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Seward council ratifies Seward Public Employees Association agreement with 2026-28 pay adjustments and stepped retention bonuses
Summary
Council approved a collective bargaining agreement for Jan. 1, 2026—Dec. 31, 2028 that includes a 3% COLA in 2026, CPI-linked adjustments later, and a stepped retention bonus rising with years of service; union president Shane Han thanked administration and council for the process.
The Seward City Council approved Resolution 2025-098 on Oct. 13, ratifying a collective bargaining agreement between the city and the Seward Public Employees Association covering Jan. 1, 2026 through Dec. 31, 2028.
Administration highlighted the agreement's key financial terms. For 2026 the parties agreed a 3% cost-of-living increase (a roughly 0.6 percentage-point bump above the most recent Anchorage CPI figure cited by staff). For the remaining two years the contract ties increases to CPI with an agreed adjustment band (roughly 2.5% to 5% range as presented) so that raises will remain above CPI in most scenarios. The contract also modifies the annual retention bonus: instead of a flat 1.5% of wages for all eligible employees, the bonus increases in half-percentage steps every five years of service (e.g., 1.5% for years 1—, 2% for years 5—9, 2.5% for 10—14, up to 4% at 25+ years, as summarized by administration).
Administration also described three implementation items: a clarified process and limit for certification-based wage steps (one step per approved certification), a labor-management committee to meet through the year, and a $2,700-per-year legal-fee benefit available through the union that provides low-cost legal assistance to members (administration noted the benefit may not be used to sue the city). Union president Shane Han addressed the council during public comment and expressed appreciation for the administration's work on the bargaining team and for council support.
Council voted in favor of the resolution. Administration said the contract terms were consistent with FY26 budgeting assumptions and that staff would implement wage steps and retention bonus changes once payroll and personnel systems are updated.
The agreement is effective Jan. 1, 2026; administration and union representatives will meet to implement certification-step lists and labor-management committee bylaws.
