REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF THE COUNTY OF SAN BERNARDINO
AND RECORD OF ACTION
June 22, 2021
FROM
DIANE RUNDLES, Director, Human Resources Department
SUBJECT
Title
Side Letter Agreement with Teamsters Local 1932 to Defer Across the Board Salary Increases
End
RECOMMENDATION(S)
Recommendation
Approve the proposed Side Letter Agreement between the County of San Bernardino and Teamsters Local 1932 representing the employees in the Administrative Services Unit; Clerical Unit; Craft, Labor, & Trades Unit; Management Unit; Nurses Supervisory and Management Unit; Supervisory Unit; and Technical and Inspection Unit, to defer across the board salary increases.
(Presenter: Diane Rundles, Director, 387-5570)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Create, Maintain and Grow Jobs and Economic Value in the County.
Improve County Government Operations.
Operate in a Fiscally-Responsible and Business-Like Manner.
Ensure Development of a Well-Planned, Balanced, and Sustainable County.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Costs). The Memorandum of Understanding (MOU) with Teamsters Local 1932 (Teamsters) currently provides for a 2.5% across-the-board wage increase effective July 31, 2021, which is included in the County’s 2021-22 budget as approved by the Board of Supervisors (Board) on June 8, 2021 (Item No. 112). This item will approve the deferral of 0.5% of the 2.5% across-the-board wage increase while the County meet and confers regarding Teamsters’ desire to divert funds to a Teamsters Local 1932 retiree medical trust. The deferred funds, estimated to be $4.7 million, will be set-aside in a separate budget line item within each department’s budget and will be available should a new contribution to the proposed retiree medical trust be approved. Adjustments to the 2021-22 budget are not requested at this time, but will be included in a future quarterly budget report, which will be presented to the Board for approval.
The MOU also provides for a 3% across-the-board wage increase effective July 30, 2022. If agreement is reached with Teamsters, the 2022-23 recommended budget will reflect the reduction of the across-the-board wage increase by 1%, which is estimated to be $12 million, in order to allocate funds to the proposed retiree medical trust.
BACKGROUND INFORMATION
On March 10, 2020 (Item No. 29), the Board approved a side letter agreement with Teamsters for employees in the Administrative Services Unit; Clerical Unit; Craft, Labor, & Trades Unit; Management Unit; Nurses Supervisory and Management Unit; Supervisory Unit; and Technical and Inspection Unit. The side letter established that Teamsters’ members will have the option to select the County-sponsored health plans or the Teamsters-sponsored health plans that are offered through a Teamsters healthcare trust. As part of those negotiations the parties also agreed that upon Teamsters’ request, the parties would meet to discuss participation/funding/eligibility of any agreed-upon retiree health component of the Teamsters- sponsored Healthcare Trust.
Teamsters recently requested to meet to discuss a retiree health component of the Teamsters-sponsored Healthcare Trust. At this time the parties have agreed to a proposed side letter that defers one half percent (0.5%) from the July 31, 2021 two and one-half percent (2.5%) across-the-board increase, and defers one percent (1%) from the July 30, 2022 three percent (3%) across-the-board increase, while the parties meet and confer regarding Teamsters Local 1932’s desire to divert such funds to a Teamsters Local 1932 retiree medical trust. Should the parties agree to Teamsters’ proposed retiree medical trust, the County shall allocate the deferred funds to such trust in an agreed-upon format.
If agreement is reached on Teamsters’ proposed retiree medical trust, the County shall return to the Board at a later date with the proposed parameters of such agreement.
PROCUREMENT
N/A
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Cynthia O’Neill, Principal Assistant County Counsel, 387-5455) on May 21, 2021; Human Resources (Diane Rundles, Human Resources Director, 387-5570) on June 9, 2021; Finance (Jessica Trillo, Administrative Analyst, 387-4222) on June 10, 2021; and County Finance and Administration (Matthew Erickson, County Chief Financial Officer, 387-5423) on June 10, 2021.