FROM:
Human Resources
SUBJECT:
Title
Implementation of Classification and Compensation Study and Approval of Tentative Agreements for the Teamsters Local 1932, Public Works and City Hall Bargaining Units.
End
RECOMMENDATION:
Recommendation
Adopt Resolution No. 2024-130, a resolution of the City Council of the City of Fontana, California, ratifying the Tentative Agreement between the Teamsters Local 1932, Public Works and City Hall Bargaining Units and approving the updated corresponding salary tables.
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COUNCIL GOALS:
• Operate in a businesslike manner by ensuring that the public debate is based on accurate information.
• Practice sound fiscal management by producing timely and accurate financial information.
• Practice sound fiscal management by living within our means while investing in the future.
• Create and maintain a dynamic team by promoting stability and predictability by providing consistent policy direction.
• Create and maintain a dynamic team by communicating Goals and Objectives to all commissions and employees.
• Create and maintain a dynamic team by emphasizing staff development.
DISCUSSION:
On February 14, 2023, the City Council awarded an agreement to Public Sector Personnel Consultants (PSPC) to assess the competitiveness of the City’s current classification and compensation structure for all positions city-wide. A Classification and Compensation Study was conducted, and the findings were presented to the City Council during Closed Session on May 14, 2024. At that time, the City Council directed staff to develop a pathway toward competitive pay as part of their goal to address employee recruitment, retention, and stability.
Coinciding with these efforts, the Memoranda of Understanding between the City and the Teamsters Local 1932 Public Works Unit (“Public Works Unit”) and the Teamsters Local 1932, City Hall Unit (“City Hall Unit”) expired as of June 30, 2024. The City and both bargaining units have been negotiating in good faith since May 2024, with the implementation plan outlined below incorporated into these negotiations.
Implementation Plan
Although the study found that the City was, on average, five percent (5%) ahead of market based on total compensation, many of our current salary ranges are below the market average for similar roles in comparable cities, which directly impacts recruitment and employee retention. Specifically, PSPC identified classifications within the Public Works and City Hall Units as being an average of 1.8% and 3.7% below market, respectively. Aligning salary ranges with the market average and negotiated wage adjustments moving forward are essential for maintaining a competitive and fair compensation structure. The implementation plan outlined below will address current pay disparities to be fair and equitable, support employee satisfaction, and enhance our ability to attract and retain top talent.
Effective January 11, 2025, salary ranges for the Public Works and City Hall Unit classifications identified as below market will be adjusted to the rate established in the Classification and Compensation Study, and the negotiated wage increase applied. On average, classifications within the Public Works Unit are being adjusted by 2.39%, and classifications within the City Hall Unit are being adjusted by 3.9%. For the classifications identified as below market, incumbents will be moved to the next highest step within the new range, potentially unlocking future earning potential for the incumbent within their updated classification’s salary range.
Tentative Agreement
In addition to implementation of the Classification and Compensation Study, the City has concluded negotiations with the Public Works and City Hall Units. City staff and representatives of the Public Works and City Hall Units have agreed on terms and conditions of employment outlined in the respective tentative agreement summary documents. Staff is recommending the formal ratification of each tentative agreement, with the formal Memoranda of Understanding being presented at a later date.
The tentative agreements reached with the Public Works and City Hall Units span a three (3) year period, ending June 30, 2027. Highlights include:
• A 4.0% base salary increase effective January 11, 2025.
• On July 12, 2025, a 4.0% base salary increase, with a 1.0% wage deduction to a Retiree Medical Trust, resulting in a net salary increase of 3.0% in Year 2.
• On July 11, 2026, a 3.0% base salary increase, with an increased 0.5% wage deduction to a Retiree Medical Trust, resulting in a net salary increase of 2.5% in Year 3.
The respective salary tables for the Public Works and City Hall Units are also being presented. Additionally, a one-time payment of $2,000 will be provided to all Public Works and City Hall Unit employees as of December 10, 2024.
FISCAL IMPACT:
The total estimated budgetary financial impact associated with the approval of these contracts is $3,096,870 (Public Works - $887,917 and City Hall - $2,208,953) through fiscal year 2026-27 and are detailed as follows:
MOTION:
Approve staff recommendation.