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Another civilian union has reached a tentative agreement with the City, nearly identical to the agreement ratified last month by Local 251, the City’s largest civilian union.  

The Functional Employees Group and the Teamsters Local 554 represents administrative and clerical employees and has scheduled a vote on the tentative agreement early next week.

The five-year agreement includes a cash balance pension plan.  New employees hired on or after January 1, 2015 will participate in this plan.  Current employees will remain on the existing defined benefit pension plan with reduced pension benefits and an increase in  the number of years required to achieve normal retirement.  The City also agreed to increase its contributions to the pension fund by 7% over the five-year agreement.

The agreement also includes a 9% hourly wage increase over the five-year period, including a 1% one-time lump sum supplement for 2013, and a one-time lump sum supplement for ’13 and ’14 due to overpayment into the pension system in those years by the members.

“This agreement is another important step toward solving the unfunded pension liability and I thank the membership for their support,” said Mayor Jean Stothert. “The Functional Employees Group and the Teamsters Union Local 554 understand the importance of working together.”    

“It’s been a long time coming. I am pleased with the agreement that was reached between the Functional Employees Group, the Teamsters Union Local 554 and the City of Omaha. This is the first step to ensure that there will be a pension system for civilian employees, and is along the lines of what other cities across the nation are doing to secure their pension systems.   This is a fair agreement for the employees and the City,” said Val Johnson, President of the Functional Employees Group.

In addition, Mayor Stothert will extend the same wage and pension terms to the AEC group, the  civilian managers and professionals who are not represented by a collective bargaining agent.

CMPTEC, which represents approximately 375 civilian employees, is now the sole civilian union holdout to the Mayor’s proposed pension reform.  The CMPTEC union rejected the City’s offer last month, but is scheduling another vote on the City’s offer sometime in the next few weeks.  Litigation will follow in the Court of Industrial Relations if the CMPTEC Union refuses the same terms that have already been approved by the other civilian bargaining units.