TITLE
Recommendation to adopt resolution approving 2023-2026 Memorandum of Understanding with the International Brotherhood of Electrical Workers (IBEW). (Citywide)
DISCUSSION
In accordance with direction from the City Council, a 2023-2026 Memorandum of Understanding (MOU) agreement has been reached with the International Brotherhood of Electrical Workers (IBEW), which now represents both the Skilled and General Supervisory Unit and the Skilled and General Basic Unit, which was previously represented by the Association of Long Beach Employees (ALBE). In May of 2023, the Public Employment Relations Board (PERB) approved the merger of ALBE to the IBEW bargaining unit. The IBEW now represents approximately 660 employees in both units with a consolidated MOU.
City leadership and IBEW representatives held three negotiations sessions since May 2023 regarding a new MOU. The current MOU expires on September 30, 2023. A tentative agreement has been reached and jointly signed by representatives of the City and IBEW.
General MOU Terms
The City and IBEW worked collaboratively on a tentative agreement to ensure fair and competitive compensation for our employees. For this MOU negotiation, the City and IBEW engaged the labor negotiation process with a different approach compared to previous negotiations. Both sides worked collaboratively on an approach to identify certain positions that were compensated below the market compared to other similar public agencies and apply an equity increase to help bring those positions closer to the market rate. To achieve this, the City utilized comprehensive compensation data to gain a clear understanding of the local job market and industry standards and worked with IBEW to identify the positions that would be appropriate to receive the equity adjustment. In working with IBEW, the goal was to foster a collaborative atmosphere that concentrated on an equity - driven approach that aimed to elevate as many job classifications as possible that were below the market rate. The City allocated resources in this way which is different than the traditional model of applying the same general wage increase to all classifications or increasing skill pays. This approach not only ensures that our employees are fairly compensated for retention purposes, but also helps maintain our organization’s competitiveness and attractiveness as an employer of choice.
IBEW Tentative Agreement Major Provisions:
1. General Wage Increase for IBEW classifications in the Skilled and General Basic and Supervisor Units:
a. 3 percent effective the pay period including October 1, 2023, or the first full pay period following City Council adoption, whichever comes later.
b. 1 percent effective the pay period including October 1, 2024.
c. 1 percent effective the pay period including October 1, 2025.
2. Equity adjustments for Skilled and General Basic Unit of IBEW:
a. 1 percent equity adjustment: classifications 0-10 percent below market median
b. 8 percent equity adjustment: classifications 10-20 percent below market median
c. 15 percent equity adjustment: classifications 20-40 percent below market median
d. 20 percent equity adjustment: classifications 40 percent or more below market median
e. Utility specific positions are receiving bands based on a prior compensation study completed jointly by the City and IBEW.
3. Supervisory Differential increases: One-time equity adjustment to salary schedules for specific IBEW Skilled and General supervisory unit classifications to ensure that step 7 of the supervisor’s salary is approximately 25 percent higher than step 4 of their highest paid subordinate. The adjustment to salary schedules, where applicable, varied from 1 to 20 percent.
4. Boot Allowance increase: Boot allowance shall be increased from $250.00 to $350.00 per year.
5. Overtime-bank increase: Increase maximum of overtime that employees can bank to a maximum of 90 hours for all bargaining unit employees. This maximum previously only applied to the supervisory unit and utilities specific classifications in the basic unit.
6. Skill Pay updates: Removal or modification of inactive or obsolete skill pays, and addition of new skill pays to support various department’s new operational needs.
7. Special Pay Increases/Modifications:
a. Night Shift Differential Pay: Shall increase from $1.50 to $2.00 an hour.
b. Higher Classification Pay: Shall increase from $1.60 to $2.00 an hour. Additionally, after 960 hours of receiving higher classification pay, the department/division shall make every effort to rotate the higher classification pay assignment to another qualified employee.
c. Standby Duty: Shall increase from $2.00 to $2.50 an hour.
8. Education Assistance: Permanent full-time or permanent part-time employees who are enrolled in an accredited job and/or career-related college or university study program during off-duty hours are eligible to receive tuition reimbursement. Education Assistance Program is subject to funding by the applicable appointing authority. Requests for Education Assistance will be considered in order of the date received and reimbursement will be made until the funds budgeted for Education Assistance are no longer available. The City will fund a proportional amount to IBEW.
9. Long Beach Utilities Department Special Pays
a. Holdover Pay: Within an hour from the end of shift, if an employee is asked to stay after their regularly scheduled shift for a new assignment, they would be entitled to a minimum of 2 hours of overtime for any time worked after the end of the employee’s shift.
b. Free from Duty Rest Periods: New section outlining rest between a significant period of work and start of next regular scheduled work shift, by replacing regularly scheduled straight time hours with paid rest time.
10. Bereavement Leave revision:
To align with state law, all employees are eligible for five (5) days of unpaid bereavement leave. Currently, permanent full-time and part-time employees are eligible for up to 3 paid bereavement leave days per eligible family member, with a maximum of 3 paid occurrences in a calendar year. Effective January 1, 2024, permanent full-time and part-time employees shall be eligible for up to 5 paid bereavement leave days per occurrence with a maximum of 3 paid occurrences in a calendar year. In accordance with state law, seasonal and temporary Non-Career Employees are also entitled to take up to five 5 days of unpaid bereavement leave and may use available Sick Leave accruals to compensate for their bereavement leave. Seasonal and Temporary Non-Career employees with insufficient Sick Leave accruals can take unpaid Authorized Leave.
11. Paid Parental Leave revision:
Full-time employees are eligible for up to 160 hours of Paid Parental Leave to be taken consecutively or intermittently following the birth of a child, adoption of a child, or placement of a foster child in their home. Previously, employees were only permitted to take this leave continuously.
12. Vacation Accrual Maximum revision:
The City extended the deadline for the temporary four-year Vacation Accrual Maximum to January 7, 2027. After the deadline, the vacation cap will revert back to the three-year accrual maximum effective January 8, 2027.
13. Holiday, In-Lieu Holiday and Personal Holiday revised:
Revised language to reflect the increases in in-lieu and holiday accruals due to the addition of the Juneteenth holiday.
14. Sick Leave revision:
In addition to employees’ illness or injury, employees shall be entitled to use any accrued sick leave for absence from duty for personal doctor or dental appointments or to attend to their ill or injured family member.
This matter was reviewed by Assistant City Attorney Gary J. Anderson on September 21, 2023 and by Budget Manager Grace H. Yoon on September 22, 2023.
TIMING CONSIDERATIONS
City Council action is requested on October 10, 2023, to ensure timely implementation of the MOU provisions for IBEW.
FISCAL IMPACT
This agreement has a total estimated annual net fiscal impact of $1,643,183 in the General Fund Group and $10,232,111 million across All Funds once completely implemented in Fiscal Year 2026 (FY 26). All the costs in this agreement are structural. The table below provides the breakdown of these costs by fiscal year, and by General Fund and All Funds:
IBEW Net Contract Cost by Fiscal Year
|
FUND |
FY 23 |
FY 24 |
FY 25 |
TOTAL |
|
General Fund |
$1,294,873 |
$173,289 |
$175,022 |
$1,643,183 |
|
All Funds |
$8,576,423 |
$823,726 |
$831,963 |
$10,232,111 |
The General Fund out-year forecast most recently disclosed in the FY 24 Budget projected a cumulative shortfall of $38.4 million from FY 24 through FY 27. These projections included a placeholder estimate of costs for potential negotiated agreements. The total IBEW contract costs over three years is projected to add $200,121 of additional structural costs to the General Fund (with $813,852 additional costs in FY 24 and a savings of $307,732 and $305,999 in FY 25 and FY 26 respectively compared to the placeholder estimates). The net estimated cost of $813,852 in FY 24 above what was budgeted can be offset with vacancy savings if they materialize at the end of the year, one-time funds made available through the Long Beach Recovery Act, or General Fund reserves if necessary. This will be evaluated at the end of FY 24 based on the actual performance of the General Fund. The ongoing structural impact of the contract will be factored into future projections and any necessary adjustments to balance the budget will take place as part of the proposed budget development process in future years. This recommendation has a moderate staffing impact to implement the payroll changes but is within the normal budgeted scope of duties and is consistent with existing City Council priorities. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
JOE AMBROSINI
DIRECTOR
HUMAN RESOURCES
APPROVED:
THOMAS B. MODICA
CITY MANAGER