City of Long Beach 
Public Information Office
411 W. Ocean Blvd, 
Long Beach, CA 90802

FOR IMMEDIATE RELEASEPress Release # CM: 092616
City of Long Beach, International Association of Machinists (IAM) Reach Tentative Labor Agreement; No Fiscal Impact in 2017 Budget Due to Healthcare Savings
Alex Basquez
Director of Human Resources

The City of Long Beach announced today that a tentative agreement has been reached between the City of Long Beach and the IAM, which represents approximately 2,700 City Employees.

The City of Long Beach and International Association of Machinists (IAM) representatives held more than 18 meet and confer meetings during the past year prior to reaching agreement. The tentative agreement would be effective through September 30, 2019.

“This agreement provides a fair labor contract that ensures continued reliable services to Long Beach residents, while at the same time providing modest financial support to our hardworking librarians, parks workers, and the men and women who provide public safety support services,” said Mayor Robert Garcia. “In addition, this contract reduces our annual healthcare costs, and begins to implement reforms to skill pays."

The IAM membership voted overwhelmingly to ratify the tentative agreement on Monday, September 19. The agreement will now go before the City Council for final approval on October 4. Specific details on the agreement will be provided when presented to the City Council in Open Session. The general terms of the agreement include:

  • There are no new cost of living or special salary adjustments during October 1, 2015 through September 30, 2016.
  • A two percent wage increase each year through 2019 for a total of six percent over four years when including the open 2015 contract.
  • Healthcare reform provisions that stabilize health benefit costs and provide long-term savings for the City.
  • Reopener to meet and confer over changes to overtime policies.
  • Elimination of the Floor Warden special skill pay saving over $220,000 all funds annually.
  • Creation of a Labor Management Committee to develop a pathway for temporary workers to obtain permanent employment.

This agreement has a total estimated annual net fiscal impact of $3.8 million in the General Fund. In addition there is a $6.3 million impact on other funds including the Port of Long Beach and the Water Department. Due to the savings in the City's health care costs in this contract, there is no impact to the FY17 budget.

IAM-represented City Employees provide Long Beach residents with core City services from nearly every Department, including public safety support, library, water and gas utilities, public health, parks, public works and more.