Agenda - Council - 02/08/2021 - Laserfiche WebLink

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removes the right to strike, but gives the right to mandatory binding arbitration. This status can result in arbitration awards that exceed the city's budget or conflict with the city's compensation policy. Response: The Legislature should carefully examine requests from interest groups seeking essential employee status under Minn. Stat. ch. 179A (PELRA). The League of Minnesota Cities opposes legislation that mandates arbitration that increases costs and removes local decision -making authority. The League supports a mandate for Final Offer/Total Package arbitration for all essential groups on a trial basis. The League also supports a change in the PELRA law that would strengthen existing language (Minn. Stat. § 179A.16, subd. 7) requiring arbitrators to consider a public employer's obligation to efficiently manage their operations. Specifically, the statute should be amended to require arbitrators to take into consideration any wage adjustments already given to or negotiated with other groups — both union and non -union for the same employer in the same contract year. HR-9. Re-employment Benefits Issue: Cities are often required to help pay the benefits of workers who have initially been denied benefits through their employment with the city but later been re- employed by a different employer; sometimes this occurs when the employee has been found to have committee gross misconduct while employed by the city. Additionally, employers are prohibited from entering into agreements with employees not to contest or appeal payment of unemployment benefits as part of a 109 settlement agreement at termination of employment. Because most cities are "reimbursement employers," the majority of the cost of benefits paid to the employee are at the direct expense of the city. The ability to enter into such an agreement can greatly aid a city in reaching a settlement at a relatively low-cost to the city's taxpayers. Response: Cities should not be forced to pay benefits as bae wage employers if the employee is determined to have committed gross misconduct during their employment with the city, even if the employee voluntarily resigns. In addition, cities (as reimbursement employers) should be allowed to enter into agreements with employees to not contest a determination of eligibility for unemployment benefits where the employer and employee mutually agree to this as a term of separation. HR-10. Public Employee Defined Benefit Pension Plans Issue: Public pensions are an important employee benefit that can help cities attract and retain employees. However, unlike salary and other employee benefits that are established by each city, the pension contribution rates and benefit levels are set by the state legislature. Benefit levels and plan costs must be carefully balanced to assure long-term sustainability of the pension plans and affordability to employers and employees. Despite ongoing funding issues, the Legislature and Governor had been unable to reach agreement on sustainability changes to the Public Employees Retirement Association plans. In 2018, the Legislature enacted a major pension reform package to improve the long-term financial status of the PERA pension plans. The legislation included benefit reductions for active employees,