*Ratify a Successor Collective Bargaining Agreement with American Federation of State, County, Municipal Employees, Local 189 related to the terms and conditions of employment of represented employees in the bargaining unit for 2025-2027

The City of Portland ordains. Section 1. The Council finds: The City and American Federation of State, County, Municipal Employees, Local 189 (AFSCME) are parties to a collective bargaining agreement (CBA) effective January 1, 2021, to December 31, 2024 (2021 – 2024 CBA) under the contract between the City and the District Council of Trade Unions (DCTU). During the 2021-2024 CBA between DCTU and the City, AFSCME left the union coalition of DCTU and bargained a separate contract as an individual union. AFSCME is the exclusive representative for employees listed in Schedule A of Exhibit A. The City and AFSCME began negotiations in May 2024 and moved to mediation in December 2024. On January 30, 2025, the City and AFSCME reached a tentative agreement on a new three-year contract. The Agreement meets the City’s bargaining interests by securing a labor agreement with AFSCME through December 31, 2027, and setting wages and other terms and conditions of employment. The Agreement includes $20.9 million in new spending and an additional $1.3 million in one-time investments for a total of $22.2 million in new spending over the three years of the CBA. Given that the CBA starts in the middle of the City's fiscal year, the final year financial impacts are higher because the remaining six months of the fiscal year were not included in the costing; since the City will commit to the spending as of the start of the 2027-2028 fiscal year, the total impacts of new spending for the CBA on the City's budget is actually $27.9 million. To address recruitment and retention issues, and to maintain competitiveness within the market, the tentative agreement reflected in Exhibit A provides for the following changes: Increase in shift differential pay. Three additional personal days annually for employees required to be fully in-person. Jail Side Premium of five percent on the base rate for all hours worked by Police ID Technician Classification employees assigned to take prints in the jail. Pay parity for certain shared classifications. Lump sum payments for current incumbents in shared classifications in a form substantially similar to Exhibit B. Targeted wage increases of three percent to many classifications. Minimum one percent across-the-board wage increase for the first year of the contract. One percent across-the-board wage increases for all classifications in year two of the contract and another one percent in year three of the contract. Longevity Premium of two percent for bargaining unit members with 10 or more years of consecutive City service. Targeted Schedule A premium adjustments for classifications in the Portland Water Bureau. Creation of six new classifications in the Portland Water Bureau as follows: Automotive Equipment Operator III: Sewer Vacuum Automotive Equipment Operator III: Crane Customer Accounts Specialist III Customer Accounts Specialist IV Water Distribution System Technician Water Distribution System Technician, Trainee NOW, THEREFORE, the Council directs: The Agreement between the City and the AFSCME attached hereto as Exhibit A is ratified by this Council and the 2025-2027 CBA will be in a form substantially similar Exhibit A. The City Administrator, the Director of the Bureau of Human Resources, and the City Auditor, with approval as to form by the City Attorney's Office, are authorized to execute the 2025-2027 successor CBA between the City and AFSCME 189, and are further authorized and directed to enter into a Letter of Agreement and Settlement of Claims with certain employees listed in Exhibit B and to make payments to employees in the amount reflected in Exhibit B. Council directs the City Budget Office to work with the Bureau of Human Resources and any relevant bureau to determine the amount of additional resources to be added to bureau current appropriation level targets in order to fund cost increases associated with this contract and to increase the Current Appropriation Level targets for bureaus with employees represented under the terms of this successor CBA. This ordinance is binding City policy. Section 2. The Council declares that an emergency exists because delay would unnecessarily delay the orderly implementation of the provisions of this Collective Bargaining Agreement; therefore, this Ordinance shall be in full force and effect after its passage by the Council.