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Proposed Agreement with COUPE

January 11, 2018

Overview of Coalition of Unionized Public Employees

31 Collective Bargaining Agreements are included in COUPE

COUPE includes 7,713 budgeted full time equivalents (FTEs) in the

2018 Appropriation, representing 21.4% of the City’s workforce

COUPE includes building trade employees, motor truck drivers,

plumbers, laborers and other trade unions in 15 different City

Departments include: Streets and Sanitation, Water Management,

Aviation, Buildings, CDOT, 2FM
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Overview of Balanced and Responsible Agreement
Reached with COUPE
 This agreement uses taxpayer dollars responsibly with manageable wage
increases coupled with increasing healthcare contributions from employees.
This agreement also builds on previous reforms to city operations made by the
Emanuel Administration

• Reduces the City’s share of healthcare contributions by $12M annually

when healthcare reforms are fully implemented
• Makes work rule changes that build on previous reforms in order to boost
operational efficiencies and achieve additional savings where possible
• Provides economically-sensitive wage increases with an average annual
increase of 2.1%
• Introduces a nominal matching contribution from the City of Chicago to
employees’ deferred compensation accounts

 Agreement Term: July 1, 2017 – June 30, 2022

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Comparison to Previous COUPE Agreement

July 1, 2007 July 1, 2017 Proposed

Agreement Agreement
Term 10 years 5 years
Total Wage Increase 26% 10.5%
Avg. Annual Wage Increase 2.6% 2.1%
Healthcare Premium Increase 0% 1.5% (By 2020)
Healthcare Premium Salary Cap $90,000 $130,000 (By 2021)
Prescription Deductible $0 $75 (By 2021)
Plan 457 Contribution $0 Up to $500 per year (By

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Responsible Wage Increases

 Wage increases: 2.1% average annual increase; 10.5% over 5 years

• 2018: 2.0% on 1/1
• 2019: 2.25% on 1/1
• 2020: 2.0% on 1/1
• 2021: 2.25% on 1/1
• 2022: 2.0% on 1/1

 In the 2007 agreement, wages increased by 26.0% over ten years for non-
prevailing rate COUPE employees -- an average annual increase of 2.6%

 The City will adhere to the prevailing rate schedule for select COUPE
employees, adjusting wages each July based on the determined prevailing rate

 Cost of first year: $12.5M

 Average annual cost over five years: $13.1M

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Premium increases reduce the City’s healthcare
contributions by $7.3 million annually

 First premium increase since 2006 for Single, Employee +1, and Family reduces
the City’s share of healthcare contributions by $7.3 million annually by 2020:
• July 1, 2018: 0.5%
• January 1, 2019: 0.5%
• January 1, 2020: 0.5%
Single Employee+1 Family
2017 1.29% 1.98% 2.48%
2020 2.79% 3.48% 3.98%

 The below table outlines the amount an individual earning $81,352 will pay
in premiums once the increase is fully phased-in:
Effect per 2017 2020 2017 2020 2017 2020
pay period Single Single Employee+1 Employee + 1 Family Family
$43.88 $94.64 $67.31 $118.14 $83.95 $134.79

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Additional Healthcare Reforms Reduce the City’s
Healthcare Contributions by $4.7M annually
 By increasing the salary cap for employee premium payments, the City will reduce its
contribution by $667,000 annually:
• 1/1/19: Cap increased to $100,000 (from $90,000)
• 1/1/20: Cap increased to $115,000
• 1/1/21: Cap increased to $130,000

 By implementing a prescription drug deductible per household (similar to CPS prescription

deductible), the City will reduce its share of healthcare contributions by $1 million annually:
• 2019/2020: $35 deductible
• 2021/2022: $75 deductible

 The Labor Management Cooperation Committee (LMCC) will identify an additional in $3

million annually in healthcare savings for COUPE members by 2020
• LMCC was established in 2007, and through this Committee the City works in
partnership with representatives from labor to identify and implement ongoing
healthcare reforms and savings outside the contract negotiation process.
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Work Rule Provisions
 Apprenticeship: The City will continue with existing Apprenticeship programs and is committed to
investigate future Apprenticeship Agreements for: Laborers, Machinists, Cement Masons, Plumbers,
Hoisting Engineers

 Cross-over assignment: Providing additional flexibility for the operating departments on assigning crew
members by initiating cross-over assignment training for Plumber and Caulker; Asphalt and Concrete

 Creation of Non-CDL title: In the event that a vehicle does not require a commercial drivers license (CDL)
to operate, this Agreement provides the City additional flexibility to establish and hire into a non-CDL
driver title, which will operate at a pay rate percentage below the motor truck driver rate

 Increased probationary period: The probationary period for most new hires will increase from 6 months
to 12 months, allowing managers more time to evaluate performance

 Introductory break-in rates: This agreement expands introductory break-in rates to include: Caulker, Sign
Hanger, Bricklayer, Motor Truck Driver, Construction Laborer, Asphalt Laborer, Concrete Laborer. The
break-in rates vary by position, but typically there is a two year break-in before they are paid prevailing
rate, and the savings is an average of 10% over those 2 years for new hires into the title

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Introduce 457 Plan for Employees to Plan for Their
Financial Future

Building on the combined efforts of the City and Labor Unions to

encourage employees to save for their future and to incentive pre-
tax savings, the City will begin to contribute a nominal matching
amount to employees’ deferred compensation accounts

Maximum total amounts per year per employee:

• 2020: Up to $250
• 2021: Up to $250
• 2022: Up to $500

Estimated City contribution by 2022 is $3.8 million if all eligible

employees take full advantage of match each year.
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