Title
Approval of a Labor Agreement with the International Union of Operating Engineers Local 612
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Move to approve a labor agreement with the International Union of Operating Engineers (IUOE) Local 612.
Report
Issue:
Whether to approve a labor agreement with the IUOE Local 612.
Staff Contact:
Manny Bosser, Director of Human Resources, Human Resources, (360)753-8309
Thanh Jeffers, Deputy Director of Public Works, Public Works, (360)753-8278
Telli Norton, Human Resources Information Services Analyst, Human Resources, (360)709-2775
Presenter(s):
None - Consent Calendar Item
Background and Analysis:
The labor relations agreement with the International Union of Operating Engineers Local 612 expired on December 31, 2024. The contract covers ten (10) supervisory level positions throughout the Public Works department. The new agreement has been ratified by the International Union of Operating Engineers Local 612 and City staff is bringing it forward for approval.
The new proposed contract for the International Union of Operating Engineers Local 612 is for attached for Council’s consideration.
The contract has a three (3) year term and will expire on December 31, 2027. Significant changes to the contract are:
Wages
Employees’ positions were evaluated through the classification and compensation study. They were moved into a new wage table that includes a 3.8% cost of living increase and additional varying adjustments based on market analysis and internal equity by position. The wage table for Council’s consideration is referenced in the contract as Appendix A.
The City increased the boot allowance from $150 to $300.
Longevity Incentive Pay
Added an additional longevity pay band of 2.75% that takes effect at 25+ years of service.
Medical/Dental/Vision Benefits
All benefits remain the same as administered through the Association of Washington Cities Benefit Trust. The union may reopen Article 13 to negotiate benefits with the City in the event of substantial increase in revenue that is unallocated.
The remainder of the contract changes are general and/or matching language clean-up items.
Climate Analysis:
There is no climate impacts related to this item.
Equity Analysis:
The City of Olympia is committed to ensuring equitable pay and benefits for employees. The equity lens used during bargaining with IUOE and leading to the tentative agreement included determining desirable outcomes, conversations with key stakeholders, analyzing classification and compensation data, evaluating feedback information, and reporting back to stakeholders. The City will continue to monitor employee wages and benefits to ensure pay and benefit equity within the workforce.
Neighborhood/Community Interests (if known):
There are no known neighborhood/community interests.
Financial Impact:
The cost to the City for implementing the 2025 increases was included in the Class and Comp budget.
Options:
1. Move to approve the labor agreements with the International Union of Operating Engineers Local 612 and authorize the City Manager to execute the agreements.
2. Do not approve the labor agreements with the International Union of Operating Engineers Local 612 as proposed and direct staff as to next steps.
3. Move to approve the labor agreements with the International Union of Operating Engineers Local 612 as amended by Council and authorize the City Manager to execute the agreements.
Attachments:
Agreement
Economic Agreement Summary