Title
Labor Agreement: International Association of Machinists and Aerospace Workers, Lodge No. 2182, District Lodge 190 Successor Labor Agreement/Memorandum of Understanding [Two-Thirds Vote Required]
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FileID
File ID: 2026-00401
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Location
Location: Citywide
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Recommendation
Recommendation: Adopt a Resolution by two-thirds vote: 1) waiving the requirement for 10-day posting of labor agreements; 2) approving the Memorandum of Understanding (MOU) between the City of Sacramento (City) and the International Association of Machinists and Aerospace Workers, Local Lodge No. 2182, District Lodge 190 (IAMAW); 3) authorizing the City Manager to conduct the necessary budget adjustments and transfers from fund balances to adequately fund the MOU; and 4) authorizing the City Manager or designee to make minor changes or adjustments to the exhibits in order to correct omissions and errors in the MOU.
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Contact
Contact: Aaron Donato, Labor Relations Manager, (916) 808-5816, adonato@cityofsacramento.org
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Presenter
Presenter: Aaron Donato, Labor Relations Manager, (916) 808-5816, adonato@cityofsacramento.org
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Attachments
Attachments:
1-Description/Analysis
2-IAMAW MOU (Redline)
3-IAMAW Labor Agreement Costing
4-Resolution
5-Exhibit A - IAMAW MOU
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Description/Analysis
IssueDetail
Issue Detail:
International Association of Machinists and Aerospace Workers, Lodge No. 2182, District Lodge 190 (IAMAW) Successor Labor Agreement/Memorandum of Understanding (MOU)
The 2023-2025 MOU between the City and IAMAW expired on July 11, 2025. The City and IAMAW have negotiated a successor MOU. Attachment 2 is a redline version of the successor MOU which includes the following major new contract terms:
• New term: July 12, 2025, through July 23, 2027.
• Effective July 11, 2026, salary ranges will be increased by two percent (2.0%).
• Within sixty (60) calendar days, employees will receive a signing bonus of one thousand one hundred seventy-nine dollars ($1,179)
• Addition of Juneteenth (June 19) as a recognized holiday.
• Health and Welfare Contributions
• 2026 Calendar Year Health Changes, effective January 10, 2026:
§ Employee Only - City contribution of $1,051 per month,
§ Employee Plus One Dependent - City contribution of $16740 per month, and
§ Employee Plus Two or More Dependents - City contribution of $2,230 per month.
• 2027 Calendar Year Health Changes, effective the first paycheck of 2027:
§ The City will contribute fifty percent (50%) of the first fifty dollars ($50) of premium increases, up to a maximum contribution of twenty-five dollars ($25) per month, toward the cumulative total increase in premiums from plan year 2026 to plan year 2027.
The final version of the IAMAW MOU is attached to the Resolution as Exhibit A (Attachment 5).
Salary Schedule
There are no retroactive salary increases associated with the MOU, therefore this report does not include an updated salary schedule. Any future salary increases will be reflected in and approved through future salary schedule actions as required by California Code of Regulations (2 CCR § 570.5).
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PolicyConsiderations
Policy Considerations: Approval of this action by the City Council is consistent with the City’s legal obligation under the Meyers-Milias-Brown Act, adheres to the City’s positive labor management relations concept, and provides labor stability.
The Sacramento City Code Section 4.04.020 and Council Rules and Procedure (Chapter 7, Section E.2.d) mandate that unless waived by a two-thirds vote of the City Council, all labor agreements, and all agreements greater than $1,000,000 shall be made available to the public at least ten (10) days prior to Council action. This provision will be waived by City Council.
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EconomicImpacts
Economic Impacts: None.
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EnvironmentalConsiderations
Environmental Considerations: The report contains administrative activities that will not have a significant effect on the environment and that do not constitute a “project” as defined by the California Environmental Quality Act (CEQA) Guidelines Sections 15061(b)(3) and 15378(b)(2).
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Sustainability
Sustainability: Not applicable.
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Commission/Committee Action
Commission/Committee Action: None.
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RationaleforRecommendation
Rationale for Recommendation: Approval of this action will establish a new MOU between the City and IAMAW.
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FinancialConsiderations
Financial Considerations:
The total cost of the MOU for Fiscal Year (FY) 2025/26 is approximately $124,724, with an ongoing annual cost of approximately $209,204 in future fiscal years, as detailed in Attachment 3. Of the $124,724 cost, approximately $10,075 will be funded by the General Fund/Measure U Fund (General Fund), with the remainder of the costs supported from other funds. The City will utilize available prior-year General Fund savings and fund balance from other funds to finance these cost increases in FY2025/26.
The City's current five-year forecast is in deficit. To balance the City Budget, as required by the City Charter, the City will need to make spending reductions and/or revenue increases. The City's current General/Measure U Fund five-year forecast is below.
|
$s in millions |
FY2025/26 |
FY2026/27 |
FY2027/28 |
FY2028/29 |
FY2029/30 |
|
Approved Budget Surplus/(Deficit) |
$ 0.49 |
$ (60.39) |
$ (70.38) |
$ (88.32) |
$ (92.59) |
|
Labor Contract Negotiating Authority |
$ (0.01) |
$ (0.02) |
$ (0.02) |
$ (0.02) |
$ (0.02) |
|
Total Surplus/(Deficit) |
$ 0.48 |
$ (60.41) |
$ (70.40) |
$ (88.34) |
$ (92.61) |
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Not applicable.
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