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RECOMMENDATIONS CONCERNING COLLECTIVE BARGAINING FOR FIRE DEPARMENT AND REPORT OF SPECIAL MASTER ~ I , r .' MEMORANDUM TO: The City Commis sion. Floyd f~:6'1rJ; FROM: City Manager Picot B. DA T E: December 24, 1975 SUBJECT: Recommendations Concerning Collective Bargaining for Fire Department and Report of Special Master. Since mid-1974, the City has been ,engaged in a series of contract negoti:l.tions with the Union representing the employees of the Fire Department, the bter- national Association of Firefighters, an affiliate of the A FL- CIO. In Ma y, 1974, the negotiations resulted in a 15% wage increase. In the Fall of 1<174, the negotiations were concluded with the execution of a thirty-nine (39) page contract covering a variety of issues. In early 1975, the City agreed to an amendment to the contract providing incentive pay for fire department elnployees as signed as paramedics totalling an additional 15% over regular fire dep:l.rtment salary levels. This Summer and Fall the City negotiated again with the Union for a new contract for the 1975-1976 fis cal year. This year the Union initially demanded wa'ge increases of approximately 30%. The City's negotiating team's offer was to continue the standard municipal anneal merit and longevity increases, but not provide an acros s -the- board increc s,~ dqring this year. The City Commis sion will recall at the time of Budget: Hearings, the question of such an increase for all employees was raised, howev,z..:, based upon the economy, revenue projections, competitiveness in the job market, and that such an increase would have required a one mill tax increase, the budget was approved without an appropriation for an across-the-board pay incrl~ase. In addition to the 30% pay increase issue, the Union also demanded more tran 30 changes frorrl the first contract. Because we were unable to resolve all of our differences by bargaining, the law required that we proceed to a "special master" hearing. A" special master" is a neutral party who listens to both sides and issues recommendations as to how the parties should, in his opinion, settle their differences. In this case, the special master was Dr. Donald Wilcox, a retired professor of indusl:rial engineering at the University of Florida. Dr. Wilcox's recommendations are not binding on either the Union or the City. The recommendations are only advisory and either side can accept them or reject them at their discret:.on. If either rejects all or part of the recommendations, the issues are brought to the City Commission at a public hearing for final determination. You may bave read recently where management in cities such as St. Petersburg, Dunedin, Tarpon Springs, and many others have refused to follow the advice of special masters. / CO-1d"d-,.oi' ~.c;) -",4..;,.,_.......,;.;.~,,~>..M~:..,\#',r:'J,~,.....,I"''''..!o.:.....,'',J<;.:~...;.;.~_.'~..~~, ~ ......'"'....:~ ..-.i...:..........~~'_' ''1-';(-'" '""'- .~.._.40.:-".L;",...;.#~..........~_... .<l>&. .........:~ -..- 1 ,. ~ 1 , The City C<;)mmission Page Two December 24, 1975 Dr. Wilcox had thirty (30) issues before him, of which, twenty-four (24) of the issues, he recommended that the Union accept the City position. On,~ item was recommended to be further negotiated by the Union and the City Administration. On four issues, the special master recommended the City accept the Union's position. Regarding the final issue, wages, the special master rej ected the Union's final demand for 15%, rejected the City's po sition of no general increase, and recommended a salary adjustment of 6%. At this p.oint, based upon a detailed review of the budget, job market and economic conditions, I cannot recommend a 6% salary adjustment, and therefore, according to law, I submit to the City Commission my recomm.endations. On the twenty-four (24) items Dr. Wilcox decided in favor of the City, WE take no exception. Our recommendation is based on our justification as stated in Mr. Sizemore's (the City's labor relations counsel) attached brief _ which was submitted to the special master - and not becaus e we feel "bound" by the special master's advice. I have decided to accept the Union's proposals on three of the four issues that the special master sided with the Union. These items are as follows: 1. A change weakening the City's "no-strike" protection afforded by the prior contract. On this issue, I feel that our fire department employees are professionals who will observe the constitutional restriction against a public employee strike. Additionally, there are methods, while not entirely adequate at this time, to restrict illegal strikes. For these reasons, I believe the City will not be damaged greatly by agreeing to the Union position. 2. The Union wanted the City to carry the expense of dry cleaning blankets used as bedding by the employees. Since the cost is minimal, I recomm.end the City agree on this issue. 3. The Union requested that if someone is called in to work early, the employee should receive a minimum of four hours' pay for the inconvenience. Again, the cost is small, and I recommend the City agree to this proposal. .~. "i-o","~'~.:<l,~~~;''''',,,;,,,;,,,.:,,.,. ", \ ""'."~I""""'.,''''__~~'''''''''''_'''\...i-'''-'''''.''_:''''''__'' ..-. I I , , The City. Commission Page Three December 24, 1975 I support Dr. Wilcox's position on the one issue where he requested tbe parties to continue to negotiate. This issue, involving damage to personal property while an employee is fighting a fire or engaged in rescue, is one which the City' ~ and Union's bargaining teams should be able to resolve. On the final issues, wage increases and the effective date for wage increases, I strongly recommend that the City Commission reject the advisory com- promise of 6%. While this decision - like so many that face the Comnlission is not an easy decision, several factors compel me to recommend to tne Commission that it not depart from current plans and therefore not have an across-the-board pay adjustment this year. This is as previously pre,posed by me in the current budget, and as adopted by the City Commis sion, with no tax increase in this depressed national and local economy. Among the many reasons for not having an across-the-board adjustment is that the City is already paying a very competitive salary to our firefighter 3. In the last three (3) years, more than 550 persons have applied for positions in our Fire Department. Additionally, the turnover rates in the Fire Department are extremely low, approximately 40/0 annually. The City is already paying wages that will attract arid allow for retention of highly qualified fire personnel with good morale. In other words, being a firefighter for Clearwater is a very attractive position, and we are not experiencing -a problem in terms of )'e- n~aining competitive with nearby jurisdictions. In this connection, cur &da!'ies compare favorably with those in neighboring communities as shown in the attachments. St. Petersburg, the only really comparable city in Pinellas County, just gave its firefighters a 6% wage increase. However, even with that increase our department's starting pay is approximately $600.00 per year more than currently paid by St. Petersburg. Of the smaller communities in the county, we are above some and below others, though they are so much smaller as to render a comparison to be of little value. The second compelling factor in my recommendation concerns the prc,priety of singling out one employee group for treatment not accorded the remaining employees. During the budget process, the Commission dealt at some length, with the economic problems facing the City and its res idents. After much discussion, the Commission did not budget a general wage increase for any of our twelve hundred (1200) employees other than the normal 5% meritlncreases and longevity increases. While we unquestionably have an excellent Fire Department, with well-trained, highly motivated employees, I cannot recommend that they receive a wage increase to counter the rise in the cost of living while no adjustment is rna de for the remaining 950 employees. The cost to provide a general across-the-board increase would approxim,ate the revenues generated by a one mill tax increase and would continue to be an obligation of the City i.n .....~.....,.'~_.....:--._- ~.-.... ~~,.~".-....'..... I I ".., f The City Commission Page Four December 24, 1975 future years. Granting such an increas e, retroactive to October 1, 1975, would mean delaying a number of important capital projects, which would~n turn, remove ernployment opportunities for Clearwater's many unemployed. Add to this the uncertainty about extension of Federal Revenue Sharing b'~yond December 31, 1976, which also generates about the equivalent of one mill in revenues, the situation is even bleaker. If the 6% salary increase were granted we could face a two mill tax increase next year, just to maintain that increas e if revenue sharing does not continue. The third factor is the cost of living itself. One can choose a particular point in time and, in reference to today, say that wages have fallen behind the cost of living. The record, however, is unmistakenly clear that our employees' wages have risen much higher than has the cost of living since the cost of living index was at its starting point in 1967. General wage increas es o"er that period for City employees, excluding special pay categories, has been 96.2%, while the cost of living index will have risen by the end of 1975-7,) by approximately 75%. There are many thousands of workers whose wages have not kept up with the cost of living. Fortunately, our employees are not ccmong that group. For these reasons, and others which I have considered, I cannot support a wage increase for the Fire Department in this !is cal year. My decision on this difficult issue has not been easy. We have enjoyed a good relationship with the firefighters and their union and have recognized thEir excellence in ways other cities have not. The paramedic pay is a prime example of how our employees have received more favorable consideration than in almost any community in Florida. Despite,all of this, there comes a point at which the City must demonstrate a sound fis cal approach. I do not believe such ar.. approach is achieved by granting wage increases where competitive pressures art:: non- existent and the citizens receive quality service; and with the current economic crises at the local, state and Federal level. I have been forewarned on numerous occasions that my recommendation,3 will have severe "political" consequences. The leaders of the firefighters' l'nion have said that this decision will be a political issue in the forthcoming election. This threatened political pressure is the kind of pressure that cities across the country have been exposed to with the advent of public employee unions. Some cities like Seattle have dealt with the pressure and others like New York and San Francisco have folded under the threats. These threats have in turn created fiscal crises. Rather than yield to these pressures I have made cd\ ....: "-_':_'~-'-'"-.-. ~---.-.,--- --..;~,~, '. . I I b r I. i i , ! ,r . . The City Commission Page Five December 24, 1975 independent judgment based on the overall needs of the community. I was hired by the City Commission to make recommendations based upon my judgment of what is best "for the City as a whole. It would be a violation of my obligation to the Commission if I made decisions, such as this one, out of concern for union political tactics. The next step in the legal process is for the Commission to consider the issue at a public hearing. At that time, the Commission is directed by law to hear the explanations of my position and that of the Union and then in the words of the statute, "take such action as it deems to be in the public interest, in- cluding the interest of the public employees involved." I recommended that the Commission hold the public hearing on January 8, 1976, at 9:30 a. In. I have attached to this memorandum a copy of the report of Dr. Wilcox, briefs of the Union's, and Management's position, a salary survey sheet, salary survey, and a cost of living index comparison sheet.