BY COUNCILOR STEWART:
RESOLVED, that the proper city officials are authorized to execute and implement a collective bargaining agreement with the Confidential Unit of the City of Duluth, represented by UNITE HERE Local 150, 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: The administration has been in negotiations since early 2006 with bargaining units of city employees. Settlement has now been reached with the Confidential Unit of the city of Duluth, represented by UNITE HERE Local 150, resulting in a tentative contract, which the union ratified on July 18, 2007.
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 3 years.
2. In 2007 only, employees will have an option to sell back one week of vacation.
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 employee's flex benefit account by $25 for a total of $75 per month. The employee also has the option of having the additional $25 deposited into a deferred compensation plan.
4. Retired employee health coverage now contains language that:
a) All employees retire under Plan 3A that includes co-pays and deductibles, and are subject to a sliding scale that determines the percentage of cost borne by the city and the retiree. After 20 years of service, the city pays 100% of the premium;
b) For full-time employees hired on or after January 1, 2006, the city will deposit $12,000 into a health care savings plan (HCSP) account after 36 months of employment. These persons 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.
5. All employees will be paid an additional 1% of their base pay into a HCSP account starting January 1, 2008.