Local 27, Local 2898,
International Association of Fire Fighters
And
City of
Interest Arbitration
Arbitrator: Philip Kienast
Date Issued:
Arbitrator:
Kienast; Philip
Case #: 07625-I-88-00176
Employer: City
of
Date Issued:
IN THE MATTER OF ARBITRATION
Between
CITY OF
) 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)
)
(
_______________________________
)
APPEARANCES
For the Employer:
Marilyn F. Sherron,
Lyons, Labor Negotiator
For the
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
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
90% of the increase in the
Consumer Price Index
for
Urban wage Earners and Clerical Workers
(CPI-W) for
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
90% of the increase in the
Consumer Price Index
for
Urban wage Earners and Clerical Workers
(CPI-W) for
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
Re: Local
2899
A. WAGES/HOURS
(ARTICLE 4 AND APPENDIX A)
Effective
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
90% of the increase in the
Consumer Price Index
for
Urban Wage Earners and Clerical Workers
(CPI-W) for
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
90% of the increase in the
Consumer Price Index
for
Urban Wage Earners and Clerical Workers
(CPI-W) for
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
90% of the increase in the
Consumer Price Index
for
Urban Wage Earners and Clerical Workers (CPI-
W) for
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
Local 27's Proposal
1. Contract
term - two years, commencing
2. Increase
salaries for all bargaining unit
employees as follows:
a. Effective
b. Effective
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
from
the first half of 1988 (dated July 1988) to the
first
half of 1989 (dated July 1989).
c. Effective
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
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
cent.
b. Effective
same percentage as the increase
in the
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
same percentage as the increase
in the
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:
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
(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
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
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
and
the average for the WC7 was 11% higher at $1,046. After a
series
of negotiated salary increases, 1981-82 found
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
the
WC7. In 1972
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
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
hourly
wages rose from 7.6% to 31.7% above the
between
1970-1977 while its cost of living changed from being
higher
to lower than the
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
AVERAGE 101.7 $4.21 100 $7.06 98 $13.23
Seattle/Everett 103 $4.53 98 $9.30 93 $14.44
(Difference of
WC7 Average (+1.3%) (+7.6%) (-2%) (+31.7%) (-3.6)* (+9.1%)
Source: Ex. 210 and Ex. 197.
__________
The
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
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
$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
to
city
after
19
as
_
in
roughly half theyears
fighters
was above
increase
that will be ordered for
place
their monthly salary $39 ahead of
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
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
the
WC7 average monthly salary.
The evidence strongly suggests that the reason
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
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
but
higher productivity in
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
to
the average for comparable West Coast cities given the current
healthy
fiscal picture for the City of
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
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
(Ex. 54) Except for
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
$4,475, but behind
22
month
in
longevity
pay.
The Arbitrator 5 earlier analysis of primary and
secondary
factors
is also applicable to the chief's unit.
Since
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
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
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
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
off. Accordingly, it is probable that
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 "
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
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
~ThTh\:/ j I
//
\ I
Philip Kienast 4~