INTEREST ARBITRATIONS

Decision Information

Decision Content

Seattle Police Officers Guild

And

City of Seattle

Interest Arbitration

Arbitrator:      Phillip Kienast

Date Issued:   02/24/1984

 

 

 

Arbitrator:         Kienast; Philip

Case #:              04777-I-83-00104

Employer:          City of Seattle

Union:                Seattle Police Officers Guild

Date Issued:     02/24/1984

 

 

                                                IN THE MATTER OF ARBITRATION

 

CITY OF SEATTLE                          )           Opinion and Award

                                                                        )                  of

                                                                        )           Arbitration Panel

            -and-                                                    )

                                                                        )           Richard Rovig

                                                                        )           Everett Rosmith

SEATTLE  POLICE OFFICERS                  )           Philip Kienast , Chairman

GUILD                                                           )

________________________________        )           RE:  Wage/Benefit Reopener

 

 

APPEARANCES

 

For the Guild:

 

            Wil Aitchigon of Aitchison and Sherwood, attorneys for the Guild.

 

For the City:

 

            Marilyn Sherron, assistant City attorney.

 

 

                                                            OPINION

 

            This proceeding is pursuant to RCW 41.56.  A hearing in this matter

was held on December 12, 13, 14 and 15.  The issues in dispute were

salaries and features of the medical and dental benefit package.

 

            This Opinion and Award has been prepared by the Chairman of the Panel

as directed by RCW 41.56.  It represents the Chairman's conclusions based

upon the Panel's lengthy deliberations.  The signatures of the partisan

Panel members attests solely to the fact that each was offered full and

ample opportunity to participate and comment on the conclusions made

hereinunder and that the Panel carefully considered all relevant factors as

specifically enumerated in RCW 41.56 and set out below:

 

            41.56.460        Uniformed personnel  Arbitration panel   Basis

for determination.  In making its determination, the panel shall

be mindful of the legislative purpose enumerated in section 1 of

this 1973 amendatory act and an as additional standards or guide-

lines 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 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.

                  (d)        The average consumer prices for goods and services,

      commonly known 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.

 

Contentions

 

            The Guild contends a 12.0% across the board salary adjustment is

warranted when statutory criteria are considered.  By contrast, the City

argues a 1.5% salary increase represents an adequate and fair increase in

light of the standards in RCW 41.56.  The parties agree that the City

should continue to pay 100% of the medical and dental insurance.  They

disagree on whether the major medical deductible should be increased from

$50 to $100 per person.  They disagree on whether vision care improvements

should be made in the medical services provided.  They also disagree

regarding the eligibility of retired police officers to continue group

coverage while paying their own premiums.  Estimates indicate the cost of

adding the features sought by the Guild would be equal to approximately a

.5% additional increase in salaries.

 

Pay Comparability

 

            The parties differed somewhat in their approach to pay comparability.

The City's analysis focused on a set of West Coast cities that have been

utilized by the parties in previous negotiations and arbitrations, with the

exception of Tacoma.  These cities include:  Long Beach, Oakland, Sacra-

mento, San Diego, San Francisco, San Jose, CA; and Portland, OR.  The city

argued Tacoma should not be considered since its population is less than

one-half that of Seattle's; the other cities being either more than 1/2 or

less than twice Seattle's size and one traditionally used by the parties in

negotiating wages.

 

            It notes that as of June 30, 1983 the average monthly top step salary

for these cities was $2,293 compared to Seattle's $2,366.  It further notes

that since 1971 Seattle's base salary has increased by 151% while the

average rate of increase for the other cities was only 133% (CC-4).  The

City argues that as of September 1, 1983, the average top step salary in

these cities was $2,401.  It notes that the salary in Seattle would be

$2,401 if a 1.5% increase was awarded (CC-11).  Moreover, the City argues

that when fringe benefits are considered that Seattle compares more

favorably to these other cities (CC-15).

 

            The Guild took a different approach to the issue of comparable cities.

It had an economist) Dr. Zerbe, empirically select comparable West Coast

cities using population and ten other variables (retail sales, assessed

valuation, crime rate) number of officers, each of the foregoing on a per

capita basis plus crime rate per officer).  Utilizing a regression analysis

Dr. Zerby concluded on a set of nine comparable cities:  Santa Ana,

Anaheim, Riverside, Long Beach, San Francisco, San Jose, Oakland, Portland

and Tacoma.

 

            The Guild's salary analysis (G-5)discloses that the average police

officer's base monthly salary in the nine cities selected by Dr. Zerby was

$2,524 as compared to $2,461 for Seattle.  These figures include an upward

adjustment in cities that pay all or part of employee's contribution to a

pension plan.  It also includes longevity increments where applicable.  For

example, in Long Beach the city pays 7% of the employees 9% pension contri-

bution.  On a base monthly top step salary of $2,377 the Guild calculates

it would take an increase of 8.8% or a salary of $2,543 to equal the

disposable income realized by the officer because of the 7% pension pickup

by the City.

 

            The Chairman has examined in great detail both the cities chosen by

the two parties and their methods for comparing compensation for officers

among those cities.  As regards the former, five of the cities were common

to the sets offered by both parties, namely:  Long Beach, Oakland, San

Francisco, San Jose and Portland.  Tacoma did not appear in the city's set

of comparables this year, but was in previous police interest arbitrations

dating back to 1976 and including the most recent in September 1983

(Seattle Police Management interest arbitration, Panel Chairman, Mike

Beck).  Moreover, Tacoma was used by the parties themselves in negotiations

as a comparable city during this same period.  The City offered no persua-

sive argument as to why a city that has been found a reasonable comparison

in the past should now be excluded from use.

 

            By contrast, the Guild's set of cities includes three cities not found

in the set it has in recent years agreed formed a reasonable comparison

group, namely:  Santa Ana, Anaheim and Riverside.  Its set also excludes

two cities included in the cities and agreed comparables in previous nego-

tiations and arbitrations, namely:  Sacramento and San Diego.  However, the

Guild offered the expert opinion and analysis of Dr. Zerbe to justify this

new set.  The Chairman finds considerable merit in the empirical approach

used by Dr. Zerbe.  Interestingly, his analysis disclosed Tacoma as the

most comparable city under any formulation of his regression equation.

Joining Tacoma as most comparable cities were Santa Ana, San Francisco, and

Oakland.  Three of the most comparable cities in Dr. Zerbe's analy-

sis were ones also adjudged by the parties in the past to be comparables.

 

            Cities found to be slightly less comparable in Dr. Zerbe's analysis to

this first group were Portland, Anaheim and Long Beach.  Once again, two of

three of these are ones traditionally used by the parties in negotiations

and arbitrations.  Dr. Zerbe's analysis disclosed two other cities that

formed a third and slightly less comparable set of cities:  San Jose and

Riverside.  His analysis did not find Sacramento and San Diego, two of the

traditional set of comparables used by œhe parties, to be comparable.

 

            In light of the foregoing analysis the Chairman has selected a set of

six comparable West Coast cities to be used.  The list is headed by Tacoma.

It is a city used historically by the parties in negotiations and arbi-

trations.  It is the most comparable city uncovered by Dr. Zerbe's

analysis.  Moreover, being in Washington, it operates under the same

statutory authority as does the City of Seattle. Also, like Seattle,

it operates in the same regional labor market with comparable cost of

living features, e.g. taxes.

 

            Next on the list are Santa Ana, San Francisco and Oakland.  The latter

two are both historical comparison cities and in the most comparable group

found by Dr. Zerbe.  Santa Ana is included because, like San Francisco and

Oakland, it was in Dr. Zerbe's most comparable group and also because the

Chairman finds that a set of comparables should be constructed that in-

cludes at least two data points for each area in which all of Dr. Zerbe's

comparables fall, namely, Los Angeles area) Bay area and Northwest area:

 

            Los Angeles Area

 

            Long Beach

            Santa Ana

 

            Bay Area

 

            San Francisco

            Oakland

 

            Northwest Area

 

            Tacoma

            Portland

 

            Portland is used as the other Northwest comparable because it has been

used historically by the parties as a comparable and is the only other

Northwest city found to be comparable in Dr. Zerbe's analysis.

 

            The Chairman has concluded that San Jose, Riverside and Anaheim should

not be used as comparables.  First, because it would result in a set of

cities that was not proportionate, i.e. it would give the Los Angeles Area

and Bay Area undue weight in comparison to the Northwest Area with four and

three cities respectively as compared to two for the Northwest.  Moreover,

San Jose and Riverside were not in the two highest groups of comparable

cities found by Dr. Zerbe.  And while San Jose has been a traditional

comparable city used by the parties, its retention would unduly weight Bay

Area compensation patterns in the comparability analysis.  Anaheim is not

used for similar reasons, but also because it has not traditionally been

used as a comparable city.

 

            Regarding the methods for comparing compensation among this set of

cities, the Chairman believes pension pickups in the comparable cities must

be factored into the analysis.  However, he finds the Guild's method

inflates the impact of this practice.  He finds a more realistic approach

in a method based on the concept of net salary.  For example, in Long Beach

the effect of the pension pickup is to leave an officer with a net salary

after his pension contribution of $2,329.  By contrast, a Tacoma officer's

comparable net salary after his pension contribution of 6.5% is $2,315.  In

light of the parties stipulation for purposes of this hearing that pension

benefits are comparable across jurisdictions, it is clear that considera-

tion of the employer's agreement to pick up all or part of the employee

pension costs makes a significant difference in actual monthly

compensation.

 

            Monthly compensation is also increased by employer payments for health

care insurance.  Since there are variations among cities as the amount paid

on behalf of an officer, the Chairman believes they should also be factored

into the compensation comparison.  For example, currently Seattle pays an

average of $224 per month per officer for health care insurance.  By

contrast, San Francisco pays only $65.  The net effect is that an officer

in San Francisco must either pick up non-covered health expenses or pay the

additional premium to get comprehensive coverage.  The Chairman has added

employer paid health premiums to net salary after pension pickup to get an

approximate idea of net monthly compensation.  This assumes that officers

would purchase health coverage on the open market comparable to coverage

provided by the Employer.  This assumption appears realistic since police

officers through their associations exert considerable control over how

their compensation is split between salary and benefits.

 

            Table 1 discloses data on minimum or base monthly compensation for the

six cities in the comparability set determined by the Chairman.  It shows

that Seattle's base monthly compensation is 3.6% less than the average of

the six comparable cities.  It also discloses that a higher percentage of

Seattle s compensation is comprised of health payments as compared to the

average.  This suggests that salaries could be made more comparable simply

by lowering the health care premiums in Seattle.

 

Hours of Work

 

            Seattle's compensation compares more unfavorably when hours of work

are considered.  The Guild argued that a more proper comparison is made if

 

Table 1

 

Minimum of Base Monthly Compensation of a Top Step Police Officer

in the Chairman Set of Six Comparable Cities After Employer

Pickup of Some or All of Officers Pension Contributions

and Health Insurance Costs, January, 1984

_____________________________________________________________________________

 

                         (A)                   (B)                              (C)                                  (D)

                                                            Net Monthly   Employer Monthly     Monthly

             Base Monthly                       Salary After    Health Payment         Compensation

                Salary                                 Pension Pickup               Pickup                                   (C + B)

______________________________________________________________________________

Los Angeles Area

Long Beach        $2,377                     $2,329                         $224                            $2,553

Santa Ana            2,463                      2,438                          168                             2,606

 

 

Bay Area

San Francisco   2,525             2,342                            65                              2,407

Oakland               2,559                      2,335                          162                             2,497

 

 

Northwest Area

Tacoma                2,625                      2,454                           240                              2,694

Portland               2,349                      2,185                           201                              2,386

 

Average               2,483                      2,347                           177                              2,524

 

Seattle                             2,366                      2,212                           224                              2,436

 

% of Difference        

                            (-4.9%)                    (6.1%)                        (+2.7%)                      (-3.6%)

of Seattle from

Average

_________________________________________________________________________________

 

both hourly compensation and education/training incentives are considered.

It notes that officers in Seattle assigned to patrol duty work a 8-1/4 hour

day (due to a 15 minute required roll call) whereas patrol officers in

other jurisdictions work only an 8 hour day.  This results in a Seattle

patrol officer working approximately 5 hours extra per month.  However,

this figure must, in the chairman's view, be adjusted by the fact that only

60% of the bargaining unit are assigned to patrol.  The adjustment results

in the average unit member working roughly 3 hours per month more than

their counterparts in the comparable jurisdictions.

 

            For the sake of comparison if one assumes a 160 hour work month is the

average for the comparable cities then the average officer's hourly compen-

sation would be $15.78 per hour.  Seattle's comparable average work month

of 163 hours results in an hourly compensation rate of $14.94, 5.6% less

than the average hourly rate.

 

Contingent Pay

 

            In all the comparable cities police officers can increase their

monthly pay by meeting certain contingencies.  Seattle and Tacoma are

unique in providing salary increments based on employment anniversary

dates:  2, 4, 6 and 8% respectively at 5, 10, 15 and 20 years of service.

By contrast, all other cities have contingent pay based on a combination of

education (AA, BA or Masters degree) and/or training and police experience

(Intermediate and Advanced POST-Police Officer Standard Training--certifi-

cates).  For instance, the best is Santa Ana where an AA degree plus 5

years experience gets an officer an increase in his monthly pay of $l80--in

four more years he gets $360/month without any further educational attain-

ment.  By contrast an AA degree in Oakland gets an officer only $26 per

month more regardless of years of experience (Oakland does have a small

longevity increment that the Chairman has estimated at the $20 figure for

an officer at the ten years experience level).  In Long Beach an Inter-

mediate POST certificate earns an officer $1O5 per month additional pay, an

advanced POST earns him a maximum monthly increment of $189.

 

            Table 2 discloses the minimum and maximum monthly contingent pay that

officers can earn in the six comparable West Coast cities.  It shows that

at the minimum Seattle compares unfavorably and at the maximum it compares

favorably.  In the absence of evidence regarding the numbers of officers in

the comparable cities who earn what level of contingent pay, any further

analysis or conclusions are impossible.

 

            The Guild noted its membership survey (U-D) disclosed 7% of their

members had Masters degrees, 30% Bachelors degrees and 39% had at least an

AA degree.  It argued that virtually three quarters of its members would be

eligible for the various education based contingent pay in the comparable

cities.  By contrast, the City argued that in the past it has been willing

to institute education based contingent pay, but the Guild was disinclined

to do so.  Moreover, the City argued it required only a high school degree

for hire and continued employment and therefore should not have to pay for

something it does not require.

 

            The Chairman is not persuaded by the Guild's position.  Effectively it

wants an educational increment folded into base salary.  In every other

jurisdiction the evidence shows recognition of education is contingent on

an individual officer's level of attainment.  The parties have considered

the matter of education incentives in previous negotiations and agreed not

 

                                                                Table 2

                             Minimum and Maximum Monthly Contingent Pay In

                                                the Six Comparable Cities, 1983-84

______________________________________________________________________________

City                                                     Monthly Minimum                                         Monthly Maximum

______________________________________________________________________________

 

Long Beach                                                    $lO5                                                                $l89

Santa Ana                                                       180                                                                 360

San Francisco                                        0                                                                      0

Oakland                                                            46                                                                  148

 

Tacoma                                                             52                                                                  210

Portland                                                           60                                                                   60

                       

                                   

            Average                                              $ 74                                                                 $ l6l

 

Seattle                                                                         $ 47                                                                $ 189

________________________________________________________________________________

 

to institute one.  The Chairman declines to factor in education incentives

in other jurisdictions to base salary comparisons.

 

Cost of Living

 

            The Guild argues that the salary of a police officer with an average

13.2 years of service has been eroded by changes in the cost of living as

measured by the CPI, regardless of whether the urban wage earners (W) or

all urban consumers (U) series is used (U-B).  The city argues the oppo-

site.  The difference is largely attributable to whether longevity pay and

paid health premiums are considered.  Table 3 discloses the changes since

1967 and 1971 in cost of living and changes in compensation for unit

members and the average U.S. worker.

 

            The data in the table show, regardless of which base year or which CPI

index is used, that unit members compensation has increased faster than the

cost of living.  It is only when one focuses on base salary and uses the

base year of 1971 that the CPI rises faster than pay.  However, the chair-

man believes that focus is too narrow.  A significant factor in the CPI

increases has been the dramatic increase in health care costs.  Since unit

members are provided an excellent health care package they are virtually

unaffected by this increase.  Accordingly, it is appropriate to add the

monthly health premium paid by the employer to their salary to get a

balanced picture of how unit members have fared in relation to inflation.

Also, longevity premiums should be factored into the picture in the

chairman's view since they increase as a percentage of base pay.

 

            The City presented evidence regarding the dollars needed to support

a predetermined pattern of purchases in its comparable cities.  It had a

consultant, Runzheimer and Co., Inc. do an empirical analysis of the costs

 

 

 

 

 

 

 

 

 

Table 3

Trends Monthly Compensation of 10 Year Officer in Seattle in

Relation to EPI and Compensation Index

____________________________________________________________________________

                                                                                                            Percentage                 Percentage                            

                                                                                                             Increase                     Increase

Consumer Price                                              1971                            Since 1971                  Since 1967

_   Index_________1967___________(W)______1983__________________________________________

CPI-W                         100.0                           117.6               299.0               154%                          199%

CPI-u                          100.0                           121.2               304.5               155%                          210% 

                                                           

Compensation Index*

Comp. Index              50.8                             61.5                164.4               167%                          222%

 

Seattle Monthly

Compensation

 

Base Salary                $670                            $975                $2,366             143%

 

Plus Longevity           $670                            $984                $2,461             150%

 

Plus Health                 $695                            $1,016             $2,697             165%                          288%

Insurance

___________________________________________________________________________________________

*Nonfarm business sector, all persons:  hourly compensation includes employer expenditures

for hourly wages, pay supplements and payments to pension and health plans and other

employee benefits, U.S. Department of Labor, Bureau of Labor Statistics, Productivity and

Cost Series.

 

to provide a typical middle income expenditure pattern for a family of

four: earning $28,400 with one car and a three bedroom, 1-1/2 bath, 1600

sq. ft. house in December 1983.  Table 4 discloses the index of expendi-

tures needed to support this assumed lifestyle in four of the six com-

parable cities (Runzheimer did not survey Tacoma or Santa Ana).  Table 4

suggests

 

Table 4

Runzheimer Indices of Expenditures in Four

Comparable Cities, December, 1983

 

      City                                         Cost Index (a)

      San Francisco                         116.0

      long Beach                                          113.2

      Oakland                                              105.9

      Portland                                              104.7

 

                                                                  109.9

 

      Seattle                                                            99.2

      Standard City, USA                           100.0

 

________________________________

(a)        Table 1, p. Ic

 

that on average a person in Seattle spends 10.7% less to support the

assumed standard of living than the average person in the four cities

shown.

 

            Now the City argues that since it cost less to live in Seattle, that

salaries should be adjusted accordingly.  while the Chairman sees some

merit in this argument, he is hesitant to give too much weight to this one

factor.  First, the Runzheimer analysis was done at a single point in time.

whether these cost differences are stable over even the short run is

questionable.  For example, a similar study of living cost done by the

American Chamber of Commerce Researcher Association (Area Cost-of-Living

Index for Metro Cities, First Charter 1983; Inter-City Cost of Living

Indicators) supports this point.  It surveyed a different set of cities in

California, but two were in common with Runzheimer:  San Jose and Sacra-

mento. Th San Jose the Chamber index was 117.1 in the first quarter of

1983.   Runzheimer's survey nine months later results in an index of

107.2-nearly a 10% difference.  Similarly in Sacramento Runzheimer's index

was 101.0 while the Chambers was 107.1--a 7% difference in the opposite

direction from that found in San Jose.  The Chamber surveyed Tacoma and

found its index to be 103.0.  Nine months later Runzheimer finds Seattle's

index at 99.2-a 4% difference.  while one would expect some difference

between the two studies due to different assumptions about expenditure

patterns, the size of the difference suggests other sources, e.g. sample

size, statistical error and/or actual fluctuation in real cost

expenditures.

 

            In addition, the Runzheimer survey discloses that one can drastically

change one's living expenditures by simply moving a short distance.  For

instance, if a person chooses to live in San Francisco rather than Oakland

his expenditures rise by 10%.  If he chooses the other way his living costs

decrease by 10%.

 

Other Factors

 

            In the Chairman's view the most important other factor to consider is

labor market conditions in the Seattle area, both in the public and private

sectors.  Table 5 shows 1983 base monthly salaries for police officers in

the fourteen highest paying cities in the Seattle area labor market.  Table

4 reveals that Seattle's 1983 base monthly salary of $2,366 is only $1 more

 

Table 5

Base Salary Changes in the Twelve Highest

Paid Cities in 1983

 

_________________________________________________________________________________

                                                                        Base Salary

                                                                        1983 for                                                                      Percentage                                                    

                                                                        Top Step                                                                     Increase for

                                                                        Police Officer                                                             1984

__________________________________________________________________________________

Renton                                                            $2,485                                                                         0

Auburn                                                            2,463                                                                          3.0

Kirkland                                                         2,462                                                                          4.0

Tacoma                                                           2,406                                                                          6.0

Mercer Island                                                2,391                                                                          4.6

Redmond                                                        2,382                                                                          0

Bellevue                                                         2,371                                                  In Arbitration

Everett                                                            2,347                                                                          4.0

Mountlake Terrace                                       2,342                                                                          3.0

Kent                                                                2,325                                                                          4.3

Lynnwood                                                       2,233                                                                          5.0

Edmonds                                                         2,178                                                                          3.0

Average                                                          2,365                                                                          3.3%

 

1984 Average                                                  $2,465

 

__________________________________________________________________________________

 

than the average salary of the twelve other cities of $2,365.  If only the

three largest cities (Tacoma, Bellevue, Everett) are considered then

Seattle Salary is $8 below average.  Table 5 also discloses that the

average salary settlement for 1984 in these twelve Seattle area cities was

3.3% resulting in base salary average of $2,465.

 

            In the private sector, wage settlements in 1983 in and around Seattle

were characterized by wage freezes or modest first year increases averaging

roughly 3%.  Nationwide, private sector, negotiated first year increases

averaged only 1.7% during the first nine months of 1983.  Seattle settle-

ments appear on average to be in line with this national pattern.

 

            The Guild argues that increase in officer productivity in recent years

also support its salary position (U-E).  This argument is difficult to

evaluate without the same information from comparable cities.  By contrast,

the City provides some analysis of workload/productivity in Seattle and its

8 comparable jurisdictions.  Seattle is second only to San Francisco in

officers per thousand population and has the fourth highest crime rate per

100,000 population, and ranks five Out of 8 in terms of number of crimes

per officer (WL 3-5).

 

            The Chairman finds that, on balance, the Guild and City evidence

regarding productivity/workload discloses that Seattle is not different

enough, either compared to its past or other cities, to warrant a

"productivity increase" over and above an increase indicated by other

factors.

 

Salary Determination

 

            The foregoing consideration of the factors set out in RCW 41.56 sets

the stage for the salary decision.  While the law instructs the Panel to

consider these factors, it does not indicate how much each factor should be

weighed in the final analysis.  In the Chairman's view it is a reasonable

assumption that the various factors discussed above were also considered by

city and police officer negotiators in arriving at recent salary settle-

ments in the Seattle area.  Why?  Because if those parties had reached

impasse they also would have had their salaries determined under RCW 41.56.

In his opinion the best single guide to what constitutes an equitable

salary increase in this proceeding is what other parties similarly situated

have found reasonable to agree upon regarding salary levels--all other

things being relatively equal.  Seattle area cities are more similarly

situated than other West Coast cities.  They operate under Washington

statute and are in the same living areas and labor market.

 

            Recent area settlements have averaged 3.3%.  The discussion now turns

to a consideration of whether other things warrant an adjustment of this

figure in the case of Seattle.

 

            If we consider the West Coast comparables, Seattle lags in base

monthly compensation by 3.6% or in terms of hourly compensation by 5.6%.

Given cost of  living differences among these cities and Seattle, the

Chairman does not believe Seattle should be the compensation leader of this

group of West Coast comparables.  In his opinion, and in light of the

evidence in this proceeding, Seattle should remain in the mid range in

terms of base monthly compensation, a position Seattle has held in recent

years in relation to the old set of comparables used by the parties.

 

            By contrast until 1978, Seattle was among the compensation leaders of

larger area cities and traditionally near parity with Tacoma.  In recent

years its position has slipped considerably.  In the Chairman's opinion

historical patterns deserve some weight in the salary decision.  Accord-

ingly, he adjusts the beginning 3.3% upward to 3.5%.  This increase will

begin to reverse the downward slide of Seattle among its local comparables.

The Chairman understands the desire of the Guild to "catch up" faster to

its local comparables, especially Tacoma.  However, the Chairman believes a

speedier catchup would be imprudent because of the severe fiscal and labor

relations strain any larger increase would place on the City.  Also, if

historic patterns are based on factors that continue to the present the

Seattle police officers will probably find themselves once again compen-

sation leaders as a result of increases over the next few years.

 

            The parties have already agreed to a continuation of 100% payment of

health care premiums by the City in the second year of the contract.  This

increase is equivalent of an additional salary increase of 0.7% (CA-i pp.

2&3).  Accordingly, an increase of 3.5% on salaries represents a 4.2%

increase in total compensation.  The size of this increase will also keep

Seattle compensation near the average for the West Coast comparables, a

position the Chairman determines to be appropriate in light of all the

evidence.

 

Health Insurance

 

            The City contends that an increase in the major medical deductible

from $50 to $100 is justified by inflation and prior agreements.  It argues

that the CPI and salaries have more than doubled since the $50 deductible

was set in 1971.  Moreover, it notes that the parties agreed in Article 11,

Section 6 of the prior agreement that the deductible would increase when it

did for other employees.  It has increased to $100 for other City

employees.  Accordingly, the Chairman will order an increase to $100 for

unit employees.

 

            The Guild proposes to add coverage for glasses to the current vision

care program.  However, it did not present persuasive evidence and argument

as to why this proposal should be adopted.  By contrast, the City intro-

duces evidence that provision of glasses in other West Coast cities was the

exception rather than the rule.  The Chairman therefore rejects the

proposal.

 

            The Guild also proposed that a plan be devised so that retired

officers can purchase continued health insurance coverage through a City

sponsored group plan.  The Chairman finds this proposal reasonable.  The

City is currently reviewing its plan through which other retired City

employees can maintain group coverage at their own expense.  The Chairman

believes that retired police officers should be eligible for the group

insurance plan for retirees that results from this review.  The agreement

reached between the City and the fire fighters union provides a model for

language to be placed in the agreement to achieve the desired result.

 

 

                                                AWARD

 

1.         Salaries:  3.5% increase in base monthly salaries retroactive to

            September 1, 1983.

 

2.         Major medical deductible:  increase from $50 to $100 effective

            March 1, 1984.

 

3.         City, and Union representatives will meet within 60 days after the

            date of this Award to explore the possibility of group medical

            insurance coverage through the City for spouses and eligible

            dependents of members of the bargaining unit who have retired.  Said

            group coverage would be the same in terms of medical benefits,

            eligibility rules , and carriers as now made available to City

            employees who are members of the City of Seattle Retirement System and

            would be implemented as soon as possible.

 

4.         All other demands are summarily denied.

 

 

Philip Kienast

Panel Chairman

February 24, 1984

Seattle, Washington

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