Long Beach has reached a new labor agreement with the union representing 660 employees in 12 departments that increases salaries 5% in the next three years, averting work stoppages and disruption of services.
The agreement with the International Brotherhood of Electrical Workers Local 47 was hammered out after several rounds of negotiations that started last April. It calls for a 3% wage rise in the first year, followed by 1% salary increases in the second and third years.
IBEW Local 47 workers are employed in the Harbor, Utilities, Finance and Management, Public Works, Technology and Innovation, Energy Resources, Health and Human Services, Police, Library, Parks, Recreation and Marine, and Airport departments.
The three-year contract covers the periods starting Oct. 1, 2023 through Sept. 30, 2026, removes language related to unskilled or obsolete pay and adds new skills that support the departments’ new needs for technological and operational support.
Human Resources director Joe Ambrosini said in an email the newly struck agreement will cost the city more than $200,000 to be accounted from its general funds.
Increase labor expenses had been projected in estimates made for the current and following fiscal years, and would slightly impact projected revenue shortfalls in future budgets, he said.
Although the new expense was not included in the at-large $3.2 billion budget the city approved Sept. 5 for fiscal year 2024, the city had put a “placeholder,” or an estimate for newly negotiated agreements.
“The IBEW workers have a smaller impact to the general fund, as most are funded by other funds and are not under the same fiscal pressures as the general fund,” said Ambrosini.
The city’s general fund is mostly replenished by collection of property, sales and use taxes, business, licenses and fees, personal and corporate taxes, and utility and charges for services. Among other expenses, general funds cover police, fire, libraries and parks operations.
Although City Manager Tom Modica said the total 2024 budget is balanced, the general fund, which also covers employees’ salaries, benefits and the cost of materials, supplies and services, is expected to have a $42.3 million deficit from estimated revenues tagged at $719.1 million.
As the city moves to modify, expand and diversify current and future revenue sources to cover more expenses than projected in the mid and long terms, it also expects one-time savings to cover higher labor costs in the short-term, said Ambrosini.
Despite the concerning fiscal outlook, Mayor Rex Richardson lauded the agreement as one that ensures equity and fair wages.
‘We are pleased to have reached a tentative agreement with the International Brotherhood of Electrical Workers,” said Richardson in a press release. “I want to thank the IBEW leadership for their support and work in reaching this agreement.”
The two parties engaged in negotiations aiming to reclassify many jobs “that were below the market rate by providing an ‘equity adjustment’ tied to how far down the classification was in the marketplace,” said the press release.
The agreement also aims to elevate many jobs that were classified below the market median. It’s unclear how many belong to this group.
A clause in this unit also addresses a “fair” pay differential between supervisory unit and other employees aimed to foster good relations and bolster recruitment and retention.
Data from human resources indicate that the median salary of staff in the “basic” unit is $31.32 an hour, and $40.29 for those in the supervisory unit.
Ambrosini cautioned that these salaries range “quite a bit” in relation to the amount and position of employees across all departments under IBEW.
Other improvements included are changes in the paid parental leave program so they can choose leave days intermittently, funds for an education assistance program, and an extension on capped vacation and sick days.
“The tentative agreement is competitive and reflective of the value of our skilled and general basic and supervisor unit employees,” said Modica. “I thank our city team who assisted with this negotiation and IBEW leadership for all their support throughout this negotiation process.”
The City Council is expected to ratify the agreement at its next public meeting Oct. 10.
Long Beach employs a total of 6,395 workers. The 660 employees included in the labor agreement represent 9.7% of the city’s workforce.
With regional offices in Diamond Bar, IBEW Local 47 represents more than 10,000 workers employed in the utilities and construction industries.
Colin Lavin, business manager with IBEW Local 47 was out of town and could not be reached for comment.
Editor’s note: This report was updated to clarify aspects of the agreement.
