City Council Meeting Date: January 19, 2021
To: Mayor and City Council
From: Michelle Mahowald, Communications & Human Resources Director
Ben Martig, City Administrator
Title
Consider Resolution Approving Labor Agreement and Memorandums of Understanding Between the City of Northfield and International Union of Operating Engineers Local 70 (Utility Unit).
Body
Action Requested:
The Northfield City Council consider approval of the attached Resolution approving the 2021 Labor Agreement (Labor Agreement) and memorandums of understanding between the City of Northfield (City) and Utility Unit.
Summary Report:
City representatives met and negotiated with the Utility Unit on the terms of a new labor agreement and reached a tentative agreement on such terms. The labor agreement will be sent out on Tuesday, January 19, 2021 in a Supplemental Memo. City staff recommends that the City Council approve the Labor Agreement and memorandums of understanding as they meet the parameters established by the City for negotiations and follows the pattern established by LELS Sergeants and non-union employees, which includes:
• One year duration - 2021
• General wage increase to the Base Pay Schedule for bargaining unit employees of 2.0% in 2021
• Step increases in the BPS on 1/1/21 for employees employed as of May 2017 - the date that the City agreed with the Utility Unit on the new BPS based on the job classification and compensation study
• Make pay increases begin on first day of pay period that includes 1/1/21 to ease payroll administration
Alternative Options:
Reject the negotiated proposed Labor Agreement and memorandums of understanding and attempt to negotiate a Labor Agreement and/or memorandums of understanding with different provisions. This option would most likely result in the Utility Unit petitioning for mediation with the State of Minnesota, Bureau of Mediation Services.
Financial Impacts:
The proposed labor agreement and memorandums of understanding economic impacts are within the budget guidelines for 2021.
Tentative Timelines:
Wages will take effect in 2021, subject to the beginning of the new wages aligning with payroll periods.