INTEREST ARBITRATIONS

Decision Information

Decision Content

Local 27, Local 2898, International Association of Fire Fighters

And

City of Seattle

Interest Arbitration

Arbitrator:            Philip Kienast

Date Issued:         05/18/1989

 

 

Arbitrator:               Kienast; Philip

Case #:                    07625-I-88-00176

Employer:    City of Seattle

Union:                       IAFF; Locals 27 and 2898

Date Issued:             05/18/1989

 

 

           

IN THE MATTER OF ARBITRATION    

 

Between

 

CITY OF SEATTLE                          )           OPINION AND AWARD

                                                                        )                      OF

            (Employer)                                          )     NEUTRAL CHAIRMAN/

                                                                        )     ARBITRATOR PHILIP KIENAST

                                                                        )

            -and-                                                    )     May 18, 1989

                                                                        )

                                                                        )    

LOCAL 27  LOCAL 2898,                            )     Re:  Contract Terms

INTERNATIONAL ASSOCIATION          )     (PERC Case No.

OF FIRE FIGHTERS,                                   )     7626-1-88-177)

                                                                        )

            (Union)                                                )

_______________________________          )

 

                                                APPEARANCES

 

For the Employer:

 

            Marilyn F. Sherron, Assistant City Attorney and Lizanne

Lyons, Labor Negotiator

 

 

For the Union:

 

            James F. Webster, attorney at law

 

 

Partisan Arbitrators

 

For Local 27:              Bruce Amer

For the City:               Patrick LeMay

For Local 2898:          Robert Averson

 

                                                OPINION

 

            This proceeding is in accordance with RCW 41.56 and

WAC 391-55.  A hearing in this matter was held on February 6, 7,

8, 10, 13, 17, 20, 21 and 28.  The Arbitration Panel met on

April 22 to deliberate the preliminary findings of the neutral

chairman.  The neutral chairman, Philip Kienast, after the panel

discussion and review of subsequent submittals from the partisan

arbitrators has written this opinion and award and is solely

responsible for its contents and conclusions pursuant to

WAC 391-55-245.  Partisan arbitrators were informed they could

file concurring and/or dissenting opinions on their own motion.

The bargaining unit represented by Local 27 includes the ranks of

fire fighter, lieutenant and captain.  The bargaining unit

represented by Local 2898 includes the ranks of deputy and

battalion chiefs.

 

            In accordance with WAC 391-55-220 the parties submitted the

following proposals to the arbitration panel:

 

            City's proposal

 

            Re:      Local 27

 

            A.        WAGES/HOURS (ARTICLE 5 AND APPENDIX A)

 

                        Effective 09/01/88:

 

                        3% wage increase; with no increase in hours worked

                        per week

 

                        or

 

Any wage increase in excess of the above to be

accompanied by a proportionate increase in hours

worked so that the fire fighters' relative pos-

tion with respect to the average west coast

monthly salary and the average west coast workweek

is the same.

 

                        Effective 09/01/89:

 

90% of the increase in the Consumer Price Index

for Urban wage Earners and Clerical Workers

(CPI-W) for Seattle from the first half of 1988 to

the first half of 1989; with a floor of 1.5% and a

ceiling of 6%; with no increase in hours worked

per week

 

                        or

 

Any wage increase in excess of the above to be

accompanied by a proportionate increase in hours

worked so that the fire fighters' relative posi-

tion with respect to the average west coast

monthly salary and the average west coast workweek

is the same.

 

                        Effective 09/01/90:

 

90% of the increase in the Consumer Price Index

for Urban wage Earners and Clerical Workers

(CPI-W) for Seattle from the first half of 1989 to

the first half of 1990; with a~floor of 1.5% and a

ceiling of 6%; with no increase in hours worked

per week

 

                        or

 

Any wage increase in excess of the above to be

accompanied by a proportionate increase in hours

worked so that the fire fighters' relative posi-

tion with respect to the average west coast

monthly salary and the average west coast workweek

is the same.

 

                  B.        DURATION (ARTICLE 30)

 

                        Three-year contract effective 09/01/88 through

                        08/31/91.

 

                        Re:      Local 2899

 

 

            A.        WAGES/HOURS (ARTICLE 4 AND APPENDIX A)

 

                        Effective 09/01/88:

 

                        3% wage increase; with no increase in hours worked

                        per week

 

                        or

 

                  Any wage increase in excess of the above to be

                  accompanied by a proportionate increase in hours

                  worked so that the fire fighters' relative posi-

                  tion with respect to the average west coast

                  monthly salary and the average west coast workweek

                  is the same.

 

                        Effective 09/01/89:

 

90% of the increase in the Consumer Price Index

for Urban Wage Earners and Clerical Workers

(CPI-W) for Seattle from the first half of 1988 to

the first half of 1989; with a floor of 1~5% and a

ceiling of 6%; with no increase in hours worked

per week

 

                        or

 

Any wage increase in excess of the above to be

accompanied by a proportionate increase in hours

worked so that the fire fighters' relative posi-

tion with respect to the average west coast

monthly salary and the average west coast workweek

is the same.

 

                        Effective 09/01/90:

 

90% of the increase in the Consumer Price Index

for Urban Wage Earners and Clerical Workers

(CPI-W) for Seattle from the first half of 1989 to

the first half of 1990; with a floor of 1.5% and a

ceiling of 6%; with no increase in hours worked

per week

 

                        or

 

Any wage increase in excess of the above to be

accompanied by a proportionate increase in hours

worked so that the fire fighters' relative posi-

tion with respect to the average west coast

monthly salary and the average westcoast workweek

is the same.

 

                        Effective 09/01/90:

 

90% of the increase in the Consumer Price Index

for Urban Wage Earners and Clerical Workers (CPI-

W) for Seattle from the first half of 1989 to the

first half of 1990; with a floor of 1.5% and a

ceiling of 6%; with no increase in hours worked

per week

 

                        or

 

Any wage increase in excess of the above to be

accompanied by a proportionate increase in hours

worked so that the fire fighters' relative posi

tion with respect to the average west coast

monthly salary and the average west coast workweek

is the same.

 

            B.        DURATION (ARTICLE26)

 

                        Three-year contract effective 09/01/88 through

                        08/31/91.

 

            Local 27's Proposal

 

                        1.         Contract term - two years, commencing

            September 1, 1988.

 

                        2.         Increase salaries for all bargaining unit

            employees as follows:

 

                        a.         Effective September 1, 1988, 5.3 percent.

 

            b.         Effective September 1, 1989, 2.0 per-

cent, plus the same percentage as the increase in the

Consumer Price Index for Urban Wage Earners and

Clerical Workers (CPI-W) (1982-84 = 100) for Seattle

from the first half of 1988 (dated July 1988) to the

first half of 1989 (dated July 1989).

 

                        c.         Effective September 1, 1990, in the

            event the Panel should award a three~year contract, and

            as a condition for such an award, the same percentage

            as the increase in the Seattle CPI-W from the first

            half of 1989 (dated July 1989) to the first half of

            1990 (dated July 1990).

 

                        3.         Reject the City's proposal for increased

            hours.

 

            Local 2898's Proposal

 

                        1.         Increase wages for all bargaining unit

            employees as follows:

 

                        a.         Effective September 1, 1988, 6.6 per-

            cent.

 

                        b.         Effective September 1, 1989, (1) the

            same percentage as the increase in the U.S. Cities

            Average CPI-W (July 1988 to July 1989) with a minimum

            of four percent and a maximum of six percent, plus

            (2) 1.6 percent.

 

                        c.         Effective September 1, 1990, (1) the

            same percentage as the increase in the U.S. Cities

            Average CPI-W (July 1989 to July 1990) with a minimum

            of four percent and a maximum of six percent, plus

            (2) 1.6 percent.

 

                        2.         Reject the City's proposal for increased

            hours.

 

Stipulations

 

            In addition the parties submitted the following stipula-

tions:

 

            1.         The comparison group of west coast cities pursuant

                        to 41.56.460 (c) shall be:  San Diego, Long Beach,

                        San Jose, Oakland, San Francisco and Sacramento,

                        California plus Portland, Oregon.  (Hereinafter

                        noted as WC7)

 

            2.         The differential between fire fighter and

                        lieutenant and captain; and battalion

                        chief and deputy chief shall be 15%.

 

Background

 

            Local 27 represents a bargaining unit composed of the ranks

of fire fighter, lieutenant and captain.  The first collective

bargaining agreement covering this unit was effective in 1968.

Between 1968 and 1981 the parties negotiated successor agreements

without resort to interest arbitration until 1982 when negotia-

tions under a wage reopener clause ended in impasse.  This

Arbitrator awarded a wage increase for 1982 only.  The parties

negotiated their 83-85 Agreement and had their 86-87 Agreement

arbitrated by Michael Beck.  Mr. Beck awarded salary increases

aimed at moving unit members  salaries toward the WC7 average.

 

            Local 2898 represents a bargaining unit of battalion and

deputy chiefs that negotiated its first collective bargaining

agreement in 1983.  The record discloses the reason for the

emergence of the chiefs unit was the decision of the Employer to

give chiefs a lower percentage increase than that received by the

Local 27 unit in 1982.  The initial contract for this unit was

the 83-85 Agreement.  Their 1986-87 Agreement was also arbitrated

by Michael Beck.

 

            The WC7 has been an historic comparison group for the

parties dating back to at least the mid 1970's (Ex. 288).  The

parties bargained wages, hours and conditions of employment

against the backdrop of conditions in these seven cities.

Accordingly, the Arbitrator will attempt to place both units'

salaries squarely in the context of the historic pattern the

parties have set in relation to the seven stipulated cities.

 

            RCW 41.56.460 sets forth the basis for determination of the

issues presented by the neutral chairman:

 

            41.56.460        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 constitutional and statutory authority of

            the employer;

 

                        (b)        Stipulations of the parties;

 

                        (c)        Comparison of the wages, hours and conditions

of employment of personnel involved in the proceedings

with the wages, hours, and conditions of employment of

like personnel of like employers of similar size on the

west coast of the United States.

 

                        (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.

 

            Although the foregoing statute sets out the factors to be

considered in a determination it does not specify the relative

weight to be accorded each factor.  After consideration of the

record made in this matter and with attention to the common law

of arbitration in interest disputes, the neutral chairman

assigned primary weight in his determination to:  (1) "wages,

hours and conditions of employment" of fire department personnel

in the seven West Coast cities (WC7) stipulated as comparable to

Seattle by the parties; and (2) the pattern of settlements

between the parties from 1970-1987 relative to the WC7.  He has

assigned secondary weight in his determination to other factors

enumerated in RCW 41.56.460.

 

Primary Factors

 

            Both parties have expressed a desire for the Arbitrator to

explicate his rationale for weighing the various factors the

parties have argued are pertinent to the determination of

salaries for the various ranks in question.  The Employer has

argued that primary weight be given to hourly compensation corn-

parisons and cost of living differences among the WC7.  The Union

has argued that primary weight be given to historical monthly

salary patterns negotiated by the parties relative to the WC7.

On balance, the Arbitrator finds the Union arguments more per-

suasive than the Employer's.

 

            The Employer introduced extensive testimony and documenta-

tion that hourly compensation has been a focus of discussion in

wage bargaining between the parties since the late 1960's.  This

evidentiary emphasis occurred because of the finding of

arbitrator Beck that the parties had previously bargained solely

in the context of monthly salaries.  perceiving that Mr. Beck's

decision was overly influenced by this evidentiary finding, the

Employer stressed in its case that hours of work have always been

a central focus in the parties' negotiations on pay levels.  This

Arbitrator agrees with the Employer on this point of evidence and

argument.

 

            However, the Arbitrator finds that despite this acknowledged

attention to the shorter hours worked by unit personnel as com-

pared to the WC7, the evidence shows the Employer agreed to raise

unit personnel base monthly salaries between 1970 and 1982 from

below the average to above the average of the WC7.  To illus-

trate, in 1972 a Seattle fire fighter's monthly salary was $942

and the average for the WC7 was 11% higher at $1,046.  After a

series of negotiated salary increases, 1981-82 found Seattle's

salary at $2,240 or 6% higher than the WC7 average of $2,114

(Ex. 27).  This change occurred despite an increase of 1.4 hours

in the difference in weekly hours worked in Seattle relative to

the WC7.  In 1972 Seattle fire fighters worked 7.3 hours less per

week than the WC7 average; in 1981 the difference had increased

to 8.7 hours.

 

            Moreover, the evidence discloses that the wage pattern

established through bargaining was relatively independent of cost

of living differences among Seattle and the WC7 cities.  The

Employer introduced a Bureau of Labor Statistics (BLS) 1979 study

to prove a positive and direct relation existed between wage

rates and cost of living in other metropolitan areas (Ex. 120).

The study reported on cost of living as measured by the Urban

Family Budget (UFB) in 1977.  Table 1 compares BLS/UFB cost of

living data to hourly wage rates for the period 1967 to 1988.

 

            Analysis of the data in Table 1 discloses that Seattle's

hourly wages rose from 7.6% to 31.7% above the California average

between 1970-1977 while its cost of living changed from being

higher to lower than the California average.  These results are

exactly the opposite of the general conclusion reached in the

1979 BLS study, namely, that as cost of living rose in one area

as compared to another so did its wage rates.  The exception does

not disprove this general rule, however it cautions against

automatic application to any particular situation.  However,

these results suggest factors other than inter-area cost.of

living differences were prime factors in the parties

determination of wage rates.

 

 

TABLE I

 

URBAN FAMILY BUDGET INDEX AND HOURLY WAGE RATES

1968 - 1988

 

                              1967       1970                      1977       1977                   1987       1987-88

                                    UFB       Hourly Wage        UFB       Hourly Wage     UFB       Hourly Wage

 

San Diego                   99           $3.92                     96           $6.06                  93           $11.37

 

LA/Long Beach          101         4.07                       98           7.04                    97           12.21

 

SF/Oakland                105                                       106                                    105

 

San Francisico                     $4.21                                    $7.75                                 $14.83

Oakland                               $4.83                                    $7.73                                 $14.27

San Jose                              $4.00                                    $6.70                                 $13.46

 

AVERAGE           101.7      $4.21                     100         $7.06                  98           $13.23

 

Seattle/Everett           103         $4.53                     98           $9.30                  93           $14.44

 

(Difference of

Seattle to

WC7 Average            (+1.3%)    (+7.6%)          (-2%)              (+31.7%)        (-3.6)*             (+9.1%)

 

Source:           Ex. 210 and Ex. 197.

__________

 

            The Union's and City's economists both testified that only

75-80% of observed inter-area difference in wage rates can be

accounted for by inter-area differences in the cost of living.

Alternately stated, other factors account for 20-25% of the

variance.  The BLS study (E210) states that in the case of some

occupations other factors may account for up to 35% of the

variation, as in the case of clerical wages (E210, p. 26)  The

study goes on to suggest that employer size and degree of unioni-

zation appear as the kind of factors that cause differences in

area wages not accounted for by differences in cost of living

when controlled for industry mix.

 

            In any event, the evidence is clear that area cost of living

differences cannot be used with any precision in deciding whether

Seattle's monthly salary should be five percent, or ten percent

higher or lower than the WC7 given that 25--30% of the difference

among them may be accounted for by other factors.

 

            The BLS studies of inter-area wage differences have typi-

cally used four selected occupations:  (1) unskilled plant;

(2) skilled maintenance; (3) office clerical and (4) electronic

data processing.  The Arbitrator finds skilled maintenance as the

occupation most similar to fire fighters from among the four

occupational groups used by the BLS in its studies of inter-area

wage differences.  Jobs included in this classification include

maintenance electricians, machinists, pipefitters, mechanics,

carpenters and tool and die makers.  By the time a fire fighter

has completed his 42 month apprentice to reach the level of top

step fire fighter he must have some of the knowledge and skills

of all these skilled occupations as well as those unique to fire

service and emergency medical service.  Table 2 arrays data for

this group of employees over the bargaining history of the

parties'  Analysis of the data in Table 2 discloses that Seattle

area skilled maintenance workers were paid 5 to 12% over the

national average through the twenty year period, as they were

also in the other metropolitan areas shown.

 

           

Table 2

 

                                               1967                      1977                             1982                          1986

 

San Diego                               108                        102                              103                              106

 

LA/Long Beach                      105                        101                              117                              109

 

SF/Oakland                            113                        118                              117                              120

 

Sacramento                                                                                              107                              107

 

Portland                                     --                           --                                113                             106

 

                                                            WC7 1970             WC7 1978                   WC7 1982                   WC7 1998

                                                                Salary                   Salary                         Salary                         Salary

 

AVERAGE                             108          $978      107          $1,638         108       $2,269            110         $2,912

 

Difference of Seattle               -3%         -.3.4%   +4%        +2.3%       +4%         +3.1%       -1%          -5.8%

to Average

 

Seattle/Everett                       105          $945      111          $1,676        112        $2,337            109*        $2,756

 

*Estimate

 

Source:

   Ex. 123, Ex. 210, U.S. Department of Labor Studies reported in Monthly Labor Review,  February 1989

and March, 1969

__________

 

            The wage and salary trends that emerge from analysis of

Table 1 show that Seattle salaries have variedfrom below average

at the start to above average in the middle years (1977-84) to

below average the last five years.  While Seattle's salaries went

from below to above the WC7 average the cost of living in Seattle

went from above to below average for the WC7.  Seattle salary

trends tracked those for skilled employees in the WC7 labor

markets, that is from below to above to below during the period.

Finally, salaries rose and fell despite the fact that throughout

the period Seattle fire fighters worked substantially fewer hours

than their WC7 counterparts.

 

            Averaging the trends over the period in terms of hourly wage

rates, the negotiated wages from 1970 to 1982 for fire fighters

averaged 16.2% above the average of the WC7; over the entire

period (1970 to 1988) it was 16.9%.  The 5.3% increase requested

by the Union for 1988-89 would raise Seattle's hourly rate to

$14.75, placing it below this historic average at 14.8% above the

average for the WC7.  On a monthly basis a 5.3% increase would

still leave Seattle's salary at $2,902 or 2.4% below the average

of $2,972 for the WC7.

 

 

Secondary Factors

 

            Arbitrators typically consider secondary factors to the

extent they may indicate modification of conclusions drawn from

consideration of the primary factor.  In this regard, the

 

 

 

14

Employer contends that changes in the Seattle area cost Qf living

and its limited ability to pay should be considered in deter-

mining appropriate wage increases.  By contrast, the Union con-

tends that when total compensation and variations in wage

structure/unit labor costs across WC7 fire departments are con-

sidered its requested salary increases appear even more reason-

able.  The Union also argues its proposed increases are in line

with practices in larger Puget Sound fire departments.

 

            The Employer contends that cost of living increases--those

in line with changes in the Seattle CPI--adjusted for Employer

paid increases in health plan costs are appropriate and fair.

This factor alone cannot be used to modify the conclusion drawn

from prevailing patterns.  Why?  Because the evidence discloses

the Employer has over twenty years agreed to wage increases in

excess of Seattle area CPI increases.  Between 1967 and July of

1988 the parties~settled on aggregate base wage increases of 298%

whereas the CPI for Seattle rose only 222%--a difference of 76%

(Ex. 108).  If additional cost increases for longevity and health

coverage are factored in the difference would be 116% (Ex. 109).

The evidence discloses a similar pattern of compensation

increases versus CPI increases for the WC7 over this period.

 

            Unusual fiscal constraints on an employer have caused

arbitrators to modify wage awards.  However, the evidence does

not show the Employer is facing atypical fiscal constraints.  In

fact it suggests just the oppositei namely, that Seattle's fiscal

 

15

I

 

_

 

 

condition is sound and its economic future bright.  Mayor Royer 5

1988 State of the City address delivered in August stated (E48:

 

I am pleased to report that by traditional measures the

State of the City is healthy and strong.  The economy

is good and growing; the budget balanced; our reserves

solid; and our taxes relatively low. .

 

The Mayor's budget address delivered on September 26, 1988 sug-

gests the City has additional taxing authority it is willing to

use to increase neighborhood services.  He states that he is

'I proposing to increase the Business and Occupatio~al Tax rate by

 

2%.     (U49, p. 13).  This tax increase was effectuated and

except for special levies, Seattle's statutory taxing limits have

been met.

 

            The record does disclose that the Employer has in the past

faced abnormal fiscal constraints.  In 1983 Mayor Royer wrote

Local 27 asking that "In view of current economic difficulties,

the City believes that is reasonable for fire fighters to accept

 

certain changes in conditions of employment which will 'hold the

'I

 

line' for 1984."  Even in the face of these  economic difficul-

ties," the City agreed to raise base salaries by 3.0% despite the

fact that Seattle's CPI had dropped 0.3% during the year pre-

ceding negotiations.  In the Arbitrator's opinion if the Employer

voluntarily granted a wage increase over 3% higher than the

increase in the CPI in the face of economic difficulties, then it

certainly would not be imprudent for the Arbitrator to award

 

 

 

 

16

above CPI increases when the Employer's fiscal situation is

"healthy and strong.

 

            To recapitulate, the Employer has failed to provide evidence

that consideration of Seattle area cost of living changes and/or

its current fiscal condition warrant a moderation of the wage

decision indicated by analysis of the primary factors of prevail-

mg patterns and bargaining history.

 

            The Union presented evidence that Seattle's salary structure

is different from the norm of the WC7, specifically that 77% of

Local 27 unit employees hold the rank of fire fighter.  Only San

Francisco and Portland are similar in this regard.  The other

five West Coast comparables average only 49% at the rank of fire

fighters with 51% holding higher pay classifications (Engineer,

Lieutenant and Captain) .  The weighted average salary for unit

personnel in the WC7 is $38,897.  In Seattle the same weighted

average is $34,519--a difference of $4,378.  (Ex. 250)

 

            The Arbitrator concludes this difference in salary structure

is notewdrthy.  It makes clear that Seattle provides its fire

suppression and medical emergency service at a lower total salary

cost than if the Employer adopted the salary structure typical of

the WC7.

 

            On a related point, the Union also introduced evidence that

Seattle mans its basic unit of production, the fire engine,

_

typically with 3 unit personnel while WC7 cities normally man

with 4 unit personnel.  This difference in manning level allows a

 

17

Seattleengine company to operate at significantly reduced labor

costs.  Since an engine company's responseto a fire or medical

emergency is the typical unit of production in a fire department,

Seattle engine company I  unit labor costs are approximately 25%

less than other WC7 departments.

 

            These foregoing differences in salary structure and manning

levels hold true regardless of how much money the Employer

decides to spend on the provision of fire and emergency services.

For example, an employer at its sole discretion may choose to

have more engine companies, fire houses and personnel to achieve

certain service levels, e.g. shorter response times.  However,

once this policy decision is made it is clear that under

Seattle's salary structure and manning levels the basic unit of

production~~engine company response--can be provided at substan-

tially lower labor costs than in the average WC7 city.

 

            It is a well established fact that more productive employees

are normally paid more than their less productive counterparts.

The question that remains is how Seattle's superior productivity

is to be factored into the determination of the salary issue

before this Arbitrator.  Since there is nothing to suggest that

there has been any recent change in the salary structure or

manning levels the Arbitrator will not use the productivity

factor to justify any additional salary increases.  This con-

clusion is based on the presumption that the Union negotiated

their wage pattern over the years with the knowledge that

 

18

Seattle's salary structure and manning levels were different tha~

the WC7.

 

            It appears from the evidence as a whole that the Union has

been willing to settle for monthly salary levels, that over the

period 1970-1987 averaged only slightly above the WC7, because

its members worked fewer hours.  This fact also suggests a

reasonable hypothesis as to why the Employer agreed over the

years to pay average WC7 monthly salaries despite shorter work

hours in Seattle, namely, higher~productivity.  It makes rational

what might otherwise appear unreasonable to outsiders unaware of

the substantially lower unit labor costs of Seattle fire

suppression personnel over their West Coast counterparts.  In

1988 the average total annual compensation for a ten year fire

 

ghter in the WC7 was $39,495 compared to $36,268 for a Seattle

fi

fire fighter--a difference of 9% (Ex. 126).  In 1988 the base

 

monthly salary difference was 8%, a proportional difference.  The

Arbitrator notes that differences in pension contribution rates

are more fairly acc9unted for in the Employer's rather than the

Union I5 analysis of total compensation.  In light of the above

the Arbitrator finds no cause in the evidence on total

compensation to warrant a modification of his decision based on

primary factors.

 

            The Arbitrator finds that Tacoma is the only comparable city

to Seattle in the Puget Sound area.  It is the second largest

city after Seattle and works under the same statutory authority

 

19

as Seattle.  The evidence showsthat for the past 18 years that

_

in roughly half theyears Seattle's base monthly salary for fire

fighters was above Tacoma 5 and vice versa for the other half.

Tacoma's negotiated salary for 1988 was $2,853.  The 5.3%

increase that will be ordered for Seattle fire fighters will

place their monthly salary $39 ahead of Tacoma.  This difference

is well within the historic pattern of salary relationship

between these two cities.

 

 

Summary

 

            Consideration of the legislative directive in 41.56 and the

evidence and argument of the parties in this matter lead the

Arbitrator to conclude thatthe Union 5 requestfor a 5.3%

increase in its salary is warranted and prudent.  In light of

prevailing patterns established by the parties over two decades

of collective bargaining, the prevailing pattern established by

parties similarly situated in the WC7 as well as historic salary

relationships with Tacoma, Local 27 unit personnel should be paid

the WC7 average monthly salary.

 

            The evidence strongly suggests that the reason Seattle's

monthly salary has averaged at about the mean salary for the West

Coast comparables despite its shorter hours is because of labor

cost efficiencies gained by the City's atypical salary structure

and engine manning levels.  On balance the parties appear to have

traded off substantially higher productivity for shorter hours

 

 

20

rather than above average salaries.  Regardless of why the

parties have established Seattle as a historically average. salary

city in comparison to comparable West Coast cities, the fact

remains that they have.  The Arbitrator has no better guide to

what constitutes an appropriate salary increase than the pattern

established by the parties over 20 years of bargaining.

 

            Neither party was able to demonstrate that conditions under-

lying the parties' prevailing salary practices has changed so

substantially as to warrant a deviation from those practices.

Cost of living differences with California cities, shorter hours

but higher productivity in Seattle have been relatively constant

underlying conditions against which the parties have bargained

salaries.

 

            Moreover, the Employer's strong fiscal condition currently

is different from those it experienced in the mid 1980's when

salary increases were tempered by the parties in negotiations due

to the fiscal difficulties faced by the Employer.  This fact

argues that now is the time to get Seattle's salary at least. back

to the average for comparable West Coast cities given the current

healthy fiscal picture for the City of Seattle.

 

 

Chiefs Unit

 

            The record discloses that until 1983 battalion and deputy

chief salaries were determined by maintaining an established

differential between battalion chiefs and captains.  It was the

 

 

 

21

attempt by the Employer to alter these relationships that caused

the chiefs to organize their own bargaining unit.  The.chiefs

unit has only bargained one agreement to date and arbitrated

_

another.

 

            In 1984 a Seattle fire fighter's salary stood at 99.2% of

the WC7 average and a chief's salary at 100.6% of the WC7 average

(Ex. 34 and 54).  At this time a chief's salary was 161% of a

fire fighters, whereas the average differential for the WC7 was

157%.  More importantly this salary pattern resulted from nego-

tiations.  Neither the Employer nor Local 2898 has shown any

evidence of why this relationship should be different in 1988.

The Arbitrator notes that if chiefs are given the same 5.3%

increase as fire fighters for 1988 a chief's salary will remain

161% of a fire fighters.  The Arbitrator finds this to be fair

and reasonable in light of the short bargaining history between

the parties.

 

            The WC7 average salary for a battalion chief in 1988 was

 

$4,755 as compared to $4,445 for Seattle--a difference of 7.0%

 

(Ex. 54)  Except for Sacramento, no WC7 city pays longevity pay

 

on top of base salary (Ex. 53).  If the chiefs unit were given a

 

5.3% increase for 1988-89 their monthly salary would be $4,681--

 

only $74 (1.6%) less than the WC7 average for 1988.

 

            In' terms of local area comparison a 5.3% increase would

place them ahead of Tacoma 5 battalion chief's base salary of

 

$4,475, but behind Tacoma by $152 when longevity pay of $358 per

 

 

22

month in Tacoma is considered.  Seattle chiefs receive no

longevity pay.

 

            The Arbitrator 5 earlier analysis of primary and secondary

factors is also applicable to the chief's unit.  Since Seattle

has fewer lieutenants and captains than other WC7 cities it is a

reasonable presumption that battalion and deputy chiefs exercise

more direct management responsibility than their counterparts in

the WC7.  In the Arbitrator's opinion this additional respon-

sibility is compensated in large part by the shorter hours

Seattle chiefs work in comparison to their counterparts in the

 

WC7.

 

 

Final Conclusion

 

            The above analysis leads the Arbitrator to conclude that

both Local 27 and 2898 unit employees receive a 5.3% increase

retroactively effective to September 1, 1988.  Effective

September 1, 1989 and 1990 the base monthly salary for top step

fire fighters will be set at the average of the WC7.  Other

represented ranks will have their salaries raised by an equiva-

lent percentage.

 

            The Arbitrator has settled on this average salary formula

rather than a CPI plus fixed percentage formula for several

reasons.  First, the Employer's partisan arbitrator expressed a

desire that the formula be based either on the WC7 or the CPI,

but not both.  (5/5/89 letter, p. 3)  The formula awarded makes

 

 

_

 

23

it clear that the WC7 average is the touchstone for salary

determination.

 

            Second, basing second and third year increases on Seattle

area CPI changes plus a fixed percentage could result in salary

increases that would place unit personnel wages above the WC7

average.  The Arbitrator takes judicial notice that current boom

times in the Seattle area have seen housing prices begin to take

off.  Accordingly, it is probable that Seattle area CPI increases

will exceed those in the WC7 in 1989-90 if salaries were pegged

to the CPI plus a fixed percentage.

 

            Third, the thrust of the Union argument in this case is that

unit personnel should at least be paid the average of the WC7 in

light of bargaining history.  The formula used for second and

third year increases meets this standard.

 

            Fourth, the parties stipulated that the WC7 should be the

comparison group pursuant to RCW 41.56.  The Arbitrator believes

a formula based on the WC7 reflects proper and prudent deference

to this stipulation as well as bargaining history.  Moreover, as

noted above negotiated salary increases have over twenty years

outpaced area CPI increases.

 

            Fifth, both parties have asked the Arbitrator to determine

an unequivocal guideline on which future salary changes could be

based.  The Arbitrator's decision on the formula for the second

and third year gives the parties just such a guideline.  Absent

dramatic changes in the wages, hours or conditions of employment

 

 

24

in Seattle and the WC7, the parties can utilize this guideline in

the future.

 

            Sixth, the formula for the second and third year is con-

sistent with the decision of Arbitrator Beck.  He stated "Seattle

fire fighters should receive an increase which takes them  .

toward reaching the average paid by the comparators [WC7I"

(Ex. 39, p. 28).  The formula awarded here is consistent with

 

Mr. Beck's conclusion.

 

            Finally, the chief executive of the Employer has declared

the Employer to be in good financial health.  The Arbitrator

concludes now is the appropriate time to bring salaries up to the

WC7 average.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

_

 

 

 

 

 

 

 

25

                                                       AWARD

            1.         1988    Salaries:

                        5.3%   increase for all unit employees effective retro-

                        actively to September 1, 1988.

            2.         1989    and 1990:

 

Set base monthly salary of top step fire fighter to WC7

average.  All other ranks to be adjusted by the per-

centage increase or decrease needed to accomplish same.

Changes to be effective September 1 of each year based

on average computed as of September 1 of each year for

salaries of WC7 fire fighters effective on that date.

Changes in WC7 salaries after September~1 of each year

shall not alter the WC7 computation for that contract

year.

 

3.         The Arbitrator retains jurisdiction solely to resolve any

disputes over the implementation of the foregoing award.

 

4.         Pursuant to 41.56, the Arbitrator assigns his fees and

expenses equally to the Union and the Employer.

~ThTh\:/          j           I //

\           I

Philip Kienast 4~

May 18, 1989

Seattle, Washington

 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.