INTEREST ARBITRATIONS

Decision Information

Decision Content

Walla Walla Fire Fighters, Local 404

And

City of Walla Walla

Interest Arbitration

Arbitrator:      George Lehleitner

Date Issued:   12/03/1986

 

 

Arbitrator:         Lehleitner; George

Case #:              06392-I-86-00147

Employer:          City of Walla Walla

Union:                IAFF; Local 404

Date Issued:     12/03/1986

 

 

 

IN THE MATTER OF INTEREST )     OPINION AND AWARD

ARBITRATION                                      )     OF

BETWEEN                                               )     GEORGE LEHLEITNER

CITY OF WALLA WALLA                    )

AND                                                         )     ARBITRATOR

WALLA WALLA FIREFIGHTERS,     )

LOCAL 404                                              )

 

HEARING:          November 12, 1986

INTEREST          George Lehleitner

ARBITRATOR:  3348 Holiday Drive South

                              Salem, Oregon 97302

REPRESENTING THE CITY:

                              C.  Akin Blitz, Attorney at Law

REPRESENTING THE UNION:

                              Michael Tedesco, Attorney at Law

 

I.    INTRODUCTION

      The undersigned was selected as the neutral interest

arbitrator by the Walla Walla Firefighters, Local 404 (Union)

and the City of Walla Walla, Washington (City).  The selection

was pursuant to RCW 41.56.030(6) and RCW 41.56.450, et. seq.

At the commencement of the hearing, both parties formally

waived their statutory right to appoint advocate arbitrators

and agreed the undersigned arbitrator was authorized to decide

their dispute in place of a full arbitration panel.

      A hearing was held on November 12, 1986, in Walla Walla,

Washington.  The City was represented by C. Akin Blitz, Attorney

at Law, and the Union by Michael Tedesco, Attorney at Law.

Both sides were given a full opportunity to make presentations

on each issue in dispute and to examine and cross-examine

witnesses, as necessary.  In addition to the verbal and docu-

mentary evidence, the arbitrator informed the parties that he

reserved the right to officially consider any change in the

Consumer Price Index (CPI) , which occurs between the date of

hearing and the issuance of his award.  Neither party objected.

The hearing was closed at the conclusion of the evidentiary

phase on November 12, 1986.

 

II.  BACKGROUND

      At the outset of the hearing, one of the firefighters

presented a slide show to help the arbitrator better under-

stand Walla Walla's history.

      Walla Walla is a city of approximately 25,600 persons

located in southeastern Washington.  It has a rich historical

heritage and has had professional firefighters since the 1880's.

      The land around Walla Walla is devoted primarily to farm-

ing and ranching.  However, the City also has a four (4) year

college and serves as a major medical center for this region.

In addition, there are large food processing plants near Walla

Walla and a major correctional facility.

 

III. ISSUES

      The only issues presented to the arbitrator are Salaries

and Hours of Work.  As a practical matter, the two (2) issues

are inextricably intertwined inasmuch as the Union's proposed

reduction in hours represents an additional cost item to the

City.

      For purposes of clarity, the arbitrator will discuss the

two (2) issues separately, but will attempt to explan the

impact of one on the other.

 

Issue #1 - Salaries

      Firefighters are compensated in accordance with a nego-

tiated salary schedule.  For the period from December 26, 1984,

to December 26, 1985, a fireman (Range 89) is paid an entry

level monthly wage of $1,592.00 and a top step fireman earns

$2,033.00 per month.  Proportionately higher salaries are

paid to enginemen, paramedics, lieutenants and captains.

      A.  The Union

      The Union proposes a three (3) year agreement with 7% wage

adjustments in each of the first two (2) years and a wage

reopener in the third year.  Under the Union's proposal, the

wage adjustment in the first year would be retroactive to

December 26, 1985.

      The Union's  arguments are summarized as follows:

      1)  The Union's salary proposal must be read in conjunction

with its hours of work proposal.  Walla Walla's monthly salary,

unlike the salary paid by comparable Washington departments,

is based on a 56 hour week.  Therefore, an important aspect

of the Union's proposal is to reduce the 56 hour week to 53

hours per week so as to bring Walla Walla more in line with

other departments.  Unfortunately, the City opted not to accept

a plan to implement this reduction effective March, 1986 with

the result that, compared on an hourly basis, Walla Walla

wage rates are very unfavorable.  The Union's current

proposal will not phase in an hours reduction until 1987.

Therefore, it is essential to grant meaningful wage relief in

the first two (2) years of the agreement.

      2)  This is a department which provides diversified fire

services.  Besides the normal supression and prevention acti-

vities, this department provides sophisticated EMT services.

In this regard, eleven (11) employees are qualified as para-

medics.  The firefighters should receive compensation commen-

surate with their expertise and job duties.

      3)  Based on the City's current payroll costs, including

base salary, longevity pay, insurance and retirement, the

Union's proposed 7% increases in each of the first two (2)

years would cost approximately 6.4% per year. 1   In view of the

City's excellent financial condition, there is more than enough

money to pay this increase.

_____

1     The arbitrator's costing figures are taken from Union Exhibit

      7.   Those figures have been modified to reflect the change in

      health insurance costs noted by the City at hearing.

_____

      4)  There is not an ability to pay issue in Walla Walla.

The Union's exhibits demonstrate that this City has done an

excellent job of maintaining substantial cash reserves.  This

has been accomplished in large part by consistently underbudget-

ing revenues and overbudgeting expenditures (Union Exhibits

9-11).

      5)  The City's own budget documents show healthy reserves.

This leaves the City with a substantial fund balance in the general

fund.  For instance, from 1983 through 1985, the fund balance

in the general fund increased from 5.96% to 17.34% (Exhibit

U-16).  Some of these funds should be used to pay a competitive

wage rate to Walla Walla firefighters.

      6)  The factor of comparability strongly favors the Union.

In assessing this factor, the parties have agreed to use the

list of comparables developed by Arbitrator Levak in a recent

interest arbitration award involving the Walla Walla police.

However, in order to make a meaningful comparison with these

comparators, it is necessary to calculate the Walla Walla wage

rate on an hourly basis.  This is necessarily so because Walla

Walla firefighters work 56 hours, as against an average of 53.7

in the comparator cities.  It is also necessary to factor in

pension pick up, where applicable.  When these adjustments are

made, a comparison of wage rates among the agreed to comparables

reveals the following, as of June 30, 1985:

__________

SALARY COMPARED BY HOURLY RATE AS OF JUNE 30, 1985

                                                   SUPPRESSION           HOURLY

JURISDICTION      TOTAL   HOURS WORKED    RATE

Albany, OR               $2,084      56                                  $8.59

Hanford, CA             $1,726      56                                  $8.35

Kennewick, WA        $2,247      50                                  $8.92

Klamath Falls, OR   $1,819      50.3                               $10.37

Pasco, WA                $2,164      56                                  $7.90

Pendleton, OR          $1,918      56                                  $7.11

Pullman, WA             $1,872      53                                  $8.15

Richland, WA           $2,226      50.9                               $10.09

Turlock, CA              $2,202      56                                  $9.07

Wenachee, WA         $2,231      53                                  $9.71

      Average              $2,049      53.7                               $8.83

Walla Walla, WA      $2,033      56                                  $8.38

      Variation             -.78%      2.3                                 -5.09%

__________

      7) The wage disparity as of June 30, 1985, widens

considerably when one compares salaries as of June 30, 1986.

Comparisons as of this date reveal the following:

__________

SALARY COMPARED ON AN HOURLY RATE AS OF JUNE 30, 1986

                                                         SUPPRESSION         HOURLY

JURISDICTION       TOTAL        HOURS WORKED   RATE

Albany, OR                $2,163          56                                $8.91

Hanford, CA               $1,776          56                                $7.32

Kennewick, WA         $2,359          50.3                             $10.82

Klamath Falls, OR     $1,910          56                                $7.87

Pasco, WA                  $2,296          50                                $10.60

Pendleton, OR            $1,982          56                                $8.17

Pullman, WA              $1,928          53                                $8.39

Richland, WA             $2,226          50.9                             $10.09

Turlock, CA                $2,267          56                                $9.34

Wenachee, WA          $2,362          53                                $10.28

     Average                 $2,127          53.7                             $9.18

Walla Walla, WA       $2,033          56                                $8.38

      Variation               -4.41%         2.3                               -8.74%

__________

If these comparisons were projected further until June 30, 1987,

the disparity would increase to 8.28% on a monthly basis and

12.43% on an hourly basis, assuming an increase among the com-

parator cities of 4%.  In sum, it is apparent that, even when

salaries are compared on a monthly basis, Walla Walla has a com-

parability problem that is increasing. Now is the time to address this problem.

      8) Percentage increases among the comparator cities in

1985-86 averaged 3.81%.  The City cannot afford to lose further

ground in view of these increases.  The theory behind the

Union's proposed increases is to bring Walla Walla wages in

line in 1986 and then conform hours to those utilized in the

comparator cities in the final year of the contract (1987)

      9) Economic data indicates that economic conditions in

this area have remained relatively stable from 1982 to the

present.  In fact, the unemployment rate has steadily declined

during this period (Exhibit U-26) .  Meanwhile, assessed values

have steadily increased (Exhibit U-29).

      10) Interestingly, the cost of living in Walla Walla is

higher than it is in the Tri-Cities area.  Thus, it is more

meaningful to compare costs in Walla Walla with those in

Seattle than with those in the Tri-Cities area.

      11) The City's threat to RIF employees in the event its

wage proposal is exceeded is ridiculous in view of this City's

substantial cash reserves.

      12) The cost of living data offered by the City is largely

irrelevant because Walla Walla is in an obvious catch up situa-

tion.  Moreover, firefighter increases on the west coast have

traditionally exceeded the CPI.  If the City fails to make

similar adjustments, the catch up problem will be exacerbated.

      13)  Overtime costs under the FLSA are not considered by

interest arbitrators when they develop a wage award.  This is

because FLSA costs are statutorily mandated.

 

      B.  The City

      The City proposes a two (2) year agreement with a 1.5%

increase on the base in the first year.  The City's proposal

in the second year, as the arbitrator understands it, is to

use the same methodology Arbitrator Levak used in the recent

Walla Walla police award. 2

_____

2     The City did not specifically propose a figure for the second

      year, but mentioned that, if this methodology is used, the

      City may find itself with a "catch up" problem amounting to

      approximately 1%.  Apparently, the City is amenable to adding

      this 1% to the second year adjustment.

_____

      The City's arguments are summarized as follows:

      1) The City's proposed 1.5% increase in the first year

actually amounts to an increase of 3% due to the increased

costs of implementing FLSA.

      2) The fund balances shown by the Union for 1984 and 1985

have declined dramatically.  The 1985 figure of $907,297.00

has dropped to $757,452.00 for 1986 and is projected to drop

further to $538,000.00 by 1987.

      3) The City Manager's 1987 budget message speaks to some

of the economic realities facing the City.  In a word, the City

is experiencing declining revenues, resulting in less money

to pay employee salaries.  Projected increases are not budgeted

for the fire department and any increases awarded in interest

arbitration will have to come out of the fire department's bud-

get.  This would mean firefighter layoffs.

      4)   Another indicator of the City's financial condition

and its inability to pay a wage adjustment of the magnitude

proposed by the Union is the decline in the 1987 general

fund budget from $7,678,300.00 in 1986 to $7,252,600.00 in

1987.

      5)   The arbitrator should adopt Arbitrator Levak's method-

ology for comparing relevant jurisdictions as well as the com-

parators he selected.  In his police award, Arbitrator Levak

found that Walla Walla was 5.5% below the 1985 average wage

of the comparator jurisdictions.  Thus, a 5.5% adjustment,

effective December 25, 1985, was awarded to bring Walla Walla

in line with the average 1985 wage paid in the comparator

jurisdictions.  Applying this same methodology to the fire-

fighters reveals the following:

__________

TOP STEP FIRE FIGHTER WAGE

(Highest wage paid 7/1/85 - 12/31/85)

JURISDICTION WAGE   PERS    TOTAL

Albany                  2041*     6%        2163

Pendleton              1870       6%        1982

Klamath Falls       1716       6%        1819

Hanford                1660       4%        1726

Kennewick            2247                     2247

Pasco                    2164                     2164

Pullman                 1872                     1872

Richland               2226                     2226

Turlock                 2202                     2202

Wenatchee           2250                     2250

      Average          2025                     2065

Walla Walla          2033                     2033

      Variation         +.4%                   -1.5%($32)

_____

*    includes EMT pay

__________

The above comparisons indicate the firefighters are only

1.5% below the 1985 wage rate paid by the comparator cities.

Thus, only a 1.5% adjustment is needed to bring Walla Walla

wage rates in line with those paid by the comparator cities.

This is precisely what the City is proposing.

      6)  Looking at wage comparisons among the same compara-

tors in a different way, the following chart reflects calendar

1986 wage adjustments for all California and Washington cities,

except Richland and Walla Walla, which are not settled.  The

chart also shows the highest FY 1985-86 Oregon wage.

__________

Wage Comparison for Top Step Fire Fighter Positions

                              JUNE 30

JURSIDICTION 1986             PERS        TOTAL

Albany                  $2,041*        6%            $2,163

Pendleton              1,870            6%            1,982

Klamath Falls       1,802            6%            1,910

Hanford                1,708            4%            1,776

Kennewick            2,359                              2,359

Pasco                    2,296                              2,296

Pullman                 1,928                              1,928

Richland               2,226                              2,226

Turlock                 2,267                              2,267

Wenatchee           2,362                              2,362

      Average          $2,086                            $2,127

Walla Walla          $2,033                            $2,033

      Variation         -2.5%                             -4.4%

_____

*    includes EMT pay

__________

Even using this method, which was not done by Arbitrator Levak,

the City is only 4.4% behind the average of the comparator

cities.  Obviously, the Union's wage demand exceeds this

differential.

      7) The CPI projections cited by Arbitrator Levak to

support a wage increase in the second year are too high.

First, wage adjustments paid to firefighters from 1981 to the

present indicate firefighter wage rates track almost precisely

with increases in the CPI.  Second, a review of the CPI data

for 1986 reveals the cost of living has remained remarkably

flat during this period.  More specifically, the index (US CPI-W)

stood at 324.9 in September, 1986, which was only 1.5% higher

than the 324.3 figure for December, 1985.  Even assuming the

CPI increases by as much as 2% in 1986, this would indicate

that at most a 2% adjustment is warranted to keep up with the

cost of living.  A 4% figure may be more realistic for 1987.

      8)  As the Union acknowledges, the Union's wage demands

must be considered in conjunction with its proposal to reduce

the work week from 56 hours to 53.  Without getting into all

the specifics at this time, the City estimates the unbudgeted

overtime impact of this proposal amounts to $43,340.00.

      9) The impact of the Union's proposed 7% increases in

the 1986 and 1987 can be illustrated by reviewing the effect

of the Levak police award on the City's budgetary process.  To

summarize, the City budgeted 2.4% for salary costs in 1986

and nothing in 1987, as compared with Levak's award of 5.5% in

1986 and 4.5% in 1987.  Even with a reduction of one (1)

position in 1986, the end result is a 1987 shortfall of

$39,740.00 and a likelihood of additional employee layoffs.

      10) An award equal to or even close to the Union's pro-

posed 7% increases in the first two (2) years would cause

similar problems.  In this regard, the City budgeted 2.4%

for increased public safety salary costs in 1986 (the City's

proposed 1.5% adjustment plus an additional 1.5% in FLSA costs

more than exhausts this amount) and nothing in 1987.  Accord-

ing to the City's estimates, an award of 7% in each of the

first two (2) years would result in net unbudgeted costs of

$134,582.00.  Moreover, when the $43,340.00 unbudgeted costs

associated with the Union's reduction in hours proposal is

factored in, the total in unbudgeted costs amounts to $177,922.  3

Obviously, this is entirely unacceptable to the City.

_____

3     The arbitrator has modified the figures contained in Exhibit

      C-10  to reflect 7% adjustments for 1986 and 1987.

_____

      11) Internal consistency (i.e., wage parity) supports

the City's proposal.  The City's non-represented and general

unit employees both received 1.5% in 1986.  Moreover, applying

the same methodology used by Arbitrator Levak to develop the

police award leads one to this same 1.5% figure.

 

      C.  Discussion

      The Washington Statute (RCW 41.56.450(a)-(f)) sets forth

the criteria to be applied by interest arbitrators in develop-

ing interest awards.  The arbitrator's award is based on

an application of these criteria to the facts in this

case.  What follows is a summary of the focal points in that

analysis.

      The Constitutional & Statutory Authority of the

      Employer

      This factor was not an issue.

      Stipulations of the Parties

      The parties agreed to use the comparables developed by

Arbitrator Levak in the recent interest arbitration award involv-

ing the City and its police officer bargaining unit.

      The parties also agreed that the arbitrator could officially

notice and consider CPI figures issued subsequent to the hearing

date, but prior to the issuance of his award.

      Finally, the City agreed to make every reasonable effort to

issue a paycheck including whatever adjustments are awarded prior

to Christmas.

      Comparability

      (1)  Methodology

      Comparability is one of the key statutory factors in this

case.  The parties managed to narrow the scope of the arbitra-

tor's inquiry considerably by stipulating to a list of compar-

able jurisdictions.  More specifically, this was accomplished

by agreeing to use the comparables developed by Arbitrator

Levak in the recent police award.  What the parties did not

agree to, however, is the methodology to be applied in com-

paring Walla Walla wage rates with those paid by the compar-

ator departments.

      Both parties use top step firefighter wage rates for

comparative purposes, but the Union does so by comparing

salaries on an hourly basis, whereas the City compares monthly

wage rates.  According to the Union, it is necessary to compare

hourly wage rates in the firefighters' case because in Walla

Walla, unlike in most of the agreed upon comparator jurisdic-

tions, firefighters work a 56 hour week.

      The arbitrator agrees with the Union's argument on this

point.  For reasons explained in another section of this award,

the arbitrator has not awarded a reduction in hours, as pro-

posed by the Union.  Consequently, Walla Walla firefighters are

in the position of working 56 hour weeks, as distinguished

from the 53.7 average among the comparator departments.

This being so, the only apples and apples comparison is one in

which hourly, not monthly, wage rates are compared.

      It should also be pointed out that an hourly wage rate com-

parison for firefighters is not contrary to the police award

rendered by Arbitrator Levak.  Simply stated, there was no indi-

cation in the police award that hourly versus monthly wage rate

comparisons was an issue.  Stated another way, there was no

indication in the police award that Walla Walla police officers

work different hours than their counterparts in the comparator

jurisdictions.

      Another interesting methodology question is whether the

arbitrator, in developing his award for 1986 (i.e., December

26, 1985 through December 26, 1986) should use 1985 or 1986

wage rates.  The City, citing the Levak award, argues that

1985 wage rates should be used.

      It is true that Mr. Levak's 5.5% award in the first year

took, in his words, "the City in 1986 only to the average of

the 1985 wage."  (Levak award at page 27.)  However, in this

arbitrator's  view, it would be a misreading of Arbitrator Levak's

award to say he thereby precluded the consideration of 1986

settlements in developing as award.  That simply is not what he

said.  Moreover, a reading of the entire award reveals that Mr.

Levak, in accordance with the statutory mandate, did not limit

his analysis to the factor of comparability.  He also considered

the other statutory criteria.

      The question of using 1986 settlements is particularly inter-

esting in this case because the Walla Walla contract runs from

December 26 to December 26, as distinguished from some of the

comparator cities, which run from July to July.  Under these cir-

cumstances, a logical approach is to average wage rates among the

comparator departments as of both 1985 and 1986.  More specifi-

cally, the arbitrator will average the hourly wage rates as of

June 30, 1985, and June 30, 1986, and compare that average with

the hourly wage rate paid to Walla Walla firefighters. 4

_____

4     The 1985 wage comparisons cited by the Union are as of June 30,

      1986, as opposed to the 1985 City figures, which are as of Decem-

      ber 31, 1985.  For obvious reasons, the arbitrator will average

      the 1985 and 1986 figures as of June 30th in each year.

_____

      (2)  The Comparisons

      Once the methodology is determined, the comparisons

themselves are relatively straightforward.

      The average monthly wage among the comparator cities as

of June 30, 1985, is $2,049.00 and the hourly rate is $8.83.

As of June 30, 1986, the average monthly rate increases to

$2,127.00 and the hourly rate to $9.18.  If the wage rates

as of these two (2) dates are averaged, the new monthly figure

becomes $2,088.00 and the hourly rate becomes $8.97.  Compar-

mg this figure ($8.97) with the Walla Walla hourly rate of

$8.38 indicates that Walla Walla is 6.57% behind the average

wage rate paid by the comparator cities. 5

_____

5     Interestingly, wage rate comparisons using slightly different

      time periods result in similar figures.  Thus, for example, if

      hourly wage rates as of December 31, 1985, only are used, Walla Walla

      is 5.57% behind the average.  And, if the average of wage rates

      as of December 31, 1985 and June 30, 1986 are used, the differ-

      ence increases to 6.97%.  Finally, if wage rates as of June 30,

      1986, only are used, the differential increases further to 8.7%.

_____

      (3)  Other Considerations

      Without question, comparability is one of the most impor-

tant statutory factors.  This is particularly true in a "catch

up" situation because the need for ''catch up'', if shown, tends

to render the cost of living factor less important.  Moreover,

the apparent absence of an inability to pay a reasonable, but

not excessive, wage increase in Walla Walla also tends to make

the comparability factor more paramount.

      Nevertheless, the arbitrator's analysis should not be

based entirely on comparability and the perceived need for

"catch up''.  Simply stated, the statute directs interest arbi-

trators to consider all of the relevant statutory criteria.

Thus, for example, if a public employer has limited financial

resources or the CPI is flat, these factors would militate

in favor of a more conservative approach.  Stated another way,

a wage adjustment that may seem appropriate on the basis of

a straight comparability analysis may no longer be appropriate

after all of the statutory criteria are considered.

      The Cost of Living

      The cost of living, as measured by the CPI, is another of

the statutory factors the arbitrator is required to consider.

      A review of the All Cities CPI-W (the index referenced by

Arbitrator Levak in the recent police award) shows that the

index remained flat during 1986.  Even assuming a healthy

increase in the index during the last two (2) months of the

year, the increases over last year are going to be minimal.  On

the other side of the coin, the arbitrator is of the opinion

that rapidly fluctuating oil prices and a recessionary economy

over the last several years make the index more unreliable

than might otherwise be the case.  Finally, as the Union correctly

points out, firefighter wage settlements statewide have out-

stripped the CPI on a consistent basis.  Thus, to the extent

Walla Walla firefighters receive less, the City will be faced

with a serious "catch up" problem.

      The CPI is particularly useful in terms of projecting

on appropriate wage adjustments in the second or third year

of a multi-year agreement.  In this regard, the City acknow-

ledges that growth of approximately 4% is projected for 1987.

Arbitrator Levak projected similar growth in the cost of

living and awarded a 4.5% for 1987.  And finally, a review

of recent settlements suggests to this arbitrator that a 4%

increase in the second year is appropriate for Walla Walla

firefighters.

      Changes During the Pendancy of the Proceedings

      Other than newly issued CPI figures for October, 1986,

which the arbitrator noticed and considered, this factor has

no bearing on the arbitrator's award.

      Other Factors Traditionally Considered

      The Washington interest arbitration statute, unlike its

counterpart in Oregon, does not specifically identify ability

to pay as one of the applicable criteria.  Nevertheless, the

ability to pay and the interest and welfare of the public is

certainly one of the factors traditionally considered by arbi-

trators in fashioning interest awards.

      This factor need not be discussed at great length, under

the circumstances of this case.  The undersigned arbitrator

agrees with the analysis of Arbitrator Levak on this point.

Essentially, he concluded that the City had sufficient funds

in its budget to pay a reasonable wage adjustment without

affecting service levels.  However, the arbitrator will award

split increases in the first year solely for the purpose of

minimizing the fiscal impact on the City, while at the same

time maximizing the amount of "catch up".

      Summary

      The arbitrator's award is designed to bring Walla Walla

firefighter wage rates in line as much as possible with the

average paid by the comparator cities.  To accomplish this with

the least amount of fiscal impact, the arbitrator will spread

the increases in the first year into adjustments effective

December 26, 1985, and June 26, 1986.

      The arbitrator will award a two (2) year agreement with a

4% increase in the second year.  The arbitrator is unwilling

to award a two (2) year agreement with a reopener in the third

year because of the outstanding "hours of work" issue.  A two

(2) year agreement provides sufficient stability, while at the

same time giving both sides an opportunity to address the hours

of work issue, if desired, during the next round of negotiations

 

      D.  Award

      Based on an application of the statutory criteria to the

facts of this case, the neutral arbitrator makes the following:

      1)   Effective December 26, 1985, increase all bargaining

unit wage rates by 3.25%.

      2)   Effective June 26, 1986, increase all bargaining

unit wage rates an additional 3.25%.

      3)   Effective December 26, 1986, increase all bargaining

unit wage rates by 4%.

 

Issue #2 - Hours of Work

      Article 20 of the current agreement contains the following

relevant contract language:

            ARTICLE 20 - HOURS OF WORK AND OVERTIME

                  20.01 Employees assigned to a twenty-seven (27) day

             work cycle shall have an average annual week of fifty-

            six (56) hours.  The work force shall consist of

            three (3) shifts, designated as "A" shift, "B" shift,

            and "C" shift.  Each shift shall work twenty-four

            (24) hours from 0730 to 0730.  The configuration of

            the twenty-seven (27) day work cycle shall be shown

            in Appendix A.

                  Employees not assigned to the twenty-seven (27) day

            work cycle (Appendix A) shall work forty (40) hours

            per week, Monday through Friday, 8:00 a.m. to 5:00

            p.m., except exempt holidays, unless alternative

            work hours and days are mutually agreed to by the

            employee and the City.

                  20.02 All hours worked in excess of an employee's

            regularly scheduled shift shall be paid at an over-

            time rate of one and one-half (1-1/2) times his regu-

            lar rate of pay which will be computed by dividing his

            regular annual salary by 2912 hours.

                  20.03 In an overtime period, employees will be guar-

            anteed a minimum of two (2) hours overtime pay.  In

            any overtime situation, the employee may, at the

            discretion of the shift commander, be required to

            work the minimum paid time. ...

__________

APPENDIX "A"

Shift Schedules

_____

      Day #        1       2       3       4       5       6       7       8       9

      Shift

      Working    A      C      A      B      A      B      C      B      C

_____

      Day #        10     11     12     13     14     15     16     17     18

      Shift

      Working    A      C      A      B      A      B      C      B      C

_____

      Day #        19     20     21     22     23     24     25     26     27

      Shift

      Working    A      C      A      B      A      B      C      B      C

__________

      The current contract also contains language in Section

21.01(B) whereby individuals using less than 36 hours of sick

or disability leave per calendar year receive twelve (12)

additional vacation hours.

      Finally, under current contract language, permanent

employees enjoy one "floating holiday" per year, which can be

taken at the time of their choice, subject to departmental

approval (Section 18.02).

 

      A.  The Union

to   The Union proposes to reduce the average fifty-six (56)

hour week referred to in Section 20.01 to a fifty-three (53)

hour week effective October 1, 1987.  The Union further pro-

poses to reduce the "2912 hours" referred to in Section 21.02

to "2756 hours."  To describe the method of implementing its

proposal, the Union offers the following new contract language:

            "    20.07 The decrease in hours from a 56 hour work

            week to a 53 hour work week will be accomplished

            through the use of Kelly Days.  A calendar with

            kelly day scheduling will be made available to the

            City by the Union prior to the scheduling of vaca-

            tions.

                  The kelly day scheduling will be such as to provide

            12 hours of time off during each 27 day cycle.  The

            27 day cycle will begin for all shifts on April 15,

            1986 and carry on from that date to infinity.

            Kelly days will be scheduled on the beginning and end

            shifts of each shift's three day go around.

                  The use of pre scheduled kelly days will be suspended

            for the double vacation periods in the summer months.

            These suspended kelly days will be placed in compen-

            satory time banks at time and one half. (for use of

            the comp time banks see the comp time article).

                  Kelly days are regularly scheduled days off.  They

            are not holidays or bonus days off but are the same

            as any other day that an employee is not scheduled

            to work.

                  Vacations may not be taken in lieu of kelly days

            except during the summer months.

 

            NEW ARTICLE -- COMPENSATORY TIME

                  Compensatory time will be accrued through non use

            of kelly days during the four cycles of double vaca-

            tion slots in the summer months.

                  Accrued comp time must be scheduled between double

            slot vacation periods (ie September to June) so as

            to eliminate any comp time banks before the start

            of another double summer vacation period.

                  The employee will schedule the comp time in his bank

            by seniority in the same way as vacations are picked.

            This pick will take place so as to facilitate use of

            all available time slots immediately following the

            double summer vacation slots.

                  If the Fire Chief finds an employee is failing to

            deplete his comp time bank, the Chief may appoint

            mandatory days off so as to eliminate any carry over

            of accrued comp time."

      Finally, as part of its proposed "hours of work" package,

the Union is willing to drop the "floating holiday" and the

12 hour non use of sick leave bonus for fifty-three (53) hour

personnel.

      The Union's arguments are summarized as follows:

      1) The Union has gone to great lengths to be flexible on

this issue.  First, the Union has modified its initial proposal

for a fifty (50) hour week and has also agreed to reduce the

hours factor in Section 21.02 from 2912 to 2756.  Second, the

Union, as part of its "hours of work" proposal, has agreed

to relinquish the special 12 hour non sick leave usage bonus

as well as the "floating holiday".   Third, the Union has pro-

posed new "compensatory time" language, which limits employee

use of comp time.  And finally, the so-called "kelly day"

method of implementing the 53 hour work week is specifically

designed to minimize the impact on the City.  In this regard,

the Union's willingness not to take "kelly days" during the

peak vacation period demonstrates the flexibility of its

approach.

      2) The factor of comparability strongly supports the

Union's  proposal.  Among the comparator cities used in the

police award and agreed to by both sides in this case, the

average suppression hours worked is 53.7, as against the 56

worked by Walla Walla firefighters.  Even more to the point,

all of the comparable Washington jurisdictions work 53 hours

or less.  6   Simply stated, the 56 hour week is not the norm

for firefighters in Washington.

_____

6     In Pullman, firefighters are assigned to work a 56 hour shift

      schedule, but are entitled to take 12 hours off per month, as

      assigned by the City or as mutually agreed (see, Exhibit C-8).

      The practical effect of this arrangement is that firefighters

      in Pullman have an average 56 hour work week.

_____

      3) The Union estimates under the current 56 hour schedule

the City's FLSA costs will amount to approximately $15,000.00.

This cost will be eliminated if the Union's kelly day proposal

is implemented, thereby saving the City this amount of money

in FLSA costs.

      4) The most credible evidence suggests the City would be

able to implement the Union's proposal without undue disruption

or expense.  In fact, during bargaining, the matter was discussed

at some length with the Fire Chief and he came back to the

Union with the plan the Union is now proposing.  Moreover, even

assuming the City's estimate of $43,340.00 in additional over-

time costs is accurate, that figure must be reduced by $15,000,

which is the amount the City would save in FLSA costs.  The

end result would be a cost factor of $27,500.00 or 2.5%.

 

      B.  The City

      The City adamantly opposes the Union's "kelly day"

proposal.

      The City's arguments are summarized below:

      1)  The fact that the Fire Chief discussed the Union's

proposal with the firefighters and suggested how the work

schedule would have to be adjusted to accomplish their goal is

irrelevant.  The more important point is that the Union's pro-

posal was taken to the City Manager and was rejected because

it was unworkable and far too expensive.

      2)  The fire department is currently staffed at minimum

levels, as evidenced by a net reduction of seven (7) positions

over the last seven (7) years.  A review of this year's calendar

shows that at any given time at least one firefighter is sched-

uled for vacation and during the summer months two (2) people

are normally scheduled off for this purpose.  This means that

each shift is left at minimum manning levels, so that absences

created by sick leave have to be filled on an overtime basis.

Last year, this amounted to 76 days a year  in which the City

had to pay overtime.  The City estimates the Union's "kelly

day" proposal, if implemented, would increase this usage to

201 days a year, at an increased cost of approximately $42,500.

Even without considering the scheduling nightmare created by

such a proposal, the increased cost is clearly unacceptable.

      3)  There are a host of other problems with the Union's

"kelly day" proposal.  Simply stated, it severely limits

management's ability to assign and direct work.  For instance,

it increases the complexity of deciding how to transfer

employees between shifts.  It also creates the potential

problem of having inexperienced people assigned to a particu-

lar shift and in some cases would result in the City having

to pay "out of position" premiums.

      4)  The Union's "kelly day" proposal is not properly

before the arbitrator.  Under WAC 391-55-220, neither party

is permitted to arbitrate issue(s) not among the issues pre-

sented to the mediator.  The letter from PERC Executive Director

Marvin Schurke to the parties directing them to proceed to arbi-

tration does not include the Union's "kelly day" proposal as

an issue in dispute. 7

_____

7     The May 19, 1986, letter from PERC Executive Director Marvin

      Schurke to the parties lists "Article 20 - Hours in Work Week"

      and "Article 20.02 - Hours of Work" as outstanding issues.  The

      credible evidence established that the Union's "kelly day"

      proposal was raised before and during mediation (testimony of

      City Negotiator Thomas Steele).

_____

 

      C.  Discussion

      The jurisdictional argument raised by the City need only

be discussed briefly.  Apparently, the City contends the "kelly

day" proposal was not among the issues presented by the Union

in mediation.  Unfortunately for the City, the credible evidence

does not support this contention (see, Footnote 7).

      Turning to the merits of the "kelly day" proposal,

the Union's comparability data is extremely persuasive.

More to the point, the average work week among the agreed

upon comparators is 53.7, as compared with 56 in Walla Walla,

and all of the Washington cities on the list work 53 hours

or less.  In view of this comparability data, the arbitrator

would be inclined to go along with the Union's proposed reduc-

tion in work hours, if it could be accomplished without too

much disruption and/or fiscal impact.  However, given current

manning levels in Walla Walla, the arbitrator is persuaded

the proposal would be too costly and disruptive at this time.

      In analyzing the Union's "kelly day" proposal, it is

appropriate at the outset to draw a distinction.  The obvious

objective of the proposal is to reduce the average work assign-

ments from 56 hours per week to 53 hours per week.  As indicated

previously, this objective is understanable in view of the agreed

upon comparability data.  What is more troubling, however, is

the Union's proposed plan for implementing the proposal.  The

arbitrator is well aware that many, if not most, of the refine-

ments contained in the plan were a result of the Fire Chief's

input.  The arbitrator also recognizes that the plan represents

a good faith effort on the part of the firefighters to be as

flexible as possible, while at the same time achieving their

objective of reduced hours.  Be that as it may, the plan, if

implemented, would necessarily limit management's prerogative

to assign work.  This being so, it seems to this arbitrator

that it would be preferable to simply award a reduction in

hours and leave it to management's discretion how that would

be implemented.

      However, the arbitrator is unwilling to award the proposed

reduction in work hours at this time.  While such an award

would certainly not be out of line with hours worked in com-

parator departments, existing circumstances in Walla Walla

indicate reduced work hours would create more problems than

they would solve.  This conclusion is based primarily on

current manning levels, which would likely result in substan-

tial overtime costs, if the Union's proposal were implemented.

In this regard, it is difficult to draw meaningful comparisons

with the comparator cities on this issue because the arbitra-

tor does not know what the manning levels are in each of these

departments.  Moreover, as a practical matter, the fact that

Walla Walla apparently has little, if any, leeway in manning

various shifts could also make scheduling substantially more

difficult under the Union's proposal.

      Based on the foregoing, the arbitrator will not award

the reduction in work hours proposed by the Union at this time.

However, the City must understand that it is not the same as

the other Washington jurisdictions on this issue and is likely

to be faced with a strong comparability argument in future

negotiations.  Moreover, the City must also understand the

relationship between hours of work and salaries.  Simply stated,

if Walla Walla expects its firefighters to work more hours than

their counterparts in the comparator departments, then this

difference has to be reflected in their wage rates.

 

      D.  Award

      Reject the Union's proposal.

 

Respectfully submitted this 3rd day of December, 1986,

 

/s/

George Lehleitner

Arbitrator

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