The Port of Oakland Board of Commissioners on March 14 approved the terms of the “Me Too” provision in the Memorandum of Understanding (MOU) between the Port and IBEW 1245, concluding a negotiation process that started in November of 2011.
The “Me Too” provision increases wages for IBEW members by an additional 2% over the term of the agreement, provides IBEW members a $3500 signing bonus, and accelerates the 8% wage increase employees receive in exchange for picking up the Employer Paid Member Contribution (EPMC)for CALPERS.
The original MOU that was ratified by the members on Nov. 26, 2012 and was later approved by the Board contained the following major provisions: the 8% wage increase in exchange for the EPMC pickup, a 3% Cost of Living Adjustment (COLA) effective Jan. 1, 2015, 100 hours of lump sum vacation deposit, $1100 per year into a professional development fund, full retiree medical with a 20-year vesting schedule, and the “Me Too” provision for superior wages or benefits negotiated by any other bargaining unit.
The protracted set of negotiations began with the Port of Oakland and IBEW 1245 far apart at the table, but ended with an agreement that recognized the needs of the Port for long-term financial stability, while maintaining benefits for current employees and improving wages. The IBEW 1245 negotiating committee of Dion Bailey, David Cuthbertson, Kenneth Taylor and Curtis Wilkins first met in Vacaville at the Union hall in October of 2011 to develop the proposals for bargaining. The IBEW bargaining unit committee members were joined at the table by Assistant Business Manager Ray Thomas, and Business Representative Al Fortier.
Two other Port unions had already been in negotiations since midyear, so the IBEW committee was fully aware that the Port would propose a slew of takeaways. Even though the Port was generating revenue, and projected steady improvement in its finances, they proposed a three-year term with no general wage increases. They also proposed that employees begin paying the full 8% EPMC, the elimination of meal pay, a reduction in acting pay, weakened overtime provisions, elimination of CDL incentive pay, elimination of retiree dental and vision coverage for new hires, elimination of on-the-job injury leave provisions, elimination of SDI coverage, to name some.
All told, the Port team submitted a total of 24 proposals, almost every one takeaway. Not to be outdone, the union committee submitted 25 proposals, mostly monetary enhancements, and improvements to existing provisions of the MOU.
Curtis Wilkins, left, and Dion Bailey are two of the Local 1245 members on the union’s negotiating team at Port of Oakland.
Different interpretations
The union committee took the position that the Port financial situation did not warrant drastic concessions. The Port’s own budget report showed that the Port had rebounded strongly from the recession and would continue to experience stable to modest growth.
The Port Board of Commissioners believed otherwise. Their views were based on a drastically different interpretation of the same financial data presented to them by the Port Chief Financial Officer. Most on the Board believed that the long-term debt that the Port had accumulated prior to and during the recession required drastic cuts in employee wages and benefits.
“Once all the proposals were submitted, both teams staked out their positions based on interpretations of the finances,” said Business Rep Al Fortier. “However, the union negotiating team reinforced its position by using the argument that any increases in employee contributions to the pension must be accompanied by a comparable advantage given to the employees in the form of wages.”
This argument is derived from the state Constitution, and is commonly referred to as the Contract Clause. Simply put, there must be an exchange of wages equal to the increase in contribution to the pension, hence the 8% for 8% exchange of wages for EPMC.
“With financial data on our side, and legal arguments supporting our position, we felt confident that we could grind out a tentative agreement that was at least cost neutral,” Fortier said.
With both parties firmly entrenched, bargaining was slow and methodical over the next six months, with no movement on the major economics.
In April of 2012, SEIU 1021, the largest Port union, reached a tentative agreement with the Port that incorporated many of the Port’s concessionary proposals into the package. The IBEW committee did not feel this tentative agreement was worthy, and worried that if SEIU ratified this agreement, the Port would become even more entrenched in their positions at the table with the IBEW. Fortunately, SEIU members soundly rejected the tentative agreement.
The Port Board of Commissioner used the failed Tentative Agreement as justification to move forward with impasse proceedings against SEIU.
New Board appointments
Based on the Board’s 5-1 vote to move to impasse with SEIU, and discussions with labor allies, it seemed clear that the majority of the Board was determined to extract major concessions from the unions. IBEW concluded it was necessary to actively participate in the selection process for the next appointments to the Port Board of Commissioner. With three seats coming up for appointment or reappointment, and one commissioner resigning, we realized the potential for an ideological shift on the Board toward a more labor-friendly position.
Positive labor relations and open communication are always major criteria for supporting any commissioner, but now the issue of good faith bargaining toward a “fair” agreement became one of the central themes during the candidate interview process. IBEW 1245 worked with the Alameda Central Labor Council to identify and support candidates that were open to labor, and after extensive interviews committed to support Mayor Quan’s slate of appointees. The appointees had to be approved by City Council by a resolution.
“It was tough fight, full of political drama, and City Council infighting and high jinx,” said Fortier. But after several failed attempts to get enough Oakland City Council votes for confirmation, the three appointees were finally approved by a 6-2 Council vote on July 26, 2012.
IBEW believed the Port would take a more balanced approach with the addition of the new appointees. The union floated the idea of a comprehensive four-year package that included the 8% for 8% EPMC exchange, a general wage increase of 3% in the fourth year, and a 20-year vesting schedule for retiree medical.
This apparently this was not concessionary enough for the Port, but the IBEW negotiating committee held firm, making movement on the less contentious items but not budging on EPMC issue.
“We had a strong legal argument on our side, and a righteous position based on Port economics,” said Business Representative Al Fortier.
Unfair Labor Practice
There was another factor in the union’s favor. The previous June IBEW filed an Unfair Labor Practice (ULP) charge against the Port of Oakland and the City for failing to bargain before implementing a Second Tier pension plan at the Port.
“The ULP was a major factor in influencing the Port toward the ‘me too’ language, and in the end it also protected our Port members from the Second Tier pension plan adopted by the City of Oakland,” said Fortier.
As time wore on, the pressure began to mount on the Board to resolve the negotiations for the four bargaining units represented at the Port. While two bargaining units, IFPTE 21 and WCE, were content to watch as SEUI and the Port battled it out, the IBEW committee had a different perspective.
“We had come to the conclusion that the framework for a deal was already on the table in the form of the comprehensive proposal we had floated to the Port last summer,” said Fortier. “With the new Board solidly in place, and SEIU and the Port on a collision course, the time was definitely ripe to strike a deal.”
On Oct. 19, 2012 the union formally submitted a comprehensive four-year proposal to the Port that included the 8% for 8% exchange of wages for EPMC, a 120 hour lump sum deposit of vacation into a holiday account over a three year period, a 3% wage increase in year four, an $1100/year professional development fund, and a “Me Too” provision to gain superior wages or benefits if negotiated by any other bargaining unit. The Port would achieve its 20-year vesting schedule for new employees for Retiree Medical.
The Port accepted the proposal with only a slight modification of 100 hours of lump sum vacation instead of 120, and on Nov. 26, the IBEW membership ratified the tentative agreement reached with the Port of Oakland.
The other unions settled their contracts within days of the IBEW deal. The terms negotiated by the IBEW became the basic framework for all the bargaining unit tentative agreements at the Port.
“Where differences arose in the subsequent settlements with the other unions, it was understood by our committee and our members that the ‘Me Too’ provision that we negotiated would insure that we were not disadvantaged for the leadership role we played” in getting negotiations going, said Fortier.
The most notable differences negotiated by the other unions were the $3500 signing bonus as a lump sum payment, an extra 2% in wages over the term of the agreement, and 12 days of paid leave that WCE and IFPTE 21 negotiated.
“Our members showed great patience while our committee and the Port negotiating team worked through the interpretation of the ‘me too’ provision,” said Fortier. “Eventually we resolved to exchange our negotiated 100 hours of lump sum vacation for the $3500, 2% and 12 days.”
IBEW members received the $3500 signing bonus on April 4, and are to receive a 5% accelerated wage exchange in July 2013, an additional 2.5% wage increase effective July 2013, and another wage increase of 2.5% effective July 2014.
The professionalism showed by the IBEW committee produced a solid deal for the members, while strengthening the union’s relationship with the Port.