Employee Union Agreements Hold Salary Increases at or Below the Cost of Living Adjustment of 1.7% Annually

August 9, 2017 11:40 AM

SANTA MONICA, Calif. – Last night, on August 8, 2017, the Santa Monica City Council authorized City Manager Rick Cole to execute seven employee union agreements representing the largest percentage of municipal employees. Overall, the agreements limit annual salary increases to 1.5 to 1.7%, which is equal to or below the region’s Consumer Price Index increase of 1.7% (as of January 2017). The net increase over the two or three year term of the contracts range from 3.5 to 4.7%. The total cost of the negotiated changes is approximately $2,842,088 for FY 2017-18. The budget impact of these changes was included in the General Fund FY 2017-18 through FY 2021-22 Five-Year Financial Forecast.

In addition to keeping compensation increases at or below cost of living, the agreements also minimize increases in pension obligations and include tradeoffs that equitably share the rising costs of pension and medical benefits between the City and employees.

“The recent cycle of negotiations demonstrate the City’s commitment to addressing our long-term pension obligations by limiting salaries to no more than the annual cost of living and sharing more pension and medical costs with employees,” said Mayor Pro Tem Gleam Davis. “We are being fiscally prudent while offering competitive compensation to our workforce.”

The seven unions with new Memoranda of Understanding are Administrative Team Associates (ATA), Supervisory Team Associates (STA), SM Firefighters Local 1109, Municipal Employees Association (MEA), Management Team Associates (MTA), Public Attorneys Union (PAU), and Confidential Unrepresented Employees (CUE).

All are three-year agreements effective July 1, 2017 through June 30, 2020 with the exception of MEA, which has a two-year agreement ending June 30, 2019. Here are the highlights of the new agreements: 

For more information on other changes, read this resolution.

The Council is currently undertaking a compensation review overseen by the City Council Audit Subcommittee that will provide a comprehensive analysis for future policy direction on employee compensation.

More Information

Resolution for new MOUs >

Agreement with the Police Officers Association reached in July >

Information on the compensation study >

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