HomeMy WebLinkAbout10/06/1998, C4 - INCREASES TO SALARIES AND CITY'S HEALTH INSURANCE BENEFIT FOR MEMBERS OF THE INTERNATIONAL ASSOCIATION OF FIREFIGHTERS, LOCAL 3523 council "�°`°°°
j acEnaa Report '�" C7
CITY OF SAN LUIS O B I S P 0
FROM: John Dunn,City Administrative Oflicee:5�
Prepared By: Ken Hampian,Assistant City Administrative Officer^lu-
Wendy George,Assistant to the City Administrative Officer IFI
SUBJECT: INCREASES TO SALARIES AND CITY'S HEALTH INSURANCE
BENEFIT FOR MEMBERS OF THE INTERNATIONAL ASSOCIATION
OF FIREFIGHTERS,LOCAL 3523
CAO RECOMMENDATION
Adopt a resolution increasing the salaries of members of The International Association of
Firefighters, Local 3523, by 3% effective July 1, 1997, and 3% effective July 1, 1998, and
retroactively increasing the City's Health Insurance benefit from $415 to $420 per month effective
July 1, 1997.
DISCUSSION
Background
The Memorandum of Agreement (MOA) between the City of San Luis Obispo and the
International Association of Firefighters(the Union), expired on June 30, 1997, after a term of three
years. Negotiations to develop a successor agreement were begun in May, 1997. The City's
negotiators were Ken Hampian,Assistant City Administrative Officer,Wendy George, Assistant to
the City Administrative Officer, Karen Jenny, Risk Manager and Richard Bolanos of Whitmore,
Johnson and Bolanos. The Union's negotiating team for regular MOA issues was headed by Larry
Parker and consisted of a number of fire personnel. A second Union negotiating team dealt with
issues related to a proposed Firefighter I program and was headed by Mark McCullough, with the
assistance of Christopher Platten of Wylie,McBride,Jesinger, Sure&Platten.
The Firefighter I program was proposed as a way of reducing the cost of entry-level firefighters and
reinvesting the savings in added staff. With added staff, overtime costs can be better controlled by
making more persons available to meet minimum staffing level requirements and thus avoid the
need to "call back" staff on overtime. In addition,public safety can be enhanced by increasing
the
number of three-person engine companies.
During the negotiations process, tentative agreement could not be reached on the Firefighter I
program. Nor could it be reached on a follow up proposal made by the Union negotiating team to
add new lower steps to the Firefighter salary range as an alternative to the Firefighter I program.
This proposal,while agreed to by City and Union negotiators,was later rejected by a vote of Union
membership. After a lengthy impasse process, including mediation and fact finding, the fact-
finder's recommendation supporting the proposed new Firefighter salary steps was approved by the
Council on July 21, 1998 and implemented unilaterally.
Although the issue of new entry level salary steps was resolved through the fact finding process,the
Union and the City have been unable to agree on all the language to be.included in the MOA
relative to certain tentative agreements previously reached. Specifically, disagreement has arisen
over wording for the following areas which address implementation of the new salary steps:
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Council Agenda Report-Firefighter Salary and Health Benefit Increases
Page 2
• When new firefighters may become paramedics
• Testing and recruitment frequency for entry-level firefighters
• Limitation on the number of firefighter applications to be accepted
• Certification requirements for entry-level firefighters
The Union's position has been that language related to these four areas be included in the MOA in a
fashion that assures that they are"zipped up" for the term of the agreement(the specific language is
shown in Attachment 1 as the non-underlined text). This would mean that management would not
be able to make changes in these areas,however minor,without the Union's permission.
While the City has no intention of making changes — and is currently implementing all four
provisions at the 100%level—by including such things in an MOA without any language reserving
management's basic rights, a dangerous precedent will be set. The effect of this precedent is that
the City will need to seek permission from the Fire Union—and maybe other unions in the future—
before deciding on such things as recruitment frequency, minimum job qualifications and day-to-
day operations, all matters commonly within the purview of management. The broader issue,
therefore, is who should be making these kinds of decisions, the City or a union? Our position is
that such decisions should remain within the purview of City management.
On the other hand, consistent with employer-employee relations law, management must meet and
confer over the =acts of such decisions before they are implemented, and this is a practice which
the City is committed to follow(e.g.the four provisions in question were developed collaboratively
with the Union as a way to address perceived impacts created by the new firefighter entry level
steps). To memorialize this obligation,consistent with past practice,the City initially proposed that
the provisions be included in "side letters" or appropriate general operating orders of the
department. However, this proposal was rejected. The City then proposed that the provisions be
documented in the MOA, but in a way that protects basic management rights (by adding the
underlined text in Attachment 1). Unfortunately, the Union was unwilling to accept this proposal
and so a new MOA is not presently available for adoption.
Proposed Salary and Health Benefit Increases
Even though agreements on increases to salary and the City-paid health benefit were reached early
in the process, as is customary, they were not put into effect before there was agreement on all
other issues and a new MOA was approved. However, the negotiating process has now extended
for more than eighteen months. While the language disagreement with the Union is important, and
must be resolved before the creation of a new MOA, our differences with the Union have nothing to
do with the monetary provisions. Therefore, staff is recommending that the Council unilaterally
implement the following agreed upon salary and health benefit increases:
• A 3% salary increase retroactive to July 1, 1997-
• A 3% salary increase retroactive to July 1, 1998
• An increase in the health benefit from$415 to$420 per month effective July 1, 1997
Implementation of the New Firefighter Entry-Level Steps and Current Recruitment
As indicated above,the Council took an earlier unilateral action to establish four new lower steps
on the entry-level Firefighter salary schedule. Because there are at least six existing vacancies,
the savings resulting from these lower steps has allowed the City to fund an added firefighter
position. This position will help achieve the goal of having three-person engine companies at all
stations and will also reduce overtime costs.
Council Agenda Report-FIrefighter Salary and Health Benefit Increases
Page 3
A successful recruitment to fill the current vacancies began shortly after the unilateral action,with
over 1,700 inquiries made concerning the job opening and 800 applications received. The
candidates appear to be very qualified. For example, 90% of the 100 who actually took the
written exam passed it. In proceeding with this recruitment, it is important to note that even
though we have not reached agreement with the Union on MOA language for the four areas
relating to recruitment and newly hired firefighters, the City has followed, in total, the agreed
upon principles outlined in Attachment 1.
FISCAL 11"PACT
The cost of the salary increases and the health benefit increase for 1997-98 is $80,965. The cost of
the salary increase for 1998-99 is $81,158. Adequate funding for both years is included in the
current financial plan in the"Potential MOA Adjustments" account.
Attachment
1. Proposed Language
2. Resolution
C-�J-3
ATTACHMENT 1
ARTICLE — NEW ENTRY-LEVEL FIREFIGHTERS
This article shall govern the parities' agreements pertaining to the minimum
qualifications, recruitment and utilization of new entry-level firefighter positions.
Recognizing that the provisions of this article encompass areas typically reserved to
management's discretion. the parties understand and agree that the City reserves the
riic ht to make changes to the provisions of this article during the term of this agreement
Should it become necessary for the City to propose such changes, the parties shall
meet and confer over the impacts, if any, on the terms and conditions of employment of
the bargaining unit members prior to implementing the proposed changes.
1. Probationary firefighters may not act as paramedics. They may intern for
paramedics after completion of the 18 month probationary period, with possible
exceptions granted by the Fire Chief after 12 months for exceptionally well-trained
firefighters in consultation with the employee's Captain, the Training BC, an Association
representative and the Paramedic coordinator.
2. Testing for entry-level firefighters will occur every two years using the CPS test
or equivalent. A current eligibility list will be maintained and entry-level firefighters will
go through the current standard "academy", as set forth in G.O. 501.03.
3. Firefighter apprentices will be allowed to apply for entry-level firefighter positions
outside the limitation on the number of applications to be accepted. For a given
recruitment, if the number received by the City for entry-level firefighter positions is to
be limited, the limit will be not less than 100 applications.
4. For new entry-level firefighters, the State Fire Marshal's Firefighter 1 certification
will be required. For new entry-level firefighter paramedics, a minimum of Firefighter 1
academy certification is required. All other employment standards remain the same.
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ATTACHMENT 2
RESOLUTION NO. (1998 Series)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO ADJUSTING
COMPENSATION AND THE CITY-PAID HEALTH BENEFIT FOR MEMBERS OF THE
INTERNATIONAL ASSOCIATION OF FIREFIGHTERS, LOCAL 3523
WHEREAS, the City of San Luis Obispo and the International Association of
Firefighters, Local 3523 have met and conferred to form a new Memorandum of Agreement for
the period July 1, 1997,through June 30, 1999; and
WHEREAS, the parties have been unable to resolve certain differences and, therefore, a
new Memorandum of Agreement has not been formed; and
WHEREAS, the City Council has decided that it is in the best interest of both parties to
unilaterally implement agreed upon increases to salaries and the City-paid health benefit prior to
forming a new Memorandum of Agreement.
NOW, THEREFORE,BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
SECTION I. Salary ranges for all members of the International Association of
Firefighters, Local 3523, shall be increased by 3% effective retroactively to July 1, 1997.
SECTION 2. Salary ranges for all members of the International Association of
Firefighters, Local 3523, shall be increased by 3%effective retroactively to July 1, 1998.
SECTION 3. The City-paid Health Benefit for all members of the Intemational
Association of Firefighters, Local 3523, shall be increased from $415 to $420 per month,
effective retroactively to July 1, 1997
Upon motion of seconded by
and on the following roll call vote:
AYES:
NOES:
ABSENT:
the foregoing resolution was adopted this day of ' 1998.
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ResolutionNo.. (1998 Series)
Page 2
Mayor Allen Settle -- --- --
ATTEST:.
Lee Price;.City Clerk — --
APPROVED AS TO FORM:
Jeffrey G':7orgenseh, City At-oYney=-
-
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Illobi
r7T)NG AGENDA
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2160Santa Barbara Street 1 her_s Associgio� Phone 805-542-9571
San Luis Obispo. California Fax 805-542-9571
93401
AFF Local 3523
FE3
U1C!L ❑CDD DIRAllen Settle, Mayor ° ❑FI J D+'� __San Luis Obispo City ORNEY ❑PW U1N..ERKIORIG ❑POLICE CNFM ❑REG DIR6 October 1998 p DIR��� DIR
Dear Mr. Mayor,
This letter is to inform you that the San Luis Obispo Firefighters Association agrees with
the recommendation of the CAO on item number C4 of the Council Agenda Report for the
meeting of October 6. We applaud John Dunn for his willingness to take this step. There
is no disagreement over this language or its placement within the MOA. Implementing
these benefits is the right thing to do. This action can only have a positive effect on the Fire
Department.
We would also like to state that the report is factual in its reporting of the specifics of the
negotiations. Where we take exception to the opinion of the CAO is on page two (please
look at the second and third paragraphs of the Council Agenda Report, after the bulleted
items at the top of the page). If the City wanted language reserving its rights it should have
proposed that language at the bargaining table...not after the conclusion of negotiations.
The discussion of the underlined language in the CAR attachment #1 was absent within the
context of negotiations, mediation or factfinding. "The broader issue", the ONLY issue, is
whether the City bargains in good faith. When these "management rights" came to the
bargaining table it was incumbent on the negotiators, at that time, to state their intent as
far as placement of this language and the maintenance of their rights. They accepted this
onus with other issues in the MOA (please refer to attachment l,the tentative agreements,
page 3, items 8 and 10). Here, there is language dealing with the placement of a tentative
agreement outside of the MOA (i.e. in a sideletter). Another tentative agreement addresses
the maintenance of the Cities rights. Agreement on this language occurred at the
bargaining table with input from both sides. If it was understood that the items dealing
with the new entry level firefighters were not to be in the MOA, why then did the City insist
upon this language for items 8 and 10?
On the cover of City of San Luis Obispo Resolution No.6620 it states that this resolution
establishes the framework for future relations between the City of San Luis Obispo, as an
employer, and its employees. Section fifteen of this resolution defines Memorandum of
Agreement. It states that when the meeting and conferring process is concluded between
the City and a formally recognized employee organization, that all agreed upon matters
shall be incorporated into a written memorandum of agreement. That is fairly clear and
that is why past practice has been to place all tentative agreements, unless other wise
negotiated, in an MOA. Resolution 6620, as adopted by Council, is a binding agreement
between the City and our labor unit.
We agreed to lower pay steps for entry level firefighters. The factfmder set the levels. The
City agreed to those four bulleted items on page 2 of the Council Agenda Report. That is
bargaining. That is the give and take of negotiating. The City received what it wanted - a
way to control over-time that pays for itself. We then received some items we needed, in
order to reach agreement.. The City negotiators are intelligent people. They did not give
away the farm. There is no loss by anyone. On the contrary, this deal gives the City a
rather significant financial savings. It allows us to hire additional personnel.. It protects
the union in terms of the quality of recruits, training standards and safety. All this adds
up to better service for the COMMUNITY. Not a bad deal. Importantly, both sides can feel
as if they have achieved something. This is an important point that cannot be over
emphasized. If you desire good working relationships, a goal of negotiating is for both side
to come away feeling good about what has transpired. I think that the Council sees the
benefit to having a good working relationship. This is shown by the programs it supports,
most recently the Organizational Vitality Program. Now the City wants to remove any
perceived benefit we may have attained in negotiating this item. What is the message here?
Is there a lack of respect for the employee? Is it important to stand behind ones'
agreements? This situation does not make for a good working relationship.
Currently you have a lawsuit filed against the City by our bargaining unit. Another
bargaining unit is at impasse over current contract negotiations. A grievance over past
negotiations has been initiated. Two other bargaining units are currently having a difficult
time with their negotiations. What is going on here? You, the Council, control one of the
largest corporations in the county. The product of this corporation is Service to the
Community. The natural resource of this corporation is the employee. It is incumbent
upon the management of this corporation to provide a secure and respectful environment
from which the employee can provide the highest level of service to the community. This is
especially important when we are being asked to do more with less. Whatever the outcome
is from these separate actions the result will be the same, a significant number of City
employees with feel a lack of respect and appreciation.
Allow the Fire Department to put these negotiations behind it. Require the CAO to put the
language in the MOA, without any additions or deletions. Stand behind the deal that was
made.
Th;T;99LQ�
Mark McCullough, President
San Luis Obispo Firefighters Association
IAFF Local 3523
S7,�n Luis Obispo and Local 3523
Tentative Agreements Relating to Memorandum of Understanding . ..,gotiations:
1 . The contract will be from July 1 , 1997 to June 30, 1999. -
2. Salary increases will be 3% effective the first full pay period in July, 1997, and
3% effective the first full pay period in July, 1998.
3. Family Leave for care of an immediate family member who is not part of the
household and not hospitalized will be increased to 24 hours. It shouldbe noted
that this change does not increase total sick leave accrual. Tile Association
agrees to a future opener to discuss an incentive program to ,educe sick leave
usage as part of a joint process with other employee associations.
�4. The City will agree to remove banding on promotional examinations and, if a
candidate is by-passed during the selection process, that person will be given a
written reason by the Fire Chief as to why s/he was by-passed. The City agrees
to an opener to discuss the promotional process if the Fire Chief goes below the
top three candidates in making his selection on promotional exams two or more
times during the term of this contract.
5. The City agrees to the implementation of the PERS employee-paid 9% option
discussed (Gov. Code Section 20636 (c ).(4), with the understanding that the
.28% employer cost of the program will be included as part of the total
compensation cost of any negotiated package.
6. The City agrees to vacation leave accruing up to a maximum of twice the annual
rate. Article 19, Section 6 (E) shall be deleted. All other references to the current
300-hour cap will be changed to reflect twice the annual rate. Language will be
added in a new Section 6 (E) which states that "should an employee be in danger
of losing vacation accrual due to reaching the twice annual vacation cap, for
reasons other than those found in Section 6 (1) and (A the Fire Chief will review
the circumstances which have prevented the employee from taking vacation and
will determine whether or not the employee should be allowed to accrue beyond
the cap or should be authorized to exercise his/her one-time annual opportunity for
vacation payout under Section 6 (M) of this article. Particular consideration will
be given to those circumstances where vacation use is denied because of reduced
staffing levels."
7. Medical insurance will increase to $420 per month.
8. The Association agrees to an opener to discuss changes to the salary steps in
conjunction with discussions with other employee associations. This opener
commits the Association to participate in the development of a program, but does
not bind the Association to accepting the outcome of the process.
9. The Station 1 captain's incentive will remain at $100 per month, with language
changed in the MOA to indicate that the reason for the incentive is due to the
additional Station 1 wu. .;load.
r
10. In the absence of the Battalion Chief, the Fire Chief may temporarily act as BC in
situations that would p :serve 3-person engine companies at all four stations.
11. The City agrees to impi:ment the same bi-lingual program that currently exists in
the Police Department. :.idividuals who qualify for the incentive must be able to
meet all the bi-lingual mads of the Department. The Personnel Department will
work with the Fire Department staff to develop appropriate testing scenarios.
12. The meet and confer process on 3-person engine companies will be completed
within 90 days of adop,ion of the MOA.
B. Tentative Agreements Relating to New Entry-level Firefighters:
1 . The City agrees to add four lower pay steps to the existing firefighter range and to
fill existing firefighter vacancies at the new entry level step, and to add and fill
one additional firefighter position at the new entry level step. The four new steps,
to be implemented as soon as possible, are as follows:
a) $29,874.00
b) $31 ,434.00
c) $33,098.00
d) $34,840.00
Step progression will be subject to existing personnel standards, with the timing
for progression as follows: Probationary firefighters will move from Step A to
Step B after six months. Progression from Step B to Step H will be at one-year
intervals for each Step, and from Step H to Step I at a two-year interval.
2. Probationary firefighters may not act as paramedics. They may intern for
paramedics after completion of the 18 month probationary period, with possible
exceptions granted by the Fire Chief after 12 months for exceptionally well-trained
firefighters in consultation with the employee's Captain, the Training BC, an
Association represent,...•ie and the Paramedic Coordinator.
3. Testing for entry-level firefighters will occur every two years using the CPS test or
equivalent. A current aiigibility list will be maintained and entry-level firefighters
will go through the current standard "academy", as set forth in G.O. 501 .03.
4. Firefighter apprentice d1l be allowed to apply for entry-level firefighter positions
outside the limitation the number of applications to be accepted. For a given
recruitment , if the nu ')er of applications received by the City for entry-level O
firefighter positions is to be limited, the limit will be not less than 100
applications.
5. The City and the Association share jointly in pursuing the goal of 3-person en¢ine
companies at all stations on all shifts.
6. The City agrees to undertake an assessment of the fire department following the
procedure outlined in the ICMA/IAFC manual and to have the assessment
completed by January 1, 2000. There shall be no limitations on what can be
considered during this process, provided that the subject matter falls within the
general framework of the assessment format. The Association and the City agree
that the assessment's findings and conclusions will be advisory only to the City
Administrative Officer and that adoption of any of the findings and conclusions
will require the City Administrative Officer's approval and recomendation to the
City Council. The Association and the City further agree that implementation of
the assessment's findings and conclusions will be subject to the meet and confer
requirements under the California Government Code, Section 3500 et. seq.
7. For new entry level firefighters, the State Fire Marshal's Firefighter 1 certification
will be required. For new entry-level firefighter paramedics, a minimum of
Firefighter I Academy certification is required. All other employment standards
remain the same.
8. The current number of positions in the Fire Department represented by the
Firefighter's Association is 12 Fire Captains, 15 Fire Engineers, 13 Firefighters, 1
Fire Vehicle Mechanic, and 15 Paramedics within the ranks of Firefighter and
Engineer. If it becomes necessary for the City to exercise its management right to
change those staffing levels, the City acknowledges its responsibility to meet and
confer with the Association on the impacts of any such changes.
9. The present status of the Apprentice Program does not impact on the bargaining
unit integrity. The City recognizes its obligation to meet and confer on any future
impacts of the Apprentice Program on the bargaining unit.
10. The City and the Association will execute a side letter stating that in fullfillment of
paragraph 4 of Article 35 of the 1994-97 MOA, the parties recognize the letter
dated March 18, 1996, from William Avery to Wendy George.
11 . There will be no reserve program implemented during the term of the agreement.
Article 28 will be deleted from the subsequent MOA.
06 -ay-9
MErTING AGENDA
MEMORANDUM
D,'-- -/24 AFF ITEM #_._.�_.,..
October 6, 1998
NCIL 13 CDD DIA
❑ '0 ❑FI IR
TO: City Council ❑�-j RE CHIC.
❑ :.:. 'f ❑PW DIR
�el'���lOAIG 13 POLICE CHP
FROM: John Dunn, City Administrative Ofii Ptive
❑I�GIi17 ❑REC DIR
Prepared by: Ken Hampian,Assistant City A Officer, 9 f9�4 DIR
SUBJECT: FIRE UNION LETTER
There are aspects of the Fire Union's October 6, 1998 letter to council members that staff agrees
with, and some things we disagree with. It is unfortunate that we have been unable to convince
Union representatives to meet with us to share perspectives and hopefully resolve our
differences. Concerning our differences with the letter,we offer the following observations:
The first thing that happened after all parties signed the list of tentative agreements attached to
the Fire Union letter is that it was taken to their membership — and overwhelmingly rejected.
The Union then returned to us with a proposed salary range higher than the one shown in the list
of tentative agreements (which they originally recommended). This then led to the impasse,
mediation, and fact-finding process. While the Union's rejection of the tentative agreement was
disappointing, a tentative agreement is just that: tentative, until crafted into a contract and agreed
upon by all parties, including the City Council.
It is very common to follow-up the negotiation of tentative agreements with meetings to finalize
specific contract language, which is what took place initially with Union representatives until the
difference surfaced regarding the four areas referenced in the agenda report. This difference
seems to have taken both parties by surprise, in that each party apparently remembers our prior
communication differently. This is unfortunate,but not highly unusual in matters of negotiation.
We disagree with the characterization of our status with other bargaining units. The Union is
simply not directly involved in any of these matters and cannot know the true nature of the issues
or the relationships between the City and other units. Suffice it to say that we are meeting and
working constructively with these groups and we expect to reach successful conclusions with all
of them.
Indeed, the best way to resolve our differences is to meet and try and reach compromise. We
believe we have offered a compromise approach to the Fire Union that assures our full
commitment to implement every single tentative agreement—something we are already doing—
but without having to give up basic management rights. Unfortunately, the Union continues to
reject requests to meet with us to discuss this or any other options.
It is our hope that the good faith shown by the implementation of the salary and medical benefit
components of the agreement will lead to such discussions and subsequent agreement.