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TO: Mayor Richard C. Irvin
FROM: Alisia Lewis
DATE: March 21, 2018
SUBJECT:
A resolution Authorizing Execution of a Rollover Agreement Between the City of Aurora and Local 3298, Council 31 American Federation of State, County and Municipal Employees AFL/CIO October 1, 2017 through December 31, 2019.
PURPOSE:
To obtain authorization to execute a Rollover Agreement Between the City of Aurora and Local 3298, Council 31 American Federation of State, County and Municipal Employees AFL/CIO collective bargaining agreement October 1, 2017 through December 31, 2019.
BACKGROUND:
Local 3298, Council 31 American Federation of State, County and Municipal Employees AFL/CIO collective bargaining agreement expired 9/30/17. The last agreement was a one year rollover agreement which addressed the issue of wages only.
DISCUSSION:
The city began negotiations with the union in 2017 and shortly after initial meetings, the union inquired about going into another rollover agreement. In consideration of the uncertainties still looming regarding the new repeal and replace health care law, American Health Care Act (AHCA), it was imperative that an agreement with the union would need to address the growing cost of health insurance coverage to the city. The changes from the AHCA may have a significant impact on the city's health care cost, plan design and other determined obligations.
This rollover agreement primarily is focused on wages and insurance. One provision of the agreement was to change the duration of the agreement to a calendar year expiration date. The parties agreed to a .6% wage increase to cover the last quarter of 2017 and a 2.5% wage increase for 2018 and 2019. The city negotiated an increase in employee contribution to 17.5% for both HMO and OAP coverage across all tiers to be reached by the end of the agreement. For illustration purposes, the current employee contribution for single OAP coverage is 12.75%. The user fees which include deductibles, out of pocket maximums and Rx have also been brought up to market rate. The union ratified the agreement on March 16, 2018.
Attached is the AFSME Local 3298 ratified agreement and the wage schedules for Tier 1 and Tier 2. The 2017 wage schedule from the prior rollover agreement is also included.
IMPACT STATEMENT:
N/A.
RECOMMENDATIONS:
That the City Council authorize the execution of the Rollover Agreement Between the City of Aurora and Local 3298, Council 31 American Federation of State, County and Municipal Employees AFL/CIO, for the period of October 1, 2017 through December 31, 2019.
cc: Alderman O’Connor, Chairman
Alderman Mesiacos
Alderman Bugg
Alderman Mervine, Alternate
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution Authorizing Execution of a Wage and Insurance Rollover Agreement Between the City of Aurora and Local 3298, Council 31 American Federation of State, County and Municipal Employees AFL/CIO October 1, 2017 through December 31, 2019.
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WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, the City of Aurora employs numerous personnel in professional, technical, and clerical positions; and
WHEREAS, the City has recognized Local 3298, Council 31 American Federation of State, County and Municipal Employees AFL/CIO as the bargaining agent for the above said employees; and
WHEREAS, a proposed collective bargaining agreement has been negotiated between representatives of the City of Aurora and the American Federation of State, County and Municipal Employees (A.F.S.C.M.E), and is hereby submitted to the City Council for approval; and
WHEREAS, the City Council find that it is in the best interests of the City and the public welfare that such Labor Agreement be executed;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: that the Mayor and City Clerk are hereby authorized to execute the attached Memorandum of Agreement between the City of Aurora and Local 3298, for the period of October 1, 2017 through December 31, 2019, which is attached hereto and made a part hereof.