INTEREST ARBITRATIONS

Decision Information

Decision Content

International Association of Fire Fighters Union, Local 1604

And

City of Bellevue

Interest Arbitration

Arbitrator:      John J. Champagne

Date Issued:   06/16/1980

 

 

Arbitrator:         John J. Champagne

Case #:               02440-I-79-00064

Employer:          City of Bellevue

Union:                International Association of Firefighters Union; Local 1604

Date Issued:     06/16/1980

 

 

In the Matter of an Interest

Arbitration Between

 

CITY OF BELLEVUE

 

and

 

INTERNATIONAL ASSOCIATION OF

FIREFIGHTERS UNION, LOCAL 1604

 

Appearing for the City of Bellevue

J. David Andrews

Otto C. Klein III

Perkins, Cole, Stone, Olsen & Williams

1900 Washington Building

Seattle, WA 90101

 

Appearing for the Union

Thomas H. Grimm

Inslee, Best, Chapin, Uhlman & Doezie, P.S.

10800 Northeast 8th

Bellevue, WA 98004

 

JUNE 16, 1980

 

1.

INTRODUCTION

 

This proceeding is an interest arbitration hearing between the

City of Bellevue (hereinafter referred to as "the City" or "City")

and International Association of Firefighters Union, Local 1604

(hereinafter referred to as "the Union" or "Union") In accordance

with RCW 41.56.450 (as last amended by sec. 2, ch. 184, Laws of

1979, 1st Ex. Sess.), the hearing on this matter was conducted on

March 4, 5 and 6, 1980, in Bellevue, Washington, pursuant to a

submission agreement (EX. 22) dated February 27, 1980. The City

was represented by J. David Andrews and Otto G. Klein III,

attorneys at law of the firm of Perkins, Cole, Stone, Olsen &

Williams, Seattle, and the Union by Thomas H. Grimm, attorney at

law, of the firm of Inslee, Best, Chapin, Uhlman & Doezie, of Bellevue.

 

Pursuant to the submission agreement, John J. Champagne,

Esquire, of Olympia, Washington, was selected as the sole arbiter

for this interest arbitration proceeding.

 

The entire proceedings were reported by a qualified court

reporter, and a transcript consisting of three volumes, containing

a total of 674 pages, was prepared by the court reporter. There

were a total of 73 exhibits introduced at the hearing.

 

Under the submission agreement, Ex 22, there were a total of

16 issues to be submitted to the arbiter, to be presented, issue by

issue; that is, each issue being tried separately. The submission

agreement also provided that all evidence considered by the arbiter

must be included in the submission agreement or introduced at the

hearing.

 

At the outset of the hearing, it was disclosed that a

complaint charging unfair labor practices had been filed with the

Public Employment Relations Commission by the City of Bellevue,

under date of February 29, 1980. This complaint related to issue

No.15 under the submission agreement entitled "New Section -

Health and Safety (Minimum Manning)." Under letter dated February

29, 1980, the Executive Director of the Public Employment Relations

Commission notified the arbiter and the parties that the issue

above listed was considered to be now in litigation before the

Commission and in said letter ordered that issue withheld from the

interest arbitration. The arbiter ruled that no evidence would be

permitted on this particular issue and ordered that the issue be

excluded from the interest arbitration.

 

At the outset of the hearing, the parties were able to

stipulate as to issue No. 7 (Holidays) as listed in the submission

agreement, with the exception that the following paragraph was to

be placed in the "Hours" section (Article XII) of the existing

collective bargaining agreement between the parties:

 

"For clarification, it is understood that if holiday time

is worked and straight time pay received in lieu thereof, no

claim shall be made that the employees' hours of work have been

affected in any way."

(Joint Ex. 2)

 

It is extremely important in this introduction to point out

the criteria used by the arbiter in arriving at the arbiter's

award. RCW 41.56.460 directs the arbiter to be cognizant of the

legislative purpose of ch. 41.56 contained in RCW 41.56.430, and

also consider the standards listed in RCW 41.56.460. RCW 41.56.430

reads:

 

Uniformed personnel -- Legislative declaration. The intent

and purpose of this is 1973 amendatory act is to recognize that t

there exists a public policy in the state of Washington

against strikes by uniformed personnel as a means of settling

their labor disputes; that the interrupted and dedicated

service of these class of employees is vital to the welfare

and public safety of the state of Washington; that to promote

such dedicated and uninterrupted public service ice there should

exist an effective and adequate alternative means of settling

disputes. (1973 c 131 _ l.)

 

The foregoing general statement of legislative intent will be

considered by the arbiter throughout in reaching the arbiter's

decisions and awards.

 

The criteria set out in RCW 41.56.460 are as follows:

 

 Uniformed personnel -- Arbitration panel -- Basis for

determination ion . In making it's determination, the panel shall

be mindful of the legislative purpose enumerated in RCW

41.56.430 and as additional standards or guideline to aid it

in reaching a decision, it shall take into consideration the

following factors" ,

(a) The constitutional and statutory authority of the

employer.

(b) Stipulations of the parties.

(c) Comparison Of the wages, hours and conditions of

employment of the uniformed personnel of cities and counties

involved in the proceeding with the wages, hours, and

conditions of employment of uniformed personnel of cities and

counties respectively of similar size on the west coast of the

United States.

(d) The average consumer prices for goods and services

commonly know as the cost of living.

(e) Changes in any of the foregoing circumstances during

the pendency of the proceedings.

(f) Such other factors, not confined to the foregoing,

which are normally or traditionally taken into consideration

in the determination of wages, hours and conditions of

employment. [1979 1st ex.s. c 184 § 3; 1973 c 131 § 5.]

 

The parties in an interest arbitration have an exceedingly

difficult task under 41.56.460(c) above. It is an equally

difficult task for the arbiter to apply the guideline comparable

cities selected by the parties to arrive at a just and fair award.

In this case the City followed the literal mandate of the statute

and selected cities from California, Oregon and Washington, the

cities selected being of similar size and located on the west coast

of the United States. The Union,on the other hand, selected cities

only in the State of Washington, and only those located in the Puget

Sound region, which cities were of varying size and which contained

varying elements of comparability to the City of Bellevue insofar

as geographic location, size, assessed valuation, etc. were

concerned. Both parties introduced extensive testimony and

evidence concerning the comparability of the cities selected by

each party, and each party spent considerable time cross-examining

the opposing party's witnesses regarding the comparability of the

selected cities, and in criticizing the opposition party's

selection of the cities.

 

The cities of similar size evidence presented by each of the

parties with their respective elements of comparability, will be

considered by the arbiter, the City's selection because it was

selected pursuant to the mandate of the statue and the Union's

selection because the arbiter must give more weight to the

Washington cities selected by both parties because they have much

more in common with the City of Bellevue than cities outside the

State of Washington. Suitable a adjustments for varying degrees of

comparability or lack of comparability have been taken into

consideration.

 

II.

ISSUES

 

Of the original 16 issues listed under the submission

agreement, the parties presented 14 issues to the arbiter which are

as follows:

 

1 - Preamble - Retroactivity

2 - Article VII - Reduction and Recall

3 - Article X and Appendix B - Education Incentive

4 - Article XI - Overtime

5 - Article XII - Hours

6 - Article XIII - Off Shift Response

7 - Article XVII - Vacation Leave

8 - Article XXIII - Savings Clause

9 - Article XXVII - Medical Coverage

10 - Article XXVIII - Term of the Agreement

11 - Article IX and Appendix A - Wages

12 - New Section - LEOFF, II (Pension)

13 - New Section - No Pyramiding

14 - New Section - Longevity

 

DISCUSSION

ISSUE NO. 1 - PREAMBLE - RETROACTIVITY

It is the Union's position that the contract should be made

retroactive to January 1, 1980, and the City's position that it

should be March 1, 1980. The parties to this dispute began their

negotiations for a new contract to replace the contract then in

existence which would expire December 31, 1979, in May of 1979. The

parties held approximately 16 meetings in an attempt to resolve

their differences and were unable to do so which resulted in this

arbitration hearing.

 

The City is opposed to making the contract retroactive to

January 1, 1980 because they feel it probably promotes stalling on

the part of the Union. On the other hand, the Union wants the

contract made retroactive to January 1, 1980 because if a later

date were selected the Union feels this could promote stalling on

behalf of the City.

 

DISCUSSION:

 

It is apparent from a reading of the record herein that there

is a potential for either of the parties to engage in stalling

tactics. However, the potential for stalling perhaps lies more

with the City. It the City were to engage in stalling tactics, the

the longer they could stall, the more money they can save if a later

retroactive date is selected by the arbiter. On the other hand, the

longer Union stalls and a later retroactive date is selected by the

arbiter, the longer the Union members are without their pay

increase and other benefits, if any.

 

The legislative directive to be found in RCW 41.56.430 to

prevent strikes, is, in the opinion of the arbiter, better served

by encouraging prompt settlement of collective bargaining agreement

negotiations and the selection of a January 1, 1980 retroactive

date would also act as reassurance to the uniformed members of the

Union that they would not be financially penalized - a factor which

could conceivably result in lesser tensions between the parties.

 

ARBITER 'S AWARD:

 

The contract shall be made retroactive to January 1, 1980.

 

 ISSUE NO. 2 - ARTICLE VII - REDUCTION AND RECALL

City's position is illustrated by City's Ex. 16 which is dated

February 28, 1980, one day following the date of the submission

agreement. The City desired to add the following final paragraph

to Article VII placed in the collective bargaining agreement:

 

"Notwithstanding the above, in a lay off situation, the

Union and it's members agree to work with the employer to

preserve the Department's minority and female hiring level and

its paramedic capabilities."

 

The union's position is that the City's proposal is

unnecessary and ambiguous and basically unworkable.

 

DISCUSSION:

The Chief of the Department testified that in his experience

with the Bellevue Fire Department beginning back in the mid-

sixties, the City had never had to lay off any personnel and

repeatedly testified that he did not anticipate any lay offs over

the next two years. On the contrary, there was testimony to the

effect that the City was beginning to hire, commencing March 1,

1980, nine or ten additional new firemen to man a new station in the

Bellevue Fire Department. The clause as submitted by the City does

not have any clear definition of the duty placed upon the Union or

upon the City, for that matter; and it is ambiguous in this regard

It would be impossible under the clause as submitted to determine

who would be laid off, whereas the current reduction and recall

clause is definite and maintains a strict seniority based reduction

and recall system. There is ample testimony in the record to the

effect that both parties are supportive of the affirmative action

and paramedic program of the City, but to place the City's

suggested clause in the contract would seriously affect the

existing relationship, and perhaps morale, where there is at

present no anticipated need for force reduction.

 

ARBITER'S AWARD:

The contract should not include a new final paragraph as

proposed by the City. Article VII of the existing contract shall remain

the same.

 

ISSUE NO. 3 - ARTICLE X AND APPENDIX B - EDUCATION INCENTIVE

It is the City's position that educational incentive pay be

amended to provide for straight dollar amounts rather than a

percentage of base salary. The Union's position is to retain the

current percentage of base salary compilation.

 

Discussion:

The City's position is that education incentive pay should not

be automatically increased merely because wages may have been

increased under a collective bargaining agreement, nor under

arbitration for that matter. An educational incentive pay plan has

been in effect for many years, and was proposed by the then Chief of

the Department in 1970. The training received and education gained

is a benefit not only to the individual fireman but also to the City

as well. This is evidenced by the recognition that the Bellevue

Fire Department is one of the finest, if not the finest, in the

Puget Sound region of the State of Washington, and perhaps the

entire State of Washington. There is no doubt in The arbiter's mind

that the educational incentive program plays a significant part in

the high esteem in which the Department is held . The arbiter can

find nowhere in the record or in the briefs adequate rationale or

substantiation for this change in the contract as proposed by the

City, other than the fact that it will in the future, save the City

money at least for the term of the new contract. To reduce an

incentive that has proven its value, without adequate rationale, is

not indicated.

 

ARBITER'S AWARD:

Article X and Appendix B - Education Incentive - shall remain

unchanged.

 

 ISSUE NO. 4 - ARTICLE XI - OVERTIME

The Union's position t ion : The Union proposes that mandatory

overtime be paid at the rate of two times the regular hourly rate

and that, in addition, the base for computing overtime pay be

changed from the present 2,763 hours to 2,080 hours. The Union

proposed no change in the present contract regarding payment of

time-and-a-half of the hourly rate for discretionary overtime.

 

The City's position: The City believes that overtime should

be calculated a t the t rate of one-and-a-half times the

firefighter 's base hourly rate.

 

DISCUSSION:

The City presented considerable testimony and several exhibits

which showed that the Union's requested change in overtime pay

rates would entail a substantial increased cost to the City. For

example, with regard to the reduction of the computation of

overtime based upon 2,080 hours rather than the current 2,763

hours, would amount to a 33 percent increase over current overtime

pay. The City also presented evidence to the effect that the

proposed hourly rate of double the ordinary hourly rate for

overtime work would amount in an increase of approximately 77

percent, if combined with a reduction of the base rate upon which

the overtime is based -- in other words, the reduction to the 40 -

hour week. Various computations by the City show that the Union's

request as to overtime could amount to an increase in the overall

package on the collective bargaining agreement of at least 4.83

percent. Evidence also indicated that all other City employees of

the City of Bellevue, both uniformed and nonuniformed, are

presently receiving time-and-one-half for overtime based upon the

number of hours actually worked by the employee. None of the cities

used as comparables by either of the parties paid double time for

overtime, and that included cities in Washington, Oregon and

California, with the sole exception of the City of Puyallup which

pays double time for the first hour of overtime and time-and-a-half

thereafter. There was some confusion and inaccuracy in some of the

testimony and exhibits presented to the arbiter regarding the

number of 1979 overtime hours for the Union's bargaining unit

personnel. An accurate computation of this item was submitted to

the arbiter under date of April 15, 1980, computed by the secretary

of the Bellevue Fire Department. The arbiter has taken into

consideration the fact that firefighters, including City of

Bellevue firefighters, work an entirely different type of time

schedule than other municipal employees. This is mandated by the

type of work and activities the firefighters are called upon to perform.

The firefighters' working shift is divided into active

time and other time in which the firefighter is not actively

engaged in any type of work for the fire department but really is on

duty and immediately available on call in the event of a fire

emergency or other alarm. Other City employees are not so engaged,

and the hours worked are entirely different. The prevailing area-

wide practice in this area is to pay not only firefighters but all

municipal employees on a time-and-a-half basis based upon the

number of hours worked. There are a couple of exceptions to the

practice of basing it upon the number of hours worked, but the

prevailing practice is as stated. Since the overtime pay is based

upon the hourly rate of the firefighter, and the firefighters are

receiving, in effect, an hourly wage increase under issue No. 11,

Wages, as set forth hereinafter in this award, an increase in

overtime pay is automatically built into the award.

 

ARBITER'S AWARD

Overtime shall be calculated at the current rate (1979) , which

is one-and-a-half times the firefighters' base hourly rate computed

by dividing monthly salary by actual hours of work.

 

ISSUE NO. 5 - HOURS OF DUTY

The City's position: The City proposed a clause at some time

subsequent to February 26, 1980, which clause would require the

Union and the City to collectively bargain regarding possible

changes in the hours of work and in addition, setting up a procedure

whereby if an impasse is reached, there would be a method of

resolution of the impasse.

 

The Union's position is that no change should be made in the

existing contract, Article XII.

 

DISCUSSION:

The City's proposal as to hours of work as set fort in Ex. 29

was proposed at some time subsequent to February 26, 1980. There is

strongly conflicting testimony between the parties as to what

occurred on February 26, 1980 with regard to this particular clause

of the contract, the Union maintaining that the City and the Union

had agreed on a new Article XII, with amendments, which the Union

had signed off, and the City maintaining that it had not so agreed.

Exhibit 31 does not show any signature by the City. Article XII of

the present contract provides that the regularly scheduled duty

hours shall be scheduled for periods of 24 consecutive hours

beginning at 0800 hours. A reading of the entire record herein

would indicate that these hours of work have been the historical

hours of work for the Bellevue firefighters, and the arbiter is

extremely reluctant to eliminate practices which have been

initially established by collective bargaining in the past. The

arbiter is hesitant to disturb what has been a stabilized situation

except on very compelling grounds, and in the arbiter's opinion,

the City has failed to show such compelling grounds. It is possible

that in the future, the parties hereto will wish to negotiate on the

hours of work, but the City's proposal on this clause of the

contract was made subsequent to the time that the arbitration

proceedings were scheduled. The Union has submitted no

counterproposal.

 

ARBITER'S AWARD:

Hours of duty as outlined in the 1978-79 contract under

Article XII shall remain the same.

 

 ISSUE NO. 6 - OFF SHIFT RESPONSE

The Union's position : The Union seeks to increase the off

shift response payment from $7 per response to $12 per response. In

addition, all calls lasting more than one hour would be paid at

overtime rates under the contract.

 

The City's position: The City wishes to retain off shift

response at $7 per response as provided in the present contract.

 

DISCUSSION:

The City's proposal that Article XIII of the present contract

be amended in a minor way by the addition of the word "voluntarily"

and the deletion of The word "volunteers" in that clause was agreed

to by the Union testimony and in representation by their counsel to

the arbiter. The parties are agreed that the article would read as

follows:

 

"If an employee voluntarily responds to alarms while off

duty, he shall be paid at the rate of $ _______ per response."

 

The disagreement of the parties is as to the amount to be paid for

off duty response on a volunteer basis, the Union contending that

it should be increased to $12 per off duty response for the first

hour and over time rates thereafter , and the City contending that

the present $7 per response be maintained. counsel for the Union in

its brief, concedes that if this present system of off duty

response were to be abandoned, it would increase the need of the

City to have extra personnel on duty on a full-time basis. it

should be emphasized that the off duty response is purely on a

voluntary basis and the record indicates that the $7 per response

was agreed upon by the parties to assist in compensating the off

duty volunteer for his costs in responding when on-shift employees

are answering alarms and other emergency calls and the station is

in need of manning during their absence. The ever present

inflation factor has had a definite effect upon the rate paid for

off duty response. One other factor to be taken into consideration

in resolving the issue of off duty response, a fact as testified to

by the City's witness, is that the number of calls is steadily

declining, which would have an effect upon the financial impact on

the City were an increase to be granted by the arbiter. Both

parties testified that off duty response is of considerable benefit

to the; City and as such, off duty volunteers who respond to that

should be compensated realistically.

 

ARBITER'S AWARD:

Article XIII - Off Shift Response is amended to read as

follows:

 

"If an employee voluntarily responds to alarms while off

date, she shall be paid at the rate of $8 per response."

 

ISSUE NO. 7 - VACATION LEAVE

 

The Union's position: The Union proposes a change in the rate

of accrual of vacation leave by the addition of 2 hours per month

per man for each seniority level. The City's position is that the

vacation leave be maintained at the same level as presently exists.

 

DISCUSSlON:

Under cross-examination, the Union's chief witness testified

that the Union's position with regard to increasing the vacation

leave accrual was made because other City employees, not

firefighters, got a certain vacation rate and that the Union was

desirous that they be placed in the same category insofar as

vacation leave is concerned. The effect of the Union proposal as

testified to by the principal Union witness was that it would

provide each firefighter with an extra shift of free time. The City

presented testimony that the granting of an extra shift to each

of the firefighters would be an increased cost to the City, which

cost could be estimated as being a minimum of 2/3 of a man-year, or

a cost of .8 of one percent increase on the total package under

consideration in this arbitration, if computed as straight time and

1.2 percent on the total package, if computed at time-and-one-half.

These computations were based upon the current hourly rate for

firefighters. The Personnel Director of the City also testified to

the fact that a firefighter in years on through four is getting the

same number of hours off for vacations is the police and fire

dispatcher who has worked one to five years. The parties'

witnesses were apparently in agreement that the principal reason

for the granting of vacation time is to provide employees with a

chance to rest, recuperate from their labors, and as a form of

compensation for the performance of their tasks. On behalf of the

City, Deputy Chief Wheeler of the Bellevue Fire Department,

testified at considerable length, using as an illustration Ex. 37

of the City which is the Union shift calendar as distributed by the

Union to their membership and to the public. Chief Wheeler's

testimony showed how the battalion chiefs computed the vacation

time for each of the firefighters, with relation to vacation time

earned, Kelly days off, holidays worked, etc. Chief Wheeler

testified that vacation schedules are ordinarily put together in

blocks of 3 shifts and that the normal firefighter has 15 shifts of

vacation tine coming each year , off of the work schedule as shown on

Ex. 37. By giving the firefighter three shifts off, it gives the

firefighter 13 days of vacation time. The net effect of this

procedure is to give each of the firefighters 15 shifts of

vacation when vacation shifts are lumped together with Kelly days

and holidays worked a total of five 13-day blocks of vacation time

throughout the entire year. Even when one takes into consideration

the fact that the firefighters work a 53+ hour week and are on duty

for 24 hours per shift, nevertheless, the net effect of their

working schedule is to give the firefighters more than ample

vacation time in which to recuperate from their labors, and is also

ample compensation for the labors performed.

 

ARBITER'S AWARD

Article tide XVII of the current 1978-79 contract shall remain the

same.

 

ISSUE NO. 8 SAVINGS CLAUSE.

The City's Position: The City wishes to change the savings

clause in the current contract which would be balanced for

management the same way it is for labor. The City proposes to

entitle this clause "Union - Management Savings Clause", rather

than strictly " Savings Clause " . The Union's position is that no

change should be made in the 1978-79 contract.

 

DISCUSSION:

The City's principal witness on this issue on cross-

examination testified that there had never been an actual problem

for this particular bargaining unit with regard to the present

wording of the savings clause in the contract, and further, that

that wording had.been in the contract since 1974. In the course of

the hearing, the City amended its proposal somewhat and the

proposed clause of the City now under consideration by the arbiter

is shown in Ex. 39. The arbiter has been unable to understand the

City's proposal and testimony as to how it would work to keep the

total cost to the City the same. There is apparently no real

problem existing , nor has there been since the adopt ion of this

particular article in 1974. The city appears to ask the arbiter to

speculate as to what some future judicial or legislative action

might be which would be of concern to the parties and perhaps

increase the cost of the contract. Again, the arbiter is very

hesitant to disturb a stabilized situation unless on very

compelling grounds, particularly a clause in a contract that has

been established by collective bargaining over a period of years

and there is no showing that the clause is not working nor that it

is not likely to work.

 

ARBITER'S AWARD:

The present wording of Article XXIII will remain the same.

 

ISSUE NO. 9 - MEDICAL COVERAGE

The City's position: The City proposes to pay 100 percent on

medical and 80 percent of the dental premium in effect on January 1,

1980. The City, in addition proposes that any increases in

premiums during the term of the agreement being arbitrated, would

be split between the City and the individual firefighter.

 

The Union's position: The Union proposes that the City pay

100 percent of medical and dental premiums in effect at the

beginning of each year of the contract. They further propose that

any increases during each respective calendar year of the contract

would be split evenly between the City and the employee for the

remainder of the year in which the increase took effect. At the

beginning of the succeeding year, the City would be required to

increase its contribution to the full amount.

 

DISCUSSION:

The testimony of the parties' principal witness on this

issue and an examination of City's Ex. 43 and Union Ex. 40, indicate

(Page No. 20 missing)

 

ARBITER'S AWARD

Article XXVI shall read as follows:

 

"a) Effective January 1, 1980 The employer shall pay 100

percent of the cost of medical coverage based upon The Blue

Cross rate schedule in effect on January 1, 1980. For

employees who include dependents under Group health, the

employer shall pay the costs up to and including the rate for

the employee, spouse and one child based upon the rate

schedule in effect on January 1, 1980.

 

b) Effective January 1, 1980 the employer shall pay the

full premium of the City dental plan based upon the rates in

effect on January 1, 1980 for the employees who participate in

the City's dental plan.

 

c) Any increases in premiums; in excess of that provided

herein shall be borne by the employee and employer on a 50-50

cost sharing basis for the duration of this agreement."

 

ISSUE NO. 10 - TERM OF THE AGREEMENT

The City's position: The City seeks a three-year contract.

 

The Union's position: The Union seeks a one-year contract.

 

DISCUSSION:

The majority of contracts between firefighters and comparable

Washington cities have terms of two years. The difficulty with the

Union's position of requesting a one year contract is that as of

the date of the arbiter 's award , the Union and the City would again

commence negotiations for a 1981 contract after having just spent

10 months in fruitless negotiation on the 1980 contract. On the

other hand, regarding the City 's proposal for a three-year

contract, the record in this hearing is replete with testimony

regarding the effect of inflation and increases in the cost of

living as it affects both of the parties. In addition, the arbiter

can take judicial notice of the fact that at the present time the

nation's economy is in something of a recession, the magnitude and

length of which is totally unpredictable, even by the experts. For

the arbiter to attempt to speculate and predict in order to set

reasonable contract terms for a three-year period would be somewhat

of an exercise in futility.

 

ARBITER'S AWARD:

Article XXVIII of the contract should provide as follows.

 

"The terms of this Agreement shall be in full force and

effect on January 1, 1980. Except as otherwise provided

herein, this agreement shall remain in full force and effect

through December 31, 1981, during mg which time no additional

provisions may be negotiated to become effective prior to

January 1, 1982."

 

ISSUE NO. 11 - WAGES

The Union's position: The Union proposes that wages beginning

January 1, 1980, or whatever is the beginning date of the contract,

be increased for all personnel in the bargaining unit 14.6 percent.

To this 14.6 percent, the Union proposes an additional seven

percent, for a total of 21.6 percent total wage increase of the

existing rate. In addition to the 21.6 percent hourly wage

increase over existing rates, the Union also proposes quarterly

increases based on increases in the Seattle area cost price index.

 

The City's position: The City proposes a 10 percent increase

during 1980 for all levels of firefighters: in 1981 the City

proposes a wage increase equal to 80 percent of the percentage

increase in the Seattle cost price index for the period from July,

1979 through July, 1980, with a maximum increase of 12 percent.

 

DISCUSSlON:

As pointed out in the Union's brief, the issue of wages is the

most important issue in any negotiations or arbitration and that is

certainly true in this instance. The transcript of the evidence in

this proceeding consisted of 674 pages, of which 207 were devoted

to the issue of wages, just under one-third of the testimony

presented. RCW 41.56.460 requires that the arbiter keep in mind

the legislative purpose set forth in RCW 41.56.430 in reaching a

decision, and then lists the six standards or guidelines to be

taken into consideration t ion in reaching such decision. The arbiter is

charged with the duty of applying these standards and guidelines in

reaching a decision which must be based upon the evidence submitted

by the parties as well as the standards and guideline, in order

that the arbiter arrive at a fair and impartial decision. As the

parties are aware, this is not a simple or easy task in the field of

interest arbitration where the arbiter is, in effect, dictating the

terms of a collective bargaining agreement which the parties will

have to live with for the term of the contract, which is also to be

determined by the arbiter.

 

RCW 41.56.460(c) reads as follows:

 

(c) Comparison of the wages, hours and conditions of

employment of the uniformed personnel of cities and counties

involved in the proceedings with the wages, hours, and

conditions of employment of uniformed personnel of cities and

counties; respectively of similar size on the west coast of the

United States.

 

The foregoing is one of the standards or guidelines used by

the arbiter to aid the arbiter in reaching a decision on the issues.

As pointed out in the introduction of this arbiter's decision,

there was considerable difference between the parties as to

selection of comparable cities. The City chose. to follow the

statute and chose cities on the west coast of the United States

which were comparable or similar in size to the City of Bellevue.

Some were in California, some in Oregon and some in Washington. The

Union, on the other hand, selected cities in the State of

Washington, all of which were in the Puget Sound area and all of

which were in what they termed the "Seattle labor market." As

pointed out by counsel for the Union in his brief, the situation is

somewhat analogous to that found in eminent domain proceedings

wherein each party selects their own theory of the case and selects

their own comparable properties to support their theory of value.

It is then up to the trier of the facts to weigh the evidence

presented and weigh the degree of comparability in all of the

various interdependent factors affecting comparability. This is

not an easy task, for either the parties or for the arbiter. From a

practical standpoint, it would be impossible for the trier of fact

to discuss each of the areas of comparability because to do so would

result in an exhaustive and unduly long decision. All of the cities

presented by the parties have been considered by the arbiter. No

single city was used for comparison purposes because no single city

is identical to the City of Bellevue any more than one piece of

property is identical to another in the market data approach to

valuation in eminent domain cases.

 

Emerging from all of the test imony presented at the hearing

and all of the exhibits introduced by the parties, several

significant factors have been given considerable consideration by

the arbiter. Union Ex. 46 clearly shows that the Bellevue

firefighter works more duty hours than firefighters in all but two

of the Union's comparable cities in the Puget Sound area. The

arbiter has also kept in mind that the City is hiring approximately

9 or 10 new firemen beginning in the month of March which hirings

will have an effect upon various Union exhibits relating to

population, number of alarms, assessed valuation, etc., per

firefighter. RCW 41.56.460(e) requires the arbiter to keep in mind

changes in any of the foregoing subsections during the pendency of

the proceedings. The arbiter has done so. Changes have occurred in

the economy, for example, since the hearing on this matter in early

March. As an example, the country finds itself in a recession with

considerable unemployment in such industries as wood products, home

building and allied industries. The prime rate for lending by

banks has dropped from 20 percent in early March to 16-1/2 percent

as of the date of this dictation. Collection of taxes in King

County is below predictions, and the rate of inflation has

decreased.

 

Another factor to be taken in to consideration is the unfunded

liability in the sum of 5 million dollars with regard to the LEOFF

pension, which the City of Bellevue must spread out over a period of

30 years, and its allocation for the year 1980 is in the sum of

$117,000. Balanced against these recent changes in the economy is

the fact, as testified to, that the Bellevue area economy has

historically outstripped statewide growth. Bellevue has gained

substantial additions to its property values in recent years.

Union's Ex. 60 shows that Bellevue has been in the mid-area of the

comparable cities submitted by the Union, ranking sixth in 1978 and

1979 out of the 9 cities selected. The arbiter has also kept in

mind the contracts negotiated with other elements of the City work

force in which the police received a total package increase of 11

percent, police and fire dispatchers, public works employees, and

nonrepresented employee groups each received a 10.8 percent

package. City's Ex. 66 shows monthly salary percentage increase

in the Seattle area cities ranging from approximately 9.6 percent

to a high of 12 . 3 percent in the City of Redmond and the next high

of 10.4 percent in the City of Auburn, with most of the increases

being in the 10.0 to 10.2 percent area. For comparison purposes

also, the City presented testimony as to the relationship over a

five-year period between the monthly salary paid to firefighters in

the City of Seattle and those in Bellevue, which showed that

firefighters in the City of Bellevue were paid on a percentage

basis compared to Seattle at about 96.4 percent on the average.

 

Although the length of the work week, as pointed out

hereinabove, is relevant, in the absence of a full consideration of

all of the associated benefits and contract provisions in the

comparable cities' contracts, in the opinion of the arbiter the

salary base of firefighters computed on a monthly basis gives a

firmer base for comparison. Firefighters are employed on a monthly

basis and not by he hour.

 

How all of the above abbreviated summary of the wealth of data

submitted during the proceedings is to be interpreted will vary

greatly among reasonable people. There is very little ground,

however, record herein to support what amounts to a 21.6

percent increase in wages for the firefighters. Balanced against

this, it must be kept in mind that the CPI increased during 1979

approximately 13.2 percent, and at an even greater rate during

January, February, and March of 1980. collective bargaining

agreements entered into with other City employees in 1979 could

not, in the arbiter's opinion, have taken into account such a large

increase in the CPI index.

 

ARBITER'S AWARD:

All members of the bargaining unit are awarded a 10.6 percent

increase in their monthly base salaries for the period January 1,

1980 to December 31, 1981. In addition thereto, during the period

January 1, 1981 to December 31, 1981 all of the members of the

bargaining unit shall be granted a wage increase over and above the

10.6 percent of 80 percent of the percentage increase in the

Seattle-Everett CPI for the period from July, 1979 through July,

1980, not to exceed 12 percent.

 

ISSUE NO. 12 - NEW SECTION, LEOFF, 11 (PENSION)

The Union's position t ion : The Union proposes changing the sick

leave provisions for LEOFF II employees by the establishment of a

sick leave bank for firefighters.

 

The City's Position: At the outset of the hearing on this

issue, the City desired to maintain its present policy with regard

to sick leave for LEOFF II firefighters. During the course of the

hearing, the City made a compromise proposal to be inserted in the

contract where none now exists. The City's 's proposal (Ex . 70)

amends somewhat the present system of sick leave accrual as

provided in Bellevue City Code 3.80.100, .200, .210 and .220.

 

DISCUSSION

LEOFF I I employees are those who came in to the Department

after October 1, 1977. The sick leave benefits for the two classes

of firefighters vary greatly with LEOFF I firefighters receiving

unlimited sick leave up to six months for any one illness or injury,

whether duty-related or not. If a LEOFF II employee is disabled

while on duty and runs out of sick leave, he then receives Workmen's

Compensation benefits of approximately one-half his regular salary.

The legislature recently amended the law relating to LEOFF for two

primary reasons: (1) because of the unfunded liability built into

the system, and (2) the abuses which had sprung up under the system

wherein up to 59 percent of the uniformed employees were re-

tiring under the disability provisions then in effect. In addition, there

were apparently abuses of the disability leave provisions of the

previous law. It should be noted that the Union's proposal in this

arbitration proceeding was related only to the sick leave benefits

and not to the pension, and that the labeling of this issue is, in

that respect, misleading. At the present tine under the Bellevue

City Code, the firefighters receive 12 hours per month for sick

leave. Under the same code, other City employees accumulate only 8

hours of sick leave per month. In the event a firefighter exhausts

all of his sick leave, then the firefighter has the option of using

accrued vacation time. The arbiter assumes that the discrepancy

between the firefighter's ability to accumulate 12 hours per month

of sick leave as contrasted with other City employees accumulating

sick leave at the rate of 8 hours per month exists because of the

recognition by the City of the firefighter's exposure to risk of

injury and illness because of the nature of the firefighter's

duties. It should be kept in mind that the discrepancy that exists

with regard to the LEOFF I and LEOFF II firefighters exists because

of the change made by the legislature in the law relating to this

subject. City Ex. 71 shows that the majority of the comparable

cities used by the City in its presentation provide for accrual of

sick leave at the rate of 12 hours per month for the majority of the

cities listed. The Union failed to present any evidence to the

arbiter of the practice in their comparable cities as they used

those comparable cities with respect to other issues in this

arbitration. This is perhaps understandable since the action by

the legislature in the major revision of the LEOFF system occurred

only so recently. The large discrepancy which exists between the

LEOFF I and LEOFF II firefighters is one which was specifically and

intentionally created by the legislature and it is difficult for

the arbiter to recommend the Union's proposal particularly in view

of the liberal treatment now given to the firefighters in accruing

sick leave at the rate of 12 hours per month as contrasted with

other City employees who accumulate at the rate of 8 hours per

month: In addition, the City's principal witness in this area

testified that the City's proposal as shown in Ex. 70 was recently

negotiated with the police officers who have brought the same issue

to the bargaining table. There is testimony in the record to

indicate that the police officers were successful in obtaining this

type of a clause in their contract. The City's proposal as shown in

Ex. 70 does grant to the brand new firefighter some relief from the

situation he finds himself in with regard to sick leave where he

could be injured on the job.

 

ARBITER'S AWARD:

The City's proposed provision for disability leave as set

forth in Ex. 70 shall be inserted in the contract. The parties are

reminded that the second sentence of Ex. 70 was stricken during the

course of the hearing and shall not be a part of the clause in the

contract.

 

ISSUE NO. 13 - NO PYRAMIDING

The City's position: The City proposes that a no pyramiding

clause be added to the contract.

 

The Union's position : The Union opposes he City's proposal

for a no pyramiding clause.

 

DISCUSSION:

The City's proposal with regard to not pyramiding is not based

upon any problems which have occurred between the City and the

firefighters in this area. The City's principal witness with

regard to this clause as proposed by the City, testified that the

present practice of the City is not to pyramid pay. In other words,

the City is paying overtime pay based upon base pay and they do not

include in their calculations for overtime pay any premium pay into

the base hourly rate paid to the firefighters. The City's main

witness also testified to the effect that the present contract

between these parties as it is presently being administered,

presents no problem to either of the parties.

 

To emphasize this current practice between the parties, the

Union's principal witness testified that throughout the

negotiations the firefighters' position was totally in agreement

with the City with respect to overtime pay not being based upon

anything other than base pay, and that educational premiums or

educational incentive pay not be added to the base pay for purposes

of calculating overtime pay. The witness further testified that

this has been the historical position of the Union with regard to

this item . The test imony also revealed that should the arbiter

rule in favor of the City with regard to overtime pay, that the

City's proposal for no pyramiding clause be added to the contract

would be unnecessary.

 

ARBITER'S AWARD:

 

The City's request for a no pyramiding clause in the contract

is denied.

 

ISSUE NO. 14 - NEW SECTION, LONGEVITY

 

The Union's proposal: The Union proposes longevity pay of 2

percent after five years of service, 4 percent after 10 years of

service, and 6 percent after 15 years of service.

 

The City's proposal: The City opposes longevity pay.

 

DISCUSSION:

This proposal was addressed by the City's witness, Dow, who

had an extensive background in negotiating firefighters collective

bargaining agreement between the City of Bellevue and the Union,

going back over a large number of years in which this witness

testified that the educational incentive provision in the

collective bargaining agreement came into that agreement because

the parties had agreed to reward firefighters through this system

of educational incentive rather than through a longevity or

seniority system. This witness also has participated in

negotiations on many other contracts between various cities in the

Puget Sound area and firefighters, and testified that the City of

Bellevue's philosophy in this regard was contrary to the majority

of the other fire departments in the Puget Sound area and that when

the educational incentive clause was agreed upon, it was agreed

upon for the purpose of rewarding the firefighter for improving his

fire-related education in lieu of longevity pay. This witness also

testified that for the most part, both longevity and educational

incentive clauses are not found in contracts in the State of

Washington between firefighters and cities. This City's witness'

testimony in this regard was somewhat contradicted by the Union's

principal witness, but the Union's witness could only testify as to

what his "understanding" was rather than what the actual historical

fact background was. Union Ex. 72 shows that their selected

comparable cities of Seattle, Tacoma, Kent, Renton and Puyallup do

carry longevity clauses whereas the City's Ex. 73 shows only one

city in the State of Washington, Everett, which has a longevity

clause, and all other cities in Washington, Oregon and California

having no longevity clauses. Bellevue Fire Chief Sterling

testified that he was adamantly opposed to any longevity program

and that in his opinion, the educational incentive provided by far

the greater benefit to the City and the Fire Department. Chief

Sterling felt that a longevity clause rewards a low performer as

well as a high performer, whereas the educational incentive clause

is a reward to the high performer and results in a far more

proficient department. He further testified that retention of

firefighters had never been a problem to the Department.

 

ARBITER'S AWARD:

The Union's request for a longevity clause is denied.

 

DATED at Olympia, Washington this 14th day of May, 1980

 

JOHN J. CHAMPAGNE

ARBITER

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