INTEREST ARBITRATIONS

Decision Information

Decision Content

City of Camas

And

International Association of Fire Fighters, Local 2444 “IAFF” or “The Union

Interest Arbitration

Arbitrator:      John H. Abernathy

Date Issued:   06/27/1996

 

 

Arbitrator:         Abernathy; John H.

Case #:              11665-I-95-00248

Employer:          City of Camas

Union:                IAFF; Local 2444

Date Issued:      06/27/1996

 

 

 

IN THE MATTER OF THE                         )     INTEREST ARBITRATION PANEL'S

INTEREST ARBITRATION                                   )     OPINION

BETWEEN                                                                 )     AND

INTERNATIONAL ASSOCIATION OF                )     AWARD

FIRE FIGHTERS, LOCAL 2444                             )     FOR THE ISSUES OF

"IAFF" OR "THE UNION"                                    )     WAGES AND

AND                                                                           )     CAPTAIN'S DIFFERENTIAL

                                                                                    )     FOR EACH YEAR OF A

CITY OF CAMAS, WASHINGTON                       )     3-YEAR AGREEMENT

                                                                                    )     COMMENCING JANUARY 1, 1996 AND                                                                                          )

"THE CITY" OR "THE EMPLOYER"                  )     ENDING DECEMBER 31, 1998

 

 

HEARING SITE:      City Hall

                                    Camas, Washington

 

HEARING DATES: February 21 and 22, 1996

 

BOARD MEMBERS:

                                                City Appointed                       Union Appointed

Neutral Chairman                  Board Member                      Board Member

 

John H. Abernathy                 Lloyd N. Halverson               Michael L. McGovern

Neutral Arbitrator                  City Administrator                 President, Washington

                                                City of Camas                        State Council of

                                                                                                Fire Fighters

 

 

APPEARING FOR THE FIRE FIGHTERS:

 

            Jim Hill, Spokesperson, IAFF Local 2444

                   Vice President, 7th District, IAFF

            Don Fulthorp, Treasurer, Local 2444

            Randy Miller

            Allen Wolk, President, Local 2444

 

 

APPEARING FOR THE CITY:

 

Howard Strickler, Management Consultant

Sandra G. Brown       

David Artz

Dean Dossett, Mayor of Camas

 

 

                                                            EXHIBITS

 

                                                               Joint

 

1.         1992-94 Collective Bargaining Agreement between the City of

            Camas and IAFF Local 2444

2.         Job Description for Fire Fighter

3.         Job Description for Fire Fighter/Paramedic

4.         Job Description for Fire Captain

5.         Job Description for Paramedic Captain

 

                                                                        Union

 

1.         Handout and video

2.         Map of Camas, Washington area

3.         Newspaper articles regarding growth in Camas EMS service

            area

4.         Newspaper articles regarding growth in Camas EMS service

            area

5.         Union's updated position statement

6.         What has Mayor Dossett Accomplished? (political pamphlet)

7.         Union's response to inquiry from Howard Strickler

8.         Fire and EMS response totals

9.         Ambulance response history

10.       Ambulance response history by District, 1995-96

11.       1989-91 Agreement between Local 2444 and City of Camas

12.       Assessed valuation of total EMS area by District

13.       Assessed valuation and tax revenue' of total EMS area by

            District

14.       Fees collected for EMS services in 1995 by District

15.       Comparison of population served for EMS response area by

            Union comparables

16.       Budget analysis of budget of City of Camas by IAFF

17.       Union comparison of assessed valuation

18.       Total compensation/net hours of Union comparison for fire

            fighters (with, 10 years service)

19.       Total compensation/net hours of Union comparison for fire

            fighter paramedics (with 10 years service)

20.       Total compensation/net hours of Union comparison for fire

            captains (with 10 years experience)

21.       City of Camas salary grid for 1994

22.       1994 comparison 7-year fire fighter - City's comparables',

            February 17, 1996

23.       1994 comparison 7-year fire fighter/paramedic - City's

            comparables, February 17, 1996

24.       Washington fire departments for 5,000 to 40,000 population

            by assessed valuation +50% of Camas

25.       Nine collective bargaining agreements        for the fire fighters

            with:

            (A)       Gig Harbor - Pierce County #5         1996-98

            (B)       Bellingham                                         1995-96

            (C)       Olympia                                              1993-95

            (D)       Snohomish #7                                     1994-96

            (E)       Port Angeles                                       1994-95

            (F)       Pierce County #9                                1994-96

            (G)       Pierce County #3                                1996-97

            (H)       Bremerton                                          1993-95

            (I)        Kitsap Fire District #7                       1996

 

 

                                                            City

 

1.         March 29, 1995 letter from Marvin Schurke, Executive

            Director, PERC, certifying four issues for interest

            arbitration (wages, health care, Captain's differential and

            post-retirement insurance)

2 .        City's letter to arbitrator stating City's position on each

            issue, February 12, 1996

3.         Excerpts from City's budget relating to Fire Department,

            City of Camas

4.         Statement of Honorable Dean E. Dossett, Mayor of Camas

5.         January 29, 1996 memo from David Artz to Howard Strickler,

            re: Ambulance Service Area (ASA) population

6.         January 22, 1996 memo from Ken Pearrow, GIS Demographics to

            Lloyd Halverson, re: population estimates for Camas EMS

            District

7.         List of IAFF Bargaining Unit Employees

8.         City of Camas, Fire fighter/Paramedic recruitment by

            geographical location, August 1, 1994 prepared by Sandy

            Brown, Personnel Specialist           

9.         Camas Fire employee terminations, November 1990 - December

            31, 1995 prepared by Chief

10.       All emergency calls 1990-1995 by totals for Ambulance

            Service Area and Camas only

11.       Fire and EMS emergency calls 1990-1995 by Camas Fire calls,

            Camas EMS calls and non-Camas EMS calls

12.       Statement of City's negotiator Howard Strickler

13.       CPI data, US Department of Labor, Bureau of Labor

            Statistics, 1975-1995 by months and annual average

14.       1995 Washington State Almanac, Office of Financial

            Management, Population Forecasting Division, population,

            April 1, 1990-1995 by county and municipality

15.       Not used

16.       The City's methodology for the selection of comparables

17.       Master List, Washington State Fire Departments, 1995

            populations served for fire suppression

18.       Master List, all Washington State Fire Departments

            Protecting 1995 Population for fire suppression between

            10,945 and 30,284

19.       Washington State Fire Departments providing fire and

            Advanced Life Support (ALS) serving populations for fire

            suppression between 10,945 and 30,284

20.       Master list, all Washington State Fire Departments

            protecting 1995 populations for fire suppression between

            10,945 and 30,284 (Camas assessed valuation +50% of actual

            $808, 810, 762 is $404, 405, 381 to $1,213,216,143)

21.       1995 populations and assessed valuations protected for fire

            suppression (EMS/ALS and transport) +50% of Camas's assessed

            Evaluation

22.       City's position on Issues 1 and 3, Wages and Captain's

            Differential

23.       Letter from Carol J. Wilnes, Employee Benefits Specialist,

            Association of Washington Counties, dated February 20, 1996

            to Larry Halverson, City of Camas, re: AWC Employee Benefit

            Trust medical program rate increases compared to marketplace

            trends, 1990-1996

24.       Benchmark Position: Fire fighter - by name, hire date and

            years of service

25.       1995 Comparisons of 7-year fire fighter compensation

            comparisons in descending order by net hourly ate for Port

            Angeles, Kitsap 15, Aberdeen, Pasco, Monroe, Tumwater,

            Pierce 16, Walla Walla, Anacortes, Cowlitz 2 and Camas

26.       Benchmark Position:  Fire fighter/paramedic, by name, hire

            date, years of service

27.       1995 comparisons., 7-year fire fighter/paramedic compensation

            comparisons by net hourly rate for same districts specified

            in C-25

28.       Benchmark Position:  Captain, by name, hire date and years

            of service

29.       1995 comparisons, 15-year first line supervisors, same

            districts as in C-25

30.       Differentials for first line supervisors

31.       1995 fire fighter compensation at 7 years of service for

            fire departments providing fire/EMS and ALS service, 10,000

            to 30,00.0 population.  Note figures for City of Camas Fire

            District do include 3% increase for 1995

32.       1995 comparisons, 7-year fire fighter/paramedic salary

            comparison

33.       Standard Metropolitan Statistical Areas, state of Washington

            and Portland, Oregon SMSA (includes Clark County,

            Washington)

34.       Uses of COLA clauses in southwestern Washington, various

            bargaining units

35.       American Chamberof Commerce Research Association (ACORA)

            cost of living index, second quarter 1995 for Portland

            (108.0) and Seattle/Bellevue/Everett (120.3)

36.       February 15, 1996 letter from Lawrence P. Daniels, Survey

            Manager/Compensation Consultant, Milliman & Robertson, Inc.,

            Actuaries and Consultants to Lloyd Halverson, City

            Administrator, City of Camas, re: geographic wage

            differentials between Seattle and Portland

37.       Historical Comparison of Top Step Fire fighter Wage vs.

            Portland CPI-W and National CPI-w, 1980-1995

38.       BNA Special Report of September 10, 1995 on findings of

            Senate Finance Committee's Advisory Commission to Study the

            Consumer Price Index along with copy of the Commission's

            report

39.       History of Wage Adjustments, City of Camas, 1980-1995

40.       Survey of Clark County wage adjustments for represented and

            non-represented employees employed by Clark County, Clark

            PUD, Camas School District, James River Corporation and City

            of Vancouver

41.       Top Step Fire Fighter Base Wage   Summary of Local Fire

            Jurisdictions, 1994-96 for Camas Fire Department, Washougal

            Fire Department, Clark Fire District #6, Clark Fire District

            #3, Clark Fire District #11, and Vancouver Fire Department

42.       Collective bargaining agreement for fire departments

            selected by the City as comparables and selected others

            (A)       Aberdeen Fire Department/IAFF 2639

            (B)       Anacortes Fire Department/IAFF 1537

            (C)       Cowlitz 2 Fire and Rescue/Teamsters 58

            (K)       Kitsap County Fire District 15/IAFF 2819

            (P)       City of Pasco Fire Department/IAFF 1433 (1994-95)

            (Q)       City of Port Angeles Fire Department/IAFF 656

            (R)       Pierce County Fire Protection District 16/IAFF 3152

                        (1995-97)

            (T)       Snohomish County Fire Protection District 3/IAFF 3315

                        (1995-1997)

            (U)       City of Tumwater/IAFF 2409 (1994-95)

            (V)       The City of Walla Walla/IAFF 404 (1994-96)

            (W)      The City of Camas/Local 307, Washington State (1995)

            (X)       The City of Camas (Library) and OPEIU Local 11 (1995-

                        97)

            (Y)       The City of Camas and Camas Police Officers Association

                        (1995-97)

43.       Award of Interest Arbitrator John H. Abernathy, 1980, City

            of Lynnwood v. Teamster Local 763

44.       Award of Interest Arbitrator John H. Abernathy, 1981, City

            of Everett v. Everett Police Guild/5

45.       Award of Interest Arbitrator Michael H. Beck, 1983, City of

            Bothell v. IAFF Local 2099

46.       Award of Interest Arbitrator Michael H. Beck, 1983, City of

            Seattle v. Seattle Police Management Association

47.       Award of Interest Arbitrator Alan R. Krebs, 1984, City of

            Seattle v. Seattle Police Management Association

48.       Award of Interest Arbitrator Tom Levak, 1985, City of

            Tukwila v. IAFF Local 2088

49.       Award of Interest Arbitrator Alan R. Krebs, 1986, Snohomish

            County v. Teamsters Local 763

50.       Award of Interest Arbitrator Michael H. Beck, 1987, Cowlitz

            County v. Teamsters Local 763

51.       Award of Interest Arbitrator Michael H. Beck, 1988, King

            County Fire District #16 v. IAFF Local 2459

52.       Award of Interest Arbitrator Tom Levak, 1990, City of Pasco

            v. Pasco Police Officers' Guild

53.       Award of Interest Arbitrator Michael H. Beck, 1991, City of

            Bellingham v. IAFF Local 106

54.       Award of Interest Arbitrator Michael H. Beck, 1994, City of

            Bellingham v. IAFF Local 106

 

                                                BACKGROUND

 

            The City of Camas, Washington (the City) and International

Association of Firefighters,  Local No.  2444  (IAFF)  have been

parties to several previous collective bargaining agreements, the

latest being the 1992-94 agreement  (Joint Exhibit 1) .   Failed

attempts  to  negotiate  a  successor  to  the  1992-94  agreement

resulted in this interest arbitration.

            The City of Camas is located in Clark County, Washington,

approximately twelve miles east of Vancouver, Washington and on

the Washington (or north) side of the Columbia River.  Portland,

Oregon is located on the Oregon  (south)  side of the Columbia

River directly across from Vancouver.  Interstate Highways 5 and

205  bridge  the  Columbia  to  connect  Portland  and  Oregon  to

Vancouver and Washington.   The Seattle metropolitan area is 180

miles to the north.

            Camas is a municipality and a senior taxing district within

the state of Washington.  The Camas Fire Department provides fire

suppression services to the approximately 8,000 residents of the

city.  The Camas Fire Department also provides Emergency Medical

Service to the City of Washougal, Clark County Fire Districts 2

and 9 and the unincorporated portion of Clark County between the

cities of Vancouver and Camas -- about 7,000 people.

            The Camas Fire Department consists of approximately 23 paid

full-time employees, including the Fire Chief support staff and

18 fire fighters.   The Department provides fire prevention and

suppression  services  within  the  city  limits  of  Camas  and

Emergency Medical Service within Camas and a larger area around

the city.   The Emergency Medical Service  (basic life support,

advanced  life  support  and ambulance  service  with  a  fee-for-

service  structure)  provided by  the  Department  account  for

approximately 90% of all emergency calls.  IAFF Local 2444 serves

as the exclusive bargaining agent for the 18 person bargaining

unit:   six fire fighters, eight fire fighters paramedics, three

captains and one captain/paramedic.

            Bargaining for a 3-year (1995-97)  successor contract began

oh May 23, 1994.  The parties bargained intermittently during the

summer of 1994.  Serious and more frequent negotiations began in

August and continued until November.   Agreement was reached on

some  issues  but  a  number  of  issues  remained  in  dispute  in

November.   So the parties requested mediation.   A Washington

Public Employment Relations Commission (PERC) mediator conducted

three mediation sessions and resolved some more issues but four

issues remained unresolved.   The mediator then recommended the

remaining issues be submitted to interest arbitration.   Shortly

thereafter  Marvin  L.  Schurke,  Executive  Director  of  PERC,

reviewed the case; concurred with the mediator's recommendation;

certified four issues  for interest arbitration  (wages,  health

care,  Captain's  differential  and  post-retirement  insurance);

docketed this case for interest arbitration; and instructed the

parties to proceed with the appointment of partisan arbitrators

and a neutral chairman.   (City Exhibit 1)

            The City chose City Administrator Lloyd Halverson as its

partisan arbitrator.  The Union chose Washington State Council of

Firefighters   President  Michael  McGovern   as   its   partisan

arbitrator.  I was chosen as neutral arbitrator and chairman of

the three-person arbitration board.   After being notified of my

selection, I contacted the parties to schedule a hearing.     That

arbitration hearing was  scheduled for Wednesday and Thursday,

February 21 and 22, 1996 in Camas, Washington at City' Hall.  Mr.

James  L.  Hill,  Vice  President,  7th  District  IAFF  acted  as

spokesman for the Union and Mr.  Howard Strickler,  Consultant

acted as spokesperson for the City.  The parties jointly asked

the neutral chairman to attempt mediation on February 21st and T

did so.  During that mediation session, the parties agreed to a

one-year agreement to commence on January 1,  1995 and end at

midnight on December 31,  1995.   That one-year agreement would

provide a 3% wage increase across the board for firefighters and

captains but would not change any of the other items in dispute

or any other agreed upon contract provisions during the term of

that one-year agreement

            At that point, the parties began discussing the possibility

of a 3-year agreement commencing on January 1, 1996 and running

through December 31, 1998.  The parties agreed that a new 3-year

agreement was desirable and they also agreed on the health and

welfare issue1 and the post-retirement is sue2 for the new 3-year

agreement.   The parties were unable to reach agreement on wages

for  1996,  1997  and  1998  contract  years  or  the  Captain's

differential  for  those  years.  Thus  wages  and  Captains'

differential are the only issues currently unresolved and are the

only issues submitted to this Arbitration Panel.

            The current  or amended proposals  of the parties  on  the

remaining two issues are as follows:

                       

                                                Proposals of                                        Proposals of

Wages                                     IAFF Local 2444                                City of Camas

 

Effective 1/1/96                      CPI-W Seattle + 2%                          80% of CPI-W Portland

 

Effective 1/1/97                      CPI-W Seattle + 2%                          80% of CPI-W Portland

                                                                                                            Min. 2.5% & Max. 5%

 

Effective 1/1/98                      CPI-W Seattle + 2%                          90% of CPI-W Portland

                                                                                                            Min. 2.5% & Max. 5%

 

 

1              For active employees, Awc Plan B and Kaiser plans, status quo for 1996 and

            1997, but In 1998 put a105% cap an the AWC plan and a $5 co-pay on the Kaiser

            plan.  City to continue to pay premiums.

 

2              New Article 13.7 as follows:

            The  Employer  shall  provide  post-retirement  medical   insurance   from

            retirement  to  age  65  for  the  retired  employee  only  subject  to  the

            provisions above.   Spousal coverage may be purchased from the Employer at

            the medical plan rates, in accordance with plan requirements.

 

 

Captain's                                Proposals of                            Proposals of

Differential                             IAFF Local 2444                    City of Camas

 

Effective 1/1/96                      CPI-W Seattle + 3% The current 12%

                                                                                                differential remain

                                                                                                the same as fire

Effective 1/1/97                      CPI-W Seattle + 3%              fighter/captain

                                                                                                paramedic/captain

Effective 1/1/98                      CPI-W Seattle + 3% for all three years

                                                                                                of the 1996-98

                                                                                                agreement

 

            The  parties  provided  documentary  evidence  (see  list  of

exhibits above) and oral argument on these issues at the hearing.

The parties agreed to waive the statutory requirement that the

Chairman issue his  decision within thirty days  following the

conclusion of the hearing.  The parties also chose to file post-

hearing briefs.   Upon my receipt of those briefs on April 15,

1996 the hearing record was closed.

            The Chairman reviewed the complete record in this case and

prepared a draft decision which was mailed to each of the other

Panel Members.   Thereafter,  the Chairman talked with the other

two Panel Members on the phone.  Panel Member McGovern raised no

issues and made no objections to the draft report.  Panel Member

Halverson a three-page letter summarizing his concerns.   I have

studied Mr. Halverson's letter and have considered the points he

made in preparing the final opinion and award of the Arbitration

Panel.  Based on the record and my consultation with the Panel,

the following constitutes findings of fact and determination of

the issues by a majority of the panel.

 

                        AUTHORITY OF INTEREST ARBITRATORS

 

            Interest arbitrators in Washington public employment derive

their authority,  not from collective bargaining agreements  as

grievance arbitrators do,  but  from the  enabling statute that

creates interest arbitration, RCW 41.56.460.   That statute also

sets  forth  certain  standards  or  guidelines  which  must  be

considered by interest arbitrators in reaching their decisions.

Those standards or guidelines include:

 

            (a)        The constitutional and statutory authority of the

employer;

            (b)        Stipulations of the parties;

            (c)        (i) For employees listed in RCW 41.56.030(7) (a)  and

41.56.495, comparison of the wages, hours and conditions of

employment of personnel involved in the proceedings with the

wages, hours and conditions of employment of like personnel

of like employers of similar size on the west coast of the

United States.

                        (ii)        For  employees  listed  in  RCW  41.56.030(7) (b),

comparison of the wages, hours and conditions of employment

of personnel involved in the proceedings with the wages,

hours,  and conditions of employment of like personnel of

public fire departments of similar size on the west coast of

the United States.   However,  when an adequate number of

comparable employers exists within the state of Washington,

other west coast employers shall not be considered;

            (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 [1988 c 110 Section 1; 1987 c 521 Section 2 1983

0 287 Section 4;  1979 cx.s. c 194 Section 3;  1973 c 131

Section 5.]

                                                                                    (City Exhibit 15)

 

            Only four of these named statutory criteria were argued in

this dispute.  They are:

 

1.         Cost   of   Living. 3     What  is  the  most  appropriate

geographical area for compiling cost of living data --

Portland or Seattle?   Should the CPI index that is

selected be given full weight (as the Union proposes)

or should it be discounted (as the City proposes)?  If

it is to be discounted, by how much?

 

2.         Ability to pay.  Does the City have the ability to pay

the full demands of the Union on wages and Captain's

differential.

 

3.         Comparability.  What are the appropriate jurisdictions

to  be  selected  as  comparable  jurisdictions?  When

comparisons are made between Camas and these comparable

jurisdictions  for  comparable  work,  what  do  those

comparisons reveal?   The parties spent most of their

time,  effort  and energy arguing which jurisdictions

were most  comparable.   Each party used a different

methodology and each came up with an entirely different

list of comparables.

 

4.         Other factors.   Each party argued that another factor

should be considered and argued that these other actors

deserved  heavy  weight.    Unfortunately  they  argued

different other  factors.   The Union argued that  an

increasing demand for fire and EMS services (due to the

rapid  economic  growth  of  t he area)  and  increased

productivity fully justified the Union's demands.  The

City argued that it needed to maintain internal equity

between the wage increases granted to fire fighters and

those of other City employees.   The issues the Panel

must address are whether these other factors should be

given consideration and weight, and, if so, how much?

            The most efficient way of approaching this dispute, in the

opinion of  the  Chairman,  is  to make preliminary rulings  and

findings on each of these four disputed criteria and then apply

those rulings and findings to the wage issue and the Captain's

differential   issue   to   arrive   at   the   Panel's   final

recommendations.

 

3              Both parties proposed using the OFI-W index, and there was no dispute over

            the actual CPI-w numbers.   Originally there was a dispute over what annual

            time period (July to July or January to January) but the parties apparently

            agreed on a January to January period for the new three-year agreement.

 

                                                COST OF LIVING INDEX

 

            The Union argued (but presented no supporting evidence) that

the City of Camas is more closely tied with the Seattle/Puget

Sound area in terms of economic growth.   None of the Union's

comparable jurisdictions utilize the Portland CPI.   Camas fire

fighters live in a state-imposed tax environment common to all

Washington jurisdictions but no Oregon jurisdictions.   Retirees

of the Camas Fire Department receive a state provided pension

which is adjusted annually based on 100% of the Seattle CPI.

            The City contends that the Portland CPI is the appropriate

index for Camas.   The City of Camas is part of the greater

Portland labor and business markets and in the Portland Standard

Metropolitan Statistical Area  (SMSA) .   The City has used the

Portland  CPI  in  prior  negotiations  with  this  and  other4

bargaining units and the Portland CPI is used in other southwest

Washington jurisdictions    The City contends that the Union is

pushing for the Seattle CPI because it is increasing at a faster

rate than the Portland CPI.5   The January 1996, Portland CPI-W

was 2.7%.

            The majority of the Panel finds that the Portland CPI-W is

the appropriate index to be used.  Camas is geographically closer

to Portland than to Seattle.   Camas is part of the Portland SMSA

and is part of the Portland wholesale and retail trading area.

The January 1996 Portland CPI-W was 2.7%.

 

4           OPEIU Local 11 and camas Police Officers Association.

5           The city used the American Chamber of Commerce Research Association's ACOPA

cost of living index which is a comparison of the differences in the cost of

living  between  areas.    According  to  this  index,  Portland  is  11%  behind

Seattle.

 

            The next CPI  question put to the Panel  is whether fire

fighter wages should be increased by an amount equal to or less

than the Portland CPI-W.   The Union maintains they are entitled

to 100% of the increase in the CPI-W, but offered no persuasive

supporting evidence.   The City has proposed 80% of the Portland

CPI-W chosen in the first two years of the 3-year agreement and

90% in the third year.  The City notes that the CPI market basket

contains a medical component and that medical component is given

a great deal of weight in computing the CPI.  The City notes that

it has already agreed to pay all of the increases in medical

insurance premiums in the first two years of the new agreement.

The medical insurance bought by those premiums will cover a large

portion of an employee's medical expenses.   For the City to pay

both the employees' medical insurance and the full amount of the

CPI   (which includes a medical cost component) would mean that

the  City would  be  paying  twice  for  medical  cost.  The  City

presented unrebutted evidence in the form of the Findings of the

Senate  Finance  Committee's  Advisory  Commission  to  Study  the

Consumer Price Index and the Advisory Committee's Interim Report

(City Exhibit 38) .  The City argued that these reports prove that

the CPI overstates the actual cost of living because of five

built-in  biases  known  as  the  formula,  substitution,  outlet

substitution, quality change and new product biases.   The Union

offered no evidence to rebut this evidence by the City.   The

Chairman notes that for all these faults,  the government's CPI

data is still considered the most accurate and is the most widely

used.    Finally,  the  City  argued  that  other  employees  have

accepted a discounted CPI as the basis for current and future

wage increases.

            The majority of the Panel also finds that the Union failed

to support its 100% of CPI Position and failed to rebut any of

the evidence and arguments of the City as to why the Portland

CPI-W should be discounted as proposed by the City.  The majority

of the Panel  finds  it appropriate to discount the CPI-W for

Portland

 

                                                ABILITY TO PAY

 

            The Union presented evidence showing that the City had the

ability to pay the full increases sought by the Union.  The City

did not seriously contest this evidence.   In fact, written and

oral statements by the mayor clearly establish that the City had

the ability, but not the willingness, to pay the wages sought by

the Union.

            The majority of the  Panel  also  finds  the  City has  the

ability to pay the full increases demanded by the Union.

 

                                    COMPARABILITY

 

            The third criteria that interest arbitrators in the state of

Washington  must  consider  is  comparability     RCW  41.56.460

specifically requires interest arbitrators to make comparisons

between:

 

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

            personnel involved in the (interest arbitration) proceedings

            with the wages, hours, and conditions of employment of like

            personnel of public fire departments of similar size on the

            west coast of the United States."

 

The statute goes on to state:

 

            "However,  when an adequate number of comparable employers

            exists within the  state of Washington,  other west coast

            employers shall not be considered."

 

            In  the  instant  case,   only  wages  and  the  Captain's

differential  are  at  issue  and only  those  two  items  will  be

compared.

 

            The  Panel  notes  that  the  statute  provides  no  further

guidance as to how the comparability criterion is to be applied.

Rather, the interpretation and application of this criterion is

left to individual interest arbitrators on a case-by-cases basis.

In this case each party has provided a number of other interest

arbitration  decision  and  each party has  urged  this  interest

arbitration panel to adopt the methodology and reasoning of the

interest   arbitrator   of   their   choice   with   respect   to

comparability.   Of course,  the methodology and reasoning the

parties urge  this  Panel  to adopt just happen to support the

position of that party and not the other.   Thus, they are self

serving.   A reading   of these interest arbitration decisions

clearly shows that those interest arbitrators have interpreted

and applied the comparability criterion on a case-by-case basis.

Each time the interest arbitrator(s)  relied on the facts  and

circumstances present in each individual case, and those interest

arbitrators used different methodology and came up with different

results.

            This Panel is not bound by the decisions, methodology or

reasoning of interest arbitrators in other cases.   The majority

of the  Panel  determines  that  a  case-by-case  approach is  the

appropriate approach and will apply that approach in this case.

Thus,  while the decisions of these other interest arbitrators

have been read and considered, the Panel does not feel obligated

to consider any of them as precedent or as controlling in this

case.

            The  parties  jump  into  their  methodology  for  selecting

comparables before considering the purpose and intent of the

comparability criterion.   This jump has created a fundamental

error in both parties'  approach.   The majority of the Panel

concludes  that  the  purpose  and  intent  of  the  comparability

criterion should be considered first.

            Comparability  Criterion  -  Purpose  and  Intent.    It  is

generally agreed that the three primary criteria that interest

arbitrators  in  Washington  must  consider  are  cost-of-living,

ability-to-pay, and comparability.  Each of these criteria exert

a different force on wages,  hours and working conditions.   A

rising cost-of-living, for example, exerts a pushing or driving

upward force on wages as unions argue that wages "must" keep pace

with  the  rising  cost  of  living.    A  true  inability-to-pay

situation creates a restraining force on wages.   Comparability,

on  the other hand,  is  a recognition of the  impact of self-

regulating market forces on wages.   If, for example, an employer

is paying wages significantly below the prevailing labor market

wage, then that employer could have difficulty in attracting and

retaining workers.   Prospective and current employees will be

attracted by the higher market wage and will attempt to move away

from lower paid and into higher pay jobs.

            In the opinion of the Chair,  the comparability criterion

attempts  to  insure  that  wages  set  through  the  interest

arbitration process do not vary greatly from what the wages for

comparable  positions  and  comparable  employees  in  a  free  and

perfect local labor market.   In local labor markets, wage rates

are determined by the interaction of local labor supply and local

labor demand.  And, in such markets, a labor shortage or a rapid

increase in demand will generate forces that will create self

regulating forces in the market.   For example, if a shortage of

workers with Job X skills occurs in a free and perfect local

labor market, wage rates will rise high enough to attract more

workers to that local labor market with Type X job skills.   The

supply of Type X workers will continue to rise to the point where

an equilibrium,  or market clearing, wage rate prevails -  i.e.

where supply of and demand for Type X workers in that local labor

market stabilize.  Similarly, a sudden increase in the demand for

Type Y workers  in another free and perfect local labor market

will cause wage rates to increase, an inflow of more Type Y

workers attracted by this higher wage rate, and this inflow of

workers will continue until that labor market for Type Y workers

stabilizes.

            The same analysis applies when one examines the wages, and

the supply of and demand for workers by a specific employer, e.g.

the City of Camas.  If an employer pays wages significantly below

the local labor market rate, that employer will have difficulty

in attracting and retaining workers.  New applicants will other

things being equal, select higher paying jobs elsewhere over the

lower paying jobs of this employer.  High turnover, for non-

medical  or  health  and  non-retirement  reasons,  often  is  an

indication that employees are leaving their jobs with the lower

paying employer for higher wage jobs elsewhere.

            The Chair recognizes that local labor markets are neither

completely free nor completely perfect.   Not all employees, for

example,  are free to move to the same or similar jobs with a

different employer.   Home ownership, pension plans, children in

school and numerous other factors act as impediments to mobility.

But it is not necessary for all workers in a labor market to be

mobile in order for the labor market to be self-adjusting.  It is

only necessary for some to be mobile.  The Chair also recognizes

that all workers in a labor market do not have full, complete and

readily available  information  about  other  jobs  in  the  labor

market.  Again, it is only necessary that some do and that some

with that knowledge act on it.

            Regardless of imperfections in a given local labor market,

that labor market is still to a large degree self-regulating.

Imperfections in a local labor market may slow down its self-

regulating  forces  --  but  imperfections  do  not  stop  self-

regulating forces.  Neither does the local labor market react to

small wage rate differences.  Certainly workers who are mobile do

not  change  jobs  when  the  wage rate  differences  between  two

employers are only a few cents per hour.  Workers make their own

cost-benefit analyses.   Only when the differences in wage rates

between two employers become large enough to overcome the costs

of making a move, will mobility occur. However, all of us have

seen or heard of cases when large changes in mobility take place.

For example, when a mill,  the major employer in a local labor

market,  closes  down for good.   Unemployed workers  eventually

leave the area and wages fall in that worker surplus local labor

market.  Or, for example, when new employers, employing hundreds

of new workers, decide to locate in suburban areas,  such as to

the west of Camas.   The resulting labor shortage puts upward

pressures on wages.

            In  general,   then,   the  purpose   and  intent   of   the

comparability criterion is to produce a wage result that closely

approximates that which would occur in a local market for labor.

That is accomplished by comparing wages of similar employers for

similar jobs and similar employees in the local labor market.

            Thus, the comparability criterion raises three questions for

interest arbitrators that the statute does not answer completely

but that must be addressed.  Those questions are:

 

            What constitutes comparable public fire departments of

            similar size?

 

            What   constitutes   "like"   or   "similar"   work   for

            comparative purposes?

 

            What constitutes a comparable employee?

 

            Each of these three questions will be discussed below -- at

first in general terms and then as to how they relate to this

case.

 

What constitutes comparable public fire departments of similar

size?

 

            The statute restricts interest arbitrators to public fire

departments on the west coast of the United States and, where an

adequate number is possible in the state,  to Washington.   The

statute does  not provide  any other guidance,  however.   What

factors have other interest arbitrators considered in searching

for answers to this questions?

 

            In Interest Arbitration in the Public Sector: Standards and

Procedures,6 Arvid Anderson and Loren Krause state that the most

common  factors  used  by  interest  arbitrators  to  establish

comparability are:

 

(1)        nearby communities;

 

(2)        similar population size;

 

(3)        past practice;

 

(4)        parity relationships (e.g., police and firefighters);

 

(5)        extent of fire or crime problem;

 

(6)        extent of recruitment and retention problems;

 

(7)        comparable ability to pay, state equalized value, taxes

            levied;

 

(8)        distinctive characteristics of the locality;

 

(9)        comparable duties of the referenced group of employees;

            and

 

(10)      the   peculiarities   of   the   particular   trade   or

            profession,  specifically  the  hazards  of  employment,

            physical  qualifications.,  educational  qualifications,

            mental qualifications and job training and skills.

 

6              Chapter 63, Volume 3, Labor and Employment Arbitration, Tim Bornstein and

            Ann Gosline, General Editors, 1966, 63.03[3].

 

            Apparently these factors are listed in order of importance.

The first of these factors is "nearby communities" which bolsters

the local labor market discussion above.   The Panel finds that

neither party in this interest arbitration paid serious attention

to "nearby communities" or the local labor market.   Perhaps the

local labor market was ignored because such analysis would place

Camas in the greater Portland/Vancouver labor market.7   In the

higher wage Portland area labor market for fire fighters there

would be one, maybe two,  large sized public employers of fire

fighters (Portland and Vancouver) and then a number of satellite

cities  (e.g. Troutdale, Gresham, Milwaukie, Lake Oswego, Camas)

whose wage rates are influenced by what happens to wages for fire

fighters in the core cities.   This is not to say that the wages

in Camas must equal to those paid to fire fighters in Vancouver

or Portland.   Rather, it is to say that Camas's  wages cannot be

isolated from labor market forces and prevailing wage conditions

in this greater local labor market for fire fighters.   Perhaps

the  parties  found  it  difficult  to  compare  wages  and  total

compensation of Washington fire fighters with wages and total

compensation of Oregon fire fighters.   Wage schedules for fire

fighters  differ  between  the  two  states,  so  do  benefits,

especially retirement benefits and insurance.   But whatever the

reason, the fact remains that neither party addressed the local

labor market and their failure to do so, in the Chair's opinion,

results in a major deficiency and a fault in their methodology

for selecting comparables from the outset.  That fault is serious

enough for the Panel to find the comparability data produced by

the parties to be flawed, unrealistic and largely unusable.

 

7              The city was perfectly willing to place Oamas in the Portland CPI-W area but

not  in  the  Portland  labor  market.    The  Union  argued  that  benefits  and

retirement plans  were  different  on  the  Portland  side  of  the  river  --  so

different as to make comparisons difficult.   Besides, the Union argued, there

were enough comparables in Washington.   Other plausible explanations are the

difficulty in gathering statistical data  or  that  the parties  were  results

oriented in choosing comparables.

 

            Nevertheless,   the  Panel  will  Summarize  the  different

methodology for selecting comparables used by the parties and

comment on other deficiencies in methodology.

            The parties differ greatly in the jurisdictions they have

chosen as comparables.  Differences in data and data sources, in

assumptions,  in range of population used,  in the similarity of

services  and  in  assessed valuation  data  contribute  to  these

differences.

            Data and Data Services.   The parties agree that the Camas

Fire Department provides fire suppression and ALS services to the

City's 8,015 residents and ALS and transport to a large area

outside the city limits.   They differ on the population served

outside the City and in how that population should be weighted.

The  Union  claims  the  area  outside  the  City  contains  32,000

people, while the City claims that area contains 26,755 people.

Using each party's City and out-of-City figures to arrive at a

total results in a Union total population of 40,000 and a City's

total population of 34,770 (or 35,000 for ease of reference) for

the total of the in-City and out-of-City area.

            The Panel had some difficulty with the Union's figures.  The

Union  did  not  identify  its  source  for  its  32,000  figure,

consequently  there  is  no  independent  way  of  verifying  its

accuracy.  The opposite is true for the City's figures.  The City

obtained its population data from the State Department of Revenue

and from the county demographer, Mr. Ken Pearrow (City Exhibits 5

and 6) .   Because the City presented data from reliable sources,

the majority of the Panel decided to use the City's figures --

8,0125 inside the City,  almost 27,000 outside the City for a

total population served of 35,000.

            The Union based its other steps used to select comparables

on jurisdictions on its figure of 40,000.   The majority of the

Panel has already found that 40,000 figure overstates the in-City

and out-of-City total population by 5,000 -- or by around 14%.

That figure of 40,000 makes a great deal of difference when it is

used as  a base  figure  for  selecting a population  range  for

comparables.    Starting  with an inflated base figure gives  an

inflated range on the high side of the range.   The majority of

the Panel finds this flawed population base figure makes the rest

of the Union's comparability analysis flawed.

            The  City  starts  with  a  total  population  of  35,00.0  but

reduces that figure to 20,200 by applying an adjustment formula

(see discussion of Assumptions as to Workload below) .   The base

figure of 20,000 is important in defining the range of population

of comparables.   Thus if both parties used a +50% and -50% of

population above the base, the Union's range would be 17,500 to

52,500  and  the  City's  range  would  be  10,000  to  30,000.

Those differences in range would automatically generate different

comparables.  Therefore, from the first step in the selection of

comparables  the  parties  differ  in  methodology  so  much  that

meaningful comparisons between them are impossible.

            Assumptions as to workload.  It is undisputed that the Camas

Fire Department in 1995 responded to a total of 2,500 calls --

1,508 EMS and transport calls outside the City limits (60.3%) and

992 fire, EMS and transport calls inside the City limits (39.7%)

            The Union contends the total population of the area served

and  the  total  number  of  calls  should be  used  in  selecting

comparables.  The City disagreed.  The City stated in the hearing

that it did not think the figure of 35,000 was "a reasonable

figure to use" in making its selection of comparables.  The City

would adjust the total area population 35,000 to reflect the

ratio  of  in-City  v.  out-of-City  calls  to  get  a  weighted

population of 20,189  (rounded by the Panel to 20,200)    The City

would  make  population  comparisons  based  on  this  weighted

population figure of 20,200.   In its brief, the City contended

that the weighted population approach makes common sense and is

consistent with what Interest Arbitrator Beck did in the City of

Bellingham v. IAFF Local #106 (1991)

            The   Panel   recognizes   the   difference   between   fire

suppression, EMS and transport services and we understand that

40% of the total calls were within the City and were for fire

suppression,  transport and EMS.   The other 60% of calls were

outside the City and were only for EMS and transport  (no fire

suppression) .  The majority of the Panel recognizes to weigh the

27,000 persons outside the City who receive only EMS/transport

calls,  the same as the 8,000 within the City who receive fire

suppression,   transport  and  EMS  calls  would  overstate  the

importance of the out-of-City population receiving EMS only.  The

City's  weighted  average  population  claims  to  equalize  the

comparisons.   What is really does is lower the base population

figure and insure that the range of comparables relates to the

lower figure of 20,200, resulting in a range of 10,000 to 30,000.

The Union's approach would result start with 40,000 population

and a range of 20,000 to 60,000.   Again, the difference in the

methodology of the parties makes it impossible to compare their

results.

            Population range.   The majority of the Panel notes that a

reading of the interest awards shows that there is no generally

accepted range of population around a base population that is

always used, i.e. there is no magic number that is used by all

interest arbitrators.   Rather, interest arbitrators have used a

wide variety of ranges -- e.g. 1/2 to 2; 1/3 to 3; +30%; -22% to

+69%; etc.   The range chosen by the interest arbitrator is the

one  the  interest  arbitrator  deemed most  appropriate  in  each

individual case.

            In this case, the Union proposed using a population range of

1/2 (-50%) to 2 times (+100%) the base population.  Thus for its

40,000  population,   the  range  would  be  jurisdictions  with

populations ranging from 20,000 to 80,000.

            The City would use a range of plus or minus 50%,  so that

with a 20,200 weighted population,  the City's range would be

10,100 to 30,300.   The City argued that other arbitrators have

used the +-50% range in other. interest arbitrations and that +-50%

is logical.

            The majority of the Panel finds the City's range of plus or

minus 50% to be more reasonable and logical while the Union's

+100% overstates the influences of larger jurisdictions.   The

majority of the Panel finds the Union's range to be more results-

oriented and beyond a common sense meaning of comparing like

jurisdictions.  The majority of the Panel agrees with the City's

statement that "[T]o claim that the Camas Fire Department is

comparable to such jurisdictions as the City of Bellingham (an

EMS population served of 130,000)  or Pierce County #9  (also a

fire  suppression  and  EMS  population  served  of  130,000)  is

"outside the pale."  The majority of the Panel also notes that

the Union's comparable list deliberately contains no

jurisdictions from eastern Washington (because of geography) .  On

the other hand, a majority of the Panel finds the City's approach

understates the range of population.   Both parties claim their

approaches are not results oriented,  but the Union's approach

results in comparisons with much larger  (and generally higher

paying  jurisdictions)  and  the  City's  approach permits  it  to

compare with smaller (and generally lower paying jurisdictions).

The  Union  also  deleted  eastern  Washington  jurisdictions,

ostensibly because of geography, but if geography or distance is

a factor, why not exclude Bellingham and Port Angeles, because

both are 200 or more miles away?

            In summary, the majority of the Panel finds several reasons

for rejecting both parties' population range methodology.

            The majority of the Panel also finds the Union, when dealing

with assessed valuation, compared different years and attempted

to  use  the  assessed valuation of  the Ambulance  Service Area

outside the City limits.   Therefore, the majority of the Panel

finds the City's assessed valuation figures more realistic.

            Further adjustments.  Both the Union and the City arrived at

a long list of possible comparables and then decreased into a

short  list  by  eliminating  those  that  did  not  provide  fire

suppression  and  advanced  life  support.8    The  parties  used

different  figures,  however,  for both population  and assessed

valuation.

 

8              The Union also eliminated eastern Washington jurisdictions "for geographical

            as well as historical economic reasons."

 

            These adjustments brought the Union's list of compabables

down to 9 and the City's list down to 10.  The different lists of

comparables are:

 

            Union's List                            City's List

 

            Bellingham                             City of Walla Walla

            Pierce #5                                 Cowlitz 2

            Olympia                                  Pasco

            Kitsap                                     Port Angeles

            Pierce #9                                 Monroe

            Snohomish #7                         Snohomish #3

            Bremerton                              Aberdeen

            Pierce #3                                 Pierce 16

            Port Angeles                           Anacortes

                                                            Tumwater

 

One of these jurisdictions is in the Portland labor market --

Cowlitz 2.  Only one jurisdiction is common to both lists (Port

Angeles) .  Any comparison of Camas's fire fighter wages to fire

fighters , wages in the Union's list of comparables or the City's

list  of  comparables  will  obviously  yield  different,   and

essentially unusable,  results.    This  Panel  is not  given the

authority to make independent investigations.  Rather, the Panel

receives evidence and evaluates that evidence.  While there is a

lot of comparability evidence in this record, a majority of the

Panel finds it unusable and will reject it.

            The Union's list of comparables and the Union's and City's

population figures are compared in the chart below.

                       

                                                Population of EMS Area Served

            Union's                                                Union's                        City's

            Comparables  Data                            Data

 

            Bellingham                                         55,000                         148,300

            Pierce #5                                             40,100                         40,000

            Olympia                                              36,000                         80,000

            Kitsap                                                 50,000                         65,000

            Pierce #9                                             80,000                         145,000

            Snohomish      #7                                30,000                         47,500

            Pierce #3                                             35,000                         98,000

            Bremerton                                          40,000                         39,610

            Port     Angeles                                   19,000                         18,500

 

            The Union did not indicate the source of its population

data,  so  those  Union  figures  cannot be verified.    The  City

obtained  its  data  from  Attachment  5  of  the  Fire  Service

Directory,  City and County Population Statistics  (City Exhibit

14) .  If the Panel were to use population of the EMS area served,

it would use the City's population data because it is verifiable.

            Nearly all of the jurisdictions selected as comparables by

the Union and the City are located considerable distances away

from Camas -- from about 100 to 200 miles away.   Assuming,  for

the sake of argument, that all are similar in size, only one can

be considered part of the local labor market, i.e. as part of an

area within daily commuting distance of Camas.   Therefore, only

one,  in the opinion of the Chair,  can be considered a direct

influencer of wages for fire fighters in Camas.

 

What  constitutes  "like"  or  "similar"   work  for  comparative

purposes?

 

            To answer the second comparability question one must look

first to the work performed by fire fighters in Camas.   The

record is clear that Camas fire fighters provide suppression,

advanced life support,  and transportation of citizens from the

site  of  their  accident  or  illness  to  hospitals.    The  best

comparison to the work performed by Camas fire fighters would be

with public fire departments of similar size in the local labor

market area that provide these same services in about the same

ratio of fire and EMS calls and in the aggregate .  The City tries

to make other jurisdictions more comparable to Camas  (or the

other  way  around)  by  adopting  a  formula  that  weighs  the

population to reflect the ratio of in-City vs. out-of-City calls

That formula has the effect of decreasing the population served

outside the City of 34,770 to an arbitration population of about

20,200.  The net effect of the City's approach is to restrict the

population range of possible comparables.   It does nothing to

insure the comparison of like jobs.   The City did then identify

departments that provided fire and ALS.   But what departments

provide fire, ALS and transport?

            In  negotiations  the  parties  used  fire  departments  that

employed fire fighter/paramedics as comparables -- the Union used

nine and the City fourteen.   There was no evidence that any of

these 23 departments also provided transport of people from the

site of their accident, injury, or illness to hospitals, however.

So again the parties were not comparing like jobs.

            In summary,  even if the parties had used the same list of

comparable  public  fire  departments  in  Washington  (selected

entirely by population), the comparisons made would not be valid

because they did not compare like jobs.

 

What constitutes a comparable employee?

 

            Interest arbitrators normally reach this question only if

there  is  a  finding  of  an  acceptable  list  of  comparable

jurisdictions and a finding that the jobs being compared are

similar.    Having  found  otherwise  in  this  case,  it  is  not

necessary to address this third question.  But the Panel shall do

so to provide guidance to the parties in the future.

            The Union has constructed a " model employee," i.e. a fire

fighter with  10  years of  service,  a  spouse  and two or more

dependent children.  The Union claimed that the average length of

service in the fire department is 10 years and the maximum health

care coverage is for a fire fighter, his/her spouse and two or

more dependent children.   The Union made comparisons within the

list of comparables on this basis.

            The City used a 7-year fire fighter (City Exhibit 25) and a

7-year  fire  fighter/paramedic   (City  Exhibit  27)   and  made

comparisons within the City's list of comparable jurisdictions on

these bases.  The seventh step is the top step in the Camas fire

fighter salary schedule.

            The Union concluded from their comparison that Camas fire

fighters  were  paid  below  the  average  in  their  comparable

jurisdictions and so a catch-up wage increase is in order -- i.e.

3% above the CPI in each of three years.  The City concluded that

Camas fire fighters were paid more than the average in their list

of comparative jurisdictions and so only a partial cost-of-living

increase is justified.   It should come as no surprise that two

different  sets  of  data  yield  different  results  and  lead  to

different conclusions.

            Thus even if the parties had used the same jurisdictions and

similar jobs  for comparisons,  the use of different comparable

employees  makes  it  impossible  to  contrast  and  compare  their

exhibits and makes their data even less useful for this Panel.

            In  summary,  both  parties  ignored  local  labor  market

considerations    in    selecting    comparable    jurisdictions.

Concentrating,   instead,  primarily  on  population  to  select

comparable jurisdictions -- the Union using a total service area

population but with figures from an unknown source, and the City

adjusting the out-of-the-City population to arrive at a lower

population figure.  The result was that each party came up with a

different set of comparable jurisdictions.  the parties then did

not use similar or like jobs or similar or like employees to make

wage comparisons.  Finally, the parties could not decide whether

to  compare  basic  wages  or  total  compensation. When  these

differences in methodology are considered as a whole, the volumes

of comparability material furnished the arbitration panel do not

provide the Panel with useful data for decision making.

 

                                    OTHER FACTORS

 

            Three  "other  factors"  were  argued by the parties  to be

important -- the Union argued economic growth in Camas and in

east Clark County and productivity, and the City argued internal

comparisons.

            Economic Growth.  There is unrebutted evidence in the record

showing that Camas and east Clark County are growing rapidly in

relation to other Washington cities and counties.    Several new

employers will be or are currently building plants in the east

county  --  Linear  Technology,  Sharp  Microelectronics,  Sharp

Laboratories,  Sharp of North America,  Heraeus Shin-Etsa,  Inc.,

Funino USA Inc., IMT Corp., CID Corp., Underwriters Laboratories,

and Taiwan Semiconductor Manufacturing Inc.  (Union Exhibit 1).

These new employers will eventually employ over 1400 new workers.

The number of building permits issued in Camas grew from 79 in

1992 to 360 in 1995 -- an increase of 400% in three years.  This

growth in industry,  population,  and housing will increase the

demand for fire suppression, ALS, and transport services provided

by the City of Camas.

            Internal Equity.  The City put great weight on providing the

same percentage increase in wages to all employees of the City --

including employees in this bargaining unit. The City expressed

an unwillingness  to pay the fire fighter bargaining unit any

increase greater than the City has provided to other bargaining

units and to non-represented City employees.   The City argued

that this has historically been the City's salary philosophy and

practice and that the City regarded this practice as an equitable

one.

            The Union contended that the City had not always followed

this policy and had, in fact, given more to the police bargaining

unit  in their  last  negotiations  than  it  gave  to other City

employees -- including fire fighters.  The Union charged that the

City ignored its own parity policy in its recent police contract

by  awarding  a  3%  across-the-board  salary  adjustment  and

increasing base salaries by #5 premium pay for off-duty training.

The City disputes this Union claim.  The City claims that during

police  negotiations  the  method  for  administering  off-duty

training pay was changed and simplified.   The City claimed a

history of internal equity going back to 1980 and asserts their

evidence (City Exhibit 39) on this history was unrebutted.

            The Union contends that  fire  fighters are the only City

employees afforded interest arbitration and this is the first

time  that Camas  fire  fighters  have  exercised their right  to

interest arbitration.   The Union argues that nothing in state

statute  requires  internal  parity or  prevents  internal  parity

policy from being broken.

            The majority of the Panel concludes that it is not bound by

the City's parity wage policy  The majority of the Panel finds

nothing in the statute that specifically requires them to give

weight and consideration to the internal equity argument.  Rather

it is another of those "other factors" that will be given some,

but not overriding, weight (as the City does) by the Panel.

            Productivity.  This is another one of those "other" factors

that  influence  wages.    The  Union  contends  that  Camas  fire

fighters have increased their productivity over the past 10 years

by

 

            --agreeing  in  1990  to  a  14%  increase  in  hours  by

            increasing  from  a  42  hour  workweek  to  a  48  hour

            workweek with no increase in compensation;           -

 

            --responding to more fire and EMT calls -- 21.5% more

            between 1992 and 1993 and 17% more between 1994 and

            1995;

 

            --responding to more ambulance calls  (a 100%  increase

            over the past ten years)

 

            All these changes occurred with no increase in the number of

fire  fighters.    Consequently,  a  catch-up  wage  increase  is

appropriate, the Union argued.

            The City argued that the increase in workweek hours was a

bargained change that the fire fighters voluntarily accepted in

negotiations  and should not be used here  to  justify a wage

increase.

            The majority of the Panel finds that productivity should be

considered as an  "other" factor and given some weight in their

deliberations.   However, we do not assign this factor the same

weight the Union would.   Productivity is generally defined as

output per person-hour.   The bargained increase in the workweek

in 1990 put 14% more person-hours in the workweek, so there would

be a corresponding opportunity for handling more fire, EMT and

ambulance calls in a week.  Economic and population growth in the

service area has and will increase the demand for services, thus

resulting in more calls.  Meeting that increase in calls with 14%

more person-hours  (but the same number of fire fighters)  could

naturally result in an increase in productivity.   But to count

and give equal weight to both the increased demand for services

and the resulting increase in productivity would be to count both

the cause and the result.  The majority of the Panel decided it

would give some weight to one or the other, but not both.

 

                                                            FINDINGS

 

            The following findings flow directly from the rulings on

criteria made above.  These findings are:

 

1.         The  City has  the  ability to pay the wage  increase

            demanded by IAFF Local 2444.

 

2.         The City of Portland, not the City of Seattle, is the

            proper  city  for  CPI  statistics.    The  parties  have

            agreed that the proper cost of living index is CPI-W.

 

3.         Comparability data by both parties ignores the basic

            purpose of the comparability criterion and does  not

            compare    similar   jobs    or    similar    employees.

            Consequently,  the comparability data produced by both

            parties  is  unusable  for  determining the  appropriate

            increase in wages.

 

4.         Internal  equity  should  be  given  some,   but  not

            overriding weight.

 

5.         Economic growth of Camas and eastern Clark County will

            cause an increase in the demand for fire suppression,

            ALS  and transport  services  and will put  a long-run

            upward pressure on fire fighter wages.

 

            In addition, the following findings are supported by record

evidence.

 

5.         The  Union  has  proposed  a  "catch-up"  wage  increase

            beyond the cost of living increase in each year of a 3-

            year agreement.   The Union, therefore/ has the burden

            of proving the need for a catch-up wage increase.   In

            the opinion of the majority of the panel,  the Union

            failed to meet this burden.

 

6.         The Union also failed to meet its burden of proving the

            need for a 3% increase over CPI-W for the Captain's

            differential.

 

7.         The City offered unrebutted evidence as to why CPI data

            should be discounted.

 

8.         The City's evidence to support its position that wages

            should be discounted to 80% of CPI in the first two

            years came from the amounts that other City employees

            agreed to in their contracts for 1996 and 1997.   The

            90% figure for 1998 reflects the potential increase in

            medical premiums the fire fighters may have to bear in

            that year.

 

                                                            AWARD

 

            Based on the record evidence, the arguments of the parties,

the  above  rulings  on  criteria  and  the  above  findings,  the

majority of the Panel would award as follows:

 

            Wages - for all members of the bargaining unit

 

            Effective 1/1/96 -        90% of CPI-W Portland

                                                Minimum of 2.5% and a maximum of 5%.

 

            Effective 1/1/97 -        90% of CPI-W Portland

                                                Minimum of 2.5% and a maximum of 5%.

 

            Effective 1/1/98 -        100% of CPI-W Portland

                                                Minimum of 2.5% and a maximum of 5%.

           

            Captain's Differential - Maintain the current 12%

            differential for all three years of the new contract.

 

Respectfully submitted on this the 20th day of June 1996 by

 

 

John  H. Abernathy

Neutral Chairman

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