Sacramento Labor Agreements: An Introduction
Labor agreements, commonly known as collective bargaining agreements or contracts, represent the legal and commercial frameworks that establish the terms and conditions of employment for various public employee unions within the City of Sacramento. These are crucial documents that lay out the ground rules for employer-employee relations in a manner that is binding on both parties. As such, they have significant implications for policies and practices that affect the public’s business.
On one level, the labor agreements cover basic subjects such as wages, insurance, and work rules. More complex issues include procedures for dealing with grievances, disciplinary actions, and lay-off issues such as bumping rights, among others. Also important are the fiscal costs associated with any changes to an existing contract.
Typically, there are a number of different labor agreements at play in the City of Sacramento. This includes those that cover managers , supervisors, and front-line workers. The City also negotiates with separate organizations representing police officers and firefighters. While each contract is specific to a particular bargaining unit, local law—and sometimes state law—requires that they be negotiated within certain parameters.
Almost all types of labor agreements facilitate an annual update of the memorandum of understanding. Such updates may include compensation changes, changes driven by cost-of-living adjustments, or changes in health benefits. In addition, articles can be opened to negotiate changes to lay-off procedures and grievance resolutions.
For the City Attorney’s office, labor agreements provide important information about various rights, benefits, responsibilities, and obligations of the City, and regulate the commercial relationship between the City and its various labor organizations.
Understanding the History of Labor Agreements in Sacramento
Labor agreements in the City of Sacramento and Sacramento City Firefighters Local 522 and United Professional Firefighters of Sacramento
The historical context of labor agreements in the City of Sacramento Union activity in Sacramento spans a remarkable portion of the history of our state and nation. Most of the note-worthy moments of labor history occurred in the City of Sacramento. With regard to firefighters however, an event in 1920 is particularly important for understanding the past labor relationships in the City of Sacramento. The first Sacramento City Firefighters’ Union was formed in 1920, about the same time that American labor was becoming involved in politics. The the newly formed union was not open to all firefighters. It was an organization that only permitted white, able-bodied men of American birth. In 1930, the more inclusive Firefighters Local 522 came into being. The Firefighters Local 522 was the first local union to be chartered in California. In 1932, Sacramento city voters approved a charter amendment giving city employees the freedom to organize. The Firefighters Local 522 was chartered in 1939. Apart from some minor revisions to its name, Local 522 has organized firefighters in Sacramento since that time. The first handful of decades of the Local 522’s existence was marked by numerous strikes, including a major strike in 1959 that lasted for 59 days. In 1963, the city council adopted a resolution permitting firefighters with 10 years service to retire with an annual pension of $1,800.00, or 60% of their average annual salary for the last three years worked. Notably, at that time a regular firefighter’s average annual pay was $3,000.00. The following year, firefighters organized under what would be called the Sacramento Firefighters Local 522 for the first time. The new Local was chartered by the International Association of Firefighters. In 1967, Sacramento’s Firefighters Local 522 became part of the Sacramento Labor Coalition. Fifty-five years later, the unions that make up the Sacramento Labor Coalition have withstood a number of threats to their existence and achieved a number of victories to secure workers rights.
Assessing the Key Aspects of Labor Agreements in the City of Sacramento
The City of Sacramento enters into collective bargaining agreements with several different labor unions that represent City employees. The labor agreements with the City govern not only the specific wages, hours, and other terms and conditions of employment for a particular employee group but also sets forth the terms under which unions may represent employees at a City facility and process grievances pursuant to the provisions of the Unit Rule. To determine what needs covered under the Unit Rule and the dispute resolution process, the City has to refer to the applicable labor agreement. The labor agreements that the City of Sacramento has with its labor unions are in accordance with the City Charter, Title 3, Chapter 5 of the Sacramento Municipal Code, and the Meet and Confer Ordinance.
The substance of the labor agreements between the City of Sacramento and its labor unions include provisions relating to:
These issues are key components of any collective bargaining agreement. They help to define the relationship between unions and the City of Sacramento, as well as the rights and obligations of all parties in relation to the employment of City workers. The terms of the agreement provide for a structured negotiation process, including the procedures to determine the contract expiration date and factors to determining compensation. Contract terms also provide for other rights and obligations, including the prohibition of discriminatory practices and the implementation strategies to protect employee rights, those affected by a reduction in force, etc.
The Impacts of Labor Agreements on the Sacramento Workforce and Economy
Labor agreements have a significant impact on the workforce and economy of Sacramento. First, they play a pivotal role in promoting job security by providing employees with protections against arbitrary layoffs or termination. By ensuring stability in employment, labor agreements contribute to the overall economic stability of both workers and businesses operating within the city.
In addition, these agreements set standards for wages and benefits that are crucial for maintaining a sustainable quality of life for workers. The guaranteed wages and benefits not only help meet employees’ basic needs but also add to their purchasing power, which, in turn, stimulates local spending and economic growth.
Beyond individual economic security, labor agreements create a more predictable business environment. By standardizing certain labor policies and procedures, employers can better anticipate labor costs without fear of sudden legal changes or unexpected disruptions caused by labor disputes. This predictability is essential for employers when conducting long range and short range business planning, as it allows for the efficient allocation of resources and staff.
However, it is essential to strike a balance between the interests of employees and employers in labor agreements. While these agreements help protect workers, they should do so without imposing unnecessary burdens on employers. Ultimately, the most effective labor agreements achieve this balance.
Recent Changes in Labor Agreements in Sacramento
The trend of increasingly costly labor agreements in the City of Sacramento poses a significant challenge for the city. In 2015, the city entered into a three-year contract with their largest employee group, the Sacramento Police Officers Association (SPOA), which cost the city nearly $14 million more annually than the previous contract. This continues the trend of steep increases for the city. In 2011 the SPOA contract cost approximately $8.3 million, in 2012 it was a $4.2 million increase, and in 2013 it jumped to $15.5 million. In recent years, the organization has attempted to reduce the impact of these contracts by slowing the pace of pay increases. The 2015 contract is an example of that effort. It contained a pay increase of less than one percent, and eliminated a scheduled cost of living adjustment (COLA). Instead 2016 will see a two percent COLA increase followed by a three percent COLA in 2017. However, this is expected to continue the negative trend. By 2018, the average member for the SPOA will receive an $85,429 total package compensation including salary, healthcare benefits and retirement benefits. This is the same amount received by a sheriff’s deputy, which is a more dangerous duty too . As a result of the growing cost of these contracts, city council members are looking closely at all labor agreements. They are working in collaboration with management and negotiators. Over the past few years, the negotiations process has become less adversarial and more collaborative. In 2013 attorney Peter Brown from Brown Law accompanied city managers to monitor the process of negotiating with NAGE, the union for white collar workers. Since then, they have attempted to collaborate with city managers in an effort to keep more public input in to the process. This allows council members to have more of a say over the direction of the negotiation. Prior to this, there was a lack of information available to council members and a lack of public information available. Now there is much more data presented to both council members and the public. For example, the agreement with Marine Engineers Beneficial Association (MEBA) in July, had several changes to the traditional contract. By exchanging a third step up (which is essentially a pay raise) with introducing a 2 percent COLA in 2016 and 3 percent COLA in 2017, the city will save $27,000. These smaller agreements are part of the change in trajectory of negotiations, and will hopefully help the city as it heads into the next couple of years.
Key Stakeholders in Labor Negotiation in the City of Sacramento
The negotiation of labor agreements and memorandums of understanding ("MOUs") is ultimately in the hands of three main stakeholders: the City of Sacramento (in its capacity as an "employer"); the collective bargaining units representing the interests of City employees; and the employees of the City of Sacramento. The current City Charter requires that the City Council of the City of Sacramento "consider and take action" on each tentative agreement reached by the City’s staff and a bargaining unit. While the negotiation process is intended to be a collaborative one, the City Manager’s office invariably serves as team captain for the City’s negotiating team. One of the main roles of the City Manager’s office during the negotiation process is to consider the financial impact of offers made to labor unions, as well as to negotiate and administer other prevailing wage, hours, and working conditions provisions.
One of the chief roles of a labor union (also known as a collective bargaining unit) during the negotiation process is to consider the needs of the employees in its bargaining units, and to represent those needs at the negotiating table with the City. At times, a labor union will engage outside of its membership to engage the services of a labor attorney, often to review MOUs that are proposed or negotiate a labor agreement.
Employees themselves may not be members of a labor union, in which case he or she will be deemed an unrepresented employee. An unrepresented employee will work with their department head to present the reasons why the City should enter into a certain labor agreement. While the City has no obligation to confer directly with its employees regarding labor negotiations, the City may consider the input of unrepresented employees in its assessment of the impact of a proposed agreement.
Challenges and Opportunities in Sacramento Labor Agreements
The landscape for labor agreements in the City of Sacramento is fraught with challenges, ranging from local fiscal realities to the impacts of federal law. As more money and numbers are crunched, the question will be whether the number crunching and vetting process will hold up to the coming scrutiny.
A heated race for the Sacramento City Council has focused on city spending, so it is likely that labor agreements will come under increased scrutiny from new members. While the city carries significant responsibility for unfunded pension obligations, annual costs for labor agreements are another area where the spigot can be turned on or off relatively quickly. Also, budget cycles will continue to see assistance from a burgeoning economy, which creates additional money for pressing concerns. This may allow a more tempered and pragmatic approach to evolving labor agreements.
Furthermore, President Trump’s 2017 executive orders significantly curbed federal agencies authority to enter into project labor agreements (PLAs). The President’s orders curtailed PLAs by use of the authority granted to him under the Procurement Act. The orders only allow PLAs or community workforce agreements (CWAs) if the Secretary of Labor finds that they are in the public interest to fulfill an unmet need in the skilled workforce. This presidential action may have other effects, like discouraging (along with other actions) union membership or increasing non-union competition for work. In addition, unless additional laws are passed by Congress to reinstate or bolster PLAs, those projects may not use PLAs, which could potentially cause labor shortfalls in the not-too-distant future.
More promisingly, PLAs remain a possibility for City of Sacramento. Upon a majority vote, the City Council may issue a PLA on public works projects costing $1 million or more when it "determines that it is in the best interest of the City and the public to do so." Such PLAs are advertised as allowing employers to use a labor pool from a wider geographical area and workers to have more training, but they are not popular among everyone. Moreover, CWAs are an option as well, which are similar to PLAs but more commonly used in the private sector. Those who favor them cite the attractiveness of having a CWA because they encourage non-union and union workers to collaborate, thereby promoting the economic health of the community. The city has chosen to use PLAs and CWA on 15 of its 49 projects over the past decade, including three for the 2016-17 fiscal year.
Conclusions and Future Considerations
In conclusion, the overall impact of labor agreements in the City of Sacramento is that they have served as a critical safety net for workers and have contributed to a more equitable balance of power in the workplace. By affording employees a voice in their work environment, these agreements help shape a climate that not only increases employee morale but also enhances the quality of life in the city as a whole.
The future outlook for labor agreements in Sacramento indicates a continuation of their pivotal role. As the workforce evolves and labor laws adapt to new work arrangements , these agreements will likely serve as important frameworks within which fair labor practices are established and maintained.
The efficacy of labor agreements in the City of Sacramento underscores their value in the broader discourse on fair and equitable labor practices. They represent an important mechanism for the protection of workers and the promotion of a healthy, stable workforce that has positive implications for the local economy. As such, labor agreements will continue to be an important aspect of public policy and labor relations.