BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 357|
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UNFINISHED BUSINESS
Bill No: SB 357
Author: Perata (D)
Amended: 8/14/06
Vote: 27 - Urgency
SENATE VOTES NOT RELEVANT
ASSEMBLY FLOOR : Not available
SUBJECT : State employees: memoranda of understanding:
state
bargaining units 12 and 13
SOURCE : Department of Personnel Administration
International Union of Operating Engineers
DIGEST : This bill (1) approves the recent memorandum of
understanding agreed to by the state and state bargaining
units 12 (Craft and Maintenance) and 13 (Stationary
Engineers), represented exclusively by the International
Union of Operating Engineers, (2) appropriates the funding
for the required expenditures, and (3) makes the required
statutory changes to implement the retirement elements of
the agreement.
ANALYSIS : Existing law requires, under the State
Employee-Employer Relations Act (Dills Act), that
collective bargaining agreements (MOUs) that are negotiated
between the state and exclusive representatives of each of
the 21 state bargaining units (SBUs) be ratified by the
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Legislature.
This bill approves the recent MOU between the state and SBU
12 and 13. The major provisions of each MOU are as
follows:
1. One-time bonus . Upon ratification, all employees in
SBUs 12 and 13 will receive a one-time bonus of $1,000.
2. Salary increases . Effective July 1, 2006, all employees
in SBUs 12 and 13 will receive a 3.5 percent general
salary increase. Effective July 1, 2007, all employees
in SBUs 12 and 13 will receive a cost-of-living
adjustment (COLA) of two to four percent (based on the
Consumer Price Index (CPI) for the 12-month period from
April 2006 through March 2007).
3. Equity adjustments: SBU 12 . Effective January 1, 2007,
the top salary for specific hydroelectric
classifications will be raised 7.5 percent. The top
salary for specific telecommunication and electronics
classifications will be raised five percent, and the top
salary for specific equipment operator classifications
will be raised five percent.
4. Pay differentials: SBU 13 . Effective January 1, 2007,
the existing monthly differential for specified chief
plant operators will increase from five to six percent.
Employees in specified water and sewage plant
classifications will receive a four percent
differential.
5. Retirement benefit calculation . For all SBU 12 and 13
employees hired on or after January 1, 2007, retirement
benefits will be based on the highest
consecutive-three-year average salary (rather than the
12 consecutive months highest final compensation formula
that applies to existing employees).
6. Employer health benefits contribution . Effective July
1, 2006, the state's monthly contribution to employee
health premiums will be set at a dollar amount that
equals the 80/80 formula (under which the employer
contribution for single-party coverage is 80 percent of
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that year's weighted average premium of the four plans
with the highest employee enrollment). When premiums
increase January 1, 2007, and January 1, 2008, the state
will raise its contribution so the dollar amount
continues to equal the 80/80 formula.
7. Dependent coverage . Employees hired on or after January
1, 2007, will become eligible for the full employer
contribution for dependent health coverage after
completing their first two years of state employment.
The state will contribute half the normal amount for
dependents during the first year and 75 percent during
the second year.
Comments
SBU 12 consists of 10,811 members who operate and maintain
state equipment, facilities, building, grounds, and roads.
Among the largest classifications in the unit are
California Department of Transportation (Caltrans)
equipment operators and Caltrans highway maintenance
workers. About 46 percent of SBU 12 members work for
Caltrans, 25 percent for the California Department of
Corrections and Rehabilitation (CDCR), and five percent
each for the California Highway Patrol and the Department
of Parks and Recreation.
SBU 13 consists of 947 members who maintain and operate
heating, cooling, water, wastewater, and other major
mechanical systems at state facilities. Among the largest
classifications are stationary engineers and water and
sewage plant supervisors.
About 55 percent of SBU 13 members work for CDCR, 16
percent for the Department of General Services, and six
percent each for the Department of
Developmental Services and the Department of Mental Health.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: No
According to the Assembly Appropriations Committee, this
bill appropriates $47.756 million in augmentation of the
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amounts appropriated for employee compensation in the State
Budget Act of 2006, as follows:
1. $17.563 million from the General Fund (GF) in
augmentation of Item 9800-001-0001.
2. $19.323 million from special funds in augmentation of
Item 9800-001-0494.
3. $10.87 million from unallocated nongovernmental cost
funds in augmentation of Item 9800-001-0988.
Beginning in 2007-08, the ongoing costs of each MOU will be
incorporated into the baseline budgets of the various state
departments that employ SBU 12 and 13 members. The cost of
the 2007-08 COLA will be in the range of
$30 million ($10 million GF), assuming the CPI is three
percent over the 12-month period from April 2006 through
March 2007.
SUPPORT : (Verified 8/22/06)
Department of Personnel Administration (co-source)
International Union of Operating Engineers (co-source)
JJA:mel 8/22/06 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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