City Council Meeting Date: December 17, 2024
To: Mayor and City Council
From: Michelle Mahowald, Communications & Human Resources Director
Ben Martig, City Administrator
Title
Consider Approval of 2025-2027 International Union of Operating Engineers (IUOE) General Unit Labor Agreement and Memorandum of Understandings.
Body
Action Requested:
The Northfield City Council consider approval of 2025-2027 IUOE - General Unit labor agreement and memorandum of understandings.
Summary Report:
There will be one presentation for all labor agreements, memorandums of understandings, and resolutions presented for consideration of approval at this meeting.
Here’s a summary of changes made to the 2025-2027 IUOE - General Unit contract:
• Expressly specify additional existing management right of city.
• Remove unnecessary grievance procedure clause and clarify in Step 1 components of proceeding with a grievance to be consistent with other grievance provisions and avoid duplicity.
• Add verbiage of street sweeping, banners, and other items MOU.
• Add Juneteenth.
• Increase employer health insurance premium contribution base from $625 to $650 for single coverage and $850 to $1,000 for family coverage.
• General wage increases of 4.00% in 2025, 3.00% in 2026, and 3.00% in 2027.
• Make contract three years - 2025- 2027.
• Base pay
o BPS will be modified to reduce the number of steps in each grade from 11 to 8.
o Step 8 for the 2025 BPS will be 3% above step 7 of the 2025 BPS.
o On January 1, 2025, incumbent employees placed on the step in the pay grade for their job classification in the 2025 BPS that is closest to, but not less than the employee’s current base wage.
o Employees employed as of December 31, 2024 move one step in the pay grade for their job classification, effective on January 1 each year with satisfactory performance review.
o Some job classes will increase in pay grade(s) to be more externally and internally equitable.
• Establish MOU re double time pay on Thanksgiving, Christmas Eve, and Christmas Day
• Update MOU to align pay increases for each year with pay period that includes January 1 of each year
Staff have attached a council resolution, labor agreement and memorandums of understanding. Signed labor agreement and memorandum of understandings by International Union of Operating Engineers Local 70 business representative and union stewards will be delivered by 2:00 p.m. on December 17, 2024.
Financial Impacts:
The proposed labor agreement and memorandum of understandings economic impacts are within the budget guidelines for 2025 and were discussed in closed session earlier this year.
Tentative Timelines:
Wages will take effect in 2025, subject to the beginning of the new wages aligning with payroll periods.