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 California Nurses Association (CNA)
RECOMMENDATION:
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Adopt a resolution authorizing approval of the Tentative Agreement establishing the terms and conditions of a successor agreement to the Memorandum of Understanding with the California Nurses Association (CNA) for the term of January 1, 2022 through December 27, 2025.
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BACKGROUND:
The current MOU expired on December 31, 2021, and the County concluded negotiations with CNA on March 30, 2022. The membership has ratified the County’s offer. The County and CNA have met and conferred in good faith and agreed to the terms as described in the Tentative Agreement.
DISCUSSION:
This agreement covers all of the staff in classifications represented by CNA. 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
January 1, 2022 through December 27, 2025, four years.
Salary Adjustment
Classifications in this bargaining unit will receive Cost of Living Adjustments (COLA) increases as follows: 3% effective April 17, 2022, 3% effective December 25, 2022, 4% effective December 24, 2023 and 4% effective December 29, 2024. Classifications in this bargaining unit will also receive a 5.5% equity increase effective April 17, 2022.
Lump-Sum Payment
Employees in an active paid status in positions covered by this MOU will receive a one-time lump sum payment of $2,000 following Board of Supervisor approval. This amount will be pro-rated for part-time employees.
Other economic changes
Employees represented by CNA will receive one additional paid holiday, Juneteenth, beginning in 2022.
Nurse Practitioners will accrue an additional two hours of administrative leave time each pay period, up to a maximum of 260 hours, with the option to cash out up to 130 hours each calendar year.
County Counsel 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 CNA employees is estimated to be an increase in the Unfunded Actuarial Accrued Liability (UAAL) of $9.4 million, which is equivalent to a decrease of 0.17% in the Funded Ratio when rounded to the nearest 0.01%. There is estimated to be an increase of approximately 0.16% of pay in employer UAAL rates and increases in future employer and member contribution dollars as a result of higher pensionable salaries. Note that this is the impact on SamCERA funding only, so it does not reflect the cost to the County of providing the lump-sum payments.
FISCAL IMPACT:
The cost of the salary and other changes will result in a net increase of approximately $49 million for the four-year term of the new Memorandum of Understanding.