City of Alexandria, Virginia
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MEMORANDUM
DATE: NOVEMBER 7, 2023
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
THROUGH: JAMES F. PARAJON, CITY MANAGER /s/
FROM: ADESSA BARKER, CHIEF LABOR RELATIONS OFFICER
DOCKET TITLE:
TITLE
Public Hearing on the Fiscal Impact Study of the Tentative Collective Bargaining Agreement with the American Federation of State, County and Municipal Employees and Consideration of a Resolution indicating City Council's Good Faith Commitment to the Appropriate Funding Necessary to Implement the Agreement. [ROLL-CALL VOTE].
BODY
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ISSUE: Consideration of resolution to make a good faith commitment to appropriate funding necessary for the City to meet its obligations under the tentative collective bargaining agreement reached between the City and the American Federation of State, County, and Municipal Employees District Council 20, Local 3001 (AFSCME).
RECOMMENDATION: That City Council adopt, following a public hearing, the attached resolution which reflects Council’s commitment to fund the tentative collective bargaining agreement between the City and AFSCME, subject to actual appropriation with the approval of the budget in each fiscal year it is in effect.
BACKGROUND: At a public hearing on April 17, 2021, the Alexandria City Council voted unanimously to adopt a public employee collective bargaining ordinance. The authority for Virginia municipalities to undertake collective bargaining was enabled by new state legislation that took effect May 1, 2021. Alexandria was the first locality in Virginia to authorize collective bargaining under this new state law. The ordinance authorizes exclusive representatives of bargaining units to negotiate, among other things, wages, leave, insurance, and retirement plans presently made available under city authority. However, the ordinance and state law make clear that any agreement reached by collective bargaining is subject to appropriation of funds by the City Council.
Ordinance 5336 defines five bargaining units. Section 2-5-72(c) creates the labor & trades bargaining unit which consists of “those eligible classes of employees associated with maintenance and skilled crafts, i.e., job classes of workers performing duties that result directly in the comfort and convenience of the general public, or contribute to the maintenance of capital assets, land and infrastructure of the city, except those excluded by definition in Sec. 2-568.”
AFSCME submitted a Petition for Representation Election dated August 4, 2022. The Labor Relations Administrator (LRA) ordered an election from September 2, 2022 through September 22, 2022. On October 8, 2022, the LRA certified that AFSCME “has been designated by the City employees in the bargaining unit… as their exclusive representative for the purpose of collective bargaining of terms and conditions of employment with the City.”
DISCUSSION: On October 4, 2023, the Parties reached tentative agreement on employee wages and benefits for a period of three years, beginning July 1, 2024, through June 30, 2027.
The bargaining unit consists of employees in the following positions: Laborer I, Laborer II, Laborer III, Equipment Operator I, Equipment Operator II, Building Engineer I, Building Engineer II, Building Engineer III, Refuse Collector, Automotive Mechanic, Maintenance Worker, Motor Vehicle Operator, Custodian, Heavy Equipment Operator, Cook, and School Crossing Guard.
The Parties negotiated wage increases for all bargaining unit employees which increase each contact year. Specifically, the Parties negotiated a 2.25% wage increase in FY 2025 with a onetime bonus of one thousand dollars ($1,000) net. FY 2026 bargaining unit employees will receive a wage increase of 2.75% and in FY 2027 a wage increase of 3.00%. The pay scale adjustments promote recruitment, increase employee retention, and avoid pay compression.
Moreover, under Standby Pay (which is a premium pay), the Parties negotiated a 30 minute increase to the number of hours an employee receives for being on standby Monday through Friday. Employees who are on standby Monday through Friday will be awarded a maximum of 7.5 hours of pay which will significantly increase the wages an employee receives for being on standby.
The Parties also negotiated a reimbursable tool allowance of $2,000 for Fleet Technicians which will help reduce the cost of purchasing tools. This is the first-time employees have received such an allowance for tools.
Additionally, the Parties negotiated a boot allowance voucher up to two hundred dollars ($200) per pair of boots up to two boots per year. The boot allowance will cut down on the cost of purchasing boots and boost employee morale.
Regarding employee benefits, the Parties agreed to maintain status quo, with the Parties working together on a (to be established) Benefits Committee to review existing employee benefits and their provisions and make recommendations regarding cost containment measures.
The ordinance provides that Council will specify “by resolution no later than the last day of November its good faith commitment to appropriate funding necessary for the city to meet obligations under the tentative agreement as set forth in the fiscal impact study . . . with the understanding that any such resolution remains subject to actual appropriation.” The attached resolution contains the requisite language regarding a good faith commitment to appropriate necessary funding.
FISCAL IMPACT: The Labor and Trades collective bargaining agreement is estimated to cost $3.2 million over its three-year term (FY25-FY27). This cost includes $2.5 million in base wage increases, $0.1 million for increases in standby pay, $0.3 million for a one-time bonus at the beginning of the contract period on July 1, 2024, and $0.2 million for tool and clothing allowances.
The agreement provides for graduated increases in base compensation broken out to $0.4 million in FY25 (a 2.25% increase), $0.8 million in FY26 (2.75%), and $1.3 million in FY27 (3.00%). The agreement also increases compensation for standby pay at an annual cost of $47,000 to $48,000.
A one-time bonus will be paid to members of the unit effective July 1, 2024 at an estimated cost of $0.3 million. The tool allowance is expected to cost $18,000 over the duration of the agreement for an estimated 15 eligible fleet employees. The allowance for boots is projected to cost $64,000 annually.
The cost of this estimate represents the difference between salary and benefit costs estimated under the new agreement, compared against a baseline assumption of employees’ current salaries, annual step/merit increases, and standby pay that would have otherwise occurred under the current pay scale/classification structure.
ATTACHMENTS:
1. Resolution
2. Tentative Agreement
3. Presentation
STAFF:
Joanna Anderson, City Attorney
Yon Lambert, Deputy City Manager
Meghan Roberts, Deputy City Attorney
Christina Hamilton, Assistant City Attorney
Tarrence Moore, Assistant Director, Department of Transportation & Environmental Services
Jack Browand, Deputy Director, Recreation, Parks and Cultural Activities
Sharon Vaughan-Roach, Director, Center of Operations, Community and Human Services
Easton McDonald, Assistant Chief of Police
Alfred Coleman, Deputy Director, General Services
Frank Doyle, Deputy Chief, Fire Department