Redlands Reaches Contract Agreements with Two Employee Groups

The City Council last Tuesday approved new agreements with two employee groups representing 62 employees that will result in annual savings to the City of more than $283,000 once the agreements are fully implemented. When added to projected savings from agreements approved in October with the City’s two Fire Department employee groups, the annual projected savings to the City would be nearly $1.3 million. The agreements—referred to as Memoranda of Understanding, or MOU—with the Redlands Association of Management Employees and the Redlands Association of Mid-Management Employees, representing managers and mid-managers throughout nearly all City departments, were approved by the Council during the July 16 City Council meeting. Under the terms of both agreements, which are in effect through June 30, 2015, employees will begin paying the full 7 percent employee contribution to the PERS retirement system, previously paid by the City. For employees hired before March 2011, the retirement contributions will be phased in over three years, with employees paying 3 percent beginning in 2013; 5 percent beginning July 1, 2014; and the full 7 percent beginning Jan. 1, 2015. The City’s contribution to employee medical premiums for both groups will be capped at the 2012 “PERS Choice” rate for current employees. Beginning Jan. 1, 2014, future health premium increases will be divided evenly between the City and the employee. The MOU includes a 3 percent base-salary increase for employees in both bargaining units and ends furloughs, which were first implemented for all City employees in 2008. The anticipated annual savings to the City of $283,301 does not take into consideration anticipated savings for medical premiums. The new agreements continue a two-tier arrangement for employees hired after March 2011 with the City’s contribution to medical premiums for new employees capped at a flat rate of $600 per month. Newly hired employees also do not qualify for lifetime medical benefits under the new MOU. The agreements also implement state legislation, AB 340, affecting new members of the CALPERS system as of Jan. 1, 2013. The City Council began negotiations with seven of the City’s nine employee bargaining units in February 2012 with the goal of achieving concessions on benefit costs, especially retirement and health benefits, and controlling overtime costs. The City reached agreements with the Redlands Professional Firefighters Association and the Redlands Association of Fire Management Employees in October 2012. Bargaining units representing Redlands Police officers last year unilaterally exercised an extension of their existing contracts. Negotiations with the remaining bargaining units are continuing and the City Council is optimistic that agreements will be reached with those groups soon.