Contract agreement reached with craft, maintenance employees

 

The State has reached a tentative agreement with Bargaining Unit 12, represented by the International Union of Operating Engineers. The agreement, which covers roughly 12,000 craft and maintenance employees, runs from July 1, 2006, through June 30, 2008. The unit's last contract expired July 2, 2004.

 

Key provisions include a 3.5 percent cost-of-living adjustment effective July 1, 2006, and a second COLA on July 1, 2007, of 2-4 percent, based on the consumer price index. The State will also grant a one-time payment of $1,000 to all employees covered by the agreement. The last raise for these employees was July 1, 2003.

 

Other key provisions of the new agreement:

 

·          Pension benefits for new State employees will be based on their highest three-year average salary, rather than the highest single year that applies to current employees.

·          Survivors of highway maintenance workers killed on the job will become eligible for a new death benefit.

·          New employees who enroll dependents under their State health plan will be subject to a two-year vesting period before they qualify for the full employer health contribution for dependent coverage.¹

·          The State's contribution to employee health premiums will be increased effective July 1, 2006, and again on Jan. 1, 2007, and Jan. 1, 2008, to a dollar amount that equals 80 percent of the average CalPERS-approved premium for that year.

·          Pay ranges will be raised 5 percent for certain employees in the State's hydroelectric plants,² heavy equipment operators at Caltrans and the Military Department, telecom technicians, and electronics technicians.  These are positions where the State has difficulty recruiting and retaining employees. Adjusting the pay range upward allows employees to become eligible for a higher salary at the top of their pay range.

 

The tentative agreement now goes to the Legislature and union membership for ratification.

 

Click here for a summary.

 

 

1 For the first year, new employees will receive half the State's regular contribution for dependent health coverage; in the second year, 75 percent. Employees cover the remaining premium out-of-pocket.

 

2 Operators, electricians, and mechanics at hydroelectric plants

 

 

DPA creates and administers compensation, benefits, training programs, and the classification plan, and advocates for the interests of the State employer.