INTEREST ARBITRATIONS

Decision Information

Decision Content

International Association of Fire Fighters, Local No. 437

And

City of Bremerton

Interest Arbitration

Arbitrator:      Joseph A. Sinclitico

Date Issued:   01/21/1977

 

 

Arbitrator:         Sinclitico; Joseph A.

Case #:              00591-I-76-00035

Employer:          City of Bremerton

Union:                IAFF; Local 437

Date Issued:     01/21/1977

 

 

In the Matter of the Arbitration                    )          

                                                                        )

            between                                              )

                                                                        )          

            CITY OF BREMERTON                 )

                                                                        )

            and                                                      )

                                                                        )

INTERNATIONAL ASSOCIATION OF    )

FIREFIGHTERS, LOCAL NO. 437            )

 

 

                                                __________________

                                                OPINION AND AWARD

                                                __________________

 

                                                                                                Arbitrator:

 

                                                                                                Joseph A. Sinclitico

                                                                                                5023    91st Avenue West

                                                                                                Tacoma, Washington  98467

           

                                                I.  INTRODUCTION

 

            This proceeding involves an impasse arbitration between the

City of Bremerton and International Association of Firefighters

Local No. 437, PERC Case No. 591-1-76-35.

            The City of Bremerton hereinafter will be referred to as "the

City' and the Association Firefighters as "the Union".

            Mr. Gary R. Hulbert served as representative for the City and

Mr. Jerome L. Rubin for the Union.

            The parties held a hearing on December 7, 1976 at the City Hall

in Bremerton Conference Room on the second floor.

            Dean Joseph A. Sinclitico was appointed to act as Chairman of

the Arbitration Panel (hereinafter referred to as the Arbitrator).

The other members of the panel were Mayor Glen Jaarstad and F. Donald

Deitch, President of the Union Local.

            The parties stipulated that the Arbitrator has jurisdiction to

resolve the issues in this dispute.

            No reporter was present to produce an official record of the

hearing but the Arbitrator tape recorded the hearing for his personal

use in lieu of notes.

            This impasse arbitration was conducted pursuant to the provisions

of RCW 41.56.450 of the Public Employees Collective Bargaining Act.

Extensive negotiating sessions had been previously held by the parties.

After impasse was reached, the parties waived mediation and submitted

the matter to the fact finder pursuant to RCW 41.56.  James Irwin,

Public Employment Relations Commission, acted as Fact Finder.  The

parties agreed on the following ten cities for comparison in the event

of fact finding or arbitration:

 

            Bellevue

            Longview

            Everett

            Richland

            Yakima

            Renton

            Vancouver

            Edmonds

            Bellingham

            Olympia

 

 

                                                            II. ISSUES

 

At the hearing, the parties presented the following for issues:

 

            1.         Wages

            2.         Dependant medical

            3.         Dependant dental

            4.         Overtime

            5.         Manning requirements

 

            The issue of the minimum manning schedule was tentatively ruled

as not timely received and therefore was not addressed at the hearing.

            This issue was first introduced by the Union on the day of the

arbitration hearing.  RCW 41.56.450 defining the powers and duties of

the arbitration panel provides that:

 

            "Reasonable notice of such hearing shall be given to the

            parties who shall appeal and be heard either by person or

            by counsel or other representative."

 

            The purpose of providing the party with reasonable notice of the

time of an arbitration hearing is to provide them with an opportunity

to gather, order and present their views with maximum clarity.  This

issue requires extensive preparation, consideration and evidence.  The

City had no opportunity for preparation.

            In addition, the parties should be bound by the issues to which

they stipulated.  Therefore, in fairness to the City this issue was

not considered.  It is to be emphasized that this issue was rejected

on procedural and not substantive grounds.  This issue was not rejected

on the grounds that it was inappropriate subject matter under RCW 41.56.

 

                                    II.  POSITION OF THE PARTIES

 

            The position of the City is to deny issues 2 through 4 and to

grant a 5% wage increase to be applied to each bargaining unit

classification effective January 1, 1977.

            The Union requests a 15% wage increase to be applied to each

bargaining unit classification effective January 1, 1977 and a paid

dependant medical and dental plan through the Washington Physicians

Service Inc. effective January 1, 1977.  In addition, the Union requests

that all overtime work shall be compensated at a rate of pay computed

as though the scheduled rates of pay were computed on a 40-hour week

basis (Jt. Ex. #1), overtime of time and one-half to begin after a

56-hour work week.

 

                                    IV.  DISCUSSION

 

            Both parties to this dispute presented numerous exhibits in

support of their positions.  The Arbitrator has closely examined all

of the exhibits.  Both parties presented several exhibits comparing

tile population per firefighter and the per capita cost of the ten

sample cities to that of Bremerton.  The statistics presented by the

Union conflicted with the City's.  The reason for the conflict was

that the population figure used by the Union was taken from the City's

budget.  This figure was 37,095 for the population of Bremerton.  This

figure is an inflated figure which includes the PSNS area.  The

population of Bremerton proper is 29,095.  This is the appropriate

figure to use when comparing Bremerton to the other ten cities.  The

fact that the population of PSNS is used for one purpose by the City

does not necessarily mean than it should be used for all purposes.

The population of PSNS is used in the budget to acquire additional

federal funds.  It is obvious that this population does have an impact

upon the Bremerton area.  However, it is undisputed that the Naval

Facility does have its own firefighters and that the Bremerton Force

was the second line.  The Navel Yard and Bremerton are tied together

by a mutual aid pact.  This is similar to that which exists in many

of the comparable cities.  If the Arbitrator were to consider the

statistics based on the addition of the PSNS area then it follows

that other areas bound by a mutual aid pact should be taken into

consideration when evaluating population and property valuation

figures.  Therefore, only the figures of Bremerton proper in regard

to population and property evaluation should be considered.

            The Arbitrator also notes that the City exhibits do not include

any of the 1977 settlements.  These settlements are valuable criteria

for aiding the Arbitrator in reaching a decision.  Where the settlement

figures are available, they must be closely examined.

            The most salient factor in addition to the above considerations

is the ability of the City to pay.  Each city is sui generis in

terms of its financial situation.  Each of the comparison cities and

the City' of Bremerton have peculiar budgetary problems which force

them into limitations in terms of revenue.  Disparities between the

cities is to be expected.  However, where there is a patent gross

disparity in compensation of benefits, then it should be recognized

and taken into consideration.

            An examination of the statistics presented by the parties makes

it manifestly clear that based on the 1977 settlement of the comparable

cities, a minimum increase of 5.3% would be appropriate.

            Mayor Glen Jaarstad of the City of Bremerton indicated at the

hearing that the issue was not whether the firefighters merited a

substantial increase in pay but whether the constraints of the budget

would allow a substantial increase.

            The evidence certainly sustained the Union's contention that their

productivity and work product have increased since 1969 (Union Ex. 5-7).

            The Seattle CPI Index for 1976 given to the Arbitrator at the

hearing was 5.3%.  It should be noted that the November Seattle Index

ranging from November, 1975 to November, 1976 which is based on the

urban wage earners and clerical workers Seattle-Everett area was 5.1%.

            The Arbitrator has reconstructed the statistics on an annual

basis.  Because of the greater number of hours worked by the Bremerton

firefighters, the relative difference in annual take-home pay, percentage

wise, is significantly not as disparate as shown in Union Exhibit #1

based upon the hourly rate.  For example, if one computes the hourly

rate there is a difference of 33% between Everett and Bremerton, but

when one considers the difference between the same two cities based

upon the annual take-home pay, the difference is only 11%.  The

National average is 5%.  Therefore, based upon the statistical information

given the Arbitrator in Union Exhibit #1 and #10 and City Exhibit #6, a

wage increase in the range of 5% to 6% is appropriate.

            The statistical information presented to the Arbitrator regarding

the family medical and dental plan shows that all ten of the comparative

cities do have medical programs available.  Eight of the ten provide

100% coverage, the other two providing 50% to 100% and 90% to 100%

coverage respectively.

            The dental program based on the 1977 settlement figures indicated

that nine of the ten provide 100% coverage; only Longview has no

coverage.  included in these figures referred to by the Arbitrator

is the City of Everett which has the coverage available at city group

cost.  (Union Exhibit #9 and #10)  Bremerton is the other other city

without the benefit of both medical and dental care for dependants.

Money must he made available to take care of this benefit.  Health

benefits are a primary concern and should be the first cost applied

against the City's budgetary parameters.

            Finally, a variety of statistical information and testimony was

presented upon tile overtime issue.  However, the Arbitrator notes

that only one other city bases overtime rate upon a 40-hour week.

That city is Richland.  While the Arbitrator is of the mind td grant

the request for overtime, budgetary constraints forbid it.  Further,

in light of the other issues presented to the Arbitrator (the wages

and health benefits) the issue of overtime does not retain the same

degree of importance.

            The major concern in this arbitration is what amount of money

is available to be applied to tile Union's requests.  The City indicated

that a total of $279,000.00 is available to be applied to all of the

City's increased costs.  The City further produced testimony that it

had cut its budget expenses and increased their revenue to the maximum

for the fiscal year of 1976.

            The Arbitrator notes that the 1977 budget costs are based upon

the predicted budgetary costs in 1976, not what they actually were

in 1976.  The City would prefer to start 1977 with the same level of

balance on hand as they had in 1976.  However, if necessary, a portion

of this balance could be sacrificed in order to provide the employees

of the City with adequate benefits.

            City Exhibit #4 indicates the fire department budget is currently

20.9% of the total general fund budget.  This exhibit also indicates

that the average percent devoted to fire departments in the comparative

cities is 22.5%.  Applying the Bremerton figure of 20.9% to the total

available funds for cost increases which would give the firefighters

the same portion of the budget surplus they now have of the total general

fund, it would provide $58,368.20 to which the proposed increase in

wages, medical and dental costs can be applied.

            The only figures presented to the Arbitrator on the cost of the

medical and dental programs were presented by the City.  This indicates

that full family medical and dental, covering spouse and the children,

will cost the City $22,137.12.  This leaves the City with $36,231.08

which could be applied to the wage demand of the Union.  The City

computed that the 15% wage demand would cost $104,389.99 (City Ex. #9).

The Arbitrator notes that a 1% wage increase is equivalent to

approximately $7,000.00.  Application of the total left-over of

$36,231.00 would allow the Union a  5.2% wage increase.  In light

of the November to November CPI Index, the Fact Finder's recommendation

and the increases indicated by the other comparison cities 1977

settlement, an increase of 5.3% is not out of line.  This would simply

result in the City either increasing very slightly the firefighter's

percentage of the total surplus or result in an inconsequential dip

into the balance available to  the City to carry over for the year

of 1977.  It is preferable that the City reduce slightly the balance

available to come in the year of 1978.

            Finally, it should be pointed out that the decision of this

Arbitrator is in accord with that of the Fact Finder except in the

case of the dependant dental benefit.

 

                                                V.  CONCLUSION

 

            In conclusion, after thoroughly examining the testimony of the

parties, exhibits presented by both the City and the Union and the

recommendations of the Fact Finder, the Arbitrator, pursuant to

RCW 41.56.460 directs:

 

            1.         That the Union is to receive a 5.3% across the board increase

from January 1, 1977 to December 31, 1977.

 

            2.         Union members are to receive full coverage for dependents

medical and dental care beginning January 1, 1977.  The City of

Bremerton is directed to pay the premium to provide this coverage

in accordance with the plans that were proposed at the hearing."

 

            3.         The overtime computation will remain unchanged.

 

Rendered and prepared at Tacoma, Washington  January 21, 1977

 

                                                                        ________________________

                                                                        Joseph A. Sinclitico

                                                                        Arbitrator

 

 

Prepared and rendered at Tacoma, Washington  January 21, 1977

 

_____________________                              _________________________

Mayor Glenn K. Jarstad                               Concurs                      Dissents

 

 

 

Prepared and rendered at Tacoma, Washington  January 21, 1977

 

_____________________                              _________________________

F. Donald Deitch                                            Concurs                      Dissents

For the Union

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