INTEREST ARBITRATIONS

Decision Information

Decision Content

City of Mosses Lake

And

International Association of Fire Fighters, Local 2053

Interest Arbitration

Arbitrator:      Carlton J. Snow

Date Issued:   05/09/1991

 

 

Arbitrator:         Snow; Carlton J.

Case #:              08474-I-90-00195

Employer:          City of Moses Lake

Union:                IAFF; Local 2053

Date Issued:     05/09/1991

 

 

                        IN THE MATTER OF INTEREST ARBITRATION

                       

                                                     BETWEEN

 

                                 INTERNATIONAL ASSOCIATION OF

                                      FIREFIGHTERS, LOCAL 2053

 

                                                           AND

 

                              CITY OF MOSES LAKE, WASHINGTON

                                        (PERC. NO. 8474-I-90-00195)

 

 

 

                                    Arbitration Panel Members:

                                               Danny Downs

 

                        Arbitrator Appointed by the Association:

                                               Gary Persons

 

                               Arbitrator Appointed by Employer:

                                    Professor Carlton J. Snow

                       Neutral Arbitrator and Chairman of the Panel

 

 

                                    TABLE OF CONTENTS

                                                                                                                                    Page

I.          INTRODUCTION                                                                                        1

II.        THE COMMUNITY OF MOSES LAKE                                                   3

III.       NEGOTIATION HISTORY                                                            4

IV.       THE ISSUE OF COMPARABLE JURISDICTIONS                               5

V.        THE ISSUE OF HEALTH AND WELFARE                                              18

VI.       HOLIDAY PAY                                                                                             24

VII.     SALARIES                                                                                                     29

VIII.    MEDICAL CERTIFICATION COMPENSATION                                   33

IX.       LONGEVITY PAY                                                                                        37

X.        DURATION OF THE AGREEMENT                                                         40

XI.       SICK LEAVE ACCRUAL                                                                            45

XII.     CONCLUSION                                                                                              50

 

 

IN THE MATTER OF INTEREST             )

            ARBITRATION                                            )

                                                                                    )

                BETWEEN                                     )           PANEL MEMBERS

                                                                                    )

INTERNATIONAL ASSOCIATION OF                )           Danny Downs

FIREFIGHTERS, Local 2052                                   )

                                                                                    )           Gary Persons

                        AND                                                   )

                                                                                    )           Professor Carlton J. Snow

CITY OF MOSES LAKE, WASHINGTON            )           Neutral Arbitrator and

(PERC No. 8471-1-90-00195                         )           Chairman of the Panel

 

 

I.          INTRODUCTION

 

            Pursuant to RCW 41.56.450, this interest arbitration pro-

ceeded to hearing before panel members Danny Downs, Executive

Board Member of the Washington State Council of Firefighters;

Gary persons, Division Director of Employee Relations for the

City of Spokane, Washington; and Professor Carlton J. Snow of

the Willamette University Law School in Salem, Oregon.

            The arbitration panel proceeded in accordance with

requirements set forth in  RCW 41.56.450-460  as well  as

WAC 391-55-250-255 in resolving this dispute.  Professor

Carlton J. Snow served as the Chairman of the arbitration

panel.  There were no challenges to the jurisdiction of the

arbitrators, and the parties stipulated that the matter pro-

perly had been submitted to the panel for a decision.

            A hearing in the matter occurred on August 28, 1990 in

a conference room of the Hallmark Inn located in Moses Lake,

Washington.  The hearing proceeded in an orderly manner.

There was a full opportunity for the parties to submit evi-

dence, to examine and cross-examine witnesses, and to argue

the matter.  All witnesses testified under oath as administered

by the arbitrator.  The advocates fully and fairly represented

their respective parties.  Mr. Alex J. Skalbania of the

Critchlow, Williams & Schuster law firm in Richland, Washington

represented Local 2052 of the International Association of

Firefighters.  Mr. James A. Whitaker, City Attorney, represented

the City of Moses Lake, Washington.  The arbitrator tape-

recorded the proceeding as an extension of his personal notes.

            The parties elected to submit post-hearing briefs in the

matter, and the arbitrator officially closed the hearing on

October 8, 1990 after receipt of the final brief in the matter.

Illness and a surgery in the arbitrator's family delayed issu-

mg a report in the matter.  The arbitration panel gave approp-

riate weight to relevant statutory criteria in order to make

determinations in this matter.  Although all statutory  criteria

to be used in interest arbitration were considered, the legis-

lation has not set forth the weight to be accorded any parti-

cular criterion; and no single statutory factor has been

dispositive in the case.

            The chairman of the panel submitted a tentative report to

his arbitrator colleagues in December, 1990.  Scheduling

problems made it impossible for them to confer until January

10, 1991 on which date they held an executive session by tele-

phone.  The arbitrators discussed a range of issues, and the

chairman submitted a modified version of the report to the

party-appointed arbitrators at which time they concurred with

the result.  On January 28, 1991, the Association's arbitrator

returned signature pages to the chairman of the panel

indicating that he concurred with the result, and the

Employer's arbitrator had stated his concurrence and that he,

too, intended to return his signature pages.

            On February 1, 1991, the Employer's arbitrator requested

that the reference in the draft to "U.S. All City Average"

be deleted, and the panel agreed to do so.  The arbitrator

submitted a copy of that revised draft to the panel members,

and they approved it.  Then, on February 27, the Association's

arbitrator requested that language with regard to the "sick

leave" proposal be revised; and the panel adopted the revi-

sion.  The panel also adopted the Employer's proposal that

language with regard to the 'tcap" on sick leave be clarified.

Mr. Downs had been concerned with the accrual rate, and

Mr. Persons had been concerned with the limitation on the

total number of hours to be accrued, and the panel reached

a mediated settlement with regard to this matter.

            On March 20, 1991, Mr. Rex Lacy, Senior Staff Mediator

for the Washington Public Employment Relations Commission,

inquired about the status of the report.  The chairman of

the panel indicated to him that the report had not been

finalized and that the chairman was mediating refinements

in the report because it appeared highly likely that the

panel would be able to issue a unanimous decision.  All con-

versations had been unduly cordial, and all panel members had

shown considerable flexibility and cooperativeness in an

effort to issue a report consistent with the needs of the

parties.

            At the end of the conversation on April 5, 1991,

Mr. Persons again indicated his intent to forward concurring

signature pages for the report to the chairman of the panel.

            Then, on April 16, 1991, the Employer's party-appointed

arbitrator sent the chairman the following letter:

 

            Gentlemen:

 

            First of all, let me apologize causing [sic] a

            delay in finalizing the arbitration award as well

            as an error in my judgement and recommendation to

            the panel.

 

            I find that I erred, in a fairly substantive way,

            in the recommendation in my February 1, 1991

            letter to Professor Snow.

 

            My intention was to both personally apologize to

            you gentlemen as well as discuss the situation in

            a conference call.  However, in finding that Mr.

            Downs is not available until Friday, April 19 to

            even schedule a conference call, I am reducing it

            to writing in an effort to not delay the process

            any further.

 

            You will note that in my letter of February 1,

            1991, in an effort to clarify the language in the

            award concerning "salaries," I urged the panel to

            consider striking "U.S. City Average" from the

            method of providing salary increases based on

            changes in the U.S. Consumer Price Index.  The

            error that I found quite accidentally since our

            last  telephone conversation, was that the urging

            should have been to strike the reference to

            "Seattle-Tacoma, WA" instead.

 

            Throughout this proceeding, the union has proposed

            that the U.S. All-Cities Index be used.  On review

            I can find no evidence either in the bargaining

            history, the proposals to arbitration, post-

            hearing briefs, nor analysis in Professor Snow's

            award that would suggest that the 1992 and 1993

            salary increases be based on an other than U.S.

            Consumer Price Index U.S. City Average.  Frankly,

            I simply made a mistake in suggesting otherwise.

 

            This conclusion is based on the following:

 

            A.        Current Contract Language - The existing

                        contract between the firefighters and the

                        city of Moses Lake, in addressing how to

                        determine future salaries, says in part "...

                        the CPI, all U.S. Index (W September to

                        September..."

 

            B.        Union Proposal - A letter of August 20,

                        1990 to Professor Snow from Alex J. Skalbania

                        details of [sic] the union's proposal to the

                        arbitration process for future adjustments

                        to firefighters salary.  Their proposal

                        states in part ". . salaries. . . shall be

                        increased by an amount equal to the percen-

                        tage change in the U.S. Consumer Price Index

                        Urban Wage Earners, All-Cities as measured

                        for the preceding year from July to July. . ."

                        It appears the only deviation from the exis-

                        ting contract and past practice was to suggest

                        using the month of July rather than the month

                        of September as a basis point for determining

                        what percentage salaries would be increased.

 

            C.        Union's Post Hearing Brief:  On page 15 of

                        the brief it states in part, "Members of

                        Local 2052 should receive an increase in

                        their base salary of 5.1 percent during 1990

                        an amount which is equal to the U.S. Consumer

                        Price Index for Urban Wage Earners, All-

                        Cities, for the period between July 1988 and

                        July of 1989..."

 

            D.        City's Post Hearing Brief - On page 11 of the

                        brief, under IV, Salaries, it states in

                        part, ". . the 3.5 percent increase proposed

                        by the city was calculated by taking the

                        September 1988 to September 1989 CPI of 4.1

                        percent and reducing it...."

 

                        It further states that ". . the city argues

                        using a July to July CPI is unfair and unwar-

                        ranted.  The September to September CPI

                        figure has been used in negotiations with

                        the union for years, going back to at least

                        1980 (city exhibit No. 15).  For consistency

                        sake a September to September CPI should

                        continue to be used."  Since the Seattle-

                        Tacoma Index is not published in September

                        (it only comes out in January and July),

                        this reference was clearly intended to be for

                        the All-Cities Index.

 

            E.         Arbitrator's Award - In the draft award

                        submitted by Professor Snow under X, Duration

                        of the Agreement, B. Discussion, page 43,

                        reads in part ". . .in contrast with the CPI-W,

                        the CPI-U is based on expenditures reported

                        by all consumer units in urban areas with

                        an exception not relevant in this case.  It

                        seems appropriate to use a more broadly

                        based Index in the parties agreement."

                        While changing from the use of the "W" Index

                        to the "U" is a deviation from the data

                        previously mentioned, it is not as a substan-

                        tive issue as would be a change from the use

                        of the "U.S. City Average  to a use of

                        "Seattle-Tacoma."

 

            F.         Conclusion - Based on the above, I would

                        suggest that the award be returned to its

                        original state by providing that salaries

                        for Moses Lake Firefighters be adjusted on

                        January 1, 1992 and 1993 by the increase in

                        the U.S. Consumer Price Index U.S. City

                        Average for all urban consumers from July

                        1989 to July 1990 for 1991 and July 1991 to

                        July 1992 for 1993.

 

                        This in essence would:

                        1 .        follow past practice and current con-

                                    tract language

                        2.         address the union's proposal and desires;

                                    and

                        3.         be in concert with the information

                                    contained in its post hearing brief.

 

            Obviously, the only difference of opinion between

            the city and the Firefighters is what months

            would be used for comparison purposes.  The

            union's wishes being July and the city's September.

            No where in any of the documentation or testi-

            mony, to the best of my knowledge, has there been

            any discussion or proposal concerning a change in

            the Index which is used.  The change resulted

            solely from my error: without checking first, I

            erroneously assumed the parties had historically

            been using the Seattle-Tacoma Index.  Since the

            parties practice, and all evidence introduced at

            the hearing supports the use of the All-Cities

            Index, I request that we agree to remedy my

            error and that the award use the All-Cities Index.

 

            Again, I apologize for suggesting the February 20,

            1991 change to the panel.  It appears that in my

            efforts to clarify an issue, I unintentionally may

            have completely "muddied the waters."

 

            I would be happy to discuss this with you at

            your convenience.

 

            Sincerely,

 

            Gary Persons

            Division Director 

 

            The issue raised in Mr. Persons's letter never had been

discussed by the panel.

            In response to Mr. Persons's letter of April 16, Mr.

Downs submitted the following letter on April 23, 1991:

 

            Gentlemen:

 

            It was with some dismay that I received Mr.

            Persons's letter requesting additional changes

            to the Moses Lake arbitration award as I was of

            the understanding at the completion of our last

            conference call that we were in agreement, after

            considerable review of the award drafts, and that

            Mr. Persons was going to submit his signature

            page to finalize the award.

 

            In view of my understanding of the finalized

            status of the Award, and the following, I find

            I cannot concur with Mr. Persons  request.

 

            A.        I believe the award as finalized during our

                        last conference call constitutes a fair and

                        equitable award for the parties.

 

            B.        It is my belief that the Seattle area index

                        more closely reflects the economic climate

                        in the State of Washington than does the

                        All Cities index, as is indicated and recog-

                        nized by the fact that the State did not

                        experience the recent recession felt by much

                        of the U.S.

 

            C.        Finally, a change at this late date, of the

                        magnitude suggested by Mr. Persons, would

                        require considerable change in the award

                        resulting in the need for further draft

                        review and additional delay in submission

                        of the award to the parties.  While delay of

                        the award may be beneficial to the employer,

                        who is earning interest on monies budgeted

                        for pay increases but not paid out, it most

                        certainly is not beneficial to the Fire

                        Fighters who have not had a pay increase

                        since January of 1989.

 

            D.        The City of Moses Lake did not produce evi-

                        dence of inability to meet the salary increases

                        agreed to in the award draft as finalized at 

                        our last conference call, but only a reluc-

                        tance to do so.

 

            As everyone has had considerable time to review

            the award draft prior to our last conference call

            and in consideration of the fact that it is

            approximately eight months since the hearing date

            of this arbitration and the parties are well into

            the second year of the term of the agreement as

            set by this award.  I urge the award be submitted

            as determined and agreed during our last confer-

            ence call.

 

            Sincerely,

 

            Dan Downs

            IAFF Rep.

 

            It is inaccurate to describe the measurement set forth

in the report as a "mistake," for the chairman selected it

deliberately and thoughtfully.  The matter was never a focal

point of the parties' attention either at the hearing or in

their post-hearing briefs.  The measurement selected by the

chairman is the one most highly recommended by economists

for the Bureau of Labor Statistics.  Negotiations within the

arbitration panel had dragged on for months, and the proposed

revision was a significant one with the sort of substantive

content that signalled a major change in the nature of the

discussion by the arbitration panel.  Even though the parties

had waived all relevant time constraints with regard to issu-

mg the report, there is an appropriate time to call a halt

to further revisions; and that time has been reached in this

case.

 

II.        THE COMMUNITY OF MOSES LAKE

 

            Moses Lake, Washington is a community in the central

part of the state east of the Cascade Mountain range.  It is

a community of approximately 11,000 citizens with an economy

based primarily on agriculture.  There-are a number of food

processing plants in the area  and conventional "support"

industries to nourish any community of this size.  A shopping

mall is under construction in the community.

            The Moses Lake Fire Department has a total personnel

complement of thirteen individuals.  The Chief and Assistant

Chief are not in the bargaining unit, and the eleven member

bargaining unit includes three captains.  There is one fire

station equipped with three Class A, 1500 gallon a minute

pumpers.  The Department operates a rescue boat and salvage

equipment.  The hospital district owns an ambulance, and the

Fire Department staffs it.  All members of the bargaining

unit are EMT certified, and  number have earned Advanced Life

Support certification.

            The population of the community has remained relatively

stable  since 1955 experiencing a growth of approximately

1000 people in that time.  There are approximately 26,000

citizens in the Greater Moses Lake area, and there have been

two annexations during the past five years that added approxi-

mately one square mile of land to the City of Moses Lake.

The annexations has added approximately fifteen to sixteen

dwelling units to the city.  The Fire Department provides

fire suppression protection only for the City of Moses Lake,

but the ambulance service provided by the Department covers

Hospital District No. 1, an area that is larger than that of

Moses Lake.

 

III.       NEGOTIATION HISTORY

 

            This is not the parties' first agreement, and they have

successfully negotiated a number of collective bargaining

agreements with each other over the years.  In May of 1989,

the Association sent the Employer a Letter of Intent indicating

its desire to negotiate a new agreement between the parties.

The parties first met on September 8, 1989 and discussed pro-

posals, but the Employer requested not to make a wage proposal

until later.  The parties met again on September 19, 1989 at

which time management offered a two percent wage increase.

A third meeting was held. on November 1, 1989, and the Employer

increased its wage offer to three percent.  Their last regular

bargaining session occurred on November 21, 1989.

            There followed two to three mediation sessions between

the parties, but they proved to be unproductive.  The parties,

then, sought interest arbitration, and the matter came for

hearing in late August, 1990.  The parties submitted five

issues to the arbitration panel, namely, (1 ) health and wel-

fare insurance; (2) holiday pay; (3) salaries; (4) length of

the agreement; and (5) sick leave.

 

IV.       THE ISSUE OF COMPARABLE JURISDICTIONS

 

            RCW 41.56.460 lists statutory criteria to be used as

standards and guidelines in reaching an interest arbitration

decision.  In this case, it has not been necessary to evaluate

the Employer's ability to fund the economic program sought by

the Association because management never alleged inability

to pay.  The debate between the parties has been about which

communities ought to be compared with Moses Lake, Washington.

Arbitrators long have recognized comparisons among jurisdic-

tions as "preeminent in wage determination" because such com-

parisons off "a presumptive test of the fairness of a wage.

(See, Feis, Principles of Wage Settlement, 339 (1924)).  As

Arvid Anderson, past President of the National Academy of

Arbitrators, has stated, "The most significant statutory

standard for arbitration in the public sector is comparability."

(See, 56 Fordham L. Rev. 153, 161 (1987)).  The parties, how-

ever, did not challenge the importance of comparisons as much

as they disagreed about an appropriate methodology for selec

ting a list of comparable jurisdictions.

            In explaining the basis for comparable jurisdictions

selected by the City, Mr. Gavinski, City Manager, testified

that the Employer (1) used a range covering cities half as

small to those half again as large as Moses Lake; (2) only

cities east of the Cascade Mountains; (3) all full-time fire

departments; and (4) only fire departments not funded as a

fire district.  The Association, on the other hand, used a

methodology that "attempted to identify all of the public fire

departments in the State of Washington that were within plus

or minus fifty percent in size of Moses Lake's Fire Department

in terms of:  the number of employes that were within the

bargaining unit of the Department; the number of employes

that were within the fire department as a whole; and the

department budget size."  (See, Association's Post-hearing

Brief, p. 6).

            The objective, of course, of seeking comparable juris-

dictions is to establish a test of fairness for proposals

parties seek to place in a collective bargaining agreement.

The objective is not to produce a "result oriented" list of

comparable cities.  The purpose is to avoid the scenario

described by one scholar as follows:

 

            Pick the criterion you want to show that you're

            worse off compared to your neighbor:  rates in "X"

            community, rates in the average of neighboring

            communities, closing the gap between you and the

            competitor, the cost-of-living increases, rates

            of increase in past years compared to this year,

            keeping at a fixed position in the scale of sala-

            ries, starting or top, of "X" communities within

            "Y" miles.  And the list goes on.  (See, Zack,

            "Arbitration and the Public Interest," Proceedings

            of the Twenty-fourth Annual Meeting of the National

            Academy of Arbitrators, 161, 189 (1971)).

 

The purpose of comparisons is to provide a rational standard

and not to create a method for splitting the difference in inter-

est arbitration.  Parties do not seek the weighted average

of an arbitrator's notion of equity but, rather, a principled

basis for resolving their impasse.

 

            Neither list of comparable jurisdictions selected by the

parties is consistent with the stated methodology used by either

of them.  Some jurisdictions included on the parties' list

are simply incompatible with the criteria supposed to have

been used.  Other jurisdictions on a list were included by

a party inadvertently or by mistake.

 

            Jurisdictions chosen by the parties are as follows:

 

            City's List                               Association's List

            Cheney                                   Centralia

            Clarkston                                Clarkston

            Ellensburg                              Ellensburg

            Pasco  Kitsap                         Co. Fire Dist. No. 1

            Pullman                                   Mountlake Terrace

            Sunnyside                               Pullman

            Toppenish                               Shelton

            Walla Walla                            Snohomish Co. Fire Dist. No. 4

            Wenatchee

 

            There are significant problems with some entries on each

list   Pasco, Washington, for example, has a bargaining unit

twice the size of Moses Lake with a wage and benefit budget

that is only two-thirds larger than Moses Lake.  (Pasco data

were not made available to the arbitration panel for the 1990

agreement).  Walla Walla has a bargaining unit almost four times

Moses Lake with 41 members in the unit as compared with 11 in

Moses Lake. Wenatchee has an assessed valuation of $608,000,000

in contrast with $239,000,000 in Moses Lake. Mountlake Terrace,

on the other hand, has a bargaining unit only four employes

larger than the one in Moses Lake with a total departmental

budget almost twice the size of that in Moses Lake.  With

only four additional fire fighters, Mountlake Terrace serves a

population that is approximately 145% greater than the popu-

lation served by the Moses Lake Fire Department.  Snohomish

County Fire District No. 4 and Kitsap County Fire District

No. 1 enjoy departmental budgets that range from 45% to 15%

greater than that of Moses Lake.  All these disparities make

for difficult comparisons.

            There is also the dilemma of inconsistent data.  For

example, which is the correct departmental budget size,

$699,911 as set forth by the Association or $584,902 set

forth in the survey produced by the Washington State Council

of Firefighters?  (See, Association's Exhibit No. 2).  Is a

firefighter in Toppenish paid $1,999 monthly or $2,079?  (See,

City's Exhibit No. 10).  In fairness, the Employer changed

this figure in Appendix C of its Post-hearing Brief.  Is the

assessed valuation of Moses Lake $295,000,000, $269,000,000,

$291,000,000, or $239,000,000?  (See, Association's Hearing

Handbook, p.3; Association's Exhibit No. 3; City's Exhibit

No. 10; and City's Post-hearing Brief, App. B).

            There is also the issue of fire districts.  The Associ-

ation argued that fire districts are appropriate comparable

jurisdictions with which to measure a fair wage in Moses Lake.

The Employer argued just as vigorously that it is highly

inappropriate to include fire districts in the list of com-

parable jurisdictions.

            Mr. Gavinski, City Manager, testified that a fire dis-

trict is a "junior taxing district" which is  an entirely

different animal" from a municipal organization such as a city.

 

He testified as follows:

 

            A fire district is different because the taxes it

            receives fall in a lower category, if you want to

            put it that way, from taxes that a city like Moses

            Lake receives.  In other words, there are priori-

            ties which are given to taxes which are assessed

            and collected; and if, in fact, under the system

            we have, certain taxing authority by the cities,

            counties, state, etc., used by whatever taxing

            authority is available, junior taxing districts

            such as fire districts will have its tax collec-

            tion shaved or reduced in proportion to the other

            junior taxing districts in order to come up with

            the total amount of money which is equal to what-

            ever statutory and constitutional limits exist.

 

He testified without rebuttal that a fire district uses its

funds solely for fire suppression and fire prevention pur-

poses and that a special assessment exists only for that use.

By contrast, a fire department is funded from general tax

revenues along with other city departments such as police,

finance, parks and recreation, library, airport, and engineering.

            Mr. Penrose, President of the Association, testified

that the Washington Legislature had amended the public

employes  collective bargaining law to permit employes in

city fire departments to compare themselves with  fire

districts.    In 1985, RCW 41.56.460(c) instructed an arbi-

tration panel to be guided by:

 

            Comparison of the wages, hours and conditions of

            employment of personnel involved in the proceed-

            ings with the wages, hours, and conditions of

            employment of like personnel of like employers of

            similar size on the West Coast of the United States.

            (See, Association's Exhibit No. 2, emphasis added).

 

            In 1987, the Washington Legislature amended RCW 41.56.460(c)

to state:

                        (c)(i)  For employees listed in *RCW

            41.56.030(6)(a) and (c), comparison of the wages,

            hours and conditions of employment of personnel

            involved  in  the  proceedings  with  the  wages,

            hours,  and  conditions  of  employment  of  like

            personnel  of  like  employers  of  similar  size

            on the west coast of the United States;

                        (ii)        For employees listed in *RCW

            41.56.030(6)(b), comparison of the wages, hours,

            and conditions of employment of personnel involved

            in the proceedings with the wages,  hours,  and

            conditions of  employment of  like personnel  of

            public fire departments of similar size on the

            west coast of the United States.  However, when

            an adequate number of comparable employers exists

            within the state of Washington, other west coast

            employers shall not be considered; . . .

            (See,  Association's  Exhibit  No.  1 ,  emphasis

            added).

 

Mr. Penrose testified he had been told that the legislative

intent was to permit a comparison of wages and employment

conditions between cities and fire districts.  It was unclear

whether the Employer failed to rebut the testimony because it

assumed the hearsay nature of the evidence would cause it to

be disregarded or because there was no rebuttal available for

presentation.

            There is also the "labor market" problem with respect to

an appropriate selection of comparable jurisdictions.  A

"labor market" theory is concerned with how a system employs

the available labor force and how workers are allocated to

alternative types of employment.  Although there might be much

debate about their nature, systematic forces are believed to

be at work guiding the operation of the labor market.  While

there are many, one traditional conceptual framework of a

labor market involves a supply and demand analysis.  The

objective is to understand the pricing of labor based on an

understanding of the supply and demand for labor.

            The Association's desire to use a statewide list of

comparable entities is based not only on statutory language

but on an underlying assumption that there is a perfect labor

market from which workers are drawn who should receive the

same compensation for doing essentially the same work.  Impli-

cit in this model of the labor market is an unspoken assump-

tion that potential employes for Moses Lake have perfect

information about opportunities and wage rates in the city;

that workers respond to differences in wage rates and move

toward the higher rate; that workers are able to move when a

higher paying opportunity arises; and that each employer is

attempting to maximize the best use of resources for that

particular entity.

            It, however, is not accurate to view the State of

Washington as one giant labor pool from which employers may.

pull prospective firefighters.  As one scholar noted many

years ago:

 

            At any time in any labor market one finds a great

            diversity of rates for identically defined jobs

            . . . .There are vast differences in the rates

            paid for comparable work in a given industry in a

            given labor market area.  Cross-sectionally, one

            finds that large firms tend to pay higher wages

            than small firms.  (See, Reynolds, "Research on

            Wages," Social Science Research Council, 27 (1947)).

 

Modern labor market theory has refined markets for a parti-

cular occupation and has become increasingly conscious of

primary   labor markets that might be more regional than

statewide.  (See, Freeman, "What Do Unions Do?" (1984)).

Some educational systems, for example, are now being viewed

as central labor market institutions.

            The comparability data put forth by the Association

implicitly were premised on an equilibrium in the competition

for similar workers with the theory being that an employer

paying a smaller wage than the "going rate" would lose workers

because they would move to the higher wage rates.  Likewise,

the unspoken assumption was that no municipality would be

willing to pay more than the "going rate" because of its

desire to maximize the use of its resources.  Theoretically,

this model would produce the most efficient use of labor.

But the model implicit in the Association's data failed to

take into account an imperfect world.

            Employers sometimes fail to maximize the use of their-autho-

rity.  Potential employes often have imperfect information

about the availability of positions.  Even if they have the

information, they may not be able to move.  They might be

sufficiently satisfied with their present employment not to

pay attention to an opportunity with a higher wage, and it

would be necessary for the higher wage tooff set the cost of

moving.  In other words, it is not clear that wage rates for

firefighters in Washington truly are set by the impersonal

forces of supply and demand.  While the wage rates probably

are not immune to labor market forces, one suspects that they

respond very slowly and only gradually to competitive conditions.

            Data submitted to the panel of arbitrators in this case

suggested that a significant proportion of the labor force

used by the Employer as well as the labor pool from which

the Employer draws job applicants are far more immobile than

a competitive model of labor market theory would suggest.  In

other words, the immobility of the labor force undermines any

theory that there is a competition for workers.  Since 1984,

a majority of job applicants for Moses Lake have been drawn

from Eastern Washington applicants.  The data reveal the fol-

lowing pattern:

 

            1984    --          53.7% from Eastern Washington

            1986    --          55.6% from Eastern Washington

            1989    --          63% from Eastern Washington.

 

In actuality, 66.7% of fire fighters hired by Moses Lake

since 1975 have been drawn from Eastern Washington job appli-

cants.  (See, City's Exhibit No. 5).  Nor has the "turnover"

rate of the existing work force revealed a different pattern.

During the past fifteen years, the Employer has lost seventeen

employes; but only four of those have been lured away by

other fire departments.  (See, City's Exhibit No. 11).

            Labor market theory is concerned with  the  efficient

allocation of resources based on appropriate wage rates.

Another guiding force in determining an appropriate wage

rate is the equity with which the labor market functions.  In

other words, fairness is a legitimate consideration in evalu-

ating the impact of the labor market on the wage rate.  Fire

fighters are hired to serve the public in various capacities,

and it is logical to assume that poorly rewarded fire fighters

who are subjected to arbitrary treatment will not be as moti-

vated to perform most effectively.  It is reasonable to conclude

that an inequitable wage rate will gradually poison relation-

ships in the work place and cause the emergence of antisocial

activity.  It is appropriate to demand that the labor market

operate in such a way that it encourages workers to perform

effectively and to develop their skills- and abilities for the

benefit of the public.

            A final consideration with respect to selecting an ap-

propriate list of comparable jurisdictions involves the City

of Sunnyside.  Sunnyside is what was characterized as a "non-

union shop."  The Employer argued that the nonunion status

of the bargaining unit at Sunnyside did not make it less com-

parable in terms of duties and responsibilities.  One interest

arbitrator has agreed with this analysis, stating:

 

            Jurisdictions properly cannot be ignored simply

            because the employees in those jurisdictions are

            not represented by a labor organization or because

            employees in that jurisdiction are not covered by

            a collective bargaining law.  (See, City of Walla

            Walla, Washington, PERC No. 6213-1-86-139).

 

At the arbitration hearing, the Association suggested that it

was inappropriate to compare union and nonunion operations.

No less an authority than former U.S. Secretary of Labor John

Dunlop and now a Professor of Economics at Harvard University

has agreed.  He stated:

 

            The simple fact is that workplaces operating under

            collective agreements are different from those with-

            out formal organization, and they operate differ-

            ently and they are typically managed in quite

            different ways.  No simple comparison or general-

            ization or statistical estimate is likely to be very

            fruitful.  (See, "Policy Problems," Wages, Prices,

            Profits, and Productivity, 137 (1959)).

 

The eminent economist Richard A. Lester has explained that

such a comparison is not appropriate because of the impact of

unions on benefit packages.  He stated:

 

            Labor unions have played a major part in the shap-

            ing and growth of company benefit plans, especially

            since the Supreme Court ruled in 1949 that pensions

            and group health insurance are mandatory bargaining

            subjects under the National Labor-Relations Act.

            (See, Lester, Economics of Labor, 2nd ed. 343 (1964)).

 

            The considerations set forth in the report make it

reasonable to draw from each list of comparable jurisdictions

submitted by the parties without relying totally on either.

The parties are in agreement that Clarkston, Ellensburg, and

Pullman are comparable entities.  Two other jurisdictions

have been drawn from each list, namely Cheney and Toppenish

from the City's list and Centralia and Shelton from the

Association's list.  Accordingly, comparable jurisdictions

used by the arbitration panel in this case are as follows:

 

                        Centralia

                        Cheney

                        Clarkston

                        Ellensburg

                        Pullman

                        Shelton

                        Toppenish

 

            Looking at selective criteria of comparability used by

the parties, the following pattern emerges:

 

Cities                       Population       Assessed                 Wage and       Bargaining

                                 Served            Valuation                 Benefit            Unit

                                 For Fire                                            Budget            Size

Centralia                  12,000             276                           $561,634         16

Cheney                    10,000             106                           457,219(T)      5

Clarkston                 6,700               104                           533,203           10

Ellensburg               11,500             229                           812,313           16

Pullman                    17,000             266                           487,232           12

Shelton                     7,620               221                           361,285           6

Toppenish                6,560               78                             151,640           5

Averages                 10,197             183                           480,646           10

________________________________________________________________

( Excluding

Moses Lake)

__________________________________________________

MOSES LAKE       10,600             269                           496,684           11

__________________________________________________

 

            It should be noted that there are some differences in

data for individual jurisdictions.  For example, there are

population differences for Cheney, Ellensburg, Clarkston, and

Pullman.  There are assessed valuation differences for

Ellensburg, Centralia, Clarkston, Pullman, Toppenish and

Shelton.  There are differences in the size of the bargaining

unit for Pullman, Centralia, Clarkston, Cheney and Ellensburg.

The arbitrator has elected to rely more heavily on data found

in Association Exhibit No. 3 than on material set forth in

Appendices B, C, and D in the Employer's Post-hearing Brief

because Association Exhibit No. 3 was the focus of cross-

examination while the appendices were not.  It should also be

recognized that Mr. Penrose testified that Cheney has a bar-

gaining unit size of four members and Clarkston a size of six

members, but data in Association   Exhibit No. 3 differed

from this testimony.  Mr. Penrose testified that his infor-

mation had been obtained either from a 1988 document or from

hearsay sources, and the data in Association Exhibit No. 3 is from

1990.  It should also be noted that the total departmental

budget for Cheney has been used instead of the wage and bene-.

fit budget due to its unavailability.

            There was discussion at one point during the arbitration

hearing about the Public Employment Relations Commission's

decision in City of Clarkston.  (See, City's Exhibit No. 6).

Moses Lake contended that the City of Clarkston decision was

relevant in this case because the Association had changed its

list of comparable jurisdictions during negotiations between

the parties.  There, however, was unrebutted evidence that

the Association gave management considerable notice of the

change, and the Employer never established any prejudice to

its case which had been caused by the change.  In City of

Clarkston, the Hearings Officer stated:

 

            It is clear that the Union changed its set of pro-

            posed comparables without notifying the Employer..

            While the record indicates that the change was

            made in response to changes in RCW 41.56.460, the

            record is equally clear that the Union never com-

            municated its intentions to the Employer.  (See,

            Decision 3246(PECB), p. 12 (1989)).

 

Evidence submitted to the arbitration panel established that

the Employer had sufficient notice of the Association's changed

list of comparable jurisdictions to prepare its case for

negotiation, mediation, and interest arbitration.  There was

no assertion that the panel is without jurisdiction to rely

on a set of comparable jurisdictions different from either

party but on jurisdictions used by at least one of the parties.

In fact, the Employer itself proposed such a methodology.

(See, Employer's Post-hearing Brief, p. 5).

 

V.        THE ISSUE OF HEALTH AND WELFARE

 

            A.        Position of the Parties

 

                        1.         The Union's Proposal

 

            The Union makes the following proposal:

 

                        The City will continue to provide its current

            level of dental and  vision  coverage for the mem-

            bers of Local 2052; the City will increase the

            medical insurance coverage which it provides to

            its LEOFF II members and to the dependents of its

            LEOFF I and LEOFF II members so that the City is

            paying an amount for the coverage that is at least

            equal to 100% of the premiums for the A.W.C. Medi-

            cal Plan "B" insurance coverage that is available

            to those individuals; the City will otherwise main-

            tain  the current system that is in place for deter-

            mining which medical insurance plans the members

            of the bargaining unit will choose to accept in a

            particular instance.  (See, Association's Post-

            hearing Brief, p. 23).

 

                        2.         The City

 

                        As its proposal on this issue, the City takes the fol-

            bowing position:

 

            The City proposes remaining with the insurance plans

            that the city currently provides.  The city would pay

            1.00% of the premiums for the employee and his/her pay

            dependents.  (See, City's Post-hearing Brief, p. 7).

 

            B.        Discussion

 

            In accordance with RCW 41.26.005, the state legislature

has divided fire fighters into LEOFF I and LEOFF II classifi-

cations.  Employes who joined the department before October,

1977 enjoy a LEOFF I classification, and these employes enjoy

coverage for basic medical services when there is an on-duty

or off-duty accident.  Employes classified as LEOFF II use

the benefits of the Workers Compensation System for duty-

related injuries, and an employe's available sick leave account

must be used for any off-duty injuries.

            The  LEOFF I  system provides an employe with 100% cover-

age for six months, whether an on-duty or off-duty accident.

At the end of six months, a LEOFF I employe may apply for

disability retirement; and the individual receives as much as

60% of his or her compensation with the City paying for medi-

cal benefits.  Such protection is not under state worker com-

pensation law.  But LEOFF II employes are covered by worker

compensation laws, and they are permitted to use one fourth

of their sick leave accumulation, one fourth of their

disability payment from the City, and the State Industrial

payment in order to fill out their disability benefit for the

first six months.  If the LEOFF II employe's injury is not

related to duty, the individual is required to use all of his

or her sick leave and is granted no retirement option.

            LEOFF I employes enjoy the benefit of Plan A, a high

quality benefit made available by the Associated Washington

Cities insurance division.   The Employer also has

available Plan B and the Guardian Plan from the Associated

Washington Cities as well as an HMO arrangement.  Although

LEOFF I employes receive the benefit of Plan A, LEOFF II

employes receive only the Guardian Plan from the Employer.

It provides the least benefits of Plan A, Plan B, or the

Guardian Plan.

            Each year members of the bargaining unit, knowing that

the Employer will pay 100% of the premium for the Guardian

Plan, vote on which plan to adopt.  If they adopt anything

other than the Guardian Plan, all LEOFF II employes must make

up the difference between premium costs for the Guardian Plan

and the higher costing Plan B or Plan A.   They may always opt

for the HMO.  Dependents are covered under the plan selected

by a majority of the group, whether they are dependents of

LEOFF I or LEOFF II employes.

            The Association maintains that the Employer ought to pay

100% of the premium for Plan B, instead of 100% of the lower

costing Guardian Plan for not only employes but also depen-

dents of both LEOFF I and LEOFF II employes.  (Dental and vision

insurance are not an issue before the arbitration panel

because the City pays 100% for these benefits).  Plan B

currently has been selected by the Association, and members

of the bargaining unit are now paying $23.86 a month beyond

premium costs being funded by the Employer.  Six members of

the bargaining unit plus all dependents would be affected by

the Association's proposal, as five bargaining unit members

are LEOFF I employes.  It was unrebutted that there has been

at least one LEOFF II employe who was injured on duty and was

compelled to exhaust all sick leave for benefits.

            The topic of insurance has been the subject of extensive

negotiation between the parties.  The current system has been

in place at least for the last three collective bargaining

agreements.  The City provides LEOFF I employes with Plan A

coverage in order to meet its statutory obligation to make

available medical services for on- and off-duty injuries.

In other words, the Employer must insure against this contin-

gency or be prepared to absorb costs on an individual basis -

from its general fund.

            A review of data from comparable jurisdictions with

respect to health insurance premiums shows the following

pattern:

 

            Cities                          Amount of Premium

                                                Paid by Employer

            Centralia                     $          314

            Cheney                                   342

            Clarkston                                381

            Ellensburg                              316

            Pullman                                   355

            Shelton                                    357

            Toppenish                               373

_________________________________________

Average excluding

Moses Lake                                       348

_________________________________________

MOSES LAKE                                  332

 

            It should be noted that there are some minor dissimi-

larities in figures used by the parties for this topic, but

the only significant one involved the City of Pullman and

whether or not the employer pays a monthly premium of $324

or $355.18.  The higher figure from the Association's material

has been used because the figure of $324 was presented in the

Employer's Post-hearing Brief where no cross-examination

could take place.  The data show that Moses Lake pays $16

below the average for health care coverage it provides mem-

bers of the bargaining unit.  Accordingly, it is reasonable

for the Employer to retain the Guardian Plan while also mak-

mg a monthly $1 6 payment to the insurance company in order

to defray the $23.86 payment now being made by employes in

order for them to enjoy benefits of Associated Washington

Cities Medical Plan B.

 

C.        Award

 

            Article 10 of the next agreement between the parties

will state:

 

            Article 10 - Health and Welfare

 

                        10.01   Effective January 5, 1990, the City will

            provide fully paid medical, dental, and vision

            insurance coverage for employees and their depen-

            dents.  Coverage will be paid for those employees

            who were paid for the full pay period and were

            employed on the last regular day for which pay was

            due and payable within the month.

 

                        10.02    The City will pay 100% of the insur-

            ance premiums for the Associated Washington Cities

            benefit trust's Guardian Plan, Washington Dental

            Service (Plan B), and Western Vision Plan vision

            insurance during the term of this agreement.  If an

            employee selects an optional health and welfare

            package, the difference in premium costs beyond

            the $16 will be paid by the employee as a miscel-

            laneous payroll deduction.  The Employer, however,

            will pay to the insurer the first $16 for any

            optional coverage costing more than the Guardian

            Plan.

 

                        10.03  If agreed to by the Labor/Management

            Committee that the level of benefits will remain

            substantially the same, the benefits provided by

            this article may be provided through a self-insured   

            plan or under group insurance policy or policies

            issued by an insurance company or companies selec-

            ted by the City.

 

                        10.04   This provision of Article 10 was not

            in contention before the arbitration panel.

 

VI.       HOLIDAY PAY

 

            A.        Proposal

 

                        1 .        Association's Proposal

 

            The Association proposed to amend current contract

language as follows:

 

            Employees shall be paid One Hundred and Twenty-

            four (124) hours of straight time pay compensation

            for holidays (including the personal floating holiday).

 

                        2.         Employer's Position

 

            The Employer seeks current contract language with respect

to holiday pay.

 

            B.        Discussion

 

            A review of the comparable jurisdictions has provided

the following information about holiday pay:

 

Cities                          Employer's Data                                Association's Data

Centralia                     88 holiday hours                                 $2164 value

 

Cheney                       88 holiday hours                                N/A

 

Clarkston                    0 holiday hours                                   $1476 value

                                    3 floating holidays     

                                    $95 if holiday worked

                                    $70 if holiday not worked

 

Ellensburg                  0 holiday hours                                   $2428.80 value

                                    Comp time as a holiday                     (264 hours)

                                    is earned

 

Pullman                       88 holiday hours                                 $930.23 value

                                    Receive pay for 3-2/3 shifts              (88 hours)

 

Shelton                        0 holiday hours                                   $3808 value

                                                                                                (366 hours)

 

Toppenish                   0 holiday hours                                   N/A

                                    CBA is silent on the issue

_______________________________________________________________

MOSES LAKE          100 holiday hours                               $1,044.23 value

                                                                                                (264 hours)

_______________________________________________________________

 

Cities                          Collective Bargaining Agreements

 

Centralia                     11 paid holidays; time and a half pay if

                                    holiday is worked, otherwise,

                                    8 hours of straight time pay.

 

Cheney                       11 paid holidays; time and a half pay if

                                    holiday is worked, otherwise 8 hours of

                                    straight time pay.

 

Clarkston                    12 paid holidays; $95 of pay if holiday

                                    is worked, otherwise $70 of pay.

 

Ellensburg                  11 paid holidays.  The holidays "are

                                    earned as they come in the year."  The

                                    contract also states that "personnel

                                    on regular duty during a holiday will

                                    not be eligible to receive extra pay

                                    for that shift."

 

Pullman                       "Holiday pay equivalent to 3-2/3

                                    twenty-four hour shifts in lieu of

                                    paid holidays."

 

Shelton                        12 paid holidays.  Time and a half pay

                                    if holiday is worked; an earned holiday

                                    equals one shift off.

 

Toppenish                   There is no reference to holidays or

                                    holiday pay in the 1989-91 Toppenish

                                    labor contract.

_______________________________________________

MOSES LAKE          100 hours straight time as compensation

________________for holidays____________                      

 

            The Association sought to increase the hours of paid

holiday compensation from 100 to 124 hours.  The Employer

argued that there was no justification for such an increase

and that, alterilatively, if holiday pay were to be in-

creased, it would be fairer 'to eliminate holiday pay entirely

and to require the city to give an employee working a holi-

day a day off because of working the holiday or requiring

the city to pay time and a half or double time to every

employee working on a holiday."  (See, Employer 5 post-hearing

Brief, P  10).

            The parties vigorously disagreed about the meaning of

comparability data with respect to the topic of holiday pay,

and it is no wonder.  Jurisdictions approach this topic dif-

ferently, and a comparison of practices produces more of a

holiday hash than an orderly picture.  One comparable juris-

diction (Toppenish) makes no mention at all of holiday pay

in the parties  collective bargaining agreement, but it is

difficult to believe that the matter is not covered by employ-

ment practices between those parties.

            In Moses Lake, an employe's 100 hours is accumulated in

increments of 3.85 hours a month and paid out in 26 equal pay

periods.  The Association attempted to place a dollar value

on time worked and not worked in an effort to compare holiday

pay practices.  The dilemma with the methodology is that it

is difficult to compare a payment of money for holidays with

providing compensatory time off or even noncompensatory time

off for holidays worked.  Additionally, some jurisdictions

use a payment formula based on time and a half premium pay,

while it is higher in other jurisdictions.  Nor is it accurate

to compare the impact of this benefit on various departmental

budgets by using the top fire fighter rate for assessing the

"value" of the holiday without also submitting data about

the number of fire fighters at the top rate in each depart-

ment.  The picture of comparability is also blurred to some

extent by the fact that the Association based its formula on

twenty-four hour shifts, but a seventeen/seven schedule is

used in Moses Lake.

            The Association did not join issue with the Employer's

contention that the application of the holiday schedule in

Moses Lake has been less intrusive than in other cities

because of the way shifts have been scheduled.  Unrebutted

data submitted by the Employer established that the follow-

mg average number of holiday hours has been worked by each

shift from 1986 to 1989:

 

                        A Shift  --  70.25 hours

 

                        B Shift  --  79.75 hours

 

                        C Shift  --  66 hours.

 

Moreover, during an actual holiday, there is a change in the

duties routine; and the parties follow a  holiday routine"

which includes checking trucks, cleaning the station, and

then enjoying free. time.  It is recognized that this time is

not authentically "free," but in some minimal way the "holiday

routine" mitigates the intrusiveness of working on the holiday.

Some better methodology needs to be devised for compar-

mg jurisdictions that provide time off with those that make

a lump sum payment for holidays that are worked.  The answer

may lie in refining and clarifying the methodology used by

the Association, but it is unrealistic to argue that compen-

satory time off is the same sort of benefit as is a lump sum

payment for holidays.  The Association, however, compared

days off with straight time holiday pay with time and a half

holiday pay.  In order to give clearer guidance, the data

need to flow from a better methodology.

 

            C.        Award

 

            The next agreement between the parties shall contain

Article 15 -- Holiday Pay as it appeared in the last collec-

tive bargaining agreement between  the  parties, with the

following addition:

 

            The parties shall form a Study Committee consist-

            ing of one individual appointed by the Fire Chief

            and another by the President of the Association

            whose mission shall be studying holiday pay in

            order to present a proposal on the subject for

            consideration by the parties when they next nego-

            tiate after the expiration of this agreement and

            no later than December 31, 1992.  The Study Com-

            mittee shall base its study and any  pro-

            posal on the same comparable jurisdictions used

            by the arbitration panel in this report.

 

VII.     SALARIES

 

            A.        Position of the Parties

 

                        1 .        The Association

 

The Association proposed to modify Article 19 as follows:

 

            19.01   Beginning January 1st of each year,

1990, 1991, 1992, the salaries of all positions

shall be increased by an amount equal to the per-

centage change in the U.S. Consumer Price Index

Urban Wage Earners, All Cities, as measured for

the preceding year from July to July, as identi-

fied by the U.S. Department of Labor.

 

            The above-described CPI for the period

between July of 1988 and July of 1989 is 5.1%.

Therefore, salaries for members of the bargaining

unit for 1990 would be increased by 5.1% during

1990 over and above what each member of the bar-

gaining unit received as a salary as of December

31, 1989.   Subsequent wage increases for 1991

and 1992 will be based upon the appropriate CPIs

as described above.

 

            2.         The Employer

 

            The Employer proposed to increase salaries for members

of the bargaining unit by 3.5% in 1990.

 

B.        Discussion

 

            The parties disagreed about the relative ranking of bar-

gaining unit members with respect to salary, but the underly-

ing disagreement was with the list of comparable jurisdictions

used by each party.  As previously explained, the Association

used communities such as Mountlake Terrace, Washington which

has experienced some of the dramatic growth of the Puget

Sound basin.  The Employer argued that such a comparison

failed completely to take into account differences in the

appreciation of residential real estate between the two

regions.  From approximately 1980 to 1990, overall appreci-

ation in Moses Lake has approximated 12%.  The average increase

in assessed valuation for the period from 1980 to 1990 due

to inflation and annexations has averaged 2.9% a year.  (See,

City's Exhibit Nos. 16 and 17).  The Employer's data caused

it to conclude that members of the bargaining unit are only

3.5% behind wages paid in comparable jurisdictions, but the

Association's data supported its conclusion that it is 13.7%

behind comparable jurisdictions.

            The Association also justified its proposed wage increase

of 5.1% by pointing to the average increase of 7.18% as the

wage increase granted nonunion employes for 1990, as well as

to the fact that wages for people such as the City Manager or

the Municipal Services Director had increased by 5.84% and

5.37% respectively this year.  The Employer responded by

pointing out that from 1977 to 1989, the increase for the City

Manager had been 66.96% and the Municipal Services Director

69.39% as contrasted with a wage increase for fire fighters

during this period of 102.33%.  (See, City's Exhibit No. 12).

            Information submitted to the arbitration panel failed to

justify as large an increase as the one sought by the Asso-

ciation, but the data, nevertheless, justify an increase

larger than the one proposed by the Employer.  Justification

is found in the increased productivity of bargaining unit

members.  For example, there has been the same size work

force from 1983 to the present.  During that time, there has

been a 49% increase in the number of alarms processed by the

bargaining unit.  In the last five years, there has been a

25% increase in the workload and an 11.6% increase in 1988-89.

Even isolating the number of calls devoted only to fires,

there has been a 20% increase in the workload since 1983 with

no commensurate increase in the size of the work force.

            Equity also dictates a larger increase than 3.5%.  Mr.

Gavinski, City Manager, testified at the arbitration hearing

that there is an effort made to maintain relative parity be-

tween the police and fire departments.  Yet, from 1977 to

1989, police officers realized a wage increase of 108.72%

compared with 102.33% for fire fighters.  This included an

increase of 16.1% during the last five years for police

department employes compared with 12.2% during the same period

for fire fighters.  (See, Association's Post-hearing Brief,

p. 17).

            The comparability data justify a wage increase of 4.79%.

A review of those data show the following pattern:

 

            Cities                                                  Salaries

            Centralia                                             $2,494

            Cheney                                               2,222

            Clarkston                                            2,061

            Ellensburg                                          2,233

            Pullman                                               2,241

            Shelton                                                2,605

            Toppenish                                           2,079

 

            Averages                                            2,276

            Excluding Moses Lake

 

            MOSES LAKE                                  $2,172

 

 

            A wage increase of 4.79% would produce a dollar increase

of $104 on average for a top fire fighter wage of $2,276.

This increase would produce the following rank order for

jurisdictions comparable with Moses Lake:

 

            Shelton                                                $2,605

            Centralia                                             2,494

            Moses Lake                                       2,276

            Pullman                                               2,241

            Ellensburg                                          2,233

            Cheney                                               2,222

            Toppenish                                           2,079

            Clarkston                                            2,061

 

C.        Award

 

            The next agreement between the parties shall state:

 

            Article 19.01    Effective January 1, 1990, salaries

            far members of the bargaining unit will be increased

            by 4.79% as applied to "A" Step for Fire Fighter

            and Captain.

 

VIII.    MEDICAL CERTIFICATIONS

 

A.        Position of the Parties

 

            1 .   The Association

 

                        The Association proposed as Article 19.02 the following

provision:

 

            Beginning January 1, 1990, members of the bargain-

            ing unit obtaining and maintaining the following

            medical certifications shall be compensated at the

            rate of $25.00 per month for each certification

            held up to a maximum of $75.00 per month:  EMT,

            Airway; IV; and Defibrilation Technician.

 

2.         The Employer

 

                        The Employer proposed the status quo with regard to

medical certification compensation.

 

B.        Discussion

 

            The arbitration panel received unrebutted evidence that

there were approximately 1500 alarms turned in to the Moses

Lake Fire Department in 1989 and that approximately 1200 of

those alarms required a fire fighter to: use knowledge gained

from a medical certification training program.  A fundamental

program is the Emergency Medical Technician certification

which trains fire fighters to provide basic life support

services.  An individual invests 110 hours to obtain the cer-

tification, including hospital training.  The Employer cur-

rently requires its job applicants already to have earned the EMT

certification.  There is also a continuing education require-

ment of ten hours a year for three years, but the arbitrators

received no evidence with respect to whether or not this

training is conducted internally by departmental staff, and

if done externally, whether or not members of the bargaining

unit must pay for it.

            There are other advanced life support certifications.

For example, one can obtain a certification in Intravenous

transfusions to assist trauma patients.  This program requires

approximately 80 hours beyond the EMT certification to obtain

it It requires an individual to maintain 20 hours a year of

continuing education course work.  There is also a Defibrilation

certification which certifies an individual as a Defibrilation

Technician.  Such training enables a fire fighter to assist

heart attack victims more effectively.  Finally, there is an

Airway certification which trains fire fighters in various

ways of opening respiratory passages.

 

            Although the comparability data for this topic contains

a mixed message, they do provide valuable guidance.  They show

the following pattern:

 

Cities                          Pay for Emergency                Pay for Advanced

                                    Medical Technician               Life Support

                                    Compensation                        Certification.

Centralia                     $65 monthly                            No added pay

Cheney                       No added pay                         No added pay

Clarkston                    No added pay                         $35 monthly

Ellensburg                  Paramedics                             No added pay

Pullman                       $22.40 monthly                       $75 monthly

Shelton                        $40 monthly                            No added pay

Toppenish                   No added pay                        No added pay

MOSES LAKE          No added pay                        No added pay

 

            The Employer argued that medical certification compensa-

tion is not appropriate because it has been  considered when

establishing basic salaries.   (See, Employer's Post-hearing

Brief, p. 14).  It, however, is reasonable to conclude from

the data that medical certification pay has not been equitably

considered by the Employer when setting its basic wage rate. If

so, it is difficult to explain why Shelton provides a salary

that is 14% higher while also providing an additional $40 for

EMT certification.  Likewise, Centralia provides a basic

salary that is 10% higher than Moses Lake while also provid-

ing $65 a month for EMT certification pay.  Pullman, with a

salary behind the 1990 salary for Moses Lake, still pays

$2240 a month as EMT certification pay and $75 a month for

other advanced life support certification.

            At the same time, EMT certification is a basic job

requirement in Moses Lake.  The arbitration panel received no

evidence with respect to whether or not EMT certification is

an entry level requirement in Shelton, Centralia, or Pullman.

            Guidance drawn from the comparative data suggests that

municipalities with a higher basic wage than Moses Lake also

provide medical certification pay.  Since, however, the EMT

certification is a basic requirement of entry level employes,

there is some logic in the Employer's contention that this

basic certification does not merit additional compensation.

In an effort, however, to provide a:  financial incentive for

members of the bargaining unit to obtain further training in

an area involving 80% of the alarms received by the Department,

it is reasonable for the Employer to make available some

level of certification pay.

 

C.        Award

 

Article 19.02 of the parties  next agreement shall state:

 

Beginning January 1, 1991, members of the bar-

gaining unit who have obtained, are obtaining,

and who maintain the following medical certifica-

tions  shall be compensated at the rate of $20.00

a month for each certification held to a maximum

of $60.00 a month.  Airways; IV; and Defibrilation

Technician.

 

            Article 27 of the 1988-89 agreement between the parties

shall be deleted from their next collective bargaining

agreement.

 

IX.       LONGEVITY PAY

 

            A.        Position of the Parties

 

                        1 .   The Association

 

            The Association submitted the following proposal with

regard to longevity pay:

 

                        19.03   Beginning January 1, 1991, members

of the bargaining unit shall have their base sal-

ary increased by the following amounts per tenure

of service:

 

Completed Years of Service  Percent Increase

                        5                                              2%

                        10                                            4%

                        15                                            6%

 

2.         The Employer

 

            The Employer proposed that the Association's proposal

with regard to longevity pay not be made a part of the next

agreement between the parties.

 

            B.        Discussion

 

            A review of data from comparable jurisdictions with

respect to longevity pay reveals the following pattern:

 

Cities                                      Longevity Pay

Centralia                                 No pay

Cheney                                   No pay

Clarkston                                1st yr.--$3 mo.; 2nd yr.--$6 mo.; 3rd yr.--$9 mo.;

                                                4th yr.--$12 mo.; 5th yr.--$lSTh'o.

Ellensburg                              No pay

Pullman                                   No pay

Shelton                                    6-10 yrs.--$50 mo.; 11-15 yrs.--$100 mo.;

                                                16-20   yrs.--$150 mo.; 21-25 yrs.--$200 mo.;

                                                26 yrs.--$250 mo.

Toppenish                               2-5 yrs.--$10 mo.; 5-10 yrs.--$15 mo.;

                                                10-15   yrs.--$20 mo.; 15-20 yrs.--$25 mo.;

                                                21 yrs.--$30 mo.

 

MOSES LAKE                      No pay

 

            Three of the seven comparable jurisdictions make use of

the concept of longevity pay, and the Association concluded

that "this is not surprising in light of the benefits to the

departments involved that are provided by 'longevity pay.'"

(See, Association's post-hearing Brief, p. 20).  What the

arbitration panel failed to receive, however, was any kind of

empirical evidence detailing the benefits to fire departments

from longevity pay.  This is not to suggest that such bene-

fits do not exist but only that the panel received no evidence

of any benefits.   The Employer submitted evidence showing

that, from 1975 to 1990, seventeen workers have left the

department.  Three retired.  Six took disability retirements.

Management fired one worker.  Three left fire suppression

work entirely.  Only four employes went to other fire depart-

ments.  The arbitration panel received no objective evidence

showing that longevity pay would have had any significant

impact on the employment status of these former employes.

(See, City's Exhibit No. 11).  Nor should it be overlooked

that none of the comparable jurisdictions use the sort of

percentage formula set forth in the Association's proposal.

 

            C.        Award

 

            The next collective bargaining agreement between the

parties should not contain the Association's longevity pay

proposal.

 

X.        DURATION OF THE AGREEMENT

 

            A.        Position of the Parties

 

                        1 .   The Association

 

            The Association proposed that the term of the Agreement

be effective from January 1, 1990 to December 31, 1992 with a

July to July CPI wage increase in 1991 and 1992.

 

                        2.         The Employer

 

            The Employer proposed a one year agreement expiring in

December, 1990 or, alternatively, a multi-year agreement with

a wage reopener provision.

 

            B.        Discussion

 

            The parties have disagreed about the duration of their

next agreement as well as about the nature of any negotia-

tions during the term of their agreement.  If the parties

entered into a one-year agreement, they would already be late

in entering negotiations for a successor agreement.  Negoti-

ations for this collective bargaining agreement officially

began in May of 1989 and only now are coming to fruition.  It

was evident from relationships at the hearing that the parties

need a respite from negotiations and time to heal tensions

caused by such an experience in a smaller community.

            The Employer sought a multi-year agreement with wage

reopener provisions, but there was no indication in the

relationship between the parties that resolution 6f a

reopener ' provision would be accomplished any easier than

have been these negotiations.  A multi-year agreement tied to

a relative CPI wage rate is beneficial to the parties and

should permit both of them to reduce the expense, the amount

of staff time, and the relational difficulties of frequent

negotiations.  A longer term agreement should give the parties

more time for research and more of an opportunity to plan

their objectives so that the quality of negotiations and

the results to be reached will be better.

            To protect the expectations of both parties, it is pru-

dent to include a  "floor" and a "ceiling"  in a wage provi-

sion tied to changes in an index of consumer prices.  Such

provisions are not at all new and have been used routinely in

the United States since 1948 when the management staff at

General Motors originated the idea.  When a "ceiling" exists

in the provision, it "caps" any wage increase; and a "floor"

provides an assurance of some basic wage increase.  It, of

course, is easier to devise a self-actuating wage proposal

tied to changes in costs of living than it is to predict the

nature of that price behavior itself.

            There, however, is some evidence to suggest that the

impact of CPI fluctuations is less severe in smaller cities.

There is substantial evidence to show that some costs, such

as life insurance, will not change appreciably.  Other costs,

for example, housing and housing expenses, cost considerably

more to buy the same real estate and services in large metro-

politan areas.  Testimony from Mr. West, Human Resources

Director, about assessed valuations in Washington  confirmed

this conclusion.

 

            Moreover, Mr. Gavinski testified that, while growth in

Moses Lake has occurred, it has not been statistically signi-

ficant.  He is active in the City Managers Association of

the State of Washington, the Association of Washington Cities

Legislative Committee and Trust Users Committee, as well as

serving on the State of Washington Public Works Board.  That

background has given him considerable insight into the growth

of communities in the Puget Sound Basin, and he maintained

that an individual can expect to experience significant

savings by moving to a smaller town.  Housing and transpor-

tation costs are 50 much less in a smaller city that it is

not unusual for overall expenses to be reduced.

            The Association has proposed that any wage adjustments

for future agreements be based on the United States Consumer

Price Index for Urban Wage Earners, All Cities,  using

September to September figures.  The Consumer Price Index

measures average changes in consumer prices over time when

consumers purchase a fixed market basket of goods and ser-

vices.  The CPI is the most widely used measure of inflation

in the United States and is an important tool in effectuating

economic policies of the federal government.  The Index has

a direct impact on the income of millions of people in the

United States, some as a direct result of legislative enactments.

            The Consumer Price Index is divided into the All Urban

Consumers (CPI-U) or the Urban Wage Earners and Clerical

Workers (CPI-W).  The CPI-W came into use during World War I.

The Bureau of Labor Statistics has indicated that, in 1982-84,

the CPI-W included 28% of the U.S. population.  It, however,

is the CPI-U which is the more broadly based index, represen-

ting 81% of the population in 1990.  In contrast with the

CPI-W, the CPI-U is based on expenditures reported by all

consumer units in urban areas with an exception not relevant

in this case.  It seems appropriate to use the more broadly

based index in the parties' agreement.

            There was considerable debate about whether or not to

use September to September or July to July CPI dates, but the

arbitration panel received inconclusive evidence about precisely which

schedule the parties had followed over the years, and the

Bureau of Labor Statistics modified the Consumer Price Index

in 1987, causing some CPI schedules to be published on a new

time table. The CPI for Seattle-Tacoma, Washington is now

published only on a semi-annual basis.  The schedule for the

Western Region of the United States is published monthly but

includes the volatile Los Angeles Basin market. Although the

Seattle-Tacoma, Washington average covers a six month period

from January through June, it is not released until August

and well may be the September to September schedule used by

the parties for at least the last two years.

 

            C.        Award

 

            The next agreement between the parties shall be in full

force and effect on January 1, 1990 and shall remain in full

force and effect through December 31, 1992.

            On January 1, 1991 and again on January 1, 1992, salaries

for members of the bargaining unit will be increased by the

amount of the Consumer Price Index (CPI-U), U.S. City Average

for Seattle-Tacoma, Washington, covering all  items in the

Index using 1982-1984 as the standard reference base period.

Should the Bureau of Labor Statistics change the Index base

during the term of this agreement, the parties agree to use

the new measure used by BLS.  For the wage adjustments to be

made on January 1, 1991 and January 1, 1992, the percentage

increase using the CPI-U guideline as applied to the "A"

Step for firefighter and captains shall not be less than four

percent nor more than six percent.  Although the wage adjust-

ments will be computed from January 1, they will not be

implemented until the second pay period in March because the

relevant CPI schedule will not be released by BLS until then.

 

XI.       SICK LEAVE ACCRUAL

 

            A.        Position of the Parties

 

                        1 .        The Association

 

            The Association proposed current contract language for

Article 24 as well as the following modification of the "sick

leave" provision:

 

            24.01   Beginning January 1, 1990, LEOFF II

members shall receive sick leave at the rate of

11.08 hours per bi-weekly pay period.  Bargaining

unit members having a total sick leave accrual in

excess of 1 ,552 hours shall accrue sick leave at

the rate of 2.8 hours per bi-weekly pay period.

 

                        2.         The Employer

 

            The Employer proposed that sick leave be accrued at 5.4

hours per bi-weekly payroll period or 144 hours a year.

 

            C.        Discussion

 

            Currently, a fire fighter in Moses Lake accrues 5.08

hours of sick leave per pay period, or approximately 11 hours a

month. On January 1 of each year, a LEOFF I employe receives six

24-hour shifts of sick leave or 144 hours to begin the calen-

dar year.  LEOFF II employes, on the other hand, accrue

approximately 11 hours a month, or 132 hours by the end

of each year.  The Association maintains that those most

needing sick leave are at a disadvantage in terms of accruing

it because LEOFF I employes are covered by state statutes

which assure them of six months of disability leave and the

opportunity to apply for disability requirements; while LEOFF II

enjoy no such benefits.

            What the Association wants as much as anything is the

opportunity for employes to accrue at least a shift of sick

leave a month instead of using the "hours  formula now used

by management.  In other words, if an individual is sick, the

Association believes it is more realistic to view the illness

in terms of lost shifts more than in terms of hours away from

the job.  Other city employes, according to the Association,

receive at least one shift of sick leave per month."  (See,

Association's Post-hearing Brief, p. 22).  But, as Mr. Penrose

testified, if members of the Association are ill, "it takes

us two and a half months to get the sick leave back.  But

other city employees miss a day of work and get it back by

the end of the month."

            Comparability data with regard to sick leave accrual show

the following pattern:

 

Cities                                      Sick Leave Hours                  Sick Leave "Cap"

Centralia                                             144                              1200

Cheney                                               144                              960

Clarkston                                            288                              1440

Ellensburg                                          288                              0

Pullman                                               288                              1120

Shelton                                                288                              2880

Toppenish                                           288                              1440

 

Average, excluding

Moses Lake and Ellensburg             247                              1507

 

MOSES LAKE                                  132                              0

 

            Comparability data submitted to the arbitrators suggest

that the Employer is not equal to comparable jurisdictions

with regard to this benefit for LEOFF II employes.   They

receive fewer sick leave hours than any comparable juris-

diction by a considerable amount, and the absence of  a  sick

leave "cap" is of no benefit to members of the bargaining

unit.  The accrual rate is  simply  too slow to turn the

absence of a "cap" into a significant benefit, assuming no

cash out" value to the benefit.

            If it is assumed that (1) an employe receives 11 hours

of sick leave a month; (2) the individual accumulated sick

leave for every month throughout every year being considered;

and (3) during the time being considered, the employe never

used any sick leave at all, it would require 11.4 years for

an employe in Moses Lake to reach the average sick leave  cap

for those comparable jurisdictions making use of a  cap.   If

one assumes the same hypothetical facts except that an occa-

sional illness caused an individual to use two days of sick

leave a year, it would require almost 14 years for an employe

to reach the sick leave  cap.

            The Association's proposal provides more symmetry in

the Employer's treatment of LEOFF I and LEOFF II employes by

allowing an individual to accumulate sick leave at a quicker

rate for use in the event of a major accident to which fire-

fighters are more  routinely  exposed than are most  other

workers.  By increasing the accrual rate  while also "capping"

the total amount of sick leave accrual, the Employer is more

similar to its comparable jurisdictions.  Nor did the arbi-

trators receive any evidence indicating that this approach to

the issue of sick leave accrual would expose the Employer to

any financial risk, in view of the absence of a "cash out"

provision for sick leave.

 

            C.        Award

 

            Article 24 as it appeared in the last agreement between

the parties shall remain the same in the parties' next labor

contract except for the following modification to Article 24.01:

 

            Beginning January 1, 1990, LEOFF II members shall

            receive sick leave at the rate of 11.08 hours per

            bi-weekly pay period, with a limit of 1507  hours

            on the total accrual of sick leave.

 

XII.     CONCLUSION

 

            Interest arbitration is a unique dispute resolution

process that has distinctly a legislative cast to it, and

statutory criteria have been designed so that the arbitral

results should advance a more productive relationship between

the parties.  The theme sounded by the Employer in its open-

mg statement at the arbitration hearing was one of desiring

to provide equitable wages and working conditions as measured

by comparable jurisdictions.  The Association presented the

following theme, stating:

 

            All the Association is asking for in this inter-

            est arbitration is to be brought closer to the

            level of wages and benefits that are being received

            by members of comparable departments.  The Local

            is not asking to be brought even with benefits

            being received by those other departments, but rather

            just to be brought closer.  That's the primary

            issue.

 

These themes have been heeded in the arbitrator's study of

the evidence and in this award.  It is the belief of the

arbitration panel that the values espoused by the parties are

consistent with the following award:

 

                                                AWARD

 

            Article 10 of the next agreement between the parties

will state:

            Article 10 - Health and Welfare

 

                        10.01   Effective January 5, 1990, the City

            will provide fully paid medical, dental, and vision

            insurance coverage for employees and their depen-

            dents.  Coverage will be paid for those employees

            who were paid for the full pay period and were

            employed on the last regular day for which pay

            was due and payable within the month.

 

                        10.02   The City will pay 100% of the insur-

            ance premiums for the Associated Washington Cities

            benefit trust's Guardian Plan, Washington Dental

            Service (Plan B), and Western Vision Plan vision

            insurance during the term of this agreement.  If

            an employee selects an optional health and welfare

            package, the difference in premium costs beyond

            $16 will be paid by the employee as a miscellane-

            ous payroll deduction.  The Employer, however, will

            pay to the insurer the first $16 for any optional

            coverage costing more than the Guardian Plan.

 

                        10.03   If agreed to by the Labor/Management

            Committee that the level of benefits will remain

            substantially the same, the benefits provided by

            this article may be provided through a self-

            insured plan or under group insurance policy or

            policies issued by an insurance company or corn-

            panies selected by the City.

 

                        10.04   This provision of Article 10 was

            not in contention before the arbitration panel.

 

            The next agreement between the parties shall contain

Article 15--Holiday Pay as it appeared in the last collective

bargaining agreement between the parties, with the following

addition:

 

            The parties shall form a Study Committee consist-

            ing of one individual appointed by the Fire Chief

            and another by the President of the Association

            whose mission shall be studying holiday  pay  in

            order to present a proposal  on  the subject for

            consideration by the parties when they next nego-

            tiate after the expiration of this agreement and

            no later than December 31, 1992.  The Study Com-

            mittee shall base its study and any

            proposal on the same comparable jurisdictions

            used by the arbitration panel in this report.

 

            The next agreement between the parties shall state:

 

            Article 19.01   -- Effective January 1, 1990,

            salaries for members of the bargaining unit will

            be increased by 4.79% as applied to "A" Step for

            Fire Fighter and Captain.

 

            Article 19.02 of the parties' next agreement shall state:

 

            Beginning January 1, 1991, members of the bargain-

            ing unit who have obtained, are obtaining, and who

            maintain the following medical certifications

            shall be compensated at the rate of $20.00 a month

            for each certification held to a maximum of $60.00

            a month. Airways; IV; and Defibrilation Technician.

 

            Article 24 as it appeared in the last agreement between

the parties shall remain the same in the parties  next labor

contract except for the following modification to Article 24.01:

 

            Beginning January 1, 1990, LEOFF II members shall

            receive sick leave at the rate of 11.08 hours per

            bi-weekly pay period, with a limit of 1507 hours

            on the total accrual of sick leave.

 

            Article 27 of the 1988-89 agreement between the parties

shall be deleted from their next collective  bargaining

agreement.

            The next collective bargaining agreement between the

parties should not contain the Association's longevity pay

proposal .

            The next agreement between the parties shall be in full

force and effect on January 1, 1990 and shall remain in full

force and effect through December 31, 1992.

            On January 1, 1991 and again on January 1, 1992, salaries

for members of the bargaining unit will be increased by the

amount of the Consumer Price Index (CPI-U)

for Seattle-Tacoma, Washington, covering all items in the

Index using 1982-1984 as the standard reference base period.

Should the Bureau of Labor Statistics change the Index base

during the term of this agreement, the parties agree to use

the new measure used by BLS.  For the wage adjustments to be

made on January 1, 1991 and January 1, 1992, the percentage

increase using the CPI-U guideline as applied to the "A" Step

for firefighter and captains shall not be less than four per-

cent nor more than six percent.  Although the wage adjustments

will be computed from January 1 , they will not be implemented

until the second pay period in March because the relevant CPI

schedule will not be released by BLS until then.

            Pursuant to authority from the parties, the arbitration

panel shall retain jurisdiction in this matter for sixy days

from the date of this report.  It is so ordered and awarded.

 

                                                            Respectfully submitted,

 

                                                ________________________________

                                                Danny Downs

                                                Washington State Council of

                                                Fire Fighters

 

                                                Date:____________________________

 

 

                                                ________________________________

                                                Gary Persons

                                                Employee Relations, City of Spokane

 

                                                Date: ___________________________

 

 

                                                _______________________________

                                                Carlton J. Snow

                                                Professor of Law

 

                                                Date:___________________________

 

 

Should the Bureau of Labor Statistics change the Index base

during the term of this agreement, the parties agree to use

the new measure used by BLS.  For the wage adjustments to be

made on January 1, 1991 and January 1, 1992, the percentage

increase using the CPI-U guideline as applied to the "A" Step

for firefighter and captains shall not be less than four per-

cent nor more than six percent.  Although the wage adjustments

will be computed from January 1 , they will not be implemented

until the second pay period in March because the relevant CPI

schedule will not be released by BLS until then.

 

            Pursuant to authority from the parties, the arbitration

panel shall retain jurisdiction in this matter for sixy days

from the date of this report.  It is so ordered and awarded.

 

                                                Respectfully submitted,

 

                                                _______________________

                                                Washington State Council of

                                                Fire Fighters

 

                                                Date:____January 28, 1991_

 

                                                _______________________

                                                Gary Persons

                                                Employee Relations, City of Spokane

 

                                                Date:__________________

 

                                                _______________________

                                                Carlton J. Snow 

                                                Professor of Law

                                                Date:   January 22, 1991         

 

 

                                                DISSENTING OPINION

 

            I dissent from the opinion of the panel to the extent that it applies the Seattle-

Tacoma CPI Index. There is absolutely no basis in the evidence presented at the hearing

to support use of that index. Use of the Seattle-Tacoma rather than U.S. All Cities Index

resulted solely from an inadvertent error made during the panel discussions, and inclusion

of the local index in the final award is factually inappropriate and legally improper.

            The basis for my dissent is best understood through an understanding of the

chronology. The neutral chairperson sent a draft of his award to each of the partisan

arbiters. Upon review of the award, [ noticed that the draft award referred to the U.S. All

City Average  Seattle-Tacoma Index. There is no such index. In previous bargaining

agreements, the parties have used the U.S. All Cities Index.  In all of the evidence

presented at the hearing, the U.S. All Cities Index was the only index ever proposed by

either the Union or the City.

            On February 1, 1991, I wrote a letter to my fellow panel members seeking

clarification of the language. I pointed out that the draft language needed to be corrected.

Inadvertently I proposed striking "U.S. All City Average" rather than "Seattle-Tacoma." My

suggestion was adopted.

            Over the next couple of months, but prior to the time the final award had been

issued, I discovered my error. I wrote a letter to the other members of the panel and

requested that the error be corrected. A copy of that letter is attached hereto. Without

explanation, the neutral chairperson has refused to have the error corrected.

 

            The record at the hearing is devoid of any evidence upon which to support a change

in the use of the U.S. All City Average. The current collective bargaining agreement refers

to "The CPI, All U.S. Index (W) September to September." In setting out the issues for

interest arbitration, the Union stated that, "Salaries. . . shall be increased by an amount

equal to the percentage change in the U.S. Consumer Price Index, Urban Wage Earners, All

Cities as measured for the for the preceding year from July to July..."  See letter of August 20,

1990. The Unions post hearing brief proposed a wage increase of 5.1 percent, which was

equal to the U.S. Consumer Price Index for Urban Wage Earners , All Cities, for the period

between July 1988 and July of 1989. The City's post hearing brief also referred to the All

Cities Index and not the Seattle-Tacoma Index.

            The Bureau of Labor Statistics cautions against use of local indexes and rather

suggests that a broader index such as the All Cities Index is more appropriate for purposes

of setting  wage increases in a collective bargaining agreement. There was no evidence in

the record to support a change from the party's established past practice. Neither party

ever proposed such a change. It is well established that an interest arbiter has no authority

to change established practice without the party who is proposing a change establishing

it by preponderance of the evidence. Here, there has been absolutely no evidence put

forward to support a change. Only through an inadvertent error made by the City's

partisan arbiter, corrected prior to the time that a decision had been issued, has the

practice of using the U.S. All Cities Index been switched to use of the Seattle-Tacoma

Index.

            As the City's partisan arbiter, I fully recognize that an interest arbitration award

should be final and binding. In most cases, although I might not agree with parts of a

decision on which I am a panel member, I would not dissent. Here, however, there is

absolutely no basis whatsoever for the award as it is written. A collective bargaining

agreement should be created through reasoned discussion and persuasive evidence, not

through mistake. I respectfully dissent.

            DATED this 9th day of May, 1991.

 

                                                                                    ___________________________

                                                                                    Gary Persons

 

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