Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Rocio Kiryczun, Human Resources Director
Michelle Kuka, Deputy Director, Human Resources
Subject: Successor agreement to the Memorandum of Understanding with the Service Employees International Union (SEIU) Local 521
RECOMMENDATION:
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Adopt a resolution approving the Tentative Agreement establishing the terms and conditions of a successor agreement to the Memorandum of Understanding with the Service Employees International Union (SEIU) Local 521 for the term of October 6, 2024, through October 9, 2027.
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BACKGROUND:
The current Memorandum of Understanding (MOU) with SEIU expired on October 5, 2024, and the County concluded negotiations with SEIU. The County and SEIU have met and conferred in good faith and agreed to the terms as described in the Tentative Agreement. The membership has ratified the County’s offer set forth in the Tentative Agreement.
DISCUSSION:
This agreement covers all of the staff in classifications represented by SEIU. Extra Help employees in SEIU represented positions are now included within this MOU. However, the terms of their employment, including the changes described below, may differ from regular employees in certain respects, as detailed further within the Tentative Agreement. The following is a high-level summary of the major changes, but is not a substitute for the attached agreement and the detailed terms contained therein.
Term
October 5, 2024 through October 9, 2027, three years.
Salary Adjustment
Classifications in this bargaining unit will receive Cost of Living Adjustments (COLA) increases as follows: 5% effective December 8, 2024, 5% effective October 12, 2025, and 4% effective October 11, 2026. The October 2026 COLA shall be increased by an additional 1%, for a total COLA adjustment of 5% if legislation is signed to ensure that San Mateo County receives its full Vehicle License Fee Adjustment Amount under the Revenue and Taxation Code.
Medical Plan changes
The County will increase the County’s contribution towards the Medical Plan premiums for the Aetna HMO plans by 5%, so the County’s contribution will now be 90% and the employee’s contribution will now be 10%. Additionally, from October 12, 2025 through October 9, 2027, the County will contribute $59 per month as a “Premium Only” contribution to each benefit-eligible employee’s Section 125 account to be used for premium expenses.
Other economic changes
Employees represented by SEIU will begin to receive two Wellness Days each fiscal year that they can use as floating holidays.
Employees in this bargaining unit will also receive one additional paid holiday, Cesar Chavez Day, beginning in 2025. They will also receive three days of Winter Recess in December 2024, December 2025 and December 2026.
The bilingual pay for employees in this bargaining unit will increase from $70 per pay period to $90 per pay period.
The County Attorney has reviewed and approved the resolution as to form.
Financial Impact on County’s Retirement System
Government Code Section 31515.5 requires the County to provide the estimated financial impact that proposed benefit changes or salary increases would have on the funding status of SamCERA ‘s retirement fund, the County’s retirement system. As reflected in the attached letter from SamCERA’s actuary, Milliman, the proposed salary and benefit increases for the SEIU employees is estimated to be an increase in the Unfunded Actuarial Accrued Liability (UAAL) of $15,307,000. There is also expected to be an increase in the annual employer contribution rate of 0.30% of General member payroll (0.26% of total payroll) and an increase in the PEPRA General member contribution rate of 0.03% of payroll. Note that this is the impact on SamCERA funding only, so it does not reflect the cost to the County of implementing the MOU. While the UAAL of SamCERA will be higher by this amount, the funded ratio, rounded to the nearest 0.01%, is estimated to be lower by 0.18% because of these changes.
FISCAL IMPACT:
The cost of the salary and other changes will result in a net increase of approximately $16.6 million for the first year of the new Memorandum of Understanding.