will contribute the remaining 50% of the mandatory payroll deduction.
- Add the Mayor to the list of those to declare a state of emergency.
- The agreement shall be effective as of January 1, 2025, and shall remain in full force and effect until December 31, 2026.