HomeMy WebLinkAbout2000-06-21 Agenda Packet - Board (11) ' 3
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Public Utility District
Confidential Staff Report
To: Board of Directors
From: Peter L. Holzmeister
Date: June 29, 2000
Tentative settlement reached with employee union
I have reached a tentative settlement with IBEW Local 1245, the union that represents our hourly
wage employees.Attached is a brief description of the terms of the tentative settlement.
Basically, it is a three year MOU. The wage increase is 1% in each of the three years. This is a very
small wage increase. The employees were interested in pension improvements and that is were the
significant improvements and higher costs are to be found. The tentative settlement calls for the
District to supplement the current defined benefit pension plan with a 401(a) defined contribution
plan. It calls for the District to contribute an amount equal to 3%,4% and 5% of pay in year 1, year 2
and year 3 respectively. The tentative agreement calls for a medical insurance benefit for retirees,
described on the attachment.These are the significant changes
I suggest we discuss this matter fully in closed session.
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Agreement
June 28, 2000
WAGES: 1%per year for 3 years(2000,2001,2002)
Retroactive to January 1,2000
Included are a 10%differential for electric Foreman and a 3%differential for electric
leadman from the base lineman wage.
MEDICAL INSURANCE including PRESCRIPTION DRUG CARD PROGRAM:
The NRECA Group Medical Insurance,Plan Name "ElectREcomp",MAC B option that includes
the Prescription Drug Card Program as described below:
Copayment Old Copayment Amount*
Drug Card Brand Name $15
(from Network Pharmacy)Generic $10
Mail Order Brand Name $20 $9*
Generic $10 $0*
The District and the IBEW have agreed that the District will self fund the difference between the
new co-payamounts($20 brand named drug,$10 generic drug)and the old co-pay amount($9
brand name drug,$0 generic drug)for the balance of the union contract which expires
12/31/2002. In order to be reimbursed,participants must submit their receipts from Express
Scrips to accounts payable that will process a refund check for the difference on the co-pay
amount.
PENSION: Continue the existing Defined Benefit Plan as it currently is,
Add a new Defined Contribution 401A Plan, which the District will fund as a percentage of gross
wages:
3% Year 2000(retroactive to January 1,2000)
4% Year 2001
5% Year2002
POST RETIREMENT MEDICAL AND DENTAL BENEFITS
The plan is the same as the current employees Medical Plan except for a$500 deductible per
person compared to a$200 deductible per person for employees.
The proposal is based on the ElectREcomp medical plan with$500 deductible per person.
Years of Service %of Premium Paid by District
10 50%
11 55%
12 60%
13 65%
14 70%
15 75%
16 80%
17 85%
18 90%
19 95%
20 100%
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POST RETIREMENT MEDICAL AND DENTAL BENEFITS (continued)
Proposal (#7): District would pay the same percentages listed above of the retiree and dependent
medical and dental premiums beginning at the retiree's age 60 for future retired employees based
on years of service at Truckee Donner. If a person retires earlier than age 60 the benefit will be
reduced to its actuarial equivalent. (estimated to be about 2%per year reduction in the benefit
paid by the employer. For example,a person retiring at age 58 with 19 years of service,would
have 91%of the retiree and dependent premiums paid by the district if the actuarial equivalent
was calculated to be exactly 2%)
The benefit paid by the district is capped as listed below:
Monthly Caps
Individual Only: $350
Spouse Only: $350
Child(ren) Only: $350
Spouse&Child(ren)Only $600
Medicare Rate $250
If the premiums increase above the monthly cap,the retiree will pay the difference.
Retiree can not leave the plan and then come back. Once time is broken on the plan,the
employee or retiree can not come back on the medical plan.
If the retiree is paying for part of the Medical coverage,this will be done through an electronic
funds transfer from the retiree's account on a monthly basis.
When the retiree is eligible for Medicare,it is mandatory that the retiree enrolls for that coverage.
Also,if the district changes the plan or coverages through the collective bargaining process,those
will apply to retirees also.
The Vision benefit will remain the same without any monthly caps.
LTD: Benefit begins after 13 weeks.
District continues to fund medical insurance during first 13 weeks.
Employee can use sick leave and vacation accruals in any combination to push pay to 100%of
normal wage(less SDI),during the first 13 weeks.
After 13 weeks, when LTD begins:
Employee can use sick leave and vacation accruals in any combination of pay and cash to push
pay to 100%and/or continue medical insurance on current plan.
AGREEMENTS(MOU MODIFICATIONS)
Title:
3.3 Add "seasonal employees".
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AGREEMENTS(MOU MODIFICATIONS)continued
3.8 Establishment of Duties and Qualifications
(a) OK
(b) It is recognized by the parties to this agreement that the District may implement change
to improve performance and job duties;implement new technologies to help control
costs and maintain excellent customer service;and be sensitive to the needs of the
bargaining unit.
In partnership,the District and the IBEW 1245 agree to establish a Joint
Labor/Management Steering committee which is advisory in nature,for the purpose to
openly and fully discuss changes in job duties,streamlining work processes,District
organizational structure and new technologies.
The Labor/Management Steering Committee shall consist of three(3)members
appointed by the Union and three(3)members appointed by the General manager of the
District. The committee shall meet monthly, unless canceled by mutual agreement,
during normal work hours not to exceed two hours. It is recognized from time to time
that sub-committees may be established by agreement of the Steering Committee.
(c) OK
(d) After the District has created a new or redesigned bargaining job classification,it shall
meet and confer with the Union over the wage for that classification.
3.12 Delete
3.13 Residency: Emergency Service Employees(Electric and Water Department Field Classifications)
may be required to reside within reasonable commute boundaries as solely determined by the District.
A reasonable commute is where you can report for work within 45 minutes of being contacted. This
includes the Reno area but does not include any area west of Donner Summit.See map for guidelines.)
5.3 Availability:Although employees are not required to standby at home,they must remain in the District,
or within paging/electronic communication distance,and make all necessary arrangements to enable them
to report for work within forty five(45)minutes of the first contact by means of telephone and/or pager.
4.2 Scheduling Work Periods; The District will meet and confer with the Union with respect to
changes in work period scheduling. The existing work schedules are:
a) 7:30 am to 4:00 PM-Monday through Friday for Support Services,Electric and
Water Field Crews,with a thirty(30)minute lunch period.
b) No Change
c) 8:00 am to 5:00 PM-Monday through Friday for Customer Services,Credit and
Collections,Billing,Finance and Administration, with a sixty(60)minute lunch
period.
4.3 Delete section
4.4 Delete section
4.5 Delete section
5.4 Change"call back"to"call out'
6.5(c) Change "call back" to"call out".
8.2(c) Change "call back" to"call out".
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8.3 Moving Expense Reimbursement
(a) New Employees who have been recruited by the District and are required to
move their place of residence as a result of accepting employment with the
District shall be reimbursed for qualified moving related expenses subject to
the following guidelines.
(b) The amount of reimbursement shall not exceed eighty (80) hours of straight
time wage. Eligible expenses shall be limited to documented costs for
relocation of furniture, household and personal items, and transportation costs
associated with moving the employee and family members at the then current
IRS mileage rate. Costs associated with the sale or purchase of a home,
lodging, meals, temporary storage of personal items, or costs that are not
directly necessitated by the move will not be included in the costs subject to
reimbursement. Reimbursement is only available if the employee would have
to commute at least 50 extra miles from his or her former residence to get to
the new job. The General Manager will make final decisions regarding the
appropriateness of expenses for reimbursement.
(c) To be eligible for moving expense reimbursement, employees are required to
agree to the following pay back agreement in the event that their term of
employment is less than one year.
Length of employment Amount to be repaid by employee
0-11 months 100%
12-24 months 75%
2+years 0%
19.2 Contributions: This section will be re-drafted to match the Group Medical
Insurance as described above and to include POST RETIREMENT MEDICAL
AND DENTAL BENEFITS also as described above.The premiums for employees
and dependents are as defined in the "Dependent Eligibility" section of the NRECA
Benefits Program administrative manual.
20.6 Position Reclassification: If the District reclassifies a position to a lower paying
position, the incumbent employee's wage shall be frozen until such time as the lower
wage catches up to the frozen wage. From that point on, the incumbent employee shall
benefit from any general wage adjustments that are negotiated.
20.4 Wage adjustments: Included in the general wage increase is a 10%differential for electric
Foreman and a 3%differential for electric leadman from the base lineman wage.
21.1(b) Successor Clause:This agreement is binding upon any successor in interest, whether
by merger, acquisition, consolidation or reorganization and upon any entity which
acquires title to any property or facility covered by this agreement whether by sale,
transfer or contribution to partnership or joint venture. Any agreement for a sale, transfer
or contribution of any such property or facility or agreement for merger or acquisition of
the interest of the District in any such property or facility shall include an express
assumption of this agreement. The District shall provide the Union with notice in writing
prior to the close of any sale, acquisition, merger, consolidation, reorganization,transfer
or contribution covered by this provision, which shall include a copy of the assumption of
this agreement to be contained in any such agreement for sale, acquisition, merger,
consolidation, reorganization, transfer or contribution of any facility or property covered
by this agreement.
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