Members at South Feather Water and Power
endorse new four-year MOU

IBEW Local 1245 members at South Feather Water and Power voted overwhelmingly to approve new agreements with the agency on May 7.

The vote came after a member meeting on May 7, when IBEW 1245 Assistant Business Manager Ray Thomas and South Feather Water and Power General Manager Mike Glaze explained details of the tentative agreement and fielded members’ questions. The agreement now goes to the Board of Directors for final approval at their next regular meeting.

As the Board had appointed Directors to participate as representatives during the negotiating process which led to the new agreement, the Board is expected to vote its approval of the agreement.

The tentative agreement on terms for new MOUs for both the Hydro Generation and Water Treatment and Distribution bargaining units, had been reached on April 26, 2012.

The agreement was a year in the making. During this time IBEW committee members met with representatives of the Agency’s board of directors and attended negotiating meetings with management. They also spent a fair amount of time waiting for actuarial data from CalPERS.

The union’s negotiating committee included Henry Reeson and Geno Higgins from the Hydro Generation bargaining unit, and Rick McCullough and John Shipman from Water Treatment and Distribution. IBEW 1245 Assistant Business Manager Ray Thomas, along with Business Representatives Kit Stice (assisting in 2011), and Sheila Lawton, were the union representatives for the union committee.

Excluding COLA increases, the agency’s cost of the 25% years-of-service buyback under the CalPERS 3% @ 60 plan (originally negotiated in 2008) will be $2,700,000, or 51% of the current annual payroll. On a percentage basis, the CalPERS years of service buy back is worth 12.85% for each year of the new agreements. As an example, an IBEW 1245 member with 20 years of service as of July 1, 2008 (about the average of our Hydro Generation bargaining unit) will see an increase of 15% in their final average earnings for the purposes of calculating their retirement benefit.

The agency has also agreed to pay the cost of the buyback in a lump sum payment to CalPERS, keeping it from becoming a long term liability which would have increased the agency’s normal costs far into the future.

Terms of the new memorandums of understanding are as follows:

– TERMS: 4 Year Term, commencing January 1st of the year following the expiration of the most recent Memorandum of Understanding and terminating December 31st in the fourth and final year of the Memorandum of Understanding.

– CalPERS 3% @ 60 Retirement Years of Service Buy Back: The Agency will buy back 25% of the prior years of service (varies by employee), for employees who were hired prior to July 1, 2008.

– COLA**: YEAR 1: Hydro Unit: 50% of PG&E Ex. X

Treatment/Dist.: 50% of CPIW* of the prior year’s year over year November CPIW index

YEAR 2: Hydro Unit: 50% of PG&E Ex. X

Treatment/Dist.: 50% of CPIW* of the prior year’s year over year November CPIW index

YEAR 3: Hydro Unit: 100% of PG&E Ex. X

Treatment/Dist.: 100% of CPIW* of the prior year’s year over Year November CPIW index

YEAR 4: Hydro Unit: 100% of PG&E Ex. X

Treatment/Dist.: 100% of CPIW* of the prior year’s year over Year November CPIW index

**For each year of the MOU, salary ranges shall be advanced by 100% of CPIW* increases for Treatment/Dist. And 100% of PG&E Exhibit X for Hydro Unit.

– REOPENER: There shall be no reopener provisions for either the Agency or the Union during each year of the 4-year MOU.