Title
Adopt Two (2) Resolutions to: 1) Approve the San Leandro City Employees Association (SLCEA) Memorandum of Understanding and Confidential Employees Compensation Plan for a Five-Year Term Covering January 1, 2025 through December 31, 2029, and 2) Approve an Amendment to the City-wide Master Salary Schedule Effective January 1, 2025.
Staffreport
COUNCIL PRIORITY
• Infrastructure
SUMMARY
In March 2025, the City of San Leandro reached a tentative agreement with the San Leandro City Employees Association IFPTE Local 21 (SLCEA) on a successor Memorandum of Understanding (MOU) for the period January 1, 2025 through December 31, 2029. The new MOU contains changes in terms and conditions consisting primarily of equity salary adjustments for all SLCEA employees who are below the market median based on a total compensation study and salary adjustments totaling 21.75% over the five-year agreement. The same terms would be applied to the Confidential Employees Compensation Plan.
An amended Master Salary Schedule is also presented to Council for approval, which incorporates the proposed wage increases effective January 1, 2025 for all SLCEA and Confidential Employees job classifications.
RECOMMENDATIONS
Staff recommends that the City Council adopt the resolution approving the Memorandum of Understanding (MOU) between the City of San Leandro and the San Leandro City Employees Association (SLCEA) and the Confidential Employees Compensation Plan for the period January 1, 2025 through December 31, 2029; and adopt the resolution amending the Master Salary Schedule effective January 1, 2025.
BACKGROUND
The San Leandro City Employees Association Memorandum of Understanding expired on December 31, 2024. SLCEA is the largest group of employees in the City, representing approximately 273 current employees. The City and SLCEA representatives commenced negotiations on August 20, 2024 and reached a tentative agreement on March 11, 2025. The City received notice that the union ratified the agreement on April 3, 2025.
The Confidential Employees Compensation Plan also expired on December 31, 2024. This group currently consists of nine (9) employees from the City Manager’s Office, Human Resources and Finance Departments. The Confidential Employees group is not represented by a bargaining unit, but because they are similarly situated to SLCEA employees, Confidential employees have historically received the same term and provisions afforded to SLCEA. The major elements that would apply include the same five-year term, equity adjustments and salary increases.
Analysis
As agreed upon in the previous SLCEA MOU, the City conducted a comprehensive total compensation study. During negotiations, the study results were the basis to develop a compensation plan that would ensure City of San Leandro employees are paid competitively and equitably based on market data and meet the needs of the City to recruit and retain a high-quality staff.
The parties agreed that classifications that were found to be below the market median for total compensation would receive an equity salary adjustment that brings them to the market median, which is detailed in Attachment A of the SLCEA MOU. In addition to these equity salary adjustments, the agreement also provides employees with significant, competitive annual salary increases over the term of the agreement as follows:
• Effective January 1, 2025, a base wage increase of 6.5%
• Effective January 1, 2026, a base wage increase of 3.75%
• Effective January 1, 2027, a base wage increase of 3.75%
• Effective January 1, 2028, a base wage increase of 3.75%
• Effective January 1, 2029, a base wage increase of 4.0%
Other economic items agreed upon include increases to Training pay, Uniform Allowance, Safety shoe reimbursement, Mechanic tools reimbursement, Swing/Graveyard Shift Differentials, and Bereavement leave.
The parties also agreed to operational, administrative, and legal updates to the agreement, including the addition of Reproductive Loss Leave as mandated by State law and increased time for union orientation of new hires.
The major elements that would apply to the Confidential Employee Group include the same five-year term, equity salary adjustments and annual wage increases.
The amended Master Salary Schedule reflects the proposed wage increases effective January 1, 2025, and agreed upon changes to SLCEA represented job classifications, including new job classifications, job title changes, and the removal of obsolete job classifications as detailed in Attachment A of the SLCEA MOU. As required by California Code of Regulations (CCR) §570.5, the Master Salary Schedule must be approved by the City Council and will be made publicly available on the City’s website.
Previous Action
• On April 4, 2022, by Resolution No. 2022-051, the City Council approved the prior SLCEA MOU and Confidential Employees Group Compensation Plan for the period January 1, 2022 through December 31, 2024.
Financial Impacts
Total costs for the SLCEA MOU and Confidential Employee Group Compensation Plan is $7,717,821 to the General Fund, and $2,979,103 to other operating funds (non-General Fund).
The SLCEA MOU and Confidential Employee Group Compensation Plan is effective retroactively to January 1, 2025. The terms of the proposed MOU will result in a Fiscal Year 2024-2025 (January 1, 2025-June 30, 2025) cost of $1,371,661 to the General Fund, and $543,690 impact on other operating funds (non-General Fund).
Total costs for the remaining fiscal years affected by the term of the MOU will require Council appropriation as part of actions to be undertaken through subsequent biennial budget processes to the corresponding salary allocations. The total cost for the remaining fiscal years amounts to $6,346,159 to the General Fund; and $2,435,413 to other operating funds (non-General Fund).
ATTACHMENTS
• A: Resolution to Approve the SLCEA MOU and Confidential Employee Group Compensation Plan for the period January 1, 2025 through December 31, 2029
o Ex A San Leandro City Employees Association (SLCEA) Memorandum of Understanding
o Ex B Confidential Employees Compensation Plan
• B: Resolution to Approve Master Salary Schedule effective January 1, 2025
o Ex A Master Salary Schedule effective January 1, 2025
PREPARED BY: Emily Hung, Human Resources Director, Human Resources Department