The Representative Town Meeting on Monday unanimously approved a three-year labor union contract for 30 Department of Public Works employees, raising wages a bit, capping future pensions and adopting a high-deductible for health insurance claims.
Costs for the current fiscal year — $90,000 — have already been factored into this year’s budget, RTM Public Works Committee Chairman Mark Adiletta said in a report to the full RTM. With savings in health insurance costs for the next fiscal year, the town will spend $40,000 more than the current fiscal year, he said.
When health insurance changes take effect next year, it will save the town $20,000, Adiletta said. All other town labor unions, and the teachers union, have high-deductible health insurance plans, now, negotiated in previous contracts.
According to Finance and Budget Committee Chairman James Palen, who also gave his committee’s report to the full RTM, changes to union members’ health insurance won’t go into effect until the next fiscal year (the last year of the contract) because health insurance enrollment has already closed. Health insurance, including dental insurance, accounts for 22 percent of the union members’ compensation from the town.
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See also: Selectmen Endorse Public Works Union Contract (Sept. 15)
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The previous contract expired on June 30, 2014, and employees have been working without a new contract since then. The last year of the new contract expires June 30, 2017.
Wages account for 72 percent of the employees’ overall compensation, Palen said.
In addition to step increases granted on the basis of seniority each year, the contract ups wages by 2 percent, then 2.5 percent and another 2.5 percent in the final fiscal year. Two thirds of the union employees have worked for the town so long that the step increases no longer apply to them, he said.
Pension payments account for 6 percent of the total compensation given to union members, and changes there include a cap on 70 percent of an employee’s average annual wage compensation. Employees reach that maximum percentage after 35 years working for the town, he said. About two thirds of the employees in the union are at the maximum
“All in all, our committee thought this was a fair and equitable agreement for the town and the employee group and consistent with our recently passed budget and other agreements with employee groups here in Darien and throughout the state,” Palen said.
Here is Adiletta’s committee report, followed by Palen’s (these are expected eventually to be posted on the town government website, according to RTM Moderator Sarah Seelye):
ADILETTA’S
Good evening.
My name is Mark Adiletta and I am Chair of the Public Works Committee to the RTM.
At this time I would like to move Item 15-19 Approving A Contract Between The Town of Darien AND The Darien Public Works Employee’s Union.
Without objection I move to waive the reading of the Resolution.
On behalf of the PWC I present to the RTM for their consideration and ratification Item 15-19.
At our regular meeting September 21st, with 10 of 12 members present, the
PWC considered and voted unanimously to recommend approval of item 15-19 to the full RTM .
Background:
On September 21st Kathleen Buch (Town Administrator) presented a summary of the recently ratified Public Works Employee contract. Key take-aways are:
- The template for this contract was set with the previously negotiated Town Hall union agreement.
- It is well within the range of other negotiated settlements based on CCM data.
- We have a “senior” bargaining unit. A number of employees have been with us a very long time.
- The agreement accomplishes a cap on pension plan. Savings from pension plan cap not quantified.
- Health insurance moving to a high deductible plan. Will save $20k first year.
- All-in increase in cost of contract $90,000 all-in 2016. The 2017 increase is $40k when savings from health plan is factored in.
From an operational perspective the PWC focused on the expanded array of services being provided and improved efficiency particularly at the Recycling Center. Specifically:
Single stream recycling continues to produce tangible results. Deliveries to the transfer station continue to lag well (50%) behind the long term (10 year) average . For the first time in Darien’s waste management history, recyclables exceeded MSW quantities during 2013 and continues. Recall that for every ton of material processed as single stream recycling produces $15 in revenue and eliminates an $87.60 expense to the Town.
In addition collection for Recycling has been expanded to include Mattresses, Paint, among other items. See the RCAC brochure for a complete list of our facilities recycling capabilities.
The Committee wishes to thank Kathleen Buch and Mr. Gentile for their assistance and transparency with our review. Several members noted appreciation for the efforts of the DPW as it continually implements systems to improve and even expand the services delivered while limiting costs increases at the same time.
Thank you.
PALEN’S
The RTM F&B committee met on Monday, September 21st with 9 of 13 members present in a joint meeting with the RTM Public Works committee and our new Town Administrator, Kate Buch, to discuss RTM Resolution 15-9.
My colleague on the RTM’s Public Works committee spoke in detail about the contract so I will keep my comments to a minimum.
The employment agreement being discussed and voted on this evening is a new 3-year contract that covers 30 town employees who form the Public Works Employee’s Union. The union’s current contract expired on June 30, 2014 and therefore the town and the employees have been operating under the pay metrics of the final year of that contract. The new contract will cover fiscal years ending 2015, 2016 and 2017 and provide 15 months of retroactive pay increases to the employees.
Wages (excluding overtime) account for 72% of the employee group’s total compensation.
Employees will receive a (i) retroactive wage increase of 2% for the period from July 2014 through June 2015 and (ii) a retroactive wage increase of 2.5% from July 2015 through June 2016 and a (iii) 2.5% increase in the 2017 fiscal year which will be next years’ budget. Each of these wage increases of 2%, 2.5% and 2.5% will be in addition to the grade or step wage increases that employees are entitled to in the contract. That said, approximately two-thirds of the employees in this group are already at the top grade of the contract and will therefore be limited to the base increases that were just discussed.
The total of the retroactive pay increases for the 2014-15 period and the 3 months of the current fiscal year are slightly below those assumed in the recent budget and will therefore not put any pressure on the current budget.
Based on the current employee group and projected step / grade changes in our next fiscal year, the total wages will increase at 3.6%.
These proposed changes are generally in the same range as other arbitrated and negotiated union contracts awarded statewide.
Healthcare and Dental account for 22% of the employee group’s total compensation.
The new contract will move all 30 members of the employee group to a ‘high deductible plan’ and other more expensive plan options will be closed out. This change will not be retroactive for the first two years of the contract because enrollment has already been closed, however it is expected to save the town $30,000 (or 4.5%) next year in the final year of the contract.
To encourage employees to move into the new less expensive plan, the Town is offering to pay employees 1/3 of the savings it realizes.
Pension Contributions account for 6% of the employee group’s total compensation.
This employee group participates under a defined benefit plan which means the Town needs to make increasing annual payments to the program each year as wages rise. As part of the contract agreed to between the town and the union, employees will cap their pension benefits at 70% of the employees average annual compensation which will effectively cap employee pension for those who have worked more than 35 years unless they would have otherwise earned a higher amount by fiscal 2017. This is a relatively small change, but it is consistent with the amendments that have been made to all of the other recently agreed to contracts of non-certified employees of the Town and BOE.
Lastly, longevity benefits have been eliminated for employees who are hired after July 1, 2016 which will provide incremental savings in future years.
All in all, our committee thought this was a fair and equitable agreement for the Town and the employee group and consistent with our recently passed budget and other agreements with employee groups here in Darien and throughout the state.
With 9 of 13 members present, the F&B committee voted unanimously to recommend that the full RTM approve the resolution.
Thank you.
James Palen
Chair, Finance & Budget Committee
September 28, 2015