SEIU 221 Proposal for Good Jobs
How much would Good Jobs cost?
Compared to the County’s first proposal?
Wages
• Union 2017 Across the board wage increase of 6.25% + 6.25% Scale
inflator (+ step increases of 5%) + Union Equity Proposal=
• $98 million (less than the $100 million per year the County references
in its proposal)
• The Union’s Minimum Wage impact on scales proposal costs zero in
2017 since all the SEIU job classes have scales above the State and
City of San Diego Minimums
Wages
• Equities- the Union conducted a survey of over 120 job classifications
in the 6 Counties (same Counties used by the Pension Fund to justify
setting its investment assumption);
• Found gross inequities and proposes to correct them- examples by
unit
• RN unit- 13.5% below average (on the whole)
• SW Unit – 9% below
• Clerical Unit- 5.5% below
• PR Unit - 5.2% below
2017 Minimum Wage Adjustment
• This section will not impact County spending in 2017 since the lowest
pay scale starts at
• State Minimum Wage is $10.50 and goes to $11.00 on January 1,
2018
• State Minimum goes to $12 on January 1, 2019/ $13 on January 1,
2020/ $14 on January 1, 2021 and $15 on January 1, 2022 (provided
the Governor does not exercise the option to modify and no changes
in the State law)
• City of San Diego increases should not affect scales
County Wage Proposal
• 2017- the County proposes 3% effective after union ratification (a
change from its first proposal) ;
• The County proposal may not be in effect for the entire fiscal year if
the contract is not settled by June 22, 2017;
• Estimated cost of $24 million has to be adjusted given County change
in position regarding effective date- for each month past June the
County spend reduces by $2million
2018 Wages
• County proposes 3% increase valued at- $24 million + continued
spend on 2017 increases ($24million minus County delay in payment)
• County 2018 wages= $48 million minus impact of any 2017 delay
• Union proposes 6.25% increase (employees within the scales get scale
increase) + additional equities= $142 million
2019 Wages
• County proposes 3% increase= $24million + carry over of 2017
increases and 2018 increases (up to $48 million)= $72 million
• Union proposes 6.25% (employees within the scales get scale
increase) = $190 million
Summary of Wages
• County 2017-2019= up to $144 million
• County Proposal shows wage increases for 2020 and 2021= $192
million- but that presumes a 5 year contract
• Union 2017- 2019= $430 million to pay 6.25% + Bring county
classifications (proposed in equities) to Top Tier of 6 County average;
County Proposal..
• But what about the Bonuses
• 2017= $750 per employee = $7.5 million- one time pensionable
• 2018= $750 per employee = $7.5 million- one time pensionable
• 2019= $750 per employee = $7.5 million- one time pensionable
• 2020= $1500 per employee = $15 million- one time pensionable
• 2021= $1500 per employee = $15 million- one time pensionable
Union Health Benefit Proposal
• County proposes a 7% increase in Flex contributions starting January
1, 2018
• But-Kaiser costs exceed Flex by:
• Ee + 1= 1061.84- 815= $165.16 (per month Kaiser gap )
• EE + family= 1502.52-1185= $201.94 (per month Kaiser gap )
• The County proposal would leave employees paying $201.94 for
Kaiser family and much more for Anthem family coverage in 2018;
Union Health Benefits
• 35% of the SEIU employees earn less than $20 per hour;
• These employees spend 36 hours of work (before taxes) to cover the
costs of family coverage for Anthem or 10 hours of work (before
taxes) to cover the costs of family coverage for Kaiser;
• The Union’s proposal to secure free Kaiser HMO protects these
employees who are most vulnerable to high rents and fluctuating gas
prices
Union Health Benefits
• Union proposal presumes a 5% annual increase in Kaiser (based on
last 10 years in San Diego and Kaiser’s 2017 4% increase trend in
Southern California)
• County Flex proposal would maintain status quo of Kaiser employee
only being free BUT not eliminate the gap on Kaiser employee + 1 or
family…unless Kaiser did not increase its premiums at all in 2018,
2019 and 2020 and the County increased the Flex by 7% each year
Union Health Benefits
• Cost to close the Kaiser Gap= $12.9 million to cover ee + 1 and ee+
family for 2017-2019 (presumes a 5% annual Kaiser rate increase in
2018 and 2019)
• Estimated County spend on 7% flex increases over those same 3
years= $15 million
• Costing the 2018-2019 challenge- uncertainty about Kaiser and
Anthem (or its successor) prices
Union Retirement
• County proposes a new “Tier D” with 1.6% at 65 as the full retirement
option;
• County has not shared cost savings estimates and Pension Fund has
not made any “Tier D” calculations since “Tier D” does not yet exist
Union Retirement
• Union proposes current County Pension +
• Union proposes the County match the employee contributions to the
401 (k) supplemental retirement plan;
• Union proposes capping the County contribution at $200 per month
per employee
• Supplemental retirement is portable and employee contributions are
pre-tax (but also more subject to variations in the market value of the
account)
Health and Retirement Compared
• What do the other 6 Counties spend on Health and Pension??
Health and Retirement Compared..
County
Los Angeles
San Diego
Orange
Riverside
San Bernardino
Santa Clara
Alameda
Sacramento
Contra Costa
Fresno
Kern
Ventura
San Mateo
County Seat
Los Angeles
San Diego
Santa Ana
Riverside
San Bernardino
San Jose
Oakland
Sacramento
Martinez
Fresno
Bakersfield
Ventura
Redwood City
Residents
10,241,335
3,288,612
3,183,011
2,347,828
2,139,570
1,927,888
1,627,865
1,495,297
1,123,429
984,541
886,507
856,508
766,041
Employees
104,141
19,852
18,618
23,761
22,228
19,345
10,293
13,673
11,786
7,779
10,207
9,576
7,185
Average Wages
$73,722
$58,972
$66,135
$60,773
$49,357
$81,808
$76,832
$65,502
$58,355
$49,039
$57,819
$67,537
$70,163
Avg. Ret. &
Health Cost
$28,076
$26,234
$33,497
$11,079
$21,436
$29,157
$37,631
$24,030
$31,772
$28,669
$35,575
$25,450
$32,882
Total Wages
$7,677,439,302
$1,170,720,527
$1,231,308,043
$1,444,015,944
$1,097,116,707
$1,582,583,360
$790,835,893
$895,602,840
$687,773,926
$381,472,654
$590,156,049
$646,735,125
$504,120,435
Total Ret. &
Health Cost
$2,923,845,233
$520,803,421
$623,648,316
$263,255,774
$476,469,020
$564,036,449
$387,331,774
$328,556,306
$374,461,010
$223,017,746
$363,114,887
$243,708,938
$236,253,909
Health and Retirement Compared…
• The Union’s health care proposal would close the gap with Orange
and Kern Counties but would still leave San Diego below them in
health and retirement average spend
Health and Retirement Compared…
• Orange County is most comparable to San Diego in terms of size,
revenues, workforce;
• Orange spends average $7,000 more per employee per year on health
and retirement;
• LA spends $1,800 more per employee per year
• Kern spends $9,000 more per employee per year
• SB and Riverside spend less per employee per year
• Ventura spends slightly less
Modernizing the Premiums
• Bi-lingual differentials
• Increasing Class A (majority time) and Class B (less than majority
time) bi lingual pay costs= $2.9 million per year or $8million over 3
years
Modernizing the Premiums
• Shift Differentials
• Increasing the PM and NOC shift pay would cost an estimated
$490,000 per year over 1.4 million over 3 years
Modernizing the Premiums
• Work Location Premiums proposals cost less than $100,000 over 3
years
Modernizing the Premiums
• Appraiser Premium
• $190,000 per year
Parking Reimbursement
• Union and County agree to increase downtown parking to $300
• Cost= $1million per year for 3 years
• Union is also proposing an increase in Transit Reimbursement worth
$850,000 per year
Uniform Allowance
• The opening proposal on uniform allowances costs $98,000 per year
or $295,000 over 3 years
Boot Reimbursements
• The Union’s proposal to increase boots and shoes allowance costs
$30,000 per year
Paid Time Off
• Holiday Pay for 10/12 hour shifts costs
• 2017- $5million
• 2018- $7 million
• 2019- $9 million
Paid Time Off
• Increasing Max Vacation costs
• 2017- $1.4 million
• 2018- $1.7 million
• 2019- $1.9 million
Paid Time Off
• Bereavement for Travelers = $14-15,000 per year
Summary of Union Costs
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2017-2020
Wages= $436 million
Health Care= $25 million
Premiums= $12 million
Time off and reimbursements= $26 million
Retirement= $35 million
Estimated Total over 3 year contract= $535 million or $178 million per year
Payroll is $800 million per year or $2.4 billion over the 3 year periodwithout increases being factored in
Summary of County Costs
• Year 1= $37.5 million (minus County proposing to slide retro date)
• 2018= $61.5 million (minus County proposing to slide retro date)
• 2019= $85.5 million (minus County proposing to slide retro date)
• -----------County wants a 5 year agreement (or through June 2021)
• 2020= $109 million
• 2021= $$125
• Total County spend $420 million over 5 years
• County claims $500 million in spending
Summary of County Spend
• Most of the County spending on wages comes in Years 4 and 5 of the
contract due to wage buildup
• The one time increases in the Bonus proposal are short term fixes to a
long term problem of misplaced priorities
San Diego County….
• With its stable sources of income and strong financial position;
• And with a sincere collective bargaining process;
• County could fund the Union’s Proposals without changing the
fundamentals of its budget strategy;
• Union’s Proposal would secure free health coverage under Kaiser
HMO; provide County employees with wage increases greater than
rate of inflation and improve their equity position with other similar
counties;
Summary
• The Union’s Proposals would convert ”just jobs” into Good Jobs;
• The County should engage in sincere effort to reach agreement with
SEIU 221 and the Union and County could agree on an economic
package which is “fair and the County can afford”
Time For a County that Invests in Our Families