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:
title
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 Service Employees International Union (SEIU) Local 521 for the term of October 3, 2021 through October 5, 2024.
body
BACKGROUND:
The current MOU expired on October 2, 2021, and the County concluded negotiations with SEIU on March 24, 2022. The membership has ratified the County’s offer. The County and SEIU 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 SEIU. 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 3, 2021 through October 5, 2024, three 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 October 2, 2022 and 4% effective October 1, 2023.
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.
Other economic changes
Employees represented by SEIU will receive one additional paid holiday, Juneteenth, beginning in 2022. They will also receive three days of Winter Recess in December 2022 and December 2023.
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 SEIU employees is estimated to be an increase in the Unfunded Actuarial Accrued Liability (UAAL) of $386,000. 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. While the UAAL of SamCERA will be higher by this amount, the funded ratio, rounded to the nearest 0.01%, will be decreased by 0.01%.
FISCAL IMPACT:
The cost of the salary and other changes will result in a net increase of approximately $38 million for the three-year term of the new Memorandum of Understanding.