SCEA concessions save City $5.23 million

Since October 2008, SCEA members have voluntarily agreed to economic concessions amounting to $5.23 million, of which $2.89 million is savings from the general fund, through June 30, 2014. The savings from SCEA concessions in Fiscal Year 2010-2011 alone total $2.64 million, of which $1.44 million is general fund savings.

Still, the City is expected to ask SCEA members to make even more concessions during negotiations on three reopener clauses in 2011.

There is a growing sentiment among many SCEA members that they can’t concede much more and still pay for housing, buy groceries, pay their utility bills, and put gas in the tank. Although SCEA is the City’s largest labor organization, SCEA workers – on average – receive lower wages than other employees in classified service. And because 56% of employee costs for SCEA members are paid out of enterprise or other funds rather than the City’s general fund, every dollar lost out of a SCEA represented employee’s pay saves the general fund only 44 cents. The majority of SCEA workers are paid from the funds and fees generated from their work in public service.

Excerpted below are portions of the SCEA Memorandum of Understanding containing the actual text of the agreed-upon reopeners for 2011, and provisions relating to those reopeners. Each reopener clause provides that if SCEA and the City cannot reach an agreement then there will be no change to the labor contract.

As always, SCEA representatives will work with the City in good faith to reach agreement during the meeting and conferring process on these reopeners. Ultimately, any tentative agreement reached at the bargaining table must be ratified by SCEA members during a secret ballot vote.

Salary adjustments for SCEA employees are tied to the City’s year-to-year growth in revenue from property taxes, sales and use taxes, utility user taxes, and business license fees.

Text of 2011 Reopener Provisions in SCEA MOU

15.1 Retirement Contribution Supplement

(h) The City and the Association agree to reopen Article 15.1 in year 2011 to discuss providing an enhanced miscellaneous retirement formula to bargaining unit employees (e.g. CalPERS 2.7% at 55, 3% at 60, etc.). If the parties fail to reach agreement the existing provisions of Article 15.1 shall remain unchanged.

16.1 Health, Dental, Vision, and Prescription Benefits

(d) The City and the Association shall meet and confer in calendar year 2011 to discuss Health, Dental, Vision and Prescription Benefits provided under this Article 16.1. If the parties fail to reach agreement, the existing provisions of Article 16.1 shall remain unchanged.

17.1 Salary Adjustments

(d) The City and the Association agree to reopen this Article 17.1 to discuss the revenue growth formula used to determined across-the-board salary increases. If the parties fail to reach an agreement on any changes that may be proposed by either party, the existing provisions of Article 17.1 shall remain unchanged.

17.12 Salary Survey Implementation

(c) The City shall conduct a classification and compensation study based on July 1, 2011, classification and compensation data. The City shall have no obligation to implement the survey data findings. The data gathered shall be used for information and discussion purposes between the City and the Association during year 2011 reopeners concerning retirement, health care, and Revenue Growth Formula calculations.

In addition, as explained in Section 16.1(e) below, SCEA has agreed to work with the City, unrepresented employees, and other safety and non-safety bargaining units in the joint labor-management Health Advisory Committee to develop strategies to reduce the City’s healthcare costs while maintaining access to quality healthcare. SCEA’s participation in the health advisory committee is not collective bargaining and the SCEA representative on the committee has no authority to bind SCEA to an agreement with the City for any healthcare changes.

16.1 Health, Dental, Vision, and Prescription Benefits

(e) Beginning January 1, 2009, SCEA agrees to participate in a joint labor-management committee to develop strategies to reduce the City’s healthcare costs while maintaining access to quality healthcare.