The Placer County Board of Supervisors approved a contract with the Placer Public Employees Organization Tuesday that balances two key goals: providing employees with modest annual wage increases and ensuring labor costs can be sustained in future years.
Board members voted unanimously to approve the contract, which has a retroactive starting date of Jan. 1, 2014 and will remain in effect through June 30, 2017.
“I want to commend our team, as well as the PPEO team, for coming to this resolution,” said Board Chairman Jack Duran.
PPEO represents about 1,800 employees, or roughly 77 percent of the county workforce. Its members voted to approve the contract in mid-May, with more than 80 percent of voting members favoring ratification.
Under the agreement, PPEO members will receive:
- 2 percent wage increases with effective dates of Dec. 12 this year and Dec. 11, 2015 and
- 1 percent increases with effective dates of Dec. 9, 2016 and July 21, 2017.
“As the country’s economic outlook continues to improve, we are optimistic that modest revenue growth will continue,” Deputy County Executive Officer Maryellen Peters said in a report to board members, emphasizing that actions taken by the board during the recent economic downturn positioned the county to fund the proposed wage increases and other priorities.
She reported the two negotiating teams worked together closely and respectfully and reached a collaboratively negotiated agreement in keeping with the board’s commitment to employee engagement.
In her report, Peters said the full financial impact of the agreement will not be felt on county budgets until the 2017-18 fiscal year, noting that the wage increases are spread over several years. The first three wage increases will take effect in the middle of fiscal years – a move that cuts first-year budget impacts roughly in half.
“The cost impacts to the county for this labor agreement have been held to a minimum whenever possible, with the effects of some items deferred into future fiscal cycles when staff anticipates that the county’s revenue will improve,” Peters explained.
Wage-increase and roll-up costs attributable to the agreement are projected to be $1.7 million for the 2014-15 fiscal year, $3 million for 2015-16, $2.2 million for 2016-17 and $2.3 million for 2017-18.
The total cost of the agreement covering more than three-quarters of the county workforce is projected to be $9.17 million in 2017-18 and following years.
The agreement with PPEO also includes adjustments in such areas of compensation and benefits as dental insurance, tuition reimbursement, and stand-by pay.