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What is Being Proposed
The Personnel and Hiring Committee recommends that the Los Angeles City Council approve Amendment No. 1 to the 2017-2028 Memorandum of Understanding (MOU) for Port Pilots. The amendment clarifies how overtime compensation is calculated by eliminating the ability for pilots to record eight-hour absences (such as vacation or sick days) in pay periods when they work their remaining six regular shifts.
Why This Is Needed
A payroll system error discovered during a transition to the Workday system incorrectly compensated pilots at straight-time rates for hours worked between their 80th and 84th hours in a biweekly pay period. This sparked a grievance from the Port Pilots Association, which argued pilots were working those hours "for free." While management countered that a 7.5% wage increase from 2006 was intended to compensate for this arrangement, the parties agreed the MOU language needed clarification to resolve the dispute.
Key Details
Port pilots work seven 12-hour shifts per biweekly period (84 hours total) They are exempt from federal Fair Labor Standards Act overtime protections but receive negotiated overtime (time-and-a-half) for hours beyond 84 The amendment eliminates recording eight-hour absences when pilots work the remaining six shifts, which should prevent future calculation errors The change has no fiscal impact on the General Fund; the Harbor Department covers all costs The Committee voted 2-1 in favor (one member absent)
Impact
This amendment primarily affects the approximately 50-60 Port Pilots who operate vessels in Los Angeles Harbor, ensuring they receive proper compensation according to the negotiated contract and preventing similar payroll errors in the future.
What is Being Proposed
The City Administrative Officer recommends that the City Council approve an amendment to the labor contract (MOU 26) between the City of Los Angeles and the Los Angeles Port Pilots Association. The amendment clarifies how overtime pay is calculated for port pilots by eliminating the ability to record an 8-hour absence when a pilot works their remaining six regular shifts in a pay period.
Why This Amendment is Needed
A payroll system error during the transition to Workday revealed a long-standing compensation dispute. Port pilots work 84 hours per biweekly period but were only being paid for 80 hours under the original contract. When pilots took one day off and worked extra hours on other days, the system incorrectly paid them straight-time rates for hours 80-84, rather than the appropriate overtime rate. The Port Pilots Association filed a grievance claiming they were effectively "working for free." Management noted that a 7.5% wage increase from 2006 was intended to compensate for this arrangement, but the amendment now clarifies the rules to resolve the dispute.
Key Details
The current MOU 26 has been in place since 2017 and expires December 23, 2028 Port pilots' regular schedule consists of seven 12-hour shifts per biweekly pay period (84 hours total) Pilots are classified as salaried "seamen" under federal law and are exempt from standard overtime rules The amendment eliminates recording 8-hour absences when pilots work six remaining shifts, preventing the pay calculation error The Harbor Department will absorb all costs; there is no impact to the General Fund
Impact
This amendment primarily affects Los Angeles port pilots by clarifying their overtime compensation and resolving the grievance. It removes ambiguity in payroll administration and ensures consistent application of the overtime rules going forward.
What is Being Proposed?
The Los Angeles City Council is being asked to approve Amendment No. 1 to the 2017-2028 Memorandum of Understanding (labor agreement) between the City and the Los Angeles Port Pilots Association. The amendment clarifies how overtime compensation is calculated for port pilots by eliminating the ability to record an eight-hour absence during pay periods when pilots work their remaining shifts.
Why This Is Needed?
A payroll system error led to a dispute over how pilots should be compensated. The city's former payroll system mistakenly paid pilots at the regular rate (rather than overtime) for hours worked between the 80th and 84th hours in a two-week pay period. The Port Pilots Association filed a grievance, arguing pilots deserved overtime pay for these hours. Management countered that a 7.5% wage increase from 2006 was specifically negotiated to account for this scenario. The amendment resolves this conflict by changing how absences are recorded.
Key Details
Port pilots work seven 12-hour shifts per pay period (84 hours total) When pilots take a day off, only 8 hours are recorded, leaving 80 hours of paid time The amendment prevents recording eight-hour absences when pilots work six remaining shifts The agreement has no impact on the city's General Fund; the Harbor Department covers all costs The Personnel and Hiring Committee voted 2-1 in favor (one member absent)
Impact
This change affects Los Angeles port pilots' pay calculations going forward and resolves a grievance dispute between the city and the pilots' union.
What Is Being Proposed?
The City Administrative Officer is recommending that the City Council approve an amended labor agreement (Memorandum of Understanding) with the Los Angeles Port Pilots Association. This agreement extends their current contract from July 2027 to December 2028 and includes wage increases, back pay, and new employee benefits for Port Pilots working at the LA Harbor.
Why?
The Port Pilots union and the city negotiated this updated agreement following instructions from the Executive Employee Relations Committee. The agreement has already been approved by the union members themselves. The city is seeking to bring Port Pilots' compensation and benefits in line with what other city employees have negotiated, including restoring wages that were temporarily reduced during the pandemic period (2021-2024).
Key Details
The agreement includes: Wage restoration: Port Pilots will receive the cash value of a 2.2% wage decrease that occurred from July 2021 through July 2024 New raises: Scheduled increases ranging from 2-4% annually through June 2028 Efficiency bonus increase: Minimum guarantee raised from $4,500 to $5,000 biweekly ($13,050 annual increase) New benefits: Paid parental time, personal leave, excess sick pay options, and reproductive loss leave
Impact
This primarily affects Port Pilots at the LA Harbor. The Harbor Department will absorb all costs, so the city's General Fund is unaffected. The agreement ensures Port Pilots receive compensation comparable to other city workers.
What is Being Proposed?
The Los Angeles City Council is being asked to approve an amended labor contract (Memorandum of Understanding) with the Los Angeles Port Pilots Association, which represents pilots who guide ships through the Port of Los Angeles. The Personnel and Animal Welfare Committee has recommended approval of this amended 2017-27 agreement, which was previously considered on November 4, 2020, and has already been ratified by the bargaining unit members.
Why?
The Port Pilots Association and the city engaged in negotiations to amend the original labor agreement that was set to end in June 2022. The amended agreement extends the contract through July 2027 and includes cost-saving measures for the city while also making updates to align with other city labor agreements and Los Angeles Administrative Code requirements.
Key Details
The main provisions include: Wage changes: A 2.2% base wage reduction for Port Pilot IIs effective July 2021, with full wage restoration to July 2020 levels by July 2024 Financial impact: Estimated savings of $50,000 annually for FY 2021-22 and 2022-23, and $66,000 in FY 2023-24, plus additional savings from reduced overtime and holiday pay Holiday pay: Reduced from 14 to 12 hours for working holidays, with elimination of compensation for not working holidays Other updates: Changes to overtime exemptions, call-back pay rules, vacation accruals, and healthcare contributions
Impact
These changes primarily affect the Harbor Department's budget and the Port Pilots themselves, with estimated cost savings to the city. The committee voted unanimously in favor of approval.
What is Being Proposed?
The City Administrative Officer recommends that the Los Angeles City Council approve an amended Memorandum of Understanding (MOU) with the Los Angeles Port Pilots Association (ILWU Local 68). This extends the current labor agreement through July 24, 2027, and includes modifications to wages, overtime rules, holiday pay, and other employment terms.
Why?
The Executive Employee Relations Committee (EERC) directed negotiations with the Port Pilots Association to amend and extend the existing labor agreement. The tentative agreement has already been ratified by bargaining unit members, indicating both the union and management have agreed to the terms.
Key Details
Major provisions include: (1) wages — no base wage increases through 2027, with a temporary 2.2% reduction for Port Pilot IIs from July 2021 to July 2024; (2) holiday pay — reduced from 14 to 12 hours of compensation for working holidays, with unused time banked up to 80 hours; (3) overtime clarification — declaring an FLSA overtime exemption; and (4) call backs — strengthened payment rules. The agreement also updates various provisions to align with other city labor agreements and administrative code requirements.
Financial Impact
The wage reductions are projected to save the Harbor Department approximately $50,000 annually in FY2021-22 and FY2022-23, and $66,000 in FY2023-24. Additional indeterminate savings will result from reduced overtime and holiday premium pay costs. The impact of efficiency incentive modifications depends on ship traffic levels and cannot be precisely calculated.
What is Being Proposed?
The Los Angeles City Council adopted a Personnel and Animal Welfare Committee Report recommending approval of the 2017-21 Memorandum of Understanding (MOU) for the Port Pilots. This contract sets the terms of employment and working conditions for Port Pilots over a four-year period.
Council Action
On September 19, 2017, the City Council voted to adopt the committee's recommendation. The vote passed with strong support: 13 council members voted "YES," while 3 members were absent. This formal adoption on September 20, 2017 makes the agreement official.
Key Details
Council File Number: 17-0945 Vote Date: September 19, 2017 Voting Results: 13 YES votes; 3 ABSENT (Mike Bonin, Mitchell Englander, Paul Krekorian) Duration: 2017-2021 (four-year contract period) Committee: Personnel and Animal Welfare Committee
Impact
This agreement establishes the employment framework for Port Pilots at the Port of Los Angeles for the next four years, affecting working conditions, compensation, and benefits for these maritime workers. The strong council support indicates consensus on the terms negotiated between the city and the Port Pilots' representatives.
What is Being Proposed?
The Personnel and Animal Welfare Committee is recommending that the Los Angeles City Council approve a new four-year Memorandum of Understanding (MOU) for the Port Pilots bargaining unit (MOU No. 26) covering the period 2017-2021. The committee also recommends authorizing the City Administrative Officer and Controller to correct any clerical or technical errors in the agreement.
Key Details
The MOU was considered at a committee meeting on September 6, 2017, following a City Administrative Officer report and public comment period. The committee voted unanimously to recommend approval, with two members voting yes (Price and Englander) and one absent (Koretz).
Financial Impact
Implementation of the MOU will cost approximately $450,000 per year for each of the four years of the agreement. Notably, these costs will be paid by the Harbor Department rather than the city's General Fund, so there is no impact to the general city budget.
What Happens Next
This committee recommendation now goes to the full City Council for a final vote. The document is not considered official until the Council acts on it.
What is Being Proposed?
The City Administrative Officer is asking the City Council to approve a new four-year labor contract (Memorandum of Understanding) for the Port Pilots bargaining unit, covering June 25, 2017 through July 3, 2021. The agreement has already been negotiated and ratified by the Los Angeles Port Pilots Association, ILWU Local 68. The Council is also being asked to authorize city officials to correct any clerical or technical errors in the final document.
Why This Matters
This agreement represents the result of labor negotiations conducted under the Executive Employee Relations Committee's direction. It establishes the wages, benefits, and working conditions for Port Pilots—specialized workers who guide ships into and out of the Port of Los Angeles.
Key Details
The agreement includes: Wage increase: An overall 12.5% wage increase spread across the four-year term, with salary increases of approximately $450,000 per year Position changes: Port Pilot I and Port Pilot II positions become flat-rated (no step increases) effective July 9, 2017 Benefits: Employees continue contributing to healthcare costs Training requirement: The probationary period for new trainees is extended from 18 to 24 months
Fiscal and Operational Impact
The $450,000 annual cost will be paid entirely by the Harbor Department and will not impact the City's General Fund. The agreement affects Port Pilots working at the Port of Los Angeles.
What is Being Proposed
The City Council is being asked to approve a Memorandum of Understanding (MOU) between the City of Los Angeles and the Los Angeles Port Pilots Association (ILWU, Local 68). This agreement establishes the terms and conditions of employment for port pilots—the specialized maritime workers who guide ships in and out of the Port of Los Angeles. The MOU covers the period from June 25, 2017, through July 3, 2021.
Why This Matters
Port pilots perform critical work navigating large commercial vessels through the Los Angeles/Long Beach Harbor. This agreement sets the framework for fair labor practices, safety standards, compensation, and working conditions for approximately 17-20 Port Pilot II positions and pilot trainee positions. The agreement was negotiated through a formal meet-and-confer process between labor and management and represents a comprehensive settlement of employment terms for this specialized maritime workforce.
Key Details
The MOU includes: Salary increases: Hourly rates increasing from $102.16 (Port Pilot I) to $113.40 (Port Pilot II) as of July 9, 2017, with additional increases in 2019 and 2020 Probation and advancement: New Port Pilot I employees serve a 24-month probation before advancing to Port Pilot II Benefits: Comprehensive health/dental plans, retirement contributions (7% for most employees), paid time off, family/medical leave, and $500,000 accidental death/dismemberment insurance Work arrangements: 84-hour biweekly pay periods with 12-hour shifts; four rotating watches; seven shifts per pay period Efficiency incentive: Biweekly pension-based bonus tied to ship tonnage moved and minimum guarantees ranging from $3,750-$4,500 per pay period Safety and training: Required annual training including manned model and computer simulator training at City expense
Impact
This agreement affects the roughly 20 port pilots and trainees who work for the City's Harbor Department. It ensures competitive wages and comprehensive benefits for this specialized workforce while establishing clear safety protocols and working conditions. The MOU also protects continuity of harbor operations by establishing grievance procedures and preventing labor actions during the agreement term. For the public, this ensures stable, professional maritime pilotage services critical to the Port of Los Angeles's operations.