City approves contract with raises for Santa Fe union employees

Jul. 22—The Santa Fe City Council has approved an amendment to a contract with the union representing hundreds of city workers, adopting a 3% raise and the first quarter of separate increases connected to a new pay parity plan.

This is the sixth amendment to the city's contract with the American Federation of State, County and Municipal Employees Local 3999, which could be headed for arbitration.

The most recent master agreement between the city and the union was in effect from July 1, 2017, through June 30, 2020. The city and the union have been in negotiations since February 2020 on a new master agreement but have been unable to come to terms.

Multiple amendments have since been approved for pay raises.

The amendment approved at a special meeting Friday includes the first quarter of pay increases included in the city's new compensation plan, known as a hybrid parity plan because it takes into account each job classification and a worker's longevity — both with the city and in their current position. The plan was adopted in February. The amendment also includes 3% across-the-board pay raises included in the budget for the current fiscal year, which the council passed in May.

Agreements with the unions representing the city's police and fire department staff have already been approved.

The sticking point with AFSCME hinged on the pay parity plan, which was proposed by Evergreen Solutions LLC as part of a recent city job classification and compensation study.

The study, presented to the City Council in December, found the city's pay range was about 20% below the market average. The so-called hybrid plan would ensure workers were paid more fairly, the consultant said.

AFSCME Local 3999 Vice President Louis Demella said when the union conducted an audit of the proposed pay plan, it found "significant discrepancies" between what the pay increases would be according to the criteria and what the city was offering for some workers.

The city later addressed the discrepancies and language was added to the contract stipulating "if there are any hybrid parity miscalculations, the city will work to correct the issue promptly."

Demella said city representatives delivered an amendment to the union July 9, and the majority of union members supported it.

"I'm glad the city worked through this," he said.

The amendment stipulates AFSCME employees who now receive less than the minimum pay recommended in the new plan will receive an increase to their base pay as well as 25% of the recommended increase under the hybrid parity plan.

The second phase of the parity increase is scheduled for January, and two more phases are scheduled in fiscal year 2026.

Councilor Jamie Cassutt thanked the city and the union for "coming to the table" to address the discrepancies.

"It is extremely important [the implementation] is done accurately," she said.

Human Resources Director Bernadette Salazar said the city was notified July 12 the union had accepted the amendment. The council's approval at the special meeting Friday allowed the raises to take effect without the union having to miss another pay period, she noted.

Salazar said there have been "at least 12 meetings" with union leaders between February and June. She and City Manager John Blair were both on the bargaining committee.

Councilor Signe Lindell thanked them for their work in the negotiations.

"I know that it got pretty contentious at times, and ugly, and that was uncalled for," she said.

The City Council met in a closed session July 10 to discuss potential litigation with AFSCME 3999 "regarding possible impasse leading to arbitration" over the master agreement.

City spokeswoman Regina Ruiz wrote in an email Monday the city is "still in the negotiation process for a full contract."

"If an agreement is not reached, per state law, arbitration would be the next step in the process," she wrote.

Demella said that's where things are headed.

"Arbitration seems like the best way to get this wrapped up," he said. "There's nothing left to move on."

At the special meeting, Mayor Alan Webber said there is "nothing more important in my administration than the people who work for the city."

As the city continues to compete for talent with other state agencies and private employers, he said, ensuring employees are paid well is crucial to keep the city functional.

"We want to be the employer of choice for everyone in New Mexico," Webber said. "We don't want to lose people; we want to attract more people."