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COUNTY OF SAN MATEO
Inter-Departmental Correspondence
Human Resources Department
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DATE:
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February 11, 2011
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BOARD MEETING DATE:
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March 1, 2011
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SPECIAL NOTICE/HEARING:
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None
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VOTE REQUIRED:
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Majority
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TO:
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Honorable Board of Supervisors
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FROM:
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Donna Vaillancourt, Human Resources Department Director
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SUBJECT:
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Memorandum of Understanding with Service Employees International Union (SEIU) Local 521
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RECOMMENDATION:
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Adopt a Resolution adopting the Memorandum of Understanding with the Service Employees International Union (SEIU) for the provision of salary and benefits for the term of August 8, 2010 through October 13, 2012.
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BACKGROUND/DISCUSSION:
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The current MOU expired on August 7, 2010, and the County concluded negotiations with SEIU on January 14, 2011. The membership has ratified the County’s offer, which will achieve ongoing structural changes in wages, health benefits, retirement and retiree health. This will contribute long-term savings toward eliminating the County’s $100+ million structural deficit. SEIU represents over 31% of County employees in bargaining units. The following summarizes the major elements in the Memorandum of Understanding.
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Term
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August 8, 2010 – October 13, 2012 (Two years and two months)
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Wage Increase
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No wage increases during the term of the agreement.
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Health Benefits
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Effective April 1, 2011, the health premium sharing ratio will change from 90% County paid to 87% County paid for the HMO plans and from 80% to 77% for the Point of Service (POS) plan. Effective January 1, 2012, the health premium sharing ratio will further change from 87% County paid to 85% County paid for the HMO plans and from 77% to 75% for the Point of Service (POS) plan. In exchange for the delayed premium increase, each employee represented by SEIU will take one furlough day by June 30, 2011.
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Effective April 1, 2011, all three medical plans will have increases in co-pays.
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Effective April 1, 2011 and January 1, 2012, each SEIU employee will receive a $200 credit to their flexible spending account.
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Retirement
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New employees hired on or after July 1, 2011 will be offered two retirement tiers; 1.7255% @ 58, or a non-contributory plan. The current plan of 2% @ 55.5 will be closed, however, will remain available for an employee to purchase after the completion of ten years of service if the employee elects to pay all costs retroactive to their date of hire.
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Upon implementation with all bargaining units in the retirement plan, new employees hired after the implementation date will pay up to fifty percent of the retirement cost of living adjustment.
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Retiree Health
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Employees hired on or after January 23, 2011 will receive $400 per eight hours of accrued sick leave to utilize for retiree healthcare premiums.
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Approval of this Memorandum of Understanding contributes to Shared Vision 2025 of a Prosperous Community by ensuring cost-effective compensation structures for County employees.
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FISCAL IMPACT:
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During the 26-month term of this agreement, the County will realize savings of approximately $3,200,000. The ongoing structural savings will be approximately $2,500,000 per year with estimated savings of over $7 million in retirement costs by year ten.
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