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Finance Committee adopts three-year Teamsters contract covering 2025–2027; staff to model budget impact
Summary
The committee unanimously adopted a collective bargaining agreement between the City of Madison and Teamsters Local 120 covering Jan. 1, 2025 through Dec. 31, 2027; staff said the executive operating budget includes the agreement and will produce projections to show the full-year and multiyear fiscal impact.
The Finance Committee on Sept. 29 unanimously approved the labor agreement between the City of Madison and Teamsters Union Local 120 (affiliated with the International Brotherhood of Teamsters) covering Jan. 1, 2025 through Dec. 31, 2027.
The committee moved and seconded the item and recorded a unanimous vote in favor. Staff said the executive operating budget already accounts for the agreement’s costs and that the city will prepare projections and a year-end appropriation resolution to show the aggregate budget impact. That analysis will be presented to the finance committee in November and taken up by the full council as part of the December year-end appropriation process.
Members asked about specific contract provisions. Labor relations staff and the city’s employee-relations specialist, Tamika Bryant, explained differences between Teamsters vacation accruals and those of general municipal employees (GMEs). Tamika noted Teamsters members receive no vacation during their first year of employment and that the contract moves some accrual steps earlier: for example, negotiated changes move a 7-year accrual step to 5 years and a 12-year step to 10 years for Teamsters members. Staff described the change as advancing several accrual milestones so Teamsters reach higher vacation levels sooner than before; GMEs retain different intermediate steps and generally receive vacation immediately upon hire.
Labor relations staff said the agreement brings Teamsters wage increases into parity with other employee groups and that the city expects to accommodate contract costs within unspent contingent reserves and compensated absence escrow funding, subject to the November projection work. Committee members also asked whether the agreement would trigger the city’s “me too” clauses for other groups; staff said Teamsters had generally been behind others and the agreements were intended to align pay steps.
After discussion and two procedural questions about budget treatment, the committee recorded a unanimous vote to adopt the three-year agreement.
