INTEREST ARBITRATIONS

Decision Information

Decision Content

Spokane County Fire District No. 1

And

International Association of Fire Fighters, Local 876

Interest Arbitration

Arbitrator:      Kenneth M. McCaffree

Date Issued:   11/15/1988

 

 

Arbitrator:         McCaffree; Kenneth M.

Case #:              07233-I-88-00171

Employer:          Spokane County

Union:                IAFF; Local 876

Date Issued:     11/15/1988

 

 

IN INTEREST ARBITRATION

BETWEEN

 

INTERNATIONAL ASSOCIATION                            )     OPINION AND AWARD

OF FIREFIGHTERS                                                       )

Local 876                                                                          )     OF

(Union)                                                                              )

AND                                                                                 )     Kenneth M. McCaffree*

SPOKANE COUNTY FIRE DISTRICT NO.1              )     Hansville, Washington  98340

(District)                                                                           )

                                                                                          )     PERC Case No. 07233-I-88-0171

RE:  Wages                                                                      )

                                                                                          )     Date of Award:  November 15, 1988

REPRESENTATIVES:                                                   )     Date of Hearing:        August 30, 1988

      For the Union:                                                            )     Place of Hearing:       Spokane, Washington

            Barry E. Ryan**                                                  )

      For the District:                                                         )

            James FOX***                                                    )

_____

*    Neutral Chairman of the Arbitration Panel consisting of:

            Paul J. Allison, District member

            Randall & Danskin

            1500 Seafirst Financial Center

            Spokane, Washington 99201-0653  (509) 747-2052, and

 

            Dr. Shik C. Young, Professor of Economics, Union member

            Department of Economics

            Eastern Washington University

            Cheney, Washington 99004 (509) 359-2332

 

**  Attorney at Law, East 1017 Mission, Spokane, Washington 99202.

(509) 484-1104.

 

***      Commissioner, Spokane County Fire Protect ion District No. 1, 10319 East

Sprague Avenue, Spokane, Washington 99206.  (509) 747-2052.

_____

 

INTRODUCTION AND NATURE OF PROCEEDING

      These proceedings arose as a consequence of the failure of the Union and

District to agree on an amendment to their 1987 Agreement (hereinafter

Agreement), with regard to an appropriate increase in wages for 1988.  After

attempting to resolve the matter on their own, the parties sought and used

mediation to no avail (Un. Ex. 2).  In January 1988, the mediator referred

the parties to the Public Employees Relations Commission (PERC) for

certification of the disputed item to interest arbitration, pursuant to

RCW 41.56.450.  Accordingly, by letter dated January 26, 1988, Mr. Marvin

Schurke, Executive Director of PERC, so advised the parties, and certified

the issue for interest arbitration as "wages for 1988" (Un. Ex. 3).  At the

same time, Mr. Schurke advised the parties to proceed in accordance with

WAC 391-55-220, et seq.

      At the hearing, the Union and District stipulated:

            . . . that the proceeding . . . is timely, that it is done

            according to procedures, . . . that the arbitrators have been

            properly approved, that you are, Dr. McCaffree, the neutral

            arbitrator, and so agreed upon by both parties, . . . that both

            Dr. Young and Paul Allison at any breaks could confer with the

            individual parties  . . .  that copies of the exhibits will be

            acceptable to the proceedings (in lieu of originals), . . .

            that the results of the arbitration will become retroactive to

            January 1, 1988 (Tr. 15:21-17:4).*

_____

*    "Tr."  refers to the transcript with pages and lines indicated by numbers.

The second half on volume 2 of the transcript will be cited as "Tr. II."

Also, the neutral chairman is referred to hereafter as chairman.

_____

      Accordingly, both Union and District made brief opening statements in

advance of presentation of their respective cases (Tr. 17ff; Tr.II, p.21ff).

Those who presented testimony under oath, and subject to cross-examination

were Larry Rider, firefighter; Dave Lobdell, firefighter; George Orr,

firefighter; Dr. Wolfgang Franz, Professor of Economics, Central Washington

University; Karl Bold, Assistant Fire Chief; and Dr. Melvin Ott, Professor,

Gonzaga University.  In addition, both Union and District provided exhibits

and related materials.  The Employer provided one exhibit of some 230 pages,

which included an outline of theDistrict's position (argument, not evidence),

materials in support of Mr. Bold's testimony on comparable fire departments

and a comparative salary analysis, the report of Dr. Ott in support of his

testimony, information and data on the American Chamber of Commerce Researchers

Association (ACCRA) Inter-City Cost of Living Index (p. 23 to p. 56), a

Guide for Comparing Home Prices Across the Nation by Coldwell Banker Realtors,

the ACCRA Cost of Living Index Manual (pp. 59-138), Cost of Living Study VIII,

by a group from Eastern Washington University (pp. 139-156), and a Survey &

Analysis of Salary Trends, 1988, by the American Federation of Teachers,

AFL-CIO (pp. 157-230).

                           The materials supplied by the Union consisted of these.

__________

Union Exhibit     1         1987 Labor Agreement

                           2         Request to PERC for Mediation Assistance, 12/18/87

                           3         Letter Schurke to Allen and Orr, dated 1/26/88,

                                         2 pages

                           4         Employer Submission to Panel Chairman, 8/17/88,

                                         2 pages

                           5         Union Wage Proposal for 1988

                           6         Union-Proposed Comparable Districts to Spokane Valley

                           7         Rank of Fire Districts by Population

                           8         Rank of Fire Districts by Salary of "Top"

                                         Firefighters, 1984, 1986 and 1987

                           9         Table of Monthly Salaries for Various Classifications

                                         by Years for Firefighter Classifications

                           10       Top Firefighter Wages for 1987 for Comparable

                                         Districts

                           11       Top Firefighter Wages for 1988 for Comparable

                                         Districts

                           11A    Revised Union Exhibit 11, with Average Salary

                                         Computed

                           12       Table of Selected Duties of Firefighters by

                                         Comparable Districts

                           13       Map of Washington with ACCRA Cities and Comparable

                                         Districts

                           14       Chart of Trends in Budget, Wages, Runs, and

                                         Manpower, Spokane Valley

                           15       1987 Survey of Fully-Paid Departments, by Total

                                         Budget and Wages & Benefits

                           16       Resume of Dr. Wolfgang W. Franz

                           17       Report of Dr. Franz, "An Appraisal of Comparative

                                         Purchasing Powers of the Salaries of Top

                                         Firefighters in the Spokane Valley Fire  

                                         District Relative to Comparable Fire Districts,

                                         August 19, 1988"

                           18       1988 Agreements between Firefighters and their

                                         Employers for Eight Selected Districts*

_____

*    Although included in Union Exhibit 18, Yakima and Bellevue agreements

were supplied by the District.

__________

      In addition to the above, included as Joint Exhibit 1, was a copy of

 RCW 41.56.450 Uniformed Personnel - Interest Arbitration Panel - Basis for

Determination. Joint Ehixibt 2 was a section of Substitute House Bill

No.  498, covering RCW 41.56.460, as amended.  Included in materials supplied

by the parties was a copy of the Impasse Resolution Rules, Chapter 391-55,

WAC.

      The transcript of the proceedings on August 31, 1988, consisted of two

volumes, the first covering the morning session, and the second, the record

for the afternoon.  These two volumes were 147 and 187 pages in length,

respectively.

      Following questions by the chairman if the parties had additional

witnesses or documents to present, and hearing a "no" response from both

Union and District representatives, the chairman closed the hearing for

receipt of further evidence** (Tr. 141:1-10).  Both parties were afforded

the opportunity to make closing oral arguments and/or written post-hearing

briefs.  Mr. Ryan spoke for the Union in closing (Tr. 166:2-186:18).

Mr. Fox declined to make an oral closing statement (Tr. 186:19-22).  Although

written briefs were originally due on September 27, for good cause and at the

request of the District, the due date was extended by the chairman until

October 5, 1988 (Letter to Fox and Ryan from McCaffree, 9/28/88, confirming

telephone messages).  The arbitration panel members conferred in a one hour

and fifteen minute conference call on October 10.  In these discussions it

became evident that certain hand-written sheets added to the agreements in

Union Exhibit 18 required explanation.  By notice to the parties via each's

panel member, confirmed by letter from the chairman to Mr. Ryan and Mr. Fox,

dated October 10, 1988, the hearing was held open until October 24, 1988, in

order for the hand-written sheets to be explained.  Subsequent communications

from both Union and District indicated that these sheets should be disregarded,

and they have been by the chairman.

_____

**  Agreements for 1988 from Bellevue and Yakima were not available on

August 30.  Hence those were supplied to the chairman following August 30,

along with current agreements from Wenatchee, Richland, Kennewick, Pasco,

and Olympia, Renton, King County #4, and King County #11.  Data from these

cities were used in Dr. Ott's report and testimony, and the chairman

requested that agreements from those locations be a part of the record.

All were delivered prior to the due dates for briefs.

_____

      Post-hearing briefs were filed in a timely manner by both parties and

reached the panel chairman on or about October 7, 1988.  The Union sent a

rebuttal brief, dated October 12, 1988, contrary to the agreements reached

at the hearing on August 30 (Tr. 160).  The District raised no objection.

The Union's rebuttal brief was consulted as appropriate.  The hearing

closed on October 24, 1988, per the revised schedule in the chairman's letter

to Mr. Ryan and Mr. Fox on October 10, 1988, and pursuant to RCW 41.56.450.

      The arbitration panel conferred again on October 18, 1988, by conference

call of some 30 minutes in length.  Dr. Young and Mr. Allison had access to

all information then available to the chairman.  Each sent a letter in support

of the points each had raised and discussed with the chairman.  These arrived

on October 26 from Mr. Allison and on October 27 from Dr. Young.

      Having examined the above record of testimony and other evidence, the

arguments of the parties on that evidence in both oral statements and written

briefs, and through the discussions with the Union and District members of

the arbitration panel, the chairman reached the following opinion and award

concerning the issue of wages in 1988 for the parties herein involved.

 

CONCLUSION, DECISION AND AWARD

      The neutral chairman concluded, decided and awards that a two percent

increase in wages for 1988 for all calssifications set forth in Appendix A -

Wage Schedule of the Agreement shall be made, effective January 1, 1988.  The

considerations and reasons which led to this conclusion, decision and award

are set forth, as follows.

 

STANDARDS FOR DECISIONS AND OTHER STATUTORY PROVISIONS

      RCW 41.56.460 directs that the following standards or guidelines shall

be considered by an arbitration panel in making its determination on issues

in dispute.  It states:

            . . . Uniformed Personnel - Interest Arbitration Panel - Basis for

            Determination.  In making its determination, the panel shall be

            mindful of the legislative purpose enumerated in RCW 41.56.430 and

            as additional standards or guidelines to aid it in reaching a

            decision, it shall take into consideration the following factors:

                  (a)  The constitutionaland statutory authority of the employer;

                  (b)  Stipulation of the parties;

                  (c)  . . .

                        (ii) For employees listed in RCW 41.56.030 (6) (b)

                        (firefighters), 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;

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

                  commonly known as the cost of living;

                  (e)  Changes in any of the foregoing circumstances during

                  the pendency of the proceedings; and

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

                  which are normally or traditionally taken into consideration

                  in the determination of wages, hours, and conditions of

                  employment (Jt. Ex. 1 and 2).*

_____

      *As the code reviser's note indicates on Joint Exhibit 1, a portion of

Chapter 521 (Engrossed Substitute House Bill No. 498, Joint Exhibit 2),

which was passed by the Legislature during the 1987 legislative session and

which made certain changes in RCW 41.56.460, was partially vetoed by the

Governor.  However, Section 2 of that bill, which made certain changes,

with respect to how comparables are to be selected in cases involving

firefighters, was not vetoed and appears as 41.56.460 (c) (ii).

_____

      The legislative purpose which the chairman and panel are directed to

 be mindful of in applying the standards and guidelines in reaching his

(their) decision is set forth in RCW 41.56.430 as follows:

            The intent and prupose of this . . . act is to recognize there

            exists a public policy in the state of Washington against strikes

            by uniformed personnel as a means of settling their labor disputes;

            that the uninterrupted and dedicated service of these classes of

            employees is vital to the welfare and public safety of the state

            of Washington; that to promote such dedicated and uninterrupted

            public service there should exist an effective and adequate

            alternative means of settling disputes.

      Two further statutory provisions are noted.  First, the interest

arbitration panel is a state agency in the performance of its duties under

Chapter 41.56 RCW.  Although selected by the parties, it is guided by the

statutes and the Washington Administrative Code rather than the wishes of

the parties under their collective bargaining agreement (RCW 41.56.452).

Furthermore, under the procedures for the panel as set forth in RCW 41.56.450,

it provides, in part:

            The rules of evidence prevailing in judicial proceedings may be

            considered, but are not binding, and any oral testimony or

            documentary evidence or other data deemed relevant by the

            chairman of the arbitration panel may be received in evidence.

            . . . The arbitration panel has the power . . . to require the

            production of such books, papers, contracts, agreements, and

            documents as may be deemed by the panel to be material to a joint

            determination of the issues in dispute. . . . Within thirty days

            following the conclusion of the hearing, the neutral chairman

            shall make written findings of fact and a written determination

            of the issues in dispute, based on the evidence presented. . . .

            That determination shall be final and binding upon both parties,

            subject to review by the superior court upon application of either

            party solely upon the question whether the decision of the panel

            was arbitrary and capricious.

 

COMPARABLES TO SPOKANE COUNTY FIRE DISTRICT

      The District proposed seven fire districts or departments as ones

comparable to Spokane County and which could be used under RCW 41.56.430

(Er. Ex. p. 9; Tr. 45:20-21).   These seven were selected on the basis that

estimated population and manpower in those departments were no less than

50 percent nor more than 150 percent of both population and manpower in

Spokane County.* These comparable districts are:

             Bellevue

             Bellingham

             Clark County District #5

             Federal Way (King County Fire District #39)

            Pierce County Fire District #2

            Yakima

_____

*    "Spokane County" is used throughout to refer to the Spokane County

Fire Protection District #1,  the employer in this case.

_____

      During negotiations, the District had used Snohomish County District #1

(Un. Ex. 6).  The District dropped Snohomish at the arbitration because in

Spokane County manpower increased in 1988 such that Snohomish with only

48 personnel was less than 50 percent of the number employed in Spokane

County (Tr. 45:12-16).

      Although no major issue arose between the parties, the chairman and

other panel members have relied upon the above seven districts plus

Snohomish.*  Since the effective date of any change in wages shall be

January 1, 1988, changes in manpower which affected the comparable group

since then have been overlooked.  In addition, the ratio of Spokane County

manpower at 97 to Snohoinish at 48 personnel is less than 50 percent by only

one person in Spokane County.  Because of the recent change, and the

nearness to the 50 percent criteria, the use of Snohomish was justifiable.

The Union had argued for this conclusion (Tr. 21:12-15; 48:1-21).

_____

*    For each District, the above names have abbreviated to the location

for easy reference.  Thus, Federal Way, in lieu of King County Fire District

#39, etc., is used.

_____

 

POSITIONS OF THE PARTIES

      A.  Proposals

      With respect to the Wage Schedule in Appendix A of the Agreement, the

District proposed no increase in salaries.  The Union proposed a 6.3

percent increase in wages.  These proposals are set forth below.

__________

 APPENDIX A

WAGE SCHEDULE

The following wage schedule is for the year 1988.

 

RANK                                                      WAGE PROPOSED

                                                                  District(a)       Union(b)

1st Year Firefighter                                 1875                1993

2nd Year Firefighter                                2089                2221

Top Firefighter                                         2334                2481

Driver (Equipment Operator)                  2517                2676

 

Paramedic Trainee*(c)                            2462                2617

Alarm Operator                                        2574                2736

Probationary Inspector                            2617                2782

Paramedic                                                 2691                2861

 

Lieutenant                                                2806                2983

Inspector                                                  2849                3028

Lieutenant of Paramedics                        2806                2983

Inspector II                                              3130                3327

 

Sr. Lieutenant of Paramedics                  3043                3385

Captain                                                     3278                3485

Mechanic                                                  3697                3930

EMS Officer                                             3385                3598

_____

a    Union Exhibit 4; the District letter to the Chairman,

      dated 8/17/88

b    Union Exhibit 5.

c    The paragraph at the bottom of the Wage Schedule pertains to

      this classification and is not reproduced from the Agreement

      (Un. Ex. 1, p. 17)

___________

 

      B.  Union Contentions for Proposal

      The Union contended that its proposal of a 6.3 percent increase was

justified by and supported by three factors.  First was a two percent

increase based on productivity.  Second, the cost of living, as represented

by the U.S. Consumer Price Index for Urban Consumers,has increased over the

last year.  Third, within the comparable districts, the wages of Spokane

County firefighters lag "substantially behind their fellow firefighters" in

other districts (Tr. 19:3-20:25).  In brief, the Union pointed out specifically

that they were requesting "a cost of living increase of 4.3%, a productivity

increase of 2%, and an equity adjustment of 15%" at the beginning of

mediation efforts (U.B. p. 1:22-24).* Although substantial attention was

focused on the relevancy, or lack thereof, of the District's position and

contentions, regarding wage levels in the comparable districts and Spokane

County, the Union made no specific claims in briefs that their requested

salary adjustment was focused on other than a 6.3% increase in wages, supported

by the annual increase in the consumer price index and the 2% increase in

wages as a result of increased productivity (U.B. 7:4-7; U.L. p. 1;

Tr.  33:8-17).*

_____

*    "U.B." refers to Union brief.  "U.L." refers to the Union letter,

and rebuttal, dated October 12, 1988. "E.B." refers to Employer brief.

_____

      The Union offered the data included in the first four columns in

Table 1 in support of the 2% adjustment in wages because of increased

productivity (Un. Ex. 14).  Noted specifically was an increase of 88 percent

in the number of runs but only a rise of 72.8 percent in wages, and 12.3

percent increase in manpower.* The discrepancy between increase in runs

and the rise in wages justified the requested two percent wage increase for

increased productivity in 1988 over 1987, according to the Union (U.B. 7:20-

8:1; U.L. p. 1; Tr. 83-87, 91:5-92:24; Tr. II 175:4-176:8).

_____

*    Budget data were presented as well, both in Union Exhibits 14 and 15,

to show changes over time, and the ratio of wages and benefits to total

budget.

__________

TABLE 1

Wage Escalation, Runs and Manpower,

Spokane County, 1979-1987

 

                        Monthly                                 

Year                Salary(a)         Runs(a)           Mannpower(a)          Runs Per Man(b)

1979                1356                2233                73                               30.6

1980                1532                2458                70                               35.1

1981                1685                2376                74                               32.1

1982                1803                2785                82                               33.9

1983                1874                2862                81                               35.3

1984                2065                3328                84                               39.6

1985                2168                3876                84                               46.1

1986                2266                3885                84                               46.3

1987                2344                4205                82                               51.3

 

Percent           72.8                 88.0                 12.3                            67.6(c)

Increase

_____

(a)Data from Union Exhibit 14, p. 2.

(b)Computed.

(c)See footnote, p. 23.

__________

      The Union depended upon the increase in the U.S. Consumer Price Index

for Urban Consumers (CPI-U) between July 1987 and July 1988, as reported

by Dr. Franz (Tr. 129:16-131:12).  This increase in the CPI-U was 4.1

percent.  Data developed by the chairman from the published materials of

the Bureau of Labor Statistics, which produces the CPI, indicated an

increase of 4.4 percent in the CPI-U, between December 1986 and December

1987.   The change from January 1987 to January 1988 was only 4.1 percent. 

Other data on cost of living indices are found in Table 2.**

_____

**  Aside from the testimony of Dr. Franz, the chairman could find no other

U.S. or Seattle-Everett CPI data provided by the Union in the record.

Table 2 included data received from Dr. Young and as provided by the

District at page 22A of its exhibit.

__________

TABLE 2

Change in the Monthly Salary of the Firefighter Classification in Spokane Compared to

Changes in the Consumer Price Indeces for Seattle-Everett Area and for the United States, 1979-88.

 

                                Spokane County             Seattle-Everett                                            United States

Year or                   Monthly Salary(a)          CPI-W                                           CPI-W                               CPI-U

Other Period          Amount     Jan. - Jan.     Index       % Change(b)     Index % Change(b)  Index % Change(b)

 

1979                                  1356       -                    72.59(c)

1980                                  1532       13.0              84.20           16.0               -         -                        -         13.5

1981                                  1685       10.0              93.19           10.8               -         -                        -         10.4

1982                                  1803         7.0              99.15             6.4               -         -                        -           6.1

1983                                  1174       4.0               98.95            -0.2               -         -                        -           3.2

1984                                  2065       10.2              102.1(d)         3.2               -         -                        -         4.3

1985                                  2168         5.0              104.2             2.1               -         -                        -         3.6

1986                                  2266       4.5               105.0             0.8               -         -                        -         1.9

1987                                  2344       3.5               107.4             2.3               -         -                        -         3.6

1988                                  -              -                    -              -                          -         -                        -         -

Compounded  8                               57.2                                 41.4                                                               46.60

Year total

   Avg. per year                               7.15                                  5.17                                                             5.82

Simple 8                            72.86                           48.00

Year Total

   Avg. per year                9.11                              6.00

-------------------------------------------------------------------------------------------------------------------------------------------------

2nd half 1986                                                        105.0      ¬

2nd half 1987                                                        108.4           3.23(f)

1st half 1987                                                         106.4      ¬

1st half 1988                                                         109.9           3.28(f)

Dec. 86                             -              -                                                              109.3  ¬                       110.5  ¬

Dec. 87                             -              -                                                              114.2  4.48                   115.4  4.43

Jan. 87                              -              -                                                              110.0  ¬                       111.2  ¬

Jan. 88                              -              -                                                              114.5  4.09                   115.7  4.04

Aug. 87                             -              -                                                              113.3  ¬                       114.4  ¬

Aug. 88                             -              -                                                              117.7  3.88                   119.0  4.02

_____

(a)  Salary of top firefighter classification, from Union Exhibit 14

(b)  Data provided by Dr. Young in his letter, dated October 25, 1988, to the panel chairman.

(c)  Data obtained by computing the index from annual percent changes as provided by Dr. Young.

(d)  Data obtained by computing the index from annual percent changes as provided by Dr. Young

      and from Employer Exhibit p. 00224

(e)  The CPI base became 100 on the basis of new data collected in 1982-84.

(f)  The CPI-U for Seattle-Everett showed an increase of 3.4 and 3.41 respectively.

__________

 

      C.  District Contentions for Proposal

      The District contended that its proposal of no increase was justified

on the basis of comparisons in wages paid to like personnel doing comparable

tasks, given the difference in the level of prices employees must pay in the

districts compared (E.B. p. 14). In the first instance, the District argued

that the best approach "is to take a position that is comparable in all fire

departments, compare the wages for that position and then have the wages for

all other positions established in accordance with their proportions"

(E.B. pp. 11-12).  "What must be compared is wages for actual positions with

like job duties," the District argued, rather than rely solely upon job

title, as the Union has done (E.B. p. 12).  In addition, the District claimed

that wages, adjusted for comparable levels of service (longevity), should

be included (E.B. pp. 12-14).

      On the above bases, the District contended that the appropriate

personnel to compare were those in each District who, among other duties,

drove and operated apparatuses. In this case, the highest wage for fire-

fighters in other districts should be compared to those in Spokane County,

who are firefighters/drivers/equipment operators. In addition, since several

studies indicated a cost of living differential between Seattle, where most

of the comparable districts were located,and Spokane, wages should be

adjusted accordingly (E.B. p. 17). On this basis, when monthly wages are

adjusted for the cost of living differences, in accordance with the

methodology of Dr. Franz, the Spokane County wages are actually 3.5% above

the average of those districts in the Seattle-Tacoma area, and no wage

increase is justified for 1988 (E.B. p. 18).

      As shown in Union Exhibit 17, page 2, given adjustments on the basis

of cost of living differences among the comparators using ACCRA data, the

Spokane County top firefighter should get an increase of 18.6 percent to

23 percent, according to Dr. Franz.* However, the District was critical of

Dr. Franz 's analysis on two points:  it compares firefighters by title only

rather than by actual job duties; and, second, ". . . Dr. Franz inflates the

wages paid in other fire departments by . . . using an adjustment for hours

worked weekly in Spokane County to the hours in the work week in the

comparators" (E.B. p. 18).  Work hours have been brought into the arbitration,

these were excluded by stipulation, the District argued.  According

to the District here, only wages are a subject before the panel.  Further,

if hours are introduced, other pay issues will need to be included, which

places the panel far beyond the issue at hand, the District stated (E.B. p.22).

_____

*    At the same time, Dr. Franz testified that the ACCRA cost of living

(price indices) were  unreliable and changes in them over time should not

be used to support wage  increases (Tr. 127:1-129:15).

_____

      Further, according to the report of Dr. Ott, using the ACCRA data to

adjust wages across the state by use of a regression of cost of living

indices on levels of wages of firefighters, for all ten ACCRA cities, "the

District wages are 4.95% above the average for other comparators," the

District argued (E.B. p. 19).  In any event, the District contended that

Dr. Franz stated in testimony that "it's quite plain that the cost of living

in this area is quite a bit lower than it is in the Seattle area" (E.B. p.24

Table 2; and Er. Ex. p. 22A). Thus, according to the District, the issue is

how to measure the difference and how to apply the difference to the issue

of "wages."  The District states, "the logical conclusion is that first you

must see what the cost of living differences are by using ACCRA, compare

wages using the calculated differential, and determine the appropriate

adjustment to establish parity between different areas" (E. B. p. 24).

      Although the District believes its employees are productive, the failure

to show comparable data in other districts makes data on number of runs, etc.,

meaningless.  Nor, according to the District, did the Union indicate how many

more engine companies were added to the department.  Finally, "being good,

productive firefighters is not something new in the District.  It is no

change.  It is no basis for an increase in wages," according to the District.

Wage increases have never been based on productivity, and the Union argument

should be disregarded (E.B. pp. 24-25).

 

      D.  Union's Response to the District

      The Union objected to the use of length of service (longevity) and

to the fictitious "model firefighter" in the computation of wages.  So far

as the chairman could find in its brief, the Union's objection on longevity

was based alone on its concern over willingness of the chairman to accept

the testimony of Mr. Bold and data of the District regarding use of length

of service.  In closing arguments, the Union contended that "longevity" was

not at issue, and should be set aside by the panel (Tr. II 183:4-6).  Relative

to the "model firefighter," the Union contended that "Mr. Bold was unable to

identify a single fire department in the state of Washington . . . which has

a "model firefighter" (U.B. 9:5-7).  Further, in all of the history of

bargaining, the District relied upon ''top firefighter,'' and never on a

fictitious "model firefighter" (U.B. 9:7-12; Tr. II 177:11-178:15).  This

"model" was for the sole purpose to support the analysis of Dr. Ott

(Tr. II 176:18-20).

      In its rebuttal letter, the Union raised the further issue that the

studies of Dr. Ott and Dr. Franz may not be "worth the effort  to analyze

them (U.L. p. 2).  Here the Union relied on a recent decision by Arbitrator

Michael Beck in which he chose to disregard consideration of differences in

cost of living among comparators as contrary to the guidelines of RCW 41.56

cited above.  Furthermore, Mr. Beck concluded that the evidence presented to

him did not provide a reliable basis upon which to make inter-city cost

comparisons* (U.L. p. 2-3).  The Union concluded, therefore, "Local 876's

position, as evidenced by the testimony of Dr. Franz, is that the report is

not applicable but, if this employer insists that this panel consider the

report, then it must be adjusted so that it is relevant and meaningful.

. . .  In this case, Spokane Fire Protection District No. 1 was, and is,

in error for ever attempting to compare cost of living differences.  That

was not, and is not, intended and . . . should not be considered," the Union

stated.  Also, after the testimony of statistician Ott, this employer can

not make a serious contention that "a 'reliable' basis has been provided

upon which to make inter-city cost of living comparisons," according to the

Union (U.L. pp. 2-3).

_____

*    City of Seattle and IAFF Local 27, and City of Seattle, and Seattle

Fire Chiefs Association, IAFF Local 2898 (PERC Case Nos. 6576-I-86-150,

and 6590-I-86-151), Michael H. Beck, Chairman, March 1, 1988, pp. 69, 70.

_____

      In response to Employer contentions on hours, the Union claimed it

never considered hours an issue.  No change has been requested by Local 876.

Dr. Franz made the hours adjustment only to make the ACCRA report "both

applicable and meaningful," the Union asserted.  "This, of course, assumes

that the ACCRA report should even be considered, something that local 876 has

never accepted or agreed to," the Union concluded (U.L. p. 3).  Finally,

the Union asserted that the employer only raised this issue in its post-

hearing brief "in an attempt to avoid the effect of their obvious faux pas

by raising, at the eleventh hour, issues that had not been certified for

mediation or interest arbitration . . ." (U.L. p. 3).

      Also the Union contended that the Employer's definition of wages as

dependent on court decisions was different than wages under RCW 41.56.

None of the cases cited by the District involved a collective bargaining

agreement, and, thus, according to the Union, the issue is base wages as

found in Appendix A; this does not include longevity or even refer to

longevity (U.L. p. 4).  These subjects, wages and longevity, are separate

subjects and in separate provisions of the Agreement. 

      Further, with regard to the issue of "model firefighter," the Union

pointed out that not one of the 1987 agreements of the comparators contains

any "reference to the 'model firefighter' nor is there any reference to the

number of years on the job, nor is there (any) reference to the fact that

the position utilized for negotiating base wage was driver or equipment

operator.  In all, some form of top firefighter, Class A firefighter, Step

One firefighter or senior firefighter is utilized." The Union asserted no

consideration should be given to the fictitious and most recently created

position of "model firefighter" (U.L. p. 5).

      Finally, the Union contended that the chairman's admission of testimony

regarding the "model firefighter" violated WAC 391-55-220, and specifically

further consideration of it would do so (U.L. p. 6).  "It is the position

of Local 876 that consideration of the use of model firefighter is . . . not

warranted . . . because . . . one cannot give careful consideration to a

fictitious position created for the benefit of a fictitious person, especially

where that position and person do not exist, not only in this particular fire

department, but do not exist in any other fire department. . . . The District

failed to name one single fire department or fire district that could supply

a person who can be described along the definitions of 'model firefighter.'"

Consequently, the District is hard-pressed to convince this arbitrator or

any forum that such a position can be compared, as required by RCW 41.56

et seq.  On the other hand, whether or not you call an individual a top

firefighter, senior firefighter, or Class A firefighter, there can be no

question that such employees exist, . . . that the classification exists and

can be compared" (U.L. p. 6).  Also, the very purpose of providing contracts

for comparable districts was because they "have just such positions and can

provide comparables," the Union alleged.

 

      E.   Other Considerations

      Both Union and District made additional points, for the most part

tangentially related to the above arguments.  These are introduced below,

as appropriate and necessary.  Also, the chairman obtained a full copy

of the Beck Opinion and Award, cited above, as well as a decision by

Arbitration Panel Chairman Carlton J. Snow, in Seattle Police Management

Association and City of Seattle (PERC No. 6502-J-86-148), January 25, 1988.

The Chairman has at hand a copy of Local 1805, IAFF, and Clark County District

No. 6 (PERC No. 6733-I-87-160), Kenneth M. McCaffree, Arbitration Panel

Chairman, October 12, 1987.

 

DISCUSSION, ANALYSIS AND CONCLUSIONS ON PROPOSALS,

SUPPORTING DATA AND CONTENTIONS OF THE PARTIES

      A.  Interpretation and Application of Guidelines

      The provisions of the statute regarding the basis for arbitrator

decision-making in interest arbitration are less than precise.  In RCW

41.56.460, the terms used are "standards and guidelines," which arbitrators

"shall take into consideration" in the arbitration process.  Further this

section of the statutes directs that the arbitrators "shall be mindful of

the legislature purpose" which in RCW 41.56.430 affirms that the arbitration

processes  "exist (as) an effective and adequate alternative means of

settling disputes" to "strikes by uniformed personnel as a means of settling

their labor disputes." Finally, the general purpose of the act stated in

RCW 41.56.014 is "to promote the continued improvement of the relationship

between public employers and their employees . . ."  (underlinings added).

      Without belaboring the points raised by the underlining above, the

statutory provisions are called standards or guidelines.  As such, they

allow substantial discretion by arbitrators in applying them.  No precise

instruction on what shall be done arises out of this language.  In addition,

the generality of the guidelines are reinforced further by the expression

"shall take into consideration." This phrase, as well as the direction to

be "mindful of the legislative purpose," make mandatory that arbitrators are

cognizant of the statutorily listed factors, but these provisions require

only that the guidelines be "considered," or that arbitrators be mindful

(take into account) the specific and general purposes of the arbitration

process and the Act.  These provisions are not to be blindly followed, or

given any specific relative weight among the listed factors and determinants

in arriving at a judgment or an appropriate decision vis-a-vis a given issue

or set of issues in dispute between an employer and its union employees.

      Further, arbitrators are made mindful and required to give consideration

to all factors, in addition to those listed in RCW 41.56.460 (a) through

(e), "which are normally and traditionally taken into consideration in the

determination of wages, hours, and conditions of employment."  In the

"ideal world" this directs arbitrators to examine those factors and to seek

that solution that most likely would have resulted had the parties been free

to bargain in an unregulated labor market environment.  Obviously, such a

goal is difficult, if not impossible, to achieve in any exact sense in

public employment.  But such a goal does point to the  fundamental issues

between the parties and the factors they rely upon in determining the

relative positions of each in the hiring of workers by the employer and in

the acceptance of jobs under conditions acceptable to both.  Those  factors

identified in and referred to in RCW 41.56.460 are those considered and

evaluated by unions and employers in arriving at mutually acceptable terms

of employment when both are free to act in their own economic interest.

      At the same time, both the general purposes of this legislation at

RCW 41.56.014 and RCW 41.56.430 and especially paragraph (f) of RCW 41.56.460

make clear that reasoned judgment must be exercised in accordance with

generally accepted practices in the field of union-employer relations.  Since

public policy is against strikes of uniformed personnel in public employment,

uninterrupted and dedicated services of firefighters and others must be

properly recognized and the arbitration process, among others, used as an

"effective and adequate alternative means of settling disputes." Arbitrators

may not be "arbitrary and capricious" in their decision making.*

_____

*    The parties are referred to Arbitrator Snow's discussion of the

history, nature, and factors involved in interest arbitration, as these

may apply under Washington law and conditions (the Seattle case, pp. 10-18).

_____

      The issue of wages and the arguments of the parties on the factors and

data related thereto are discussed below.

 

      B.  Employer Authority and Stipulations

      No issue arose over the District's statutory authority in this case.

Relevant to wages, and as set forth above, the parties stipulated that any

wage increase would be effective on January 1, 1988.

 

      C.  Productivity**

      The Union urged a wage adjustment of two percent because of increased

productivity, specifically on the basis of the greater rate of growth in

emergency runs than wages or manpower since 1979.  The District denied this

basis, as indeterminable, even though it considered its employees both

dedicated and productive.

_____

**  Nowhere in RCW 41.56.460 does the word "productivity" occur.  But both

unions and employers recognize this factor as one, in the ordinary course

of events, that has been "normally and traditionally" considered in the

bargaining process by unions and employers.

_____

      The chairman rejected the argument of the Union on this point, and

found no basis in Spokane County upon which to justify the proposed two

percent increase in wages.  The Union argument was defective both on the

concept of productivity and on its specifications of the District's product.

      The data are shown in Table 1.  The Union has incorrectly labeled

"runs" as productivity, when in fact it is output alone.  Rather productivity

is measured by the ratio of output to input.  This is proper, since wages

are paid on the basis of individual units of manpower (an employee), not on

the basis of aggregate or total manpower, or total output.  Thus, even if

"runs"  are considered a proper measure of output (which they are not),

productivity is the ratio of runs to manpower, or mathematically, the

result of dividing total runs in each year by the number of employees for

that year.  The results of these computations appear in the right hand column

of Table 1.  Although per employee productivity has increased since 1979,

it has done so at less than the increase in wages, 68% for productivity,

73% for wages.*

_____

*    Since the District has added some 15 more employees in 1988, the

productivity increase per employee, as measured by runs, would fall in 1988,

unless the number of runs rose to over 4800, an increase greater than an

annual increase in runs, as shown by the Union in Table 1.  These results

would be unlikely.

      Also, Dr. Young pointed out that the runs per man should be compared to

"real" wages, not money wages. In this event, the growth in real wages since

1979 would be less than the percent change in runs per man.  However, time

series data are subject to the period selected and should be used with caution,

even if reliable measures of output and input are used.  A comparison of the

1983-87 period between "real" wages and runs per man give a much different

result than for 1979-87.  Were the 15 new employees in 1988 included, the

results become even more cloudy, due essentially to poor specifications of

output and input.

_____

      In addition to the above basis for rejection of the Union 's

proposal, substantial defects and imperfections appear in the

output (runs) and input (manpower) measures.  As for output, all runs were

assumed the same.  Manifestly, this was not the case.  Some were false alarms,

some trashcan fires, other major catastrophes.  Summing these diverse

"products" constituted an agglomeration of unlikes that made the "runs"

data rather meaningless.

      Further, there is the issue of exactly what is the "product" of a

fire district.  Certainly, the residents of the district do not regard a

large number of fires, accidents, and other emergencies as products of the

fire department.  Consumers seek services with positive results.  Mr. Allison

suggested looking at loss per $1000 of property value, and the more this

goes down, the more productive the fire department (A.L. p. 3).*  Alternatively,

attempts have been made to use anticipated services of inputs as a measure of

output.  But this too raises an issue in determining what are the services of

the firefighter.  Clearly, one is simple availability, and many consumers

are willing to pay to have someone stand by "in case." But when the "in

case" arises, employees only change duties from stand-by availability  to

activities in responding to and handling the emergency.  These changes in

duties of the firefighter (input) represent no change in output, as measured

by the total of 24 hours of service (duties) each day.

_____

*    Letter, Allison to McCaffree, dated October 24, 1988.  "A.L." is for

Allison letter.  In one of the arbitration discussions, Dr. Young suggested

comparing population served per man among the districts, as a comparative

measure for productivity.  Per data in Union Exhibit 7, not reproduced here,

Spokane Valley groups with Bellevue, Pierce Co. #2, and Clark with about 850

persons served per man in 1988.  Kent, Bellingham and Yakima, and especially

the latter two are low at about 500 persons per man.  Federal Way and

Snohomish were at 963 and 1145 per man, respectively.  The average served in

the 8 comparators was 805 compared to 876 in Spokane County.  These data

standing alone suggest Spokane County wages should be higher.  However, the

lack of any positive correlation between population served per man and money

wages raises doubts on the usefulness of this measure.

_____

      Admittedly, no very good measure of output exists, at least as suggested

by anyone in these proceedings.  This fact underlines further the

justification for disregarding the two percent increase in wages requested

by the Union for increased productivity.*

_____

*    As set out by the Union, manpower was unclear on whether these

represented employees on duty at one time, or the total number on the

payroll during the year.  Additionally, the actual hours on duty may be

more relevant than number of employees.  No such data are in the record

in this case.

      In addition, productivity measurements in a single firm are exceedingly

difficult to make under the best of circumstances.  Usually an industry

develops new techniques, processes, or organizations which lead to

increased output.  Manpower is required, and wages are bid up.  Workers in

other industries leave for the higher paying jobs.  Thus the industry where

little or no technological change and productivity increases occurred is

faced with a dwindling labor supply, which results in higher wages.

Although this process is a long-term one, eventually all workers share in

the increased productivity, which accounts in part for the data issued by

the U.S. Departments of Commerce and Labor on rising per capita real income.

Such a process seldom can be observed to occur with regard to a single firm,

such as Spokane County, and employees work only for general increases to

augment their wages and salary.  Here no such argument was made to justify

the requested wage increase of two percent for productivity changes.

      Also, recent data from government sources suggest no "real" wage increase

for wage earners in recent years even though per capita real income did rise.

This appears to be a consequence of real economic growth from increased

employment and labor force participation of women, resulting in a rise in

"real" family income, but not "real" wages per employee.

_____

 

      D.  Average Consumer Prices

      The statute refers expressly to average consumer prices for goods

and services at RCW 41.56.460 (d).  The statute defines this as the "cost

of living," but states nothing about how such factors shall be used by the

panel or what index of average consumer prices should be used.  However,

average consumer prices may be utilized by different indices  in one of two

ways:  (1) to determine changes in average consumer prices, related to a

specific and defined basket of goods and services in a particular place or

area over a specified period of time; (2) to determine differences in average

consumer prices, related to a specific and defined basket of goods and

services, between two designated places or areas at a specific time.  These

two concepts are similar to a motion picture showing change in the first

case, while the second is more like a single still photo. As in the financial

world, a comparison of the net worth on a balance sheet of Company A on

January 1 in one year with the company 's net worth on January 1 of the next

year shows the change in net worth.  On the other hand, a comparison of the

net worth of Company A with the net worth of Company B on January 1 of year

one shows the difference in the worth of the two companies at a specific

time.  This latter comparison could be repeated, if desired, on January 1 of

year two.

      The significance of the first way average consumer prices may be used

arises out of the concept of inflation.  Inflation refers to the rise in

average consumer prices over a period of time.  As used in collective

bargaining, and argued by the Union here, wages should rise at the same

rate as the upward change in average consumer prices.  If such does not

occur, then the wage earner loses purchasing power, and, in economic terms,

is confronted with a fall in "real wages."

      Average consumer prices are measured by the Bureau of Labor Statistics

of the U.S. Department of Labor (BLS), and reported regularly.  Since the

price of gasoline, cars, houses, suits, shoes, and so forth differ markedly,

BLS devised a scheme by which these various prices can be weighted to arrive

at an index of average consumer prices.  The weights come from studies made

on how typical families spend their income.  Thus, BLS weights prices of

food and beverages at 18.813 of its index, housing, including shelter, fuel and

utilities and household furnishings at 43.911 of its index, and so on, which

represent the proportion of income that the typical urban family consumer or

household spends on those products and services.* Currently, the BLS uses

prices in the 1982-84 period, weighted by the appropriate consumption

pattern, as a base, and now measures changes in average consumer prices

against that base.  BLS has two basic indices, one for "all urban consumers"

and one for "urban wage earners and clerical workers," referred to as the

Consumer Price Index - urban consumer (CPI-U) and as the Consumer Price

Index -  wage earners and clerical workers (CPI-W).  These indices get

published for the United States as a whole, and for certain large

metropolitan areas as Seattle-Everett, Tacoma, among many others.**

_____

*    These sample weights were taken from "The Consumer Price Index

Revision - 1978," U.S. Department of Labor, Bureau of Labor Statistics,

1978 (Revised).

**  Although the index is referred to as the Seattle-Everett index,

technicians in the regional BLS office in San Francisco told the chairman

that prices are collected from the counties of Snohomish (Everett), King

(Seattle), and Pierce (Tacoma).

_____

      The Union argued for a 4.3 percent increase in wages to meet the rise

in average consumer prices of 1988 over 1987, or between July 1987 and

July 1988, the latter being the latest available at the time of the August 30

hearing.  Table 2 sets forth the average consumer prices, as measured by the

Consumer Price Index for various periods of time and both for the United

States and for the Seattle-Everett-Tacoma area.  Per the testimony of

Dr. Franz, the Union relied on the CPI-U for the U.S., which shows a 4.43

percent increase in average prices in December 1987 over December 1986.  The

annual rate of change moderated by mid-year to four percent.  The Union

offered no further evidence or argument on changes in average prices to

support the request of 4.3 percent increase in wages in 1988.

      The Union argument has some merit.  An increase in prices reduced the

purchasing power of consumers (and firefighters), and some upward adjustment

in wages on that basis would be justified.  The issue concerned whether the

full 4.3 percent would be appropriate.

      Dr. Franz justified his use of the U.S. CPI-U on the grounds that it

was "the most common one used" (Tr. 131:9 -12).  He did not explain what he

meant by "common use."   Clearly, it showed the largest increase in average

consumer prices than others in this case.  But reasons exist to question

the useof the U.S. CPI-U for wage adjustments in Spokane.

      In the first place, the parties and the panel selected a group of

"comparable" fire districts, where each has an agreement with a local in

the IAFF.  In every one of the five of eight agreements which rely upon a

wage-price index relationship, a CPI-W (wage earner and clerical worker) was

used, not the index for urban consumers.  Furthermore, the chairman asked

for copies of eight additional agreements for districts used by Dr. Ott in

his analysis and/or referred to by the District.  In the only two of those

to rely upon CPI changes in setting future wage levels, both used a CPI-W.*

Thus, whatever common useage Dr. Franz referred to, no basis existed on the

evidence in this proceeding to use other than a wage earner and clerical

worker index for firefighters.

_____

      *Renton and King County Fire District #11.

_____

      Second, the CPI-W for Seattle-Everett-Tacoma (Seattle) is a preferred

index to the U.S. CPI-W for use in Spokane County.  Aside from the fact that

four of the five comparator districts and the two other districts noted above

use the Seattle CPI-W (all of which are in the Seattle area), the general

similarity of consumption patterns and economic changes in Washington State

relative to the wide differences reflected across the nation allow greater

reliance upon the applicability of the Seattle CPI-W than  the U.S. CPI-W

to Spokane County.  In addition, the Seattle CPI-W data in Table 2 refer to

six months accumulated data, rather than data based on a single month at

an annualized rate.  These six-month averages compare reasonably to the 1987

datum for the CPI-U at 3.6 percent change, and a somewhat greater increase

than the 1987 annual rate for Seattle CPI-W, 3.23 compared to a 2.3 percent

annual change.

      A further consideration represented the average change in monthly

salaries among the comparator districts in 1988 over 1987, the majority of

whom made adjustments solely in accordance with changes in average consumer

prices.  The average increase in monthly wages, exclusive of Clark County,

was 3.5 percent, per data in the three right-hand columns in Table 3.  No

one could produce an index of average consumer prices applicable to the

Spokane, Washington, area specifically and a reasonable judgment must be

cautious on what change to effect in Spokane County, and, therefore, provide

a basis for a wage adjustment.  However, on the above considerations, the

chairman concluded that a 4.3 percent wage increase was not justified by

the change (increase) in the average consumer prices, commonly called the

cost of living.  On the other hand, the lowest datum would indicate a 3.2

or 3.3 percent increase, per the data of the Seattle CPI-W.  At the same time,

the average percent change in wages, among comparators, as generally based

on changes in the average consumer prices, was 3.5 percent in 1988 over 1987.

Finally, the price indices whose rates of change were in excess of 4 percent

at the start of the year declined substantially and were moving below a 4 per-

cent change for the year.* Thus, on balance, the chairman considered a wage

adjustment of 3.6 percent for firefighters in Spokane County to be reasonable in

1988, if only this factor of change in average consumer prices was involved.

_____

*    Specifically, the U.S. CPI-W fell from an annual rate of change in

December 1987 of 4.5 to less than 3.9 percent in August 1988 (Table 2).

__________

TABLE 3

"Top" Firefighter Salaries in Selected Districts, 1987 and 1988,

With Percent Increase Between Two Years

 

                                                   Monthly Salary

                                                   First Month                                        Salary on January 1            Salary Increase 88/87

District                                       Paid (a)       1987(b)       1988(d)                Percent

Bellevue                                    43                2630            2708                           3.0

Bellingham                                37                2405            2525                           5.0

Clark Co. #5                              37                2427            2787                           15.0

Kent                                           37                2691            2765                           2.75

 

Federal Way (KC#39)              37                2726            2807                           3.0

Pierce Co. #2                             49                2801            2871                           2.5

Snohomixh Co. #1                     37                2683            2790                           4.0

Yakima                                      43                2444(c)       2544                           4.0

 

Manpower Weighted                                    Not Computed(g)                         3.5(f)

Average(e)                                                                                                         

 

Spokane County                        25                2334            ------                           ---.---

_____

a    Taken from the agreements from each district as supplied by parties.

b    Union Exhibits 10 and lIA.

c    Represents the salary on 1/1/87 rather than on 7/1/87.  The latter

      was $2519.

d    Union Exhibit 11 and by calculation.  Yakima was taken from the

      1988 agreement.

e    Weighted by manpower data in Union Exhibit 6.

f     Excludes Clark Co. #5 as an unusual outlier, not representative of

      bargaining over 1988 salaries.  With Clark included, the average is

      4.67.

g    Since these salary data represent personnel at different stages in

      their careers, an average is meaningless.  See Table 4 for

      appropriate comparisons.

__________

 

      E.   Wage Comparisons

      The District contended that no wage increase was justified, even on

the basis of the above analysis.* Rather an examination of the monthly

salaries of comparable personnel and job classifications, adjusted for the

difference in the average consumer prices among the comparator districts,

showed that the "real wages of Spokane County firefighters were equal to or

exceeded those in the other districts (D.B. pp. 18-19).  Thus no salary

adjustment was appropriate in 1988.  The Union objected strenuously, and

countered by a study by Dr. Franz purporting to show that monthly salaries

adjusted for average hours worked per week for top firefighters in Spokane,

after adjustment for differences in average consumer prices, were 12 to 13

percent below those in the comparator districts (Un. Ex. 17).

______

*    Mr. Allison acknowledged an increase of at least 3.29 percent in

average consumer prices which might justify a wage increase, but quickly

pointed out the data in Table 2.  These show that the monthly salary of the

top firefighter classification rose 57 percent since 1979, where average

consumer prices were up about 47 percent (A.L. pp. 1-2).  Allison relied on

1983-1987 data; Dist. Ex. p. 224) and his actual percentage changes were

different.

_____

      As  indicated above in the recitation of the central arguments of the

parties, several issues emerged over what constituted proper wage comparison

among districts.  These are (1) the legality of using "cost of living"

indices to explain differences in wages; (2) the reasonableness and

reliability of using available "cost of living" indices to explain

differences in wages; (3) top firefighter vs. firefighter who drives an

apparatus; (4) length of service (longevity) vs. salary schedules and top

firefighters; (5) monthly salary vs. hourly wage; and (6) what the

comparisons of wages among the comparator districts show, if anything.

      1.   Legality of Using Cost of Living Indices to

            Explain Differences in Wages Between Areas

      The Union raised this issue of the legality of using cost of

living indices to explain wage differences most directly in its rebuttal

letter, and based its argument primarily on a decision by Arbitrator Beck,

noted above. Since the main burden of this contention fell in the rebuttal

letter, the District made no response directly.

      This contention of the Union was set aside.  As noted above, the

statute refers expressly to average consumer prices for goods and services

at RCW 41.56.460 (d).  This citation says nothing about what index shall be

used, nor does it state that an index of average consumer prices may be

applied only to the group of employees who seek an adjustment in wages.

This statutory provision makes no statement on how indices of average consumer

prices must be used, although the implication is clear that its use refers to

the determination of purchasing power, and thus "real wages" of employees.

If the Union was not cognizant of "real wages," no basis existed for its

contention regarding a justified dollar wage increase in Spokane County wages

because of the rise in the "cost of living" (average consumer prices) for

the United States "typical" consumer.

      Further, the reference to "comparison of the wages . . ."  in RCW

41.56.460 (c) (ii) in no sense precludes that such a comparison must be made

on the basis of "money wages," rather than "real wages."  The clear implication

of the need to account for what happens to "the average consumer prices," as

set out in RCW 41.56.460 (d) reinforces the legality of using "real wages"

for comparison under (c) (ii) of the same statutory section.

          Also, RCW 41.56.460 (f) directs the panel to examine "such other factors

. . . which are normally or traditionally taken into consideration."  Manifestly

"real wages," and comparison of "real wages" between and among locations and

bargaining units have been and are a part of collective bargaining negotations.

The panel chairman has participated in several arbitrations within the last

four or five years where explicitly the issue of variations in purchasing

power and "real wages " across a bargaining unit and among bargaining units

in different locations was a part of negotiations.  In fact, he was asked

to and did arbitrate  the difference between the Alaska Public Employees

Association and the State of Alaska over salary differentials for the same

classifications in over 25 different locations, from Nome and Barrow in the

north, to Ketchikan and Juneau in the south.  Manifestly, the salary

differentials were based on differences in the average consumer prices in

the various locations.*  The comparison of  "real wages"  is

a commonplace practice, "normally and traditionally taken into consideration

in the determination of wages. . ."

_____

*    Alaska Public Employees Association vs. State of Alaska (Geographic

Wage Differentials), Kenneth M. McCaffree, Arbitrator, October 20, 1986

(unpublished, but a public document).

_____

      The chairman has at hand the recent decision of Arbitrator Carlton

Snow, Professor of Law, and experienced arbitrator, in a parallel case to

the Beck decision cited by the Union.**  Professor Snow stated:

_____

**  Arbitrator Snow's decision involved police rather than firefighters,

but is based on the same statutory section, as used herein, and on

essentially the same data provided Arbitrator Beck.

_____

            It is reasonable to conclude that, if dollars have greater

            purchasing power in one city than in another, this fact

            ought to be taken into account in determining an appropriate

            wage. . . . The CPI and other inter-city ''cost of living''

            comparisons could have relevance and have been used in

            determining the appropriate wage to be paid members of the

            bargaining unit (Snow, p. 46).

After examination of the Runzheimer Report and testimony of its author,

Arbitrator Snow concluded:

            Cost of living factors unquestionably are relevant . . .  and

            the only substantial question is to what extent (p. 49).

He went on to examine the arguments of the parties on this report and others,

including that of the American Chamber of Commerce Researchers Association, of

the Associates for International Research, Inc., as well as budget studies

of the BLS. Arbitrator Snow stated clearly "that the 'fixed market basket'

approach was a traditional method of gathering data and one of the few

available methods for making inter-city 'cost of living' comparisons"

(Snow, p. 53).  After further examination of these reports, and others,

including one from Coldwell Banker Residential Group, Arbitrator Snow

asserted:

            While these data were of varying degrees of usefulness and

            reliability, they served as an indicator that costs of

            living in comparative cities are higher than in Seattle

            (p. 57; see also pp. 60-61).

Finally, the attention of the parties is called to the discussion of the

guidelines and the statutory mandate to the panel as set forth above, page 20.

      2.  Reasonable and Reliable Cost of Living Indices

      No question exists that cost of living data must be judged as to

their reliability and reasonableness.  In the case of cost of living indices,

specifically, economists and statisticians, among others, point repeatedly to

the fact that use of a common basket of goods and services in different areas

is defective, since people do not buy the same items in the same proportions

in every area.  Thus, how useful a particular index of prices may be may well

depend upon how representative those items are within each of several areas.

Further, the number of pricing samples taken, or the time when taken, and

under what circumstances can affect results.  These factors influence the

weight to be given a particular observation or set of observations.

      In the case at hand, the chairman does not intend to examine the reports

of Dr. Ott and Dr. Franz.  Both can be, and have been, critized by the parties

in brief, generally with significant points.  The chairman notes here

specifically the finding that Dr. Young made by reducing by two of the ten

observations of Dr. Ott.  The coefficient of determination dropped to .27

without statistical significance in the coefficients (Y.L. pp. l-2).* At

the same time, the report of Dr. Franz raised questions regarding use of

both the hours worked to adjust monthly salaries and what constituted the

top firefighter salary.

_____

*    "Y.L." is the Young letter to McCaffree, dated October 26, 1988.

_____

      Although both Dr. Ott and Dr. Franz used data provided by their

respective clients, the adjustment made of wages for cost of living

differences by the District at page 19 of its brief was more straightforward.

But it depends also upon the relevance of the monthly salary of ten-year

firefighters who drive the apparatus.

p.  35

      3.   Top Firefighters Versus Firefighters

            Who Drive an Apparatus

      The Union relied upon top firefighter wages for comparison.  The

data cited have been reproduced in Table 4, and consists of those figures

for each comparator which lie on the line in the middle of that table.**

The salary data were augmented by what the Spokane County personnel in the

top firefighter classification do compared to tasks or skills in the

comparator districts for persons at the top step of the firefighter

classification.  Examination of Union Exhibit 12 indicates that only three

items are not generally done by firefighters in other districts - rope

rescue, mechanic and alarm operator.***  Noted here, however, by the District

was the fact that personnel in the top firefighter classification in Spokane

County are paid a premium whenever an employee in the firefighter

classification serves either as a mechanic, an alarm operator, or driver of

a fire apparatus (Un.  Ex. 1, p. 18, Appendix B of the Agreement).  The average

monthly salary of the "top" firefighters in the comparator districts was

16 percent higher than in Spokane County, $2724 to $2334, on the basis of the

Union comparisons.

_____

**  Data for Yakima were unavilable for the completion of Union Exhibit 11A,

but the January 1, 1988, rate has been inserted in Table 4.

***      Two other items with some such duties designated in other districts

were fire investigator and public CPR classes.

__________

Table 4

Monthly Salary of the Firefighter Classification at Various Periods of

Service for Selected Fire Districts, Washington State, January 1, 1988(a)

 

Firefighter         Bellevue               Bellingham           Clark      Kent       Federal Way         Snohomish   Yakima                        Spokane

Classification                                                                 (King Co.              Pierce     #1                    County

Monthly Salary                               7 - 6 mo.                               #39)        #2                                   1987

At/On                 5 steps   steps      4 steps   4 steps   4 steps   5 steps   4 steps   5 steps   3 steps

___________________________________________________________________________________________________________

                       1 month      2130       2115       1956       2074       2246       2045       2034       1911 1875

                        7 months   2234       2179                                                                                  2044

                        13 months                2244       2593       2323       2386       2272       2514                2089

                        19 months 2394       2311                                                                                  2141

                        25 months                2380       2685       2530       2597       2456       2654                2334

                        31 months 2551       2452                                                                                  2271

                        27 months                2525       2787       2765       2807       2656       2790               

                        43 months 2708                                                                                                 2544

                        49 months                               2805                                     2871                               2427

  5 yr -             61 months                               2823       2820       2832                                     2582

  6 yr -             73 months                               2841                                                                           

  7 yr -             85 months                               2859                                                                           

  8 yr -             97 months                2545       2877                                                                            2474

10 yr -             121 months                                                           2876       2857                               2620

___________________________________________________________________________________________________________

      [**Originally, a connected line ran underneath each underlined value in the chart above**]

_____

(a) Above the line, all salaries are set forth in a schedule in the agreements.  Salaries below the line were

computed from other provisions in the districts' 1988 agreements, except for the Kent district.  Only length

of service has been considered in reproducing these data.  Data for Spokane County are for 1987.

__________

      The District claimed that the comparison should be made between

firefighters who drive apparatuses, not dependent upon the highest wage rate

paid to an employee in a firefighter classification.  The bases for this

comparison was that in six of the comparator districts, the personnel in the

firefighter classification drive apparatuses, which is not the case in Spokane

County, and that, since the average length of service of personnel who drive

apparatuses was 11.8 years, in Spokane County, firefighter drivers of 10 years

service in all districts should be compared.* These data are in Table 5,

column 4.  They show an arithmetic average salary of $2796 for the comparators

relative to $2657 in Spokane County, or a difference of 5.23 percent.** But

the District argued, the difference in the ''cost of living'' (average consumer

prices) between the Seattle area and the Spokane area is over 12 percent, such

that the real wages in Spokane County exceed those in the comparators, and no

salary increase is justified for 1988 (E.B. pp. 18-19).

_____

*    Bellevue and Bellingham have firefighter driver identified

classifications.  See Union Exhibit 18.  The Spokane County classification

is Driver (Equipment Operator).

**  The District data at page 13 of its exhibit leaves out Snohomish and used

July 1 salary in Yakima rather than January 1, 1988.  Table 5 includes

Snohomish and uses the January 1, 1988, salary rates for all comparator

districts.

_____

    The District characterized its use of a firefighter apparatus driver as

a "model firefighter." Here the Union objected that no such classification

 

__________

TABLE 5

The Monthly Salary in Classifications for Firefighters and for Firefighters Who Drive An Apparatus

At Various Months of Service, For Selected Fire Districts, Washington State, January 1, 1988

 

                                                                                                                              Salary

                                                              Firefighter Salary(e)                               Firefighter Who Drives

Districts, Averages, Etc.         At 25th month    at 49th month    at 37th month   at 121st month    Manpower(d)

Bellevue                                   2473(a)               2708                   2680(c)             2844(c)                124

Bellingham                               2416(a)               2525                   2575(c)             2595(c)                98      

Clark Co. #5                            2685                   2805(b)               2787                  2919                     69

Kent                                         2530                   2765                   2765                  2876                     97

Federal Way                            2597                   2807                   2808                  2858                     81

Pierce Co. #2                           2456                   2871                   2656                  2871                     80

Snohomish                                2654                   2790                   2790                  2790                     48

Yakima                                     2206(a)               2544                   2544                  2620                     85

 

Arithmetic Average                 2502                   2726                   2700                  2796                    

Manpower Weighted Average                          2486                   2715                  2690                     2793

 

Spokane County                      2334                   2427(f)               2517(c)             2657(c)

 

Arithmetic Mean as a            

Percent of Spokane Valley     107.2                  112.31                107.3                 105.2

 

Weighted Mean as a

Percent of Spokane Valley     106.5                  111.86                106.87               105.1

 

Total                                                                                                                                                     682

_____

(a)  Salary at 19th and 31st months added and divided by two.  Also used 25th month and 31st month.  See Table 4.

(b)  One and one-half percent over salary at 37th month.

(c)  These districts show a separate firefighter/driver classification.  For other districts, the salary

      is for a firefighter who drives an apparatus.

(d)  Taken from Union Exhibit 6.

(e)  Salary taken from agreements in districts without regard to specific duties performed by personnel

      in the classification.

(f)  Salary is 4 percent over monthly salary in 25th month.

 

Source:  Agreements of nine districts listed.  Also see Table 4.

__________

***************

Note:

PERC's original missing page 39

 

***************

statutory guideline of "comparison of the wages . . .  of personnel involved

in (Spokane County) with the wages . . . of like personnel of public fire

departments of similar size . . ."  (underlining added).

      Every one of the firefighter salaries and classifications used by the

Union were for personnel whose experience was half again or double that

required in Spokane County.  A Spokane County "top" firefighter, whose duties

do not include driving, gets $2334 per month, and does so after only 24 months

of experience.  The Union compared this salary to the top paid person in the

firefighter classification in Pierce County #2 at a salary of $2871, who is

required to drive a vehicle.  However, the firefighters in Pierce must have

four years of experience contrasted to the two years in Spokane County.

Employers are willing to pay senior employees more, and the labor market

only allows those with more experience to be paid more, because of greater

skill, knowledge and expertise of longer term employees than those with less

experience.  Clearly the Union has compared unlike personnel in unlike

classifications and its comparison must be considered with substantially

reduced weight as to its relevance.

      On the other hand, the District has demonstrated salary among personnel

who do similar duties and have comparable experience.  This related both to

driving duties and to experience, per se.  As for comparison of duties of

personnel across comparators, the chairman concluded that the driver

firefighter classifcation represented a more exact and less imperfect

substantive description of a classification and what the personnel do in it

than the case of the firefighter classification and duties offered by the

Union.  The chairman regarded the District's selection of the basis for

comparison among fire districts more reliable than that of the Union.

      Set forth in Table 5 are salaries among firefighters who drive

apparatuses.  These have been compared on the basis of experience both

at 37 months, and at 121 months (which the District used).  At 37 months, the

salary of Spokane County driver firefighters was 7 percent, and, at 121 months,

5 percent less than the arithmetic or manpower-weighted average salary for the

eight comparators, respectively.

      Finally, the Union's assertion, that acceptance of evidence and testimony

on the "model" firefighters was violative of this Statute, requires little

further comment.  The parties are reminded again to examine the authority of

the chairman and panel to accept evidence and testimony, as set out above.

As Arvid Anderson, President of the National Academy of Arbitrators, has

pointed out, "lawyers are very skillful at raising objections as to the

admissibility or to the relevance of particular data, however, in interest

arbitration what is really important is the persuasiveness and relevance of

what is presented."*

_____

*    See Anderson, "Public Sector Interest Arbitration Lessons from Recent

Experience," Address to the Society of Professionals in Dispute Resolution

in Boston, Massachusetts, October 1985.

_____

      4.   Length of Service (Longevity) Versus

            The Firefighter Salary Schedule

      The Union objected to the use of longevity or length of service

in wage comparisons made by the District, and did so on the basis that

longevity was not an issue before the panel.  So far as the chairman observed,

neither he nor either panel member regarded longevity an issue before the

panel, and as acknowledged so by the District.

      The issue in dispute is the extent to which, not whether, length of service

should be accounted for in comparing wages among the comparators.  Here the

Union used wage levels at three, three and one-half, and four years, as set

forth in wage schedules in the various agreements to compare to a wage level

at two years for the top firefighter classification in Spokane County.  The

Union's selection of wages to compare across districts was the highest rate

paid in the general classification of firefighter, without regard to either

duties or length of service.  The District chose a single length of service

of members in the driver firefighter classification, as descriptive of like

personnel, at ten years.  The ten years was used because it represented

slightly less than the average length of service of Spokane County personnel

in that category (Er. Ex. p. 12).*  In both cases, the parties relied upon

length of service, either implicitly or explicitly.  Thus, for the most part,

the Union's objection to longevity was a non-issue.

_____

*    In Spokane County, 24 employees were in the Driver Equipment Operator

classification compared to only 11 in the "top firefighter classification, "

whose salary was $2334 compared to the Driver's rate at $2517.

_____

      On the other hand, the methodologies of the Union and the District do

raise a question on the appropriate application of the statutory guidelines

on comparable wages.  The neutral chairman cannot read into RCW 41.56.460

(c) (ii) that the Legislature intended that wages of personnel in similar

districts were to be compared on how much unlike personnel get at the same

time, or the same personnel get at different times.  Rather a fair straight-

forward reading of this section implies that comparisons are made among likes,

not dislikes, at a point in time.  As noted above, a person in a classification

with two years experience brings less to the job than a person at four, or ten,

years, in terms of knowledge, skill and expertise.  Obviously, there is a

learning curve, wherein the beginning wages progress rather rapidly, and then

tend to level off because experience alone on the job decreases the rate of

change and increases in skill and so forth acquired simply by years on the job.

      These considerations led the chairman to conclude that reliable

comparisons must be made at comparable levels of experience, and, therefore,

comparisons of wages of classifications at various terms or longevity levels

were in order.  Such comparisons do not affect the longevity terms of the

Agreement, but add to the completeness and accuracy of salary comparisons

among like personnel performing similar duties.

      Table 5 sets forth four comparisons.  The first two represent the

firefighter classification, as used by the Union, but wages are set forth

at 25 and 47 months of service.  Note that this comparison makes no adjustment

for actual duties performed.  Here, however, the firefighter salary at 27

months in Spokane County was 7 percent below the average for personnel in the

firefighter classification in the comparator districts.  When the length of

service is extended to 47 months, the Spokane County personnel were about

12 percent below similar personnel in the comparators.

      Table 5 shows also what is the comparative wages of firefighter drivers

at 37 and 121 months.  In the former case, the Spokane firefighters who drive

apparatuses are about 7 percent behind, whereas those at 10 years of service

had salaries only 5 percent below the average among firefighter drivers with

a similar experience record.

      5.   Hourly Rates Versus Monthly Salary

      Although throughout its presentation the Union contended for only

an adjustment in monthly wages, the presentation by Dr. Franz relied upon

monthly rates adjusted for average hours worked per week, and then adjusted

for differences in cost of living statistics for some of the districts.  The

District maintained that monthly wages unadjusted for average weekly hours

worked were historically and universally used in bargaining, and that hours

of work were a separate matter outside the issues before the panel.

      The neutral chairman rejected the District's position here.  Hourly rates

or monthly salaries adjusted for average hours worked represent another

measure of wages, and comparability among like personnel doing like work was a

legitimate comparison.  At the same time, the weight placed on the results of

such a comparison is affected both by the classification and like personnel

used, as well as statutory recognition that "hours" are a separate comparison

subject listed under RCW 41.56.430 (c) (ii).  Also, the practices in the

industry and in Spokane County were that monthly wages were the negotiated

item, not monthly salaries adjusted for average hours worked per week.*

_____

*    The neutral arbitrator noted that Arbitrator Beck dismissed reliance by

the Employer upon hourly wage rate comparisons and in that case cited above

agreed with the Union that only monthly wages should be compared under the

applicable statutory guidelines (Beck, p. 17). Average hours worked per week

reflect the number of da 5 not worked during the year.  In the most part,

districts used the Detroit system of 24 hours on, 24 off, 24 on, and 48 hours

off, when personnel were on duty.  Vacations, Kelly days, and leaves for

various purposes differ among the districts, represent separate bargainable

issues, and thus affect the usefulness of the monthly salaries adjusted for

average hours worked.

_____

      The data in Table 5 have been adjusted for the differences in the average

numbers of hours per week on duty in the eight comparators and Spokane County.

The hours data used were those set out by Dr. Franz in his Exhibit V.  For all

eight comparators the average hours per week was 50.9.  For Spokane County,

the average hours per week was 53.  Thus the average monthly salaries shown

for the four columns on firefighter were adjusted upward by the ratio of 53

to 50.9, as Dr. Franz had done (Exhibit I, Franz Report, Un. Ex. 17).  The

results are these:

__________

                                                      Monthly                       Monthly Salary of

                                                      Firefighter Salary        Firefighter Who Drives

                                                      at 25th                          at 49th        at 37th             at 121st

                                                      Month                          Month        Month             Month

Eight Comparator Arithmetic   2502                                2726            2700                2796

Average Salary**

 

Spokane County Salary**           2334                              2427            2517                2657

 

Hourly Adjusted Average            2605                              2838            2811                2911

Salary for Comparators

 

Hourly Adjusted Average            111.61                           116.95         111.69             109.57

Salary as Percent of

Spokane County Salary

_____

**Data reproduced from Table 5 above.

__________

      From the table above, the adjustment for average length of the work week

increased the percentage difference between the average monthly salaries in

the comparators relative to Spokane County salaries by about 4 percentage

points, and ranged between 9.8 percent higher for 10 year employees who drive

to 17 percent for the four year person in the Spokane County top firefighter

classification.

      6.   Average Consumer Prices in Seattle and

            Spokane, Relative to Wage Differences

      Three sources of data on the average consumer prices in Spokane,

Eastern Washington, Seattle and its area were offered by the District and the

Union.  First, Dr. Ott cited the Eastern Washington University study in 1981,

which showed average consumer prices in Seattle to be 11.2 percent higher than

in Spokane.  This study paralleled the BLS methodology and range of products

and services included in the survey.  Second, Coldwell Banker Realtors

estimated Seattle housing costs to be 40 percent over those in Spokane in

1988.  The Eastern Washington University study found the ratio on housing

to be 1.20 to 1.00, Seattle over Spokane.

      The main source of information was the Inter-City Cost of Living Thdex

produced by ACCRA.  This index relies on prices of only 59 products and

services, as contrasted to over 300 in a certain month (or quarter) throughout

the United States.  Since the cities that participate may vary, or prices

obtained for some but not all products, the index cannot be used to measure

changes in average consumer prices in any location over time.  Rather the

validity of the index arises only for comparison among cities or areas at a

point in time, and each month's, or quarter's, computation has meaning only

for that point in time.

      Table 6 summarizes the ACCRA data. The indices in each case represent

arithmetic averages for the areas involved.  In Seattle, the effect of

including other locales was to lower the combined index below Seattle's

indices.  In Eastern Washington, the more rural areas raised the combined index

relative to Spokane.  This accounts for the difference between the 8177 in

column 3 and 12.35 in column 6, both of which indicate a higher cost of

living in Seattle or its areas than in Spokane and Eastern Washington.

The ACCRA data may not be the best, and thus most reliable, index that

could be devised, but the closeness of its results to those obtained in a very

methodologically rigorous study in 1981 by the Eastern Washington University

staff, must be given some weight.  Further, common knowledge and experience

support the fact that consumer prices are higher in Seattle and Western

Washington metropolitan areas relative to Spokane and Eastern Washington.

Since the panel relied on the record before it, and, without access to other

studies, a fair and reasonable summary of the average consumer price data

indicated that the Seattle area has a higher "cost of living" than Spokane

County by some 10 or 11 percent in 1987-88.* In arriving at this summary, the

neutral chairman placed more weight on the 1987 ACCRA data than did Dr. Franz,

who used the two year average of quarterly indices in his report.  Nor did he

believe Dr. Ott acted properly in using only the fourth quarterly data, which

showed the greatest differences between Seattle and Spokane at any time in the

two years.  The 1987 average annual data eliminated random variation by quarter,

and represented a more proximate basis for examining 1988 money wages among

the comparators and Spokane County than did 1986-87 price data.

_____

*    Some concern existed over the weights given to housing costs in the ACCRA

studies and to the relatively much higher prices of health care in Seattle

than Spokane.  Dr. Franz proposed a small reduction in the differences in

average prices when medical care prices were eliminated, since the employees

in all (most) fire districts have no direct medical or health care expenses.

This adjustment reduced price differences between the Seattle area and Spokane

by about 1.5 percentage points.  He made no adjustment for known higher housing

costs in Spokane, which, given the relative weight used by ACCRA, would seem to

offset the health price difference (Un. Ex. 17, Ex. II and III).

__________   

TABLE 6

Differecnes in Average Consumer Prices (Cost of Living) Between

Seattle, Eastern Washington, and Spokane, By Quarter, 1986-87

                                       (1)                        (2)                    (3)                     (4)                     (5)                  (6)

                                                                    Eastern Wash.                         Percent                                      Percent

Year/Quarter                 Seattle Area(a)   Area (a)          (1) over (2)       Seattle Area     Spokane        (4) over (5)

1987

4th Quarter                    105.96               96.85(b)            9.4(e)                  105.96(e)            93.7              13.1(e)

3rd Quarter                   102.73               95.38                 7.7                      102.73                92.3              11.3

2nd Quarter                   105.33               97.00                 8.59                    105.53                94.1              12.15

1st Quarter                    105.76               96.77                 9.39                    105.76                93.7              12.87

 

1986

4th Quarter                    106.20(d)          98.73(d)            7.57                    106.20                96.5              10.05

3rd Quarter                   104.93               97.33                 7.80                    104.93                95.6              9.76

2nd Quarter                   105.00               97.91(c)            7.24                    105.00                96.1              9.26

1st Quarter                    107.28               97.45                 10.01                  107.28                98.2              9.24

 

Average 4                                                                         8.77                                                                    12.35

1987 Quarters

 

Average 8                                                                         8.21                                                                    10.96

Quarters

_____

(a)  Seattle area is an arithmetic average of Renton, Seattle and Tacoma.  Eastern Washington

      area used Richland, Wenatchee, Walla Walls and Spokane.

(b)  Yakima substituted for unavailable Walla Walla data.

(c)  Only data for Yakima, Spokae, and Richland available.

(d)  Seattle and Tacoma data only.  Spokane, Wenatchee and Yakima only.

(e)  With the addition of Portland, (Clark) and Yakima to the comparattors, weighting Seattle twice

      for Bellevue and Snohomish, and Tacoma index twice for Federal Way and Pierce County #2, these

      locations yield an average index of 104.35, which, when compared to Spokane, gives a percent

      differential at 11.36.  Only fourth quarter data were available (Un. Ex. 17; Er. Ex. pp. 31, 33).

Source:     Inter-City Cost of Living Index, ACCRA, Un. Ex. 17.

__________

      The wage data for comparison are those set out in the text above. Monthly

money wages in the comparators for the two classifications shown on two

different lengths of service each are between 7 and 12 percent higher than

in Spokane (Table 5).  When monthly money wages are adjusted for average

hours worked per week, the excess of comparator salaries over Spokane County

salary is between 9.6 and 17 percent, the latter percent identified with the

Spokane top firefighter classification at 49 months of service (Text, p. 44).

Other comparisons fall in a narrow range between 9.5 and 11.7 percent higher

money wages in the comparators relative to Spokane County.  These data are to

be compared with the 10 to 11 percent higher "cost of living" in Seattle

relative to Spokane.*

_____

*    After discussing these data with my panel member colleagues, I have

added below in the final summary section, a comparison of monthly wages in

the five Seattle area districts, rather than in all eight comparators, with

Spokane, adjusted for average weekly hours worked, as well as the monthly

salaries.  Some small "real" wage difference in the Seattle area over Spokane

can be seen.  See Table 7.

_____

      A preliminary judgment on these data indicates no substantial, if any,

differences, on balance, between the "real wages" of Spokane firefighters

compared to their counterparts in the eight comparable districts.  For the

most part, this conclusion supports the District's position that no salary

increase is appropriate for 1988.

      7.   Conclusions

      In summary, the neutral chairman concluded on the basis of the

above discussion that:

      (1)  The use of "cost of living" indices (or average consumer prices)

            to explain differences in money wages between areas, as Seattle

            and Spokane, is permitted by the statutes, and provides a factor

            "normally or traditionally" relied upon in comparing wages in

            collective bargaining.  "Real wages" are a factor for comparison

            among like personnel in the employment of like employers.

      (2)  The usefulness, and therefore reasonableness and reliability, of

            cost of living indices depends upon the nature of the data as

            well as the methodologies used.  Such matters go to the weight

            to be placed upon the indices used.

      (3)  Salaries of comparable personnel who perform comparable tasks,

            provide the most reliable basis for comparisons among similar

            districts.  The firefighter classification where the employee

            drives an apparatus represented the more reliable classification

            to use, in this case, than the catch-all title of top fire-                                

            fighter which represented an amalgam of different duties and

            levels of skill, knowledge and expertise attributed to

            different lengths of experience as firefighters.

      (4)  Any change in longevity provisions of the Agreement lies outside

            the issues before the panel.  Length of service of an employee

            and classification salary constituted essential ingredients in

            comparing wages among personnel in the comparators and Spokane

            County.

      (5)  Hourly rates, or monthly salaries adjusted for the average

            length of the work week, constitute a legitimate basis for

            comparison of wages across the comparators and Spokane County.

            Industry practice particularly and past practices in Spokane

            County, in part, support greater reliance upon comparisons

            based on monthly salaries than those based on monthly salaries

            adjusted for average lengths of the work week.

      (6)  Average consumer prices in the Seattle area are 10 or 11 percent

            higher than prices in the Spokane County area. Accordingly, on a

            "real wages"  basis, money salaries 10 or 11 percent higher on the

            average in the comparators than in Spokane County represent a real

            wage equivalent to the lower money salaries in Spokane County.

                  Money wages in the comparators were 5 to 17 percent higher than in

            Spokane County, with most comparisons in the range of 8 to 12 percent,

            among eight different comparisons.  Relying more heavily on

            comparisons based on monthly salaries, including length of service,

            and classification for personnel who drive apparatuses, the range

            of difference in money wages narrows to 5 to 12 percent, with the

            other two differences at 7.3 and 9.5 percent.

 

      F.   Other Considerations

      The Union pointed out in several places that the District offered a three

percent salary increase for 1988 in mediation and that the Union reduced its

demand for a wage increase from 21 percent to 6.3 percent.  The Union entered

this arbitration with a proposed 6.3 percent wage increase, whereas the

District withdrew its prior offer, and argued that no increase was justified.

      The implication of the Union argument, along with comments about the

"model" firefighters, was that the employer had no basis for changing its

position between mediation and arbitration.  The chairman disagrees, and

believes these arguments represent a misconception of interest arbitration

as construed generally and in the Washington statute specifically.

      In the first place, the statute places no requirements on either party

to go into arbitration on the same basis that they left mediation.  No place

in the statute is any reference made to "last offer" arbitration.  Not only

may the employer or union change its position on a specific issue in interest

arbitration, but the panel is not required by the guidelines to examine or

rationalize settlement only within the range of the last offers of the

parties prior to arbitration.  The panel examines the proposals of the

parties at the arbitration, not what they have been or might have been or

should be in the judgment of one party or the other with regard to the

other's proposal.* The function of the party in arbitration is to convince

the panel and the neutral chairman specifically that its position in

arbitration is meritorious, whatever its position at that time.

_____

*    Clearly, a panel would be at substantial risk to reach a decision

and award on wages, for example, either lower than the employer's arbitration

proposal or higher than the union's proposal at arbitration.

_____

      In addition, the purpose of interest arbitration is a means to replace

the strike among public uniformed personnel, per RCW 41.56.430.  Certainly

in the course of a strike, an employer seldom leaves on the negotiating

table what was there before.  A strike is a new "ball game," with a different

set of rules than the usual course of negotiations.

      Such, also, is the case with interest arbitration under the Washington

statutes.  The panel of arbitrators is an agency of the state, not of the

parties, and its functions are set by the statute, not by the parties.  The

process of interest arbitration brings uncertainty into the settlement

possibilities.  Since interest arbitration is a last resort effort (in

lieu of a strike), and a recognition of the failure of the parties to reach

a mutually acceptable agreement, this uncertainty provides a valuable

incentive to the parties to reach their own settlement.  If interest

arbitration was approached with the concept that what the employer had

offered is certain, or the employer knows its maximum liability from the

union's last offer, neither has any reason to settle, but can spend a little

effort, and hope to improve its situation.  Nothing gained is only

a small loss.  Interest arbitration is the last resort for settlement under

a different set of rules and guidelines, and with an element of uncertainty.

It is directed towards providing the parties with an incentive to exercise

their greatest effort to reach agreement on their own, and, in doing so, to

strengthen and improve the relationship between union, employees and employer.

 

SUMMARY AND AWARD

      The neutral chairman arrived at a two percent increase in wages for all

classifications in the Spokane County Fire Protection District by placing

more weight upon monthly salary comparisons among personnel in firefighter

classifications who drive apparatuses and who have equal length of services

than upon other comparisons.  The summary decision data are set out in

Table 7, which repeats some prior data.

__________

TABLE 7

Salary Comparisons between Selected Fire Districts and Spokane County

By Monthly Salary and by Monthly Salary Adjusted for Hours Worked

For Personnel at Different Lengths of service in two Classifications

In Relation to Cost of Living Differentials, Washington State, 1988

                                                      Firefighters                    Firefighters Who Drive Apparatuses

                                                      Length of Service          Length of Service

Salaries and Percent                    In Months                      In Months

                                                         25              49                 37               49(c)              121 

All Comparator Districts

Avg. Mo. Salary '88                     2502          2726             2700             2752             2796

Spokane Mo. Salary '87              2334          2427             2517             2618             2657

 

Percent Comp. over Spokane      7.20           12.31            7.30              5.10              5.23

 

Hours Adj. Avg. Mo.                   2605          2838             2811             2889             2911

   Salary. '88(a)

Spokane Mo. Salary '87              2334          2427             2517             2618             2657

 

Percent Comp. over Spokane      11.61         16.95            11.68            10.35            9.57

__________________________________________________________________

Seattle Area Districts(b)

Avg. Mo. Salary '88                     2542          2788             2739             2815             2847

Spokane Mo. Salary '87              2334          2427             2517             2618             2657

 

Percent Sea. Districts                  8.91           14.87            8.82              7.52              7.15

   Over Spokane

Hours Adj. Avg.  Mo.                  2668          2926             2875             2955             2988

   Salary '88(d)

Spokane Mo. Salary '87              2334          2427             2517             2618             2657

 

Percent Sea. Districts                  14.31         20.56            14.22            12.87            12.45

   Over Spokane

__________________________________________________________________

Cost of Living Differentials(e)

Seattle over East. Wa.                 8.77           8.77              8.77              8.77              8.77

Seattle over Spokane                  12.35         12.35            12.35            12.35            12.35

_____

(a)  Adjusted by ratio of 53 to 50.9 (Un. Ex. 17, Ex. V).

(b)  Bellevue, Kent, Federal Way, Pierce Co. #2, and Snohomish.

(c)  Computed from data in Table 3.

(d)  Adjusted by ratio of 53 to 50.49 (Un. Ex. 17, Ex. V).

(e)  Data from Table 6.

__________

      The first relevant data constituted a comparison between the "real wages"

of firefighters who drive in the eight comparator districts with those of

similar personnel in Spokane County.  The money wages in Spokane were 7.3,

5.1 and 5.2 percent lower than average monthly salaries in the eight

comparators for employees at the 37th, 49th and 121st months of service,

respectively.* The differences in money wages are offset by a "cost of

living" difference estimated at 10 to 11 percent.  This comparison indicated

no basis for a salary increase if the estimated cost of living differential

between comparators and Spokane County was valid.

_____

*    The 49th month comparison was added here, since in Spokane County no

employee of only 37 months in service is a driver firefighter.  Four years

is the shortest tenure of any, and thus the four year summary figure was

added here (Er. Ex. p. 12).

_____

      The second set of data involved adjusting monthly salaries of all eight

comparators for average hours worked per week, relative to Spokane County.

On the same bases as above, for firefighters who drive apparatuses, money

wage differences were 11.7, 10.3 and 9.6, respectively for the personnel at

37, 49, and 121 months of service.  Again, this comparison overall does not

justify much wage increase, if any, when compared on a "real" wage basis,

against the 10 or 11 percent differential in the cost of living between

Seattle and Spokane.

      However, five of the comparators represent districts for which cost

of living data and differences with Spokane can be readily compared.** Here

in the mid-section of Table 7, a comparison of firefighters who drive at

the 37th, 49th and 121st months between these five districts and Spokane show

money wages 8.8, 7.5 and 7.2 percent lower, respectively, in Spokane County

relative to the comparators.  A direct comparison on real wages using the

ACCRA cost of living data show Spokane to be two to three percent higher

than the comparators.

_____

**  These districts are Bellevue, Kent, Federal Way, Pierce and Snohomish.

The other three were Yakima, Clark and Bellingham.  These three lower the

"real" wage average among the eight comparators, and the cost of living data

were not available for one of the areas.  The ACCRA data show a higher cost

of living in Yakima than Spokane, but firefighter money wages on January 1,

1988, were about the same as the 1987 Spokane County salaries.

_____

      When monthly salaries of the five Seattle districts are adopted for

differences in hours worked per week, the money wages in Spokane lag the

Seattle districts by 14.2, 12.9 and 12.5 percent for the firefighters who

drive at 37, 49 and 121 months of service, respectively.  These money wage

differences are greater than the estimated cost of living differential, by

one to two percentage points, which would thus support a small salary

increase.

      The other two columns in Table 7 relate to the firefighter classification,

where in some districts the personnel drive apparatuses, and in others do not.

But without going through the above step-by-step comparisons,  the relation-

ships are not much different among comparators and Spokane County on salaries

than above, except for the firefighters at 49 months.  When monthly salaries

are adjusted for average hours worked, personnel in this classification fall

below comparator salaries by several percentage points.  In examining the

wage pattern as a whole, this fact, plus that the 10 year driver firefighter

in Spokane gets as much as 5 percent more in real wages than his counterparts

in other districts, indicates that the "bottom" part of the salary schedule

in Spokane is "behind," whereas the "long-termer employee is "ahead" of

the comparators with regard to real wages.  Any increase in salaries across

the board will move the Spokane district to catch up for the "short-termers,

in this case the "top firefighter" of the Union arguments, and to push the

"long-termers" farther ahead, as argued by the District, for the average

driver of ten years service.* Some balance was required here across salary

classifications, since the panel was confined to the same percentage salary

increase for all employees.

_____

*    This structural difference in salaries in relation to length of service

was marked for Spokane relative to other districts, as examination of the

salary schedule in Table 4 will indicate.  Spokane has only three steps for

beginner, whereas five other comparator districts have four, and one with

eight, and two with five, steps in the salary schedule for firefighters.

_____

      Two final matters were relevant.  Although the above analyses suggest

a clear cost of living differential between Spokane and Seattle, the

exactness of it can be challenged realistically.  As Dr. Franz testified

and as Dr. Young pointed out in panel discussions, too much confidence in

the ACCRA data may be misplaced.  The chairman concurred.  The 59 item price

index is a narrow range of products.  Only the consistancy of the data over

several quarters suggested some level of confidence can be placed in them.

Adjustments in the case of health care prices and/or housing prices across

the two areas, as discussed in the footnote on page 46, make for some

uncertainty in precisely how accurate and reliable the indices may be.

Some further conservatism may be in order to reduce the estimated cost of

living differential to 8 to 10 percent rather than the 10 or 11 suggested

above.

          Finally, although the chairman argued against a specific productivity

increase, as presented by the Union, money wages do drift upwards somewhat

more than consumer prices.  Thus, it was not surprising that Table 2 shows

wages moving up about two percent per year more rapidly than prices (cost

of living) in Spokane County.  Although the Spokane firefighters as a whole

have a real wage advantage over their comparator employees in like districts,

the chairman concluded that any difference should not be made up at once,

and some increase in wages should be granted in 1988, which reduces the real

wage differences between Spokane County and its comparators.

      Thus, given the general relationship between productivity growth and

money wages, and some conservatism in the reliability of the ACCRA cost of

living differentials, the chairman concluded that an increase of four percent

to no increase might well be reached by a reasonable man on the basis of the

above data and analyses.  In this case, the two percent wage increase  for

1988 represented a compromise between these extremes.  This increase in wages

will allow all personnel nearly a $600 (or more) annual increase.  Under the

above factual circumstances, the two percent across the board represented a

reasonable increase in wages for all classifications in the bargaining unit

in Spokane County for 1988.

 

 

ARBITRATOR' S AWARD

      After study of the testimony and evidence produced at the hearing by

the parties, and of the arguments of the parties on that evidence in oral

statements and written briefs, and of the comments of Union and District

panel members, and on the bases of the above analyses, discussion, conclusions

and decision, the neutral chairman makes the following award.

 

            Two percent increase in wages for all classifications set forth

            in Appendix A  - Wage Schedule of the Agreement shall be effective

            January 1, 1988.

     

                                                                        Respectfully submitted,

     

                                                                        /s/

                                                                        Kenneth M. McCaffree

                                                                        Neutral Chairman, Arbitration Panel

 

I do ---- concur in the above award, and have  not  attached a

statement to this decision and award.

                                                                        /s/

                                                                        Paul J. allison

                                                                        District Arbitration Panel Member

 

I do  not  concur in the above award, and have ____ attached a

statement to this decision and award.

                                                                        /s/

                                                                        Shik C. Young

                                                                        Union Arbitration Panel Member

____________________

 

Dissenting Statement

      I do not concur with the neutral arbitrator's conclusions

(November 15, 1988) that no wage increase should be granted based on

productivity and cost of living adjustments and that a two percent

wage increase represents a fair compromise.

      1.   Productivity.  Just as in "cost of living", "job duties" and

other comparative yardsticks, there is no precise measure on produc-

tivity.  However, based on the information presented to the panel, a

reasonable judgment on productivity can be formed.  The evidence of

productivity can be seen over time as well as at a specific time:

            (a) Over time, the "runs per man-year"  can be used as a

rough indicator of productivity.

__________

                        Money wage  Real Wage    Runs/Man        Runs/Man

Period             Increase          Increase          Increase*        Increase+

1979-87           73%                25%                68%                44%

1983-87           25                    16                    45                    25

_____

*    Based on 82 firefighters

+    Based on 15 additional firefighters

__________

      The money wage and real wage data are taken from the neutral

arbitrator's final report, p.14, while the runs per man from p. 12.

      The above data clearly show that the runs per man rose at

least 14 percentage points faster than real wage increase.   (It is

the real wage, not money wage, to be compared with productivity.)

            (b) At a specific time, the "population per man-year"  can

be used to gauge productivity among comparable districts.

__________

                                                      Population/Man

Spokane Valley*                          926

Spokane Valley+                          838

Eight Comparators                       806

_____

*    Based on 95 manpower

+    Based on 15 additional manpower

__________

      The above data, based on Union Ex. #6, show that Spokane

Valley, on a per manpower basis, serves 15 percent more people than

the average of the comparators.  This number is changed to 4 percent,

under the extreme condition that the Spokane Valley's 15 new hires

are included but no change in population in the Spokane Valley and

no change in the conditions in the comparative districts are assumed.

      Although both the "runs per man"  and the  "population per

man" are not ideal measures of productivity, the evidence strongly

suggests that the Union's moderate two percent wage increase for

productivity adjustment is amply justified.

      2.   Cost of Living.  In addition to the acknowledged shortcomings

of the ACCRA data, the cost of living differentials are improperly

calculated in the neutral arbitrator's final report.   (Final Report,

p.52)

            (a) The differential base is the "Seattle Area" rather than

the "eight districts," leaving out the three districts--Bellingham,

Clark, and Yakima whose cost of living indexes are likely lower than

the "Seattle Area."

            (b) The data include the medical cost portion of the cost

of living index.  As Dr. Franz has pointed out, the medical cost

is accounted for in the workers' fringe benefits.

      Both of these factors tend to exaggerate the cost-of-living

differentials between Spokane Valley and its comparators.  Were they

properly adjusted, the cost-of-living differentials would be in the

neighborhood of eight percent.  Therefore a 1.5-2.0 percent wage

increase would be reasonable, even if one considers the "firefighters

who drive apparatuses" category.

      On the other hand, if comparison is based on the "top fire-

fighter, or if the most recent CPI's cost of living increase (less

medical cost) is taken into account, the Union's request of a 4.3%

wage increase is apparently justifiable.

      In my opinion, the minimum of a fair settlement in this case is

a 1988 wage increase of 3.5 to 4 percent, with 2 percent on the

ground of productivity and 1.5-2.0 percent on the ground of cost-of-

living adjustment.

 You are being directed to the most recent version of the statute which may not be the version considered at the time of the judgment.