QUINCY, ILL. -- By Jamie Busen, WTAD and QuincyJournal.com
The Quincy City Council Monday night voted unanimously to accept the new Amalgamated Transit Union Local 1108 contract for three years.
The City's contract with the Union expired April 30. Those 40 employees will get a 2 percent raise the first two years of the contract, and a raise of 2.25 percent the third year. Not counting the insurance package, it averages to about 1.85 percent annually.
In April, the Council accepted the Machinists Local 822 contract for three years, which amounted to an average increase of 2 percent each year.
"When you look at the John Wood contract signed last week, I think people will find this is pretty favorable for how we turned out at the end of the day," said Director of Administrative Services Gary Sparks.
Last week, JWCC Trustees signed a three-year contract with the College’s Faculty Association that included full-time faculty pay increases of 3.25 percent in the first year and 4 percent in the last two.
Changes are being made for employees hired after May 1. Those changes include accruals of sick time and the payment structure of health insurance.
"That's pretty significant for us," Sparks said. "I think we are pretty pleased with this contract."
Last year's contract gave raises in three-month increments once a driver was hired, up to 15 months. The new contract eliminates the third, ninth and 15-month increases.
"By eliminating those months, we capture a savings because they are going to go six months straight before a pay increase," said Director of Human Resources Doug Olson.
The workers' top rate of pay is $18.44 an hour.
The total amount spent on base wages for the 40 employees last year was $1,83,309. Fiscal Year 2012 will be $1,173,581 (a detailer position will not be filled and will be eliminated, saving the City about $36,000 a year). Fiscal Year 2013 is projected to be $1,218,606 and Fiscal Year 2014 should be $1,246,025.
More headway comes with the workers' sick leave policy. In the past, employees could earn up to 10 hours a month. That amount was capped at 480 hours and the City would buy back any excess hours. New hires will earn six hours a month with a 392-hour cap. The City will buy back those hours at a rate of 50 percent.
Last year the City spent $7,529 in buying banked hours.
Another significant change, said Sparks, is the health insurance plan.
A part-time driver will pay 20 percent of the employee premium and their dependents will pay 50 percent. If they move on and become a full-time driver, the City will pay 85 percent of the premium cost. Dependents still must pay 50 percent. Under the old contract, workers did not pay for any premium on themselves but they did pay 50 percent for dependants.
"I think this sets the pace for future and potential cost-savings going down the road," Sparks said. "I think it's more significant than anything else, being able to start a tiered benefit package that would have overflowing effects on other bargaining contracts. I think government as a whole has to take a serious look at that, because it's going to reduce costs down the road. The way things used to be is no longer the way they are going to be."
Olson said "if this scenario would unfold right now, during this contract period, we'd save $4,090 the first year; $4,540 the second year and on the third year we'd save $5,040."
Those numbers are based on 2.33 transit drivers being hired annually.
Olson said he feels good about the contract and the 1.85 percent average.
"That's why I feel good about it, it's less than 2 percent," he said. "Any time we can stay at 2 percent or less right now, with the way the economy is, I think it's great."
He said talks are still ongoing in regards to the police union, and the firefighters are in arbitration.
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