Proposed Revised Tentative Agreement

International Union of Operating Engineers, Stationary Engineers - Local 39

Letter from: Richard C.Bolos

Received: Monday May 14, 2018

Attachments:

Good afternoon Stan and Charlie, Attached please find a proposed revised tentative agreement by and between the County and Local 39. You will see that we have changed the one-time lump sum payment from $3,082.00 in the tentative agreement signed by the parties last Thursday evening, to $2,591.00. We also made the other two corrections initialed by the parties last Thursday. Also attached is a spread-sheet confirming the County’s calculations and verifying the basis for the change to the lump sum amount. The $491.00 reduction in the lump sum amount is necessary to correct the County’s error in its original calculation of the 2% one-time payment offer. As I explained in the email I sent last Friday, after signing the tentative agreement last Thursday evening, the County discovered that it had failed to account for the fact that unlike the one-time lump sum payment made to Local 39 during the 2016 contract negotiations, this one-time payment will be treated as “compensation earnable” for retirement purposes. As a result, the County will pay $51,068.66 into the retirement system on behalf of the bargaining unit on top of the one-time payment. By not backing this number out of amount to be paid to the bargaining unit, the County would be paying the retirement cost increment twice. More significantly, the County’s calculation error causes the lump sum amount to exceed the spending authority provided by the Board of Supervisors. For these reasons, the County’s bargaining team respectfully requests that the attached revised proposed tentative agreement be submitted to the Local 39 membership for ratification on May 17.

Please accept our apologies for this correction. The County acknowledges that the Local 39 bargaining team worked long, hard and collaboratively with the County to secure this tentative agreement and that you and your bargaining team have every reason to be upset with this news. We deeply regret the error and accept full responsibility for the miscalculation. I have been asked to let you know that Sheryl Bratton and Christina Cramer will make themselves available tomorrow to speak with you directly regarding this change should you wish to do so.

Thank you for your continued professionalism and please feel free to contact me directly with any questions in this regard.