City of Madison, Wisconsin | Legislative Information Center
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File #: 27818    Version: 1 Name: Local 236
Type: Ordinance Status: Filed
File created: 9/25/2012 In control: COMMON COUNCIL
On agenda: 3/19/2013 Final action:
Enactment date: Enactment #:
Title: Adopting and confirming the Labor Agreement between the City of Madison and City Employees Local 236 Laborers International Union of North America, AFL-CIO for the period March 16, 2014 to March 15, 2015.
Sponsors: Paul R. Soglin
Fiscal Note [REVISED]
This ordinance adopts and confirms the Labor Agreement between the City of Madison and City Employees Local 236 Laborers International Union of North America, AFL-CIO, for the period March 16, 2014 to March 15, 2015.

The proposed ordinance allows the city to reduce base wages by a maximum of 3% effective March 16, 2014. The current agreement with Local 236 includes a 3% wage increase at the end of 2013. A 3% base wage reduction for Local 236 permanent employees is estimated to save approximately $278,000 for the remainder of 2014 and $362,000 on a 12-month basis. This estimate includes salary and fringe benefits affected by base wages (overtime, WRS and FICA). The estimated impact of a 3% base wage reduction for hourly Local 236 employees is approximately $16,000 on a 12-month basis. Taken together, the 12-month impact of a 3% base wage adjustment on permanent and hourly positions in Local 236 is approximately $378,000.

The figures above reflect the levy impact of a 3% base wage reduction for Local 236 employees. The estimated all funds effect on a 12-month basis is $460,300 ($444,000 for permanent employees and $16,000 for hourly employees).

The proposed ordinance also allows the city to increase base wages by a maximum of 3% effective with the last pay period of December 2014. The fiscal effect of such an increase is approximately the same as the 12-month estimate above for a 3% wage reduction.

Under the proposed ordinance, the city may utilize alternative options for health insurance plan design, effective January 1, 2015. The city currently spends approximately $32 million annually on health insurance for its employees. The city participates in the Wisconsin Public Employers (WPE) group health insurance program operated by the State Department of Employee Trust Funds. One example of an alternative plan design is the new State of Wisconsin employee health insurance plan. The WPE insurance program recently began offering th...

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