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Return to SFMTA Board June 26, 2009, agenda

THIS PRINT COVERS CALENDAR ITEM NO. : 18.7

 

SAN FRANCISCO

MUNICIPAL TRANSPORTATION AGENCY

 

DIVISION:    Administration 

 

BRIEF DESCRIPTION:

Approving amendments to the Collective Bargaining Agreement (CBA) agreement between the San Francisco Municipal Transportation Agency (SFMTA) and the International Association of Machinists & Aerospace Workers (IAM) – Local 1414 (IAM Local 1414), to reduce SFMTA obligations and to extend the expiration date to June 30, 2011.

 

SUMMARY:

·        Charter section 8A.104 provides that the SFMTA shall bargain labor agreements with employee organizations representing employees in service critical classifications.

·        The Collective Bargaining Agreement (CBA) between SFMTA and IAM Local 1414 expires on June 30, 2009.

·        The SFMTA negotiated an amendment that includes concessions by IAM Local 1414 to save the agency approximately $654,000. Concessions include:

·        The amendment extends the CBA with IAM Local 1414 as amended to June 20, 2011. 

 

ENCLOSURES:

1. SFMTAB Resolution

2. CBA Amendments (IAM Local 1414)

3. Labor Cost Analysis

 

APPROVALS:                                                                                   DATE

 

DIRECTOR OF DIVISION

PREPARING ITEM ______________________________________            ____________

 

FINANCE        ___________________________________________          ____________

 

EXECUTIVE DIRECTOR/CEO ____________________________  ____________

 

SECRETARY  ___________________________________________          ____________

 

ADOPTED RESOLUTION     

BE RETURNED TO____(Rumi Ueno)______

 

ASSIGNED SFMTAB CALENDAR DATE: __________________________


PAGE 2

 

PURPOSE

 

To extend expiration date of the CBA between SFMTA and the IAM 1414 from June 30, 2009 to June 30, 2011 and implement the negotiated concessions.

 

GOAL

 

The proposed agreement meets the following strategic goals:

Goal 4 – Financial Capacity: To ensure financial stability and effective resource utilization.

Goal 5 – SFMTA Workforce: To provide a flexible, supportive work environment and develop a workforce that takes pride and ownership of the agency’s mission and vision and leads the agency into an evolving, technology-driven future.

 

DESCRIPTION

 

Charter section 8A.104 gives the SFMTA the authority to negotiate labor agreements covering wages, hours, working conditions, and benefits with labor organizations representing employees at SFMTA in service critical classifications.

 

The SFMTA negotiated a Collective Bargaining Agreement with the IAM Local 1414 in July 2006 which expires on June 30, 2009.

 

SFMTA representatives and representatives of IAM Local 1414 negotiated an amendment to the existing CBA.  The SFMTA and IAM Local 1414 were successful in reaching a tentative agreement, and that agreement was ratified by a vote of the Union membership on May 27, 2009.

 

The agreement would amend the existing CBA as follows: The term of the CBA would be extended two years with an expiration date of June 30, 2011.  Additionally, the following concessions were agreed to: covered employees will take four unpaid furlough days in Fiscal Year 2009-10 and three unpaid furlough days in Fiscal Year 2010-11. The tool allowance and tuition reimbursement are to be suspended for Fiscal Years 2009-10 and 2010-11.  In return, covered employees have layoff protection through November 15, 2009.  There are no other substantial changes to the CBA with the exception of updating dates and language where appropriate.

 

The amended CBA will be in effect through June 30, 2011.  If the amendment is not approved, the cost savings that this agreement provides will not be realized.  

 

The City Attorney has reviewed this calendar item. 

 

 

 

 

 

PAGE 3

 

ALTERNATIVES CONSIDERED

 

None, without concession bargaining the SFMTA would generate cost savings.

 

FUNDING IMPACT

 

Labor Cost Analysis is attached.  If the amendment is not approved the cost savings this agreement provides will not be realized and SFMTA representatives will need to return to the bargaining table in 2010 to resume labor contract negotiations with representatives from IAM Local 1414.

 

The approximate cost savings to the agency is $654,065.

 

 

RECOMMENDATION

 

Staff recommends that the SFMTA Board adopt the Resolution approving the amendment of the CBA between SFMTA and IAM Local 1414. 

 


SAN FRANCISCO

MUNICIPAL TRANSPORTATION AGENCY

BOARD OF DIRECTORS

 

RESOLUTION No. ______________

 

            WHEREAS, Under Section 8A.104 of the Charter, the San Francisco Municipal Transportation Agency (SFMTA) Board of Directors succeeded to the powers of the Board of Supervisors with respect to collective bargaining for employees in service critical classifications; and,

 

            WHEREAS, The current Collective Bargaining Agreement (CBA) between SFMTA and the International Association of Machinists & Aerospace Workers (IAM) – Local 1414, expires on June 30, 2009; and,

 

            WHEREAS, The SFMTA and the IAM Local 1414 negotiated an amendment to the CBA to reduce SFMTA obligations and to extend the expiration date to June 30, 2011; and

 

            WHEREAS, The amendment to the CBA was ratified by the membership of IAM Local 1414 on May 27, 2009, and,

 

            WHEREAS, The proposed amendment of the CBA, which shall be effective July 1, 2009 through June 30, 2011, and all other required information were publicly disclosed in accordance with Charter Section 8A.104(p) on June 2, 2009 and are on file with the Secretary of the MTA Board of Directors; now, therefore, be it

 

            RESOLVED, That the SFMTA Board of Directors hereby approves the amendment of the CBA between the SFMTA and IAM Local 1414, to implement negotiated concessions and extend its term to June 30, 2011.

 

I certify that the foregoing resolution was adopted by the San Francisco Municipal Transportation Agency Board of Directors at its meeting of ___________________________.                         

    

                                                                           ______________________________________

                                                                          Secretary to the Board of Directors

                                                                          San Francisco Municipal Transportation Agency

 

 

 

 

 

 

 

 

 

AMENDMENT No. 2

TO THE 2006-2010 MEMORANDUM OF UNDERSTANDING

BETWEEN

THE SAN FRANCISCO MUNICIPAL TRANSPORTATION AGENCY

AND

THE MACHINISTS UNION

LOCAL 1414

 

FOR SERVICE CRITICAL CLASSIFICATIONS

AT THE SAN FRANCISCO MUNICIPAL TRANSPORTATION AGENCY

 

 

The parties hereby amend and extend the Memorandum of Understanding as follows:

 

I.J.       WORKFORCE REDUCTION

 

66.             Obligation to Meet & Confer on Employee Workloads - The MTA and Union acknowledge that there had been and may continue to be a reduction in the city workforce primarily as a result of reduced revenue and inflation.

 

67.             The MTA recognizes its legal obligation to meet and confer in good faith and endeavor to reach agreement on employee workloads.

 

68.             The MTA shall provide any written information relating to staffing levels and workloads in MTA upon written request to the Human Resources Division, with any reproduction costs above single copies to be paid by the Union.

 

69.             Advance Notice of Pending Layoffs - Any employee who is to be laid off due to the lack of work or funds shall be notified, in writing, with as much advance notice as possible but not less than thirty (30) calendar days prior to the effective date of the layoff.  Such thirty (30) calendar day minimum advance notice of layoff shall not apply should layoff in a shorter period be beyond the control of the MTA.  The Union shall receive copies of any layoff notice.  The provisions of this section shall not apply to "as needed" or intermittent employees hired for a specific period of time or for the duration of a specific project or employees who are bumped from their position.

 

Employee Protection

[begin addition] 69a.    [end addition] [begin addition] Between the date of ratification of this Agreement through November 15, 2009, the SFMTA shall not effectuate layoffs of any represented employees. This shall not include any displacement actions that result from layoffs effectuated in non-Machinists bargaining units.[end addition]

---

 

 

 

 

III.B.     WORK SCHEDULES

[begin addition]  [end addition]

3. Voluntary Time off Program ("VTOP")

123.    The mandatory furlough provisions of Civil Service Commission Rules shall not apply to covered employees.

 

124.    a. General Provisions: Upon receipt of a projected deficit notice from the Controller, an appointing officer shall attempt to determine, to the extent feasible and with due consideration for the time constraints which may exist for eliminating the projected deficit, the interest of employees within the appointing officer's jurisdiction in taking unpaid personal time off on a voluntary basis.

 

125.    The appointing officer shall have full discretion to approve or deny requests for voluntary time off based on the operational needs of the department and any court decrees or orders pertinent thereto. The decision of the appointing officer shall be final except in cases where requests for voluntary time off in excess of ten (10) working days are denied.

 

126.    b. Restrictions on Use of Paid Time Off while on Voluntary Time Off

 

127.    (1) All voluntary unpaid time off granted pursuant to this section shall be without pay.

 

128.    (2) Employees granted voluntary unpaid time off are precluded from using sick leave with pay credits, vacation credits, compensatory time off credits, floating holidays, training days or any other form of pay for the time period involved.

 

129.    (3) Duration and Revocation of Voluntary Unpaid Time Off - Approved voluntary time off taken pursuant to this section may not be change by the appointing officer without the employee’s consent.

[begin addition]  [end addition]

[begin addition] 129a.  Notwithstanding the provision of Article III.B.3. above, covered employees shall take four (4) unpaid furlough days during the period June 30, 2009 through June 30, 2010.   By Friday, July 17, 2009, each covered employee must submit to the Departmental Personnel Officer or designee a list of requested furlough days (i.e., dates the employee would prefer to take off his/her 4 required furlough days).  These dates would be subject to approval by management based on operational need.   If the employee’s requested dates are rejected, the employee and management will find mutually agreeable alternative dates prior to the end of FY 2009-10.  The Employee Relations Director will be available to assist in the resolution of disputes over scheduling of furlough days.  If an employee does not submit a request for furlough days (or if he/she does not cooperate in the resolution of any dispute over scheduling of furlough days), days off will be assigned to him/her by management.  [end addition]

[begin addition]  [end addition]

[begin addition] 129b.  [end addition] [begin addition] Notwithstanding the provision of Article III.B.3. above, covered employees shall take three (3) unpaid furlough days in fiscal year 2010-2011.   By Friday, July 9, 2010, each covered employee must submit to the Departmental Personnel Officer or designee a list of requested furlough days (i.e., dates the employee would prefer to take off his/her 3 required furlough days).  These dates would be subject to approval by management based on operational need.   If the employee’s requested dates are rejected, the employee and management will find mutually agreeable alternative dates within the FY 2010-11.  The Employee Relations Director will be available to assist in the resolution of disputes over scheduling of furlough days.  If an employee does not submit a request for furlough days (or if he/she does not cooperate in the resolution of any dispute over scheduling of furlough days), days off will be assigned to him/her by management.  [end addition]

---

 

III.C. ADDITIONAL COMPENSATION

[begin addition]  [end addition]

[begin addition]             12. RETIREMENT RESTORATION PAYMENT[end addition]

[begin addition]  [end addition]

[begin addition] 159a.  For employees who retire prior to the end of this Agreement and for whom their final compensation for retirement purposes is impacted by the unpaid furlough days, the City will provide restoration pay equaling the pensionable value of the unpaid furlough days for the period used by the San Francisco Employees’ Retirement System to determine the employee's final compensation for retirement purposes.[end addition]

 

III.O. PILOT WELLNESS INCENTIVE PROGRAM

202.    [begin deletion] For the term of this agreement,[end deletion] [begin addition] T[end addition] he [begin addition] SF[end addition] MTA hereby establishes a pilot "wellness incentive program" to promote workforce attendance[begin addition] . This program will sunset on June 30, 2010. [end addition]

 

203.         Effective July 1, 2002, any full-time employee leaving the employment of the MTA upon service or disability retirement may receive payment of a portion of accrued sick leave credits at the time of separation.

 

204.    The amount of this payment shall be equal to two-and-one-half percent (2.5%) of accrued sick leave credits at the time of separation times the number of whole years of continuous employment times an employee's salary rate, exclusive of premiums or supplements, at the time of separation.  Vested sick leave credits, as set forth under Civil Service Commission Rules, shall not be included in this computation.

 

205.    Example of Calculation:

                       

Employee A retires with 20 years of service.

Employee A has a sick leave balance of 500 hours.

Employee A has a base salary rate of $25.00 per hour at the time of separation.

Wellness Incentive = 2.5% for each year of service x 20 years of service = 50%

50% x 500 hours = 250 hours.

250 hours x $25.00 (base salary at time of separation) =$6,250.00

 

206.    The number of hours for which an employee may receive cash payments shall not exceed one thousand forty (1040) hours, including any vested sick leave.

 

207.    A wellness incentive bonus payment shall not be considered as part of an employee's compensation for the purpose of computing retirement benefits.

[begin addition]  [end addition]

---

IV.H. MTA TOOL UPGRADE ALLOWANCE

231.    Employees subject to the provisions of IV.I. TOOL INSURANCE shall also be provided with an annual tool upgrade allowance of $400.00. The tool upgrade allowance will be paid annually, in September. Effective September 2008, the annual tool upgrade allowance will be $500.00.

 

232.    To qualify for the tool upgrade allowance an employee must have worked the preceding twelve (12) months in the department.

 

233.    Within six (6) weeks after payment of the tool upgrade allowance employees must submit an updated tool inventory to management, which will be used for the purpose of establishing each employee’s current tool inventory in case of insurance claims due to tool loss or destruction.

 

[begin addition] 233a.[end addition] [begin addition] [end addition] [begin addition] Effective June 30, 2009, through June 30, 2011,[end addition] the Union agrees to suspend the MTA tool upgrade allowance.

[begin addition]  [end addition]

---

 

IV.K. EMPLOYEE TRAINING AND TUITION REIMBURSEMENT PROGRAM

249.    The MTA shall establish and maintain a four thousand dollar ($4,000.00) fund for the purposes of an employee training and tuition reimbursement program for reimbursement of up to $500 per member during each fiscal year, subject to the policies and procedures of the MTA Department of Human Resources.

 

[begin addition] 249a.  Effective June 30, 2009, through June 30, 2011, the Union agrees to suspend the employee training and tuition reimbursement fund.[end addition]

 

---

V.B.     REOPENER

 

254.         Consistent with the provisions of Charter Section A8.409, this agreement shall be reopened if the Charter is amended to enable the City and that Union to arbitrate retirement benefits.

 

[begin addition] 254a.  It is understood and agreed that no new economic benefits for FY 2010-11 shall become effective prior to December 31, 2010; provided as follows:[end addition]

[begin addition]  [end addition]

[begin addition]             (a)       in  the  event the San Francisco Municipal Transportation Agency  negotiates to improve an economic benefit that becomes effective  between  July  1, 2010 through December 30, 2010, inclusive, for any  other  miscellaneous  SFMTA  officers  or  employees employed in the SFMTA, that economic benefit will be extended to the Union's represented employees in a manner  consistent with the overall economic agreement between the SFMTA and the union with which it previously agreed;[end addition]

[begin addition]  [end addition]

[begin addition]             (b)       in  the  event that an arbitration panel acting under the authority of Charter section  A8.409-4 awards another union representing miscellaneous employees employed in the SFMTA an economic benefit that becomes effective between  July  1,  2010  through  December  30,  2010, the SFMTA shall allow the Union to reopen its MOU solely for the purpose of proposing that its represented employees should receive an economic benefi[end addition] [begin addition] t in FY 2011-12, in light of the arbitration panel's award on behalf of the other miscellaneous labor organization.  Such reopener, if any, shall commence in January 2011, and shall be subject to the timelines and the Charter factors set forth in Charter section A8.409.  By entering into this agreement, SFMTA is not conceding that the Union is or should be entitled to a remedy in the event another union receives an economic benefit for the time period described above.  The parties also acknowledge that any  economic increases so awarded that are based on market-based adjustments or reflect premiums for specific work functions are not necessarily applicable to any other group of employees or to other unions.[end addition]

[begin addition]  [end addition]

[begin addition]             (c)       that  economic  benefits  negotiated  for  or  awarded  to  non-A8.409 employees,  so-called  "miscellaneous safety" or employees whose retirement is  with the California Public Employees' Retirement System are exempt from this section and do not trigger subsections (a) and (b), above; and [end addition]

[begin addition]  [end addition]

[begin addition]             (d)       that any economic benefits negotiated or awarded that become effective on or prior to June 30,  2009  are exempt from this section and do not trigger subsections (a) and (b), above.[end addition]

 

V.E.     DURATION OF AGREEMENT

258.    This Agreement shall be effective July 1, 2006, and shall remain in full force and effect through June 30, [begin deletion] 2009[end deletion] [begin addition] 2011,[end addition] with no re-openers except as specified herein.

 

 

 

 

FOR THE SFMTA:

 

FOR THE UNION:

 

 

 

 

 

 

Debra Johnson                              Date
Chief of Staff/Administration, Director

 

Art Gonzalez                                   Date

Automotive Machinists, Local 1414

 

 

 

 

 

 

 

 

 

Rumi Ueno                                     Date

Employee & Labor Relations Manager

 

 

 

 

 

 

 

 

Approved As To Form:

 

 

 

 

 

 

 

 

Elizabeth Salveson                       Date

Chief Labor Attorney,

Office of the City Attorney           

 

 

 

 

 

 

 

 

 

 


IAM 1414 2010/2011 Cost Analysis

 

Char

FY09 FTE

FY09 Orig Amt

FY10 FTE as of May 18, 2009

FY10 Amount as of May 18, 2009

 FY2009-10 Cost of Four (4) Unpaid Furlough Days

FY11 FTE as of May 18, 2009

FY11 Amount as of May 18, 2009

 FY 2010-11 Cost of Three (3) Unpaid Furlough Days

001 Total

259.08

20,263,614

260.00

20,596,108

                  315,649

260.00

20,596,108

               236,737

013 Total

0.00

5,771,646

0.00

6,887,960

                    54,734

0.00

6,887,960

                  46,945

LOCAL 1414, MACHINISTS PLAN A Grand Total

259.08

26,035,260

260.00

27,484,068

                  370,383

260.00

27,484,068

               283,682

FY 2009-2010 cost of four (4) unpaid legal holidays

 

 

 

 

$370,383

 

 

 

FY 2010-2011 cost of three (3) unpaid legal holidays

 

 

 

 

$283,682

 

 

 

Total Savings

 

 

 

 

$654,065

 

 

 


 

 

 

 

 

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