AN ORDINANCE relating to City employment; authorizing the execution of a collective bargaining agreement between The City of Seattle and the International Brotherhood of Electrical Workers Local 77 to be effective January 23, 2021 to January 22, 2023; amending Ordinance 126237, which adopted the 2021 Budget, by increasing appropriations to Seattle City Light for 2021 payments therefor; and ratifying and confirming certain prior acts; all by a 3/4 vote of the City Council.
The Report of City Council Agenda Item one Council Bill 120102 An ordinance relating to City Employment authorizing the execution of a collective bargaining agreement between the City of Seattle and the International Brotherhood of Electrical Workers, Local 77 to be effective January 23rd, 2021 to January 22nd, 2023. Amending Ordinance 126237, which adopted the 2021 budget by increasing appropriations to Seattle City Light for 2021 payments therefor and ratifying and confirming certain prior acts all by a three quarter vote of the City Council. Thank you so much, Madam Clerk. I moved past Council Bill 1 to 0 102. Is there a second? Thank you so much. It's been moved and seconded and as sponsor of this bill, I will address it first and then happy to open the floor to comments from any of you colleagues as the title States Council Bill 120102 would authorize the execution of a collective bargaining agreement between the City of Seattle and the International Brotherhood of Electrical Workers, Local 77. This collective bargaining agreement is a two year agreement on wages, benefits, hours and other working conditions for a term from January 23rd, 2021 through January 22nd, 2023. It affects about 565 regularly appointed city employees, and its terms include a cost of living adjustment of 2%, 2.5%. There is also an additional one time base wage market increase of 10% to certain job titles as listed in Attachment eight to the collective bargaining agreement and an increase to the cable slicer and electrical constructor classifications for parity with the corresponding line worker classification rates of the pay. The terms of the Collective Bargaining Agreement do meet the negotiation parameters set by the members of the Labor Relations Policy Committee, of which five members of the City Council sit on and participate in actively and colleagues. After the Labor Relations Policy Committee process, I do as the Chair of the Labor Relations Policy Committee on behalf of the City Council, I do recommend that my colleagues support the passage of this legislation. Are there any additional comments on the bill, Councilmember Peterson. Thank you. Council President. Appreciate your hard work on this and the hard work of the members of the Labor Relations Policy Committee. I'm not one of the five council members serving on the LRP C, which which also includes the mayor's executive team. Essentially, the combined council members and mayors executive team represent management arm of city government that negotiates these labor contracts with city government employees. So when this proposed Labor contract appeared on the interaction referral calendar last week was the first time I was able to review it. I'd like to take this opportunity to explain my vote today to my constituents and how I'm able to get to a yes vote on this. First, I want to express my gratitude to our electrical workers who dedicate themselves and their skills to our city. And thanks again to the hard work of the members of the RTC, who members of the public may not know that you spend hours upon hours outside the spotlight working on all of these labor contracts. As I understand it, this proposed contract would increase compensation for many of the workers by 12.5%, which appears to be unusually high in just one year. This is an increase of $7.5 million, and most labor contracts with city government employees recently received an increase based on the Consumer Price Index plus 1%. This 12 and a half percent increase today, as I understand it, is comprised of, as you said, the CPI of approximately 2.5 plus another one time 10%, while the 10% one time it does create a new baseline of compensation for these city employees. In other words, the higher costs will continue into the second year of the two year contract. So that's about $15 million increase over the life of the contract. And while this 10% bump is significant, I have the benefit of chairing the committee that includes Seattle City Lights. I have additional opportunities to witness the important work conducted by these workers who go out into the field under dangerous conditions to use the skills of their trade to benefit our city. I understand there's been increased attrition within this group of workers leaving Seattle City life for other utility enterprises in the region who have been offering compensation at these higher levels. So this proposed increase in compensation appears to be an appropriate adjustment to reflect our realities. This is both public sector and private sector utilities. That's what's special about the utility industry's public sector and private sector. Utilities were competing against our skilled field workers. Satellite data also seems to show higher attrition rates among women and people of color. So I hope this increase in compensation can help our utility attract and retain skilled staff to meet its race and gender equity goals. Another important consideration is how this cost increase might impact utility rates for everyone in Seattle. As we know, utility rates are regressive, with lower, lower income households paying a larger percentage of their household income. And in a city where many of us are concerned about affordability for our long term residents, we want to be mindful when increasing costs. And this case, Seattle City Light, under the leadership of Deborah Smith has been working, has been making so much progress to control other cost drivers that the overall electricity rate increases in their strategic plan have come down. And as we've learned in our committee just two weeks ago, our electricity rate increases will average no more than three and a half percent, close to the rate of inflation, rather than four and a half percent increase previously projected. And this proposed increase in pay for these highly skilled workers is already built into that 3.5% average rate increase. In other words, this proposed increase in compensation for these highly skilled professionals will not increase overall electricity rates further. Another important consideration is that we're emerging from the pandemic, which should help with overall city revenues. This is relevant because our general fund takes money from Seattle City Light and Seattle Public Utilities every year with what's called a utility tax. I'd like to see city government tax on our publicly owned utilities reduced over time to further reduce the regressive, regressive rate pressures on low income households. I appreciate having the past week to review this contract. I know it's not always possible, but I look forward to an allocation of even more time to review labor contracts , especially when we're reviewing multiple ones. This was just one, so it was manageable. Our current council rules require us to vote yes or no on legislation at the full council, and some more times are always welcome to make a well informed decision. Thank you for the space to make these lengthy comments and I will be voting yes. Not a problem. Thank you, Councilman Peterson. Appreciate you digging in and taking a closer look at that. Okay, colleagues, any additional any other additional comments on the bill? Hearing that will the clerk please call the role on the passage of the bill? Morales. S. Whatsoever. Hi. Petersen. Hi. So one. Yes. Strauss. Yes. Herbold. Yes. Suarez, I. Lewis. I think council president Gonzales. I need a favor. And then opposed. The bill passes and the chair will sign it. Will the court please affix my signature to the legislation on my behalf? Okay. Reports of the Finance and Housing Committee. Will the court please read the short title of item two into the record?