BY COUNCILOR STEWART:
RESOLVED, that the proper city officials are authorized to execute and implement a collective bargaining agreement with the city of Duluth Supervisory Association, containing the same terms and conditions, and being in the same form (except for typographic or insubstantial corrections) as the contract on file with the city clerk as Public Document No. ___________, covering the years 2007-2009.
STATEMENT OF PURPOSE: Earlier this year, the city started negotiations with the police, fire and supervisory bargaining units for new labor contracts. Negotiations with the police and fire bargaining units continue. Negotiations recently ended with the supervisory bargaining unit, and they approved their contract on July 27, 2006.
The significant changes to the contract include:
1. A three year contract with wage increases of: 2007 - 1%, 2008 - 3%, 2009 - 3%. This is a 7% increase over three years or 2.333% per year.
2. The amount contributed by the city to employees’ deferred compensation has increased by $5 for a total amount of $229 per month.
3. There will no longer be four hospital-medical benefit plans available to active employees. All active employees will have coverage under Plan 3A. This plan requires the employee to pay deductibles and co-pays. The city will continue to contribute 80% of the cost of family coverage and 100% of the cost for single coverage. For those employees with single coverage, the city has increased its contribution to the employees’ flex benefits account by $25 for a total of $75 per month.
4. Retired employee health coverage now contains language that:
(a) All employees retire under Plan 3A and are subject to a sliding scale that determines the percentage of cost borne by the city and the retirees. After 20 years of service, the city pays 100 percent of the premium;
(b) The city will deposit $12,000 into a health care savings plan account for all full-time employees hired on or after January 1, 2006, who complete 36 months of employment. These new hires are not eligible for a defined retiree health care benefit and may enroll in the city’s health care plan only at their own expense; and
(c) Allows the city, at its option, to implement a supplemental health insurance plan for all retirees over the age of 65.
5. Employees hired on or before December 31, 2005, that cease employment with the city may no longer participate in the city’s health care plan unless they have at least 20 years of service. Participation continues to be at the city’s expense.
6. Up to two weeks of accrued paid leave at the end of the year will be transferred into the employee’s health care savings plan account.