Resolution adopting negotiated changes to the Teamsters 320 (Public Works Utilities) Contract for 2026-2027.

Adoption of the attached resolution.

The City recently negotiated with the Teamsters 320 (Public Works Utilities) union a two-year labor agreement. Members negotiated to remain on the overall City compensation system as well as adjusting health insurance premium contribution and health savings employer contribution language to reflect similarly to non-union benefits.
 
There were a number of minor language changes made to the contract for housekeeping and clarification purposes. Other substantive changes to the conditions and rules of work for the employees in the bargaining unit are as follows:
 
Article 9. Work Schedule

• Increase Shift Differential from .85 to $1.00 per hour
• If more than half of the shift is worked within the specified time frame, then the entire shift will receive a shift differential.

Article 10. Overtime Pay

• Include language when an employee works more than twelve hours in duration, any hours over twelve are paid at double time.

Article 11. Call Back/On Call

• Added language to reflect that if call back hours worked are more than 1.5 hours, then the employee will receive a minimum of 3 hours' pay for work performed.
   

Article 18. Sick Leave

• Adjust sick use language to reflect the Earned Sick and Safe leave policy

Article 20. Uniforms

• Increase uniform allowance from $300 to $400

Article 25. Insurance

• Adjust language to reflect new percentages for employer employee contributions. These are in alignment with the non-union employee premium structure.

Article 27.  Wages

• Employees will continue to remain on the overall City compensation pay plan. 3% general wage increase and a 2% market adjustment over 2025.
• Add language to clarify when employees are eligible for the Tenure wage step.

Article 27.  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 32.  Duration

• The agreement shall be effective as of January 1, 2026, and shall remain in full force and effect until December 31, 2027.