Fiscal Note
This ordinance adopts and confirms the Labor Agreements between the City of Madison and the Madison City Attorneys' Association (MCAA) for the period of January 1, 2013, to December 31, 2013 and for the period of January 5, 2014 to December 31, 2014.
The current collective bargaining agreement with MCAA ends on December 31, 2012. The new agreement includes provisions that would have employees pay 50% of the annual required contribution to the Wisconsin Retirement System and 12% of the average cost of health insurance premiums offered by the city. Compared with provisions in the current contract, this would reduce city costs in 2013 by $2,700 for health insurance and $99,200 for WRS contributions. In the absence of a new contract, these contribution levels and cost savings would have gone into effect as required under current state law.
In 2014, the new contracts with MCAA would require that a pay increase be granted, retroactive to January 5, 2014, based on the difference between 3% and any reduction that may be made in pay increases granted to employees in Local 60. The current contract with Local 60 includes a 3% pay increase effective with the last pay period of December 2013. The proposed new contract with Local 60 would allow the city, effective March 16, 2014, to reduce wages by up to 3%. Each 1% increase in wages for employees in MCAA is estimated to cost approximately $17,400 annually.
The new contracts include a provision that would, effective with the last pay period in December 2014, prohibit the city from reducing wages and recognize that the city may provide a wage increase of up to 3%. A wage increase of 3% for MCAA employees would cost approximately $52,200.
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 this plan as an option for participating local governments. This plan design reduced premium costs under the state's health insurance plan by 5% through the use of co-insurance and deductibles. A 5% reduction in city health insurance costs would save approximately $1.6 million annually.
Title
AMENDED Adopting and confirming the Labor Agreements between the City of Madison and the Madison City Attorneys' Association (MCAA) for the period of January 16, 2013, to December 31, 2013 and for the period of January 5, 2014, to December 31, 2014.
Body
DRAFTER'S ANALYSIS: This ordinance adopts and confirms the Labor Agreements between the City of Madison and the Madison City Attorneys' Association (MCAA) for the period of January 16, 2013, to December 31, 2013 and for the period of January 5, 2014, to December 31, 2014.
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The Common Council of the City of Madison do hereby ordain as follows:
The Labor Agreements between the City of Madison and the Madison City Attorneys' Association (MCAA) for the period of January 16, 2013, to December 31, 2013 and for the period of January 5, 2014, to December 31, 2014, is hereby adopted in its entirety and confirmed in all respects, and the Mayor and Clerk are authorized to sign the agreements.