City Council to Discuss Davis City Employees Association Offer at Council Meeting

City Council to Discuss Davis City Employees Association Offer at Council Meeting

November 15, 2013

For More Information: Call 530-757-5602

On November 19, 2013, at a regularly scheduled City Council meeting, the Council will hold a public hearing for a legislative determination of the issues presented in the continuing labor dispute between the City of Davis and the Davis City Employees Association (DCEA).

The public discussion follows last month’s release of the “Opinion, Findings of Fact, and Recommendations” offered by a Factfinding Panel which was appointed to hear the continuing labor dispute between the City and DCEA. As required by law, the City previously made, and continues to make, the Panel’s recommendations available to the public at www.cityofdavis.org

Under impasse procedures, the City Council is required to hold public hearing for a legislative determination of the issues presented. Following the public hearing, the Council may, but is not required to, implement its last, best, and final offer presented to DCEA. City staff is recommending Council impose the last, best, final offer, which was previously provided to DCEA.

The City’s last agreement with the DCEA expired on June 30, 2009, and, since then, the City and the DCEA have been unable to reach agreement on terms of a successor contract, even though several other bargaining groups - representing a majority of the City’s employees – have.

DCEA is one of the two remaining labor groups that have not agreed to much-needed economic concessions, particularly in the area of pension and medical benefit cost sharing provisions. Since the beginning of negotiations, the City communicated its need for long-term structural budget changes in compensation costs. The City’s negotiation team conveyed the expected increases in CalPERS retirement contributions and in the City’s retiree medical liability. In addition, the City’s budget deficits have been communicated to DCEA at the bargaining table and through numerous public meetings, reports, and budget documents. In response, DCEA expressed concern that the structural changes were too severe economically.

Unfortunately, the City’s and DCEA’s positions are fundamentally different. The factfinding panel’s recommendations acknowledge many of the structural changes the City bargain team believes are needed and, although the recommendations urge a more gradual path to accomplishing them, along with additional pay increases to offset benefit reductions, staff is recommending the Council adopt the City’s last, best and final offer as follows:

  • The City shall have the right to assign employees to a 9/80 schedule.
  • DCEA shall conform to FLSA overtime provisions: only hours actually worked shall count as hours worked by the employee for overtime purposes.
  • Cap at $500 the amount of benefit contribution employees may take as cash in lieu of taking medical benefits with a gradual phase-in, in three increments, for current employees.
  • Apply a cost-sharing model for health benefits contribution (City pay first 3% of increases, employee next 3%, 50/50 split when above 6%).
  • Employees to pay full employee portion (8%) of CalPERS pension cost.

If Council imposes its last, best, and final offer, City staff will then begin new negotiations with DCEA to try to reach agreement on a new Memorandum of Understanding for the following year or years.

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