TO: Board of Supervisors
FROM: Christine Bricen᷉o, Director of Human Resources
REPORT BY: Joy Cadiz, Staff Services Manager
SUBJECT: Resolutions Approving the PSE and PSE Supervisory Memoranda of Understanding 2024-2027, and Salary Increases in Fiscal Years 2024-2025, 2025-2026, and 2026-2027 for PSE, PSE Supervisory, Management Non-Classified, Management Classified, and Confidential Employees
RECOMMENDATION
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Adopt Resolutions approving the Memoranda of Understanding with the Napa Association of Public Employees (PSE) and PSE Supervisory Units for the term July 1, 2024 through June 30, 2027, and salary increases in fiscal years 2024-2025, 2025-2026, and 2026-2027 for PSE, PSE Supervisory, unrepresented Management Non-Classified, Management Classified, and Confidential employees, effective June 22, 2024. (Fiscal Impact: $9.65 million; 50% General Fund and 50% Other Operating Funds; Not Budgeted; Discretionary)
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BACKGROUND
SEIU Local 1021, the Union representing approximately 975 of the County's employees in the PSE and PSE Supervisory Units, has Memoranda of Understanding (MOU) expiring on June 30, 2024. Following approximately four months of negotiations, County and Union bargaining teams reached tentative agreements on the terms of successor MOUs with a three-year term effective July 1, 2024 through June 30, 2027, with Union ratification occurring on or around June 4, 2024.
Highlights of the new MOUs include:
• 11% cost of living adjustment over three years (4%, 3.5%, and 3.5%).
• Adds a Winter Recess (the four business days between December 25 and January 1 holidays) which provides 32 hours of Winter Paid Time Off placed in qualified employee’s leave bank by December 23 of each year.
• Adds the second Monday in October (Indigenous People’s Day) as a County recognized holiday to the MOUs.
• Any decreases in employer contribution rate will reduce the employee cost sharing rate up to a maximum of 0.5% annually, which when applied shall become the new cost share cap until the cost share reaches 0%. When the cost share reaches 0%, the cost share agreement shall end, and employees in this tier shall only pay the statutory rate as defined by CalPERS.
• County will match employee’s Chapter 457 contribution up to $800 per calendar year into the Ch. 401a plan effective the first full pay period after January 1, 2025. The County match will increase to $900 effective the first full pay period of 2026, and then $1,000 effective the first full pay period of 2027.
• Bilingual incentive premium pay increase - Level I $100/bi-weekly and Level II $180/bi-weekly.
• Bereavement leave change, increasing employee use of 8 hours of their bereavement leave bank every year to attend any funeral of their choosing.
• Increase Standby Pay from $2.65 to $4.50 per hour on weekdays, and from $2.90 to $5.00 per hour on weekends and holidays.
• To address compaction, the top step of the Social Worker IV classification shall be at least 5% more than the Social Worker III classification.
• Increase uniform allowance for certain classifications: Correctional Officer I/II, Classification Specialist, Correctional Corporal and Sergeant $900, Correctional Technician $500, Animal Services Officer $800.
• Increase cell phone allowance to $70 per month. Decision to authorize an employee’s cell phone allowance is at the approval of the department head based on business need.
• Various other changes to help clarify language and enhance practices of existing sections of the MOU.
It is typical that the salary adjustments for the 262 unrepresented management, non-classified management, and confidential employees receive similar salary adjustments to the employees included in the PSE and PSE Supervisory bargaining units.
Competitive salaries help attract and retain a highly qualified work force, which are impacted by inflation. According to the U.S. Bureau of Labor Statistics (BLS), Napa County is included in the San Francisco Area Consumer Price Index for All Urban Consumers (CPI-U). The April 2024 BLS CPI-U data tables reflect an increase of 3.8 percent over the previous 12-month period. Without maintaining competitive salaries, retention of current employees and recruitment efforts become more difficult, which can have an impact on the continuity of operations.
FISCAL & STRATEGIC PLAN IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
No |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
There is no obligation for the Board to approve this contract, however, the County and the Union bargained in good faith, and reached the tentative agreements which were within the authority granted by the Board and ratified by the Union. The County also recognizes the inflationary impacts on wages of its unrepresented employees |
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Is the general fund affected? |
Yes |
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Future fiscal impact: |
The increased cost for the proposed agreement included in this contract for July 1, 2024 to June 30, 2027 is approximately $50 million, and approximately $9.65 million for July 1, 2024 to June 30, 2025 across all operating funds. Most of this this increase was anticipated and programmed in the Recommended FY 2024-25 Budget. A supplemental budget amendment will be presented for the additional estimated cost with the Annual Budget today. |
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Consequences if not approved: |
The County would be required to go back to the table to continue negotiations with the Union. Additionally, competitive salaries help attract and retain a highly qualified work force. Remaining competitive includes accounting for inflation on salaries. Without attention to remaining competitive, retention of current employees and successful recruitment efforts become more difficult, which impacts continuity of operations. |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.