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Res. No. 047-00-10940RESOLUTIONNO. 47-00-10940 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA, RELATING TO APPROVAL OF COLLECTIVE BARGAINING AGREEMENT BETWEEN THE CITY OF SOUTH MIAMI AND AMERICAN FEDERATION OF STATE, COUNTY AND MUNICIPAL EMPLOYEES, AFL -CIO; LOCAL 3294; (HEREINAFTER AFSCME) FOR THE 1999/00 AND 2000/01 FISCAL YEARS. WHEREAS, the City Manager and the AFSCME, have reached a Collective Bargaining Agreement for the 1999/00 and 2000 /01 fiscal years; and and WHEREAS, the agreement was ratified by the union rank and file on February 9, 2000 WHEREAS, the agreement provides that: (a) All bargaining unit employees who are employed in positions covered by the unit on the date this agreement is approved by the City Commission shall receive a three percent (3 %) wage increase effective October 1, 1999, for the 1999/2000 fiscal year. (b) All bargaining unit employees who are employed in positions covered by the unit on the date this agreement is approved by the City Commission shall receive a three percent (3 %) wage increase effective October 1, 2000, for the 2000/2001 fiscal year. (c) The pension multiplier shall be increased to two one- eighth percent (2.125 %), effective October 1, 2000, for all bargaining unit members, as part of General Employees pension plan improvement, from their pension participation date through September 30, 1996. (d) The pension multiplier shall be increased to two and one quarter percent (2.25 %), effective October 1, 2001, for all bargaining unit members, as part of General Employees pension plan improvement, from their participation date through September 30, 1997. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI: Section 1. That the City Commission hereby accepts the aforementioned amendments to the agreement between AFSCME and the City of South Miami. Page 2 of Resolution NO. 47-00-10940 Section 2. That the City Manager is hereby authorized to implement the amendments to the agreement on behalf of the City of South Miami. CITY-4,TTOVITEY COMMISSION VOTE: Mayor Robaina: Vice Mayor Feliu: Commissioner Bethel: Commissioner Russell: Commissioner Wiscombe: 5-0 Yea Yea Yea Yea Yea CITY OF SOUTH MIAMI INTER-OFFICE MEMORANDUM To: Mayor and City Commission Date: February 11, 2000 z. From: Charles D. Seurr Re: AGENDA ITEM # City Manager Commission Mtng. 2/15/00. AFSCME Collective Bargaining Agreement A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA, RELATING TO APPROVAL OF COLLECTIVE BARGAINING AGREEMENT BETWEEN THE CITY OF SOUTH MIAMI AND AMERICAN FEDERATION OF STATE, COUNTY AND MUNICIPAL EMPLOYEES, AFL-CIO; LOCAL 3294; FOR THE 1999/00 AND 2000/01 FISCAL YEARS. BACKGROUND & ANALYSIS The City has been engaged in negotiations with the American Federation of State, County, and Municipal Employees (AFSCME) for a number of months. The existing Agreement has an annual negotiation clause for the Cost of Living Adjustment (COLA). As negotiations proceeded it became clear that pension issues were of major concern to many of the members. The City made it clear that pension issues could only be addressed under a multi- year agreement and that the level of COLA would be a major determining factor in the City's financial ability to improve the pension system The City and AFSCME have reached a two-year agreement for the 1999/00 and 2000/01 fiscal years. The agreement provides for a three percent (3.0%) wage increase effective October 1, 1999 and a three percent (3.0%) wage increase effective October 1, 2000, for the fiscal years 1999/00 and 2000/01 respectively. The agreement further provides for improvements to the General Employee Pension Plan by increasing the pension multiplier to two one-eighth percent (2.125%) effective October 1, 2000, for all members from their participation date through September 30, 1996. The multiplier will be increased to two and one quarter percent (2.25%) effective October 1, 2001, for all members from their participation date through September 30, 1997. The union rank and file voted unanimously on February 9, 2000 to accept the agreement. The cost of implementing the wage portion of the agreement is included in the Non- Departmental General Contingency account of the current fiscal year's budget. The pension multiplier changes will have no impact in the 1999/00 fiscal year budget. Over the long term the cost of the pension improvement will be covered by the perpetual savings from the 3.0% COLA. RECOMMENDATION Approval is recommended.