Fiscal Note
This ordinance provides for compensation changes for 2016 through 2019 for employees in Teamsters Union Local 695, on the following schedule:
2015 -- 0% (December 2014)
2016 -- 2% (December 2015)
2017 -- 3% (December 2016)
2018 -- 2% (December 2017)
2019 -- 2% (December 2018)
These compensation increases are expected to cost $2.8 million over the life of the contract. In 2015, pay increases totaling 2.26% were budgeted for this unit similar to general city employees. As such, there will be savings in the 2015 Metro Transit operating budget of approximately $620,000 associated with this contract.
The contract also includes an increase in the City contribution to post-employment health benefits of approximately $37,400 through 2018.
The City contribution toward health insurance will also be reduced from 105% to 100% of the lowest cost premium, effective in 2016. Based on 2015 premium rates and participation by plan, this change would have a minimal fiscal effect.
The contract also allows the City to change the plan design for health insurance to the Option 4: Deductible Plan offered by the Wisconsin Local Government Employers Pool, when all City employees move to this option. This change is anticipated to save 5% of premium rates. This is estimated to save approximately $1.5 million to $1.8 million in the overall City budget.
Work rule changes associated with attendance are anticipated to save approximately $300,000 to $350,000 over the term of the agreement.
Title
Adopting and confirming the Labor Agreement between the City of Madison and Teamsters Union Local 695 for the period March 10, 2014 to December 31, 2018.
Body
DRAFTER’S ANALYSIS: This ordinance adopts and confirms the Labor Agreement between the City of Madison and Teamsters Union Local 695 for the period March 10, 2014 to December 31, 2018.
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The Common Council of the City of Madison do hereby...
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