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HomeMy WebLinkAboutES06-177 - Other - Teamsters Local Union #117 - MOU Furlough Days - 03/13/2009 MEMORANDUM OF UNDERSTANDING By And Between THE CITY OF KENT And TEAMSTERS LOCAL UNION No. 117 Affiliated with the International Brotherhood of Teamsters The purpose of this Memorandum of Understanding ("MOU") is to memorialize an agreement between the City of Kent ("City") and Teamsters Local Union No. 117 ("Union"). This Agreement is intended to amend the 2006-2008 Collective Bargaining Agreement and the MOU extending the Collective Bargaining Agreement (hereafter collectively referred to as "CBA") through December 31, 2009 between the City and the Union for the effective period and relate to the matters specified herein. Except as amended by this MOU, the CBA and all City and department policies, procedures and practices shall remain in full force and effect. SECTION 1. PURPOSE WHEREAS the City of Kent is experiencing a significant financial shortfall in 2009; WHEREAS the CBA provides for a cost of living adjustment ("COLA") based upon 90% of the June consumer price index (CPI-W), and members of the bargaining will be receiving the remaining half of their 5.6% (or approximately 2.72%) COLA on July 1, 2009; WHEREAS the bargaining unit is entering into this Agreement with the City in order to assist the City with its financial shortfall and to preserve employees' COLA and step increases, and to reduce the number of layoffs necessary during 2009; NOW THEREFORE, the City and the Union agree as follows. SECTION 2. DEFINITIONS a) Furlough Eligible Employees - All members of the bargaining unit who are regular full time or regular part-time employees with benefits. b) Furlough Ineligible Employees - Members of the bargaining unit who are classified as 8-month temporary, 4-month temporary, or temporary part-time. c) Furlough - Days or hours of leave taken by members of the bargaining unit in accordance with the terms of this MOU. d) Effective Period - The period in which this MOU is in effective, which is March 16, 2009 through December 15, 2009. tl{]y 4 B:\2009 Outgoing Mail\Employer\Gty of Kent\Contract\Employer\Gty of Kent TM 2009 Furlough MOU(4).doc City of Kent and Teamsters Local Union No. 117 MOU re: Furlough Days Page 2 of 4 SECTION 3. FURLOUGH TIME OFF a) All Furlough Eligible Employees shall reduce their hours (FTE status) by 2.56% (40 hours per year) from March 16, 2009 (for the April 5, 2009 pay check) through December 15, 2009 (for the December 20, 2009 pay check), in exchange for a non-cash furlough leave bank of forty (40) hours. Regular part- time employees will have their hourly wage rate reduced by the same percentage and receive furlough leave credits based on their positions' budgeted percentage of full time equivalent. b) Employees using furlough leave hours will be paid their adjusted (as set forth by the 2.56% reduction) normal wages as if they are using personal leave days/hours during the furlough period. c) Furlough may be taken by employees in not less than one (1) hour increment, subject to authorization and scheduling requirements set forth below. d) Employees will work with their supervisor to schedule their furlough in advance of taking such time off. Scheduling of furlough shall be subject to management approval to ensure that there will be no Increase In overtime and no additional cost to the City. e) Employees must completely use the furlough bank on or before December 15, 2009. There shall be no carry over of the unused furlough or any portion thereof unless management repeatedly denies the employee's use of such (which shall be based on unforeseeable events or the inability to maintain adequate staffing). If an employee is denied the use of said furlough time off, carry over exceptions shall be reviewed and approved by the Employee Services Director on a non-precedent setting case-by-case basis, as Is currently the practice for excess vacation accruals. f) Employees who volunteer to take additional leave without pay above and beyond the forty (40) hours may do so by request and approval through their department's chain of command. SECTION 4. SENIORITY AND BENEFITS a) Furlough shall not be considered as a break in service and shall not affect seniority or step advancement. b) Probationary periods shall not be impacted in that mandatory furlough shall not add to the length of the employee's probation. However, management retains the right to extend probationary periods based on terms of the CBA. c) Health care insurance shall not be affected by furloughs except where an employee is on unpaid status for one (1) calendar month or more. B•\2009 Outgoing Mad\Employer\Qty of Kent\Contract\Employer\Qty of Kent TM 2009 Furlough MOU(4)doc City of Kent and Teamsters Local Union No. 117 MOU re: Furlough Days Page 3 of 4 d) Vacation and sick leave shall continue to accrue, and shall not be impacted by employee's hours reduction or use of furlough leave. e) Vacation leave carry over shall not be affected by furloughs. Considerations for vacation carry over exceptions shall follow the CBA and past practice of the City. SECTION 5. NEW HIRES AND SEPARATIONS a) New bargaining unit members who are classified as Furlough Eligible Employees are subject to furlough requirements remaining in 2009, which shall be prorated based on the number of pay periods remaining in the year. Requirement for the first pay period will be based on the employee's hire date. Employees hired in the first half of the pay period (prior to the 7th calendar day in the pay period) will be required to participate in furloughs for that pay period. Employees hired in the second half of the pay period will commence participation in furloughs in the next pay period. The new hire's hours of work (FTE status) or hourly wage rate shall be reduced and furlough leave bank will be credited on a prorated basis based on the furlough hours remaining in the year. b) Employees who separate from employment prior to December 15, 2009, shall be responsible to take the prorated share of furlough leave which occurred during the effective period in which the employee was employed as a regular employee with the City. Employees separating from employment on/before the 7th calendar day of the pay period shall not be required/eligible to take furlough leave for that pay period. Employees who have taken furlough leave In excess of their prorated share shall have such excess deducted from their accrued compensatory time, floating holiday, or vacation leave. SECTION 6. RETIREMENTS & EXEMPTION PROCESS a) Employees who have committed to retiring from the City on or before December 31, 2010, shall be exempted from the terms of this MOU if they so choose by providing written request of such exemption to the City. The retirement I commitment must be submitted In writing to the City's Employee Services Department by March 31, 2009. Once the written retirement commitment and exemption request form Is received by the City, the employee's hours (FTE status) or hourly wage rate will not be reduced and the employee shall not receive the furlough leave bank as outlined in Section 3.a. b) If, for any reason, the employee does not retire on or before December 31, 2010, the employee shall reimburse the City the equivalent of forty (40) hours. The employee shall be responsible and have the option to take forty (40) hours of leave without pay or have the equivalent leave hours deducted from their compensatory time, eligible cashable floating holiday, or vacation leave bank(s) prior to March 31, 2011 or prior to the employee's separation, whichever occurs B:\2009 Outgoing Mail\Employer\Gty of Kent\Contract\Employer\Gty of Kent TM 2009 Furlough MOU(4).doc City of Kent and Teamsters Local Union No. 117 MOU re: Furlough Days Page 4 of 4 first. If the employee has not designated an option in a timely manner before separation, the City may deduct the sum equal to forty (40) hours from the final payout to the employee. SECTION 7. MISCELLANEOUS a) Where this MOU conflicts with any provisions of the current CBA, City or Department policies, procedures and practices, this MOU shall control for the duration of the effective period. b) The Union and City will meet as necessary to discuss any other issues related to the implementation of the furlough leave days, with the goal that all eligible employees will serve equitable the required furloughs. c) Any dispute regarding the interpretation and/or application of this Agreement shall be handled pursuant to the terms of the CBA's grievance procedures. d) This Agreement shall not be interpreted to create a past practice nor shall it set a precedence for either party. SECTION 8. SIGNATURES By signature below, all parties agree that the above represents the parties' full and entire agreement with regard to the Furlough Days. Signed this Ij rn day of March, 2009. CITY OF KENT TEAMSTERS LOCAL UNION No. 117, 220 4th Avenue South AFFILIATED WITH THE INTERNATIONAL Kent, Washington 98032 BROTHERHOOD OF TEAMSTERS 14675 Interurban Ave S, Suite 307 Tukwila, A 98168 jMau BY t Cooke Tracey A. Th pson Secretary-Treasurer BY AA Anh Hoang Labor Relations Manag B:\2009 Outgoing Mail\Employer\Qty of Kent\Contract\Employer\Qty of Kent TM 2009 Furlough MOU(4)doc