
Moses Lake approves new contract with employee union
The contract was approved unanimously.
Shannon Springer, municipal HR director, said subsequent wage increases will depend on the rate of inflation.
"The language is a minimum-maximum (increase) based on CPI," Springer said. "A minimum of two (percent), maximum of four (percent) in the outlying years."
The union represents maintenance, utility, community development and non-supervisory parks maintenance employees.
Mayor Dustin Swartz said city and union officials did extensive revisions in the last contract, and there weren't many changes needed.
"Routine business, more or less, but that's the way we want it to be," he said.
The revised contract provides a stipend for some protective clothing needed for the job; the city will provide other protective equipment. Three jobs were moved to different steps on the salary scale.
The two sides agreed on clarifications to the city's defined benefit retirement system and the standby pay scale.
City officials anticipated a slightly smaller pay increase for 2025; that cost, and some personnel changes, will cost the city about $39,100 in additional wages and benefits, Springer said.
Swartz said the city wants to retain qualified and competent employees and has to take that into account when setting wage rates and conditions, for union and non-union employees alike.
"We want to get it right, and we want to remain competitive," he said. "That's the balance we're trying to find."
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


CNBC
14 minutes ago
- CNBC
Gold set for weekly drop as US data dims large Fed rate cut hopes
Gold prices were headed for a weekly fall on Friday, as hotter-than-expected U.S. inflation data dented hopes for a super-sized 50-basis-point (bps) Federal Reserve rate cut in September. Spot gold rose 0.1% to $3,339 per ounce as of 0244 GMT. Bullion has lost 1.8% for the week. U.S. gold futures for December delivery were flat at $3,384. "Gold is still grappling with the aftermath of the PPI jump, which raised questions over just how far the Fed may be inclined to reduce rates this year," said Tim Waterer, chief market analyst at KCM Trade. U.S. producer prices index (PPI) rose 3.3% year-on-year in July, beating forecasts of a 2.5% gain, Labor Department data showed on Thursday. Weekly jobless claims came in lower than expected at 224,000 versus estimates of 228,000. Separately, U.S. consumer prices increased only marginally in July, bolstering hopes of a Fed rate cut. However, the hotter-than-expected PPI reading tempered hopes for an aggressive easing cycle, making it less likely that the Fed would opt for a 50 bps reduction at its next meeting. "If this spike in wholesale prices turns into a trend which then translates into CPI gaining pace, expectations for US rate cuts could be scaled back, which may hinder gold's performance from a yield perspective," Waterer said. St. Louis Fed President Alberto Musalem said a half-point rate cut in September was not warranted, a day after Treasury Secretary Scott Bessent said it was possible. Non-yielding gold thrives in a low-interest-rate environment. On the geopolitical front, investors are downplaying the chances of a major breakthrough on ending the war in Ukraine from Friday's meeting between Donald Trump and Vladimir Putin, despite some signs of progress. Elsewhere, spot silver eased 0.2% to $37.91 per ounce, platinum fell 0.2% to $1,354.94 and palladium lost 0.3% to $1,142.51.


Forbes
7 hours ago
- Forbes
Where Is The Inflation We Feared From Tariffs?
Analysts predicted that the tariffs imposed by the Trump administration on imported goods would trigger a surge in inflation. Given the U.S. imports a lot of goods from coffee to cars, this seemed a reasonable assumption. This week's CPI report showed a modest uptick in the Core number, which excludes volatile food and energy categories. On one hand, at 3.1%, it's the highest reading since February and above any level seen in the 25 pre-pandemic years between 1995 and 2021, and it's still not close to the Fed's 2% target. But this is hardly runaway inflation. The subsequent PPI report sparked slightly more concern coming higher than expected, but it was growing at even higher annual percentage changes last December through February, well before the tariffs. So, are tariffs as bad as analysts first feared? The answer: not quite, and not yet. But this may be because tariffs are nowhere close to the very high levels that make headlines. The Effective Tariff Rate Tells The Story Tariffs actually paid by U.S. importers are far lower than the headline rates set by the administration. In June, U.S. Customs collected $23.6 billion in duties on $258 billion in imports for consumption (which excludes imported goods still in warehouses). This works out to an effective tariff rate of about 9%. This is higher than the 2.3% rate from a year ago but still well below the official rates set for any country. Goods from China, for example, have a current rate of 30%, Mexico 25% and Canada 35% - the nominal rates at the time of this writing for the U.S. main trading partners. This may reflect the fact that some goods are exempt, such as USMCA-compliant goods and certain steel products and auto parts. Timing and Inventory Strategies More importantly, many importers are absorbing the costs of tariffs rather than passing them on to consumers—at least for now. That may not last long, and ultimately the public will bear the cost. In addition, some importers stockpiled goods ahead of tariff implementation, leading to a visible spike and subsequent drop in imports before and after 'Liberation Day.' And yet others may be holding off on imports until negotiations reach a definitive outcome, because the process has certainly been halting and confusing. These three factors don't affect the effective tariff rate, but they do influence when and how costs show up in consumer prices. The Debate: One-Time Shock or Persistent Inflation? Economists also disagree on whether tariffs fuel ongoing inflation or simply cause a one-time price jump. James Bullard, former St. Louis Fed president and another name in the growing list of possible candidates to succeed Fed chair Jerome Powell, favors the one-time shock view. If a $100 import now costs $120 due to tariffs, prices have jumped, but they're not rising continuously. But, if wages don't rise to match those jumps, consumer spending could fall and slow the economy. This, incidentally, could lead to more persistent inflation if demand for higher wages (to keep up with the higher costs) drives up the cost of labor. This is how wage-price spirals start and represent a big headache for the Fed. Bottom Line It's too soon to declare that tariffs won't cause inflation. The current effective tariff rate is still low, and that suggests that more price pressures lies ahead. Pre-tariff inventories will eventually run out, and companies absorbing costs are unlikely to keep doing so. And if tariffs only cause a one-time jump in prices, weaker purchasing power could slow the economy. For now, stock markets remain optimistic, buoyed by modest inflation and a still-strong economy. But history shows that such optimism can fade quickly. It would not be the first time that investors find themselves disappointed.


CNBC
11 hours ago
- CNBC
Santoli's Thursday market wrap-up: July wholesale-inflation report forces a short detour
(These are the market notes on today's action by Mike Santoli, CNBC's Senior Markets Commentator) A scorching wholesale-inflation report for July forces a short detour on the path to the sure-thing Fed rate cut next month that markets have been fixated on in recent days. While the internal details of the PPI report were noisy and not entirely indicative of a tariff-driven inflation reacceleration, Treasury yields rebounded sharply and the sectors of the market that had been celebrating easier Fed policy since Tuesday's mild CPI reading have disgorged gains: Russell 2000 down more than 1.5%, consumer cyclicals shedding more than 1%, homebuilders off 2%. Still, these declines in each case account for less than half of their weekly gains and the broader reaction by the equity market has been to rotate rather than beat an outright retreat. The Nasdaq-100 was flattish with the quality/defensive mega-caps again acting as a shock absorber, even with three-quarters of NYSE volume in declining stocks and almost as many new 52-week lows as highs on the Nasdaq. For a second day, the S & P 500 found traction exactly at the level where it closed Tuesday after the CPI-release/rate-cut-hope rally, with tactical traders trying to hold that line. For as resilient and hard-to-rattle as the market has been, it's tough to deny that the four-month rally since the April lows has priced in benign outcomes across several fronts: moderate/diffuse tariff impact, sustainability of AI capex, ability of growth stocks to hold their valuations (Nasdaq-100 almost back to post-pandemic peak of 28 forward P/E) and a Fed resuming rate cuts for "good news" reasons. From one angle it's odd that there is such a drumbeat for the Fed to cut rates when the S & P 500 just made its 17th record high of the year, Bitcoin is zooming, credit spreads are near historically tight levels, speculative retail-trader activity is manic and the Federal fiscal impulse remains undiminished. There's a case for looking through tariff-driven goods-price bumps, and the July payroll report was a warning on the labor market for sure. But the stakes around the September Fed decision seem lower than the pitch of the debate around it would suggest. Has volatility bottomed for now ? VIX traded near 14, a six-month low, while "realized vol" – the actual experienced annualized volatility of the S & P 500, just perked up from rock-bottom readings near 6 to 10 or so. Larry McMillan of market-strategy service McMillan Analysis says this is a potential short-term sell signal for stocks. Though it's not enough to override the still-supportive action of the index itself just yet.