INTEREST ARBITRATIONS

Decision Information

Decision Content

International Association of Fire fighters, Local No. 451

And

City of Centralia

Interest Arbitration

Arbitrator:      M. Zane Lumbley

Date Issued:   09/09/1997

 

 

Arbitrator:         Lumbley; M. Zane

Case #:              11866-I-95-00253

Employer:          City of Centralia

Union:                IAFF; Local 451

Date Issued:      09/09/1997

 

 

IN THE MATTER OF                                     )        INTEREST ARBITRATION

INTEREST ARBITRATION                          )        OPINION AND AWARD

BETWEEN                                                        )        OF

                                                                           )

CITY OF CENTRALIA, WASHINGTON,     )        M. ZANE LUMBLEY

                                                                           )

and                                                                     )        FOR THE

                                                                           )        ARBITRATION PANEL

INTERNATIONAL ASSOCIATION OF )

  FIREFIGHTERS, LOCAL NO. 451             )        AAA Case No. 75 L 3900021896

                                                                           )        PERC Case No. 11866-1-95-253

 

Hearing:                     Centralia, Washington

                                    May 12, 1997

Record Closed:          June 23, 1997

Arbitration Panel:      M. Zane Lumbley, Neutral Chairman

                                    Michael Guerin, City-Appointed Member

                                    Michael McGovern, Union-Appointed Member

Appearances:

      For the City:         Otto G. Klein, III, Esq.

                                    Summit Law Group, PLLC

                                    1505 Westlake Avenue N.

                                    Seattle, Washington 98109

      For the Union:      James L. Hill

                                    7th District Vice President

                                    International Association of Firefighters

                                    1069 Adams Street S.E.

                                    Olympia, Washington 98501

 

Issues: Wages, Hours of Work and Overtime

Date Neutral Chairman's Initial Opinion and Award Issued: September 9, 1997

Date Neutral Chairman's Amended Opinion and Award Issued: September 17, 1997

Date Final Interest Arbitration Panel Opinion and Award Issued: September 19, 1997

 

                        INTEREST ARBITRATION OPINION

BACKGROUND

Procedural Matters

      An Interest Arbitration Panel was convened pursuant to the procedures specified in

RCW 41.56.450. The City-appointed Arbitrator was Michael Guerin and the Union-

appointed Arbitrator was Michael McGovern. The undersigned Neutral Chairman of the

Panel was selected by the parties through the offices of the American Arbitration

Association.

      A hearing was conducted before the Interest Arbitration Panel on May 12, 1997, in

Centralia, Washington. The City of Centralia, Washington (hereinafter the "Employer" or

"City") was represented by Otto G. Klein, III, Esq. of the Summit Law Group, PLLC.

Appearing as witnesses on behalf of the Employer were Employer labor Relations

Consultant Nancy Dombrowski, Centralia City Manager/City Attorney Craig Nelson and

Centralia Fire Chief Dana Murphy. International Association of Firefighters Local No. 451

(hereinafter the "Union") was represented by James L. Hill, International Association of

Firefighters 7th District Vice President. Appearing as witnesses on behalf of the Union were

Union President/Centralia Firefighter Driver/Engineer Richard Mack, Centralia Fire Captain

Robert Denman and Retired Centralia Fire Captain Alfred Gray.

      At the hearing, testimony was taken under oath and the parties presented documentary

evidence. No court reporter was present. Instead, the Neutral Chairman tape recorded the

proceedings in order to supplement his personal notes. The parties agreed upon the filing of

posthearing briefs and timely briefs were received by the Neutral Chairman on June 23,

1997, and mailed to the party-appointed members on June 25, 1997. On July 22, 1997, the

panel conferenced by telephone call to consider the evidence.

 

Relevant Statutory Provisions

      RCW 41.56.030 specifies, in relevant part:

__________

41.56.070 Definitions. As used in this chapter:

...

      (7)  "Uniformed personnel" means:

...

      (e)  fire fighters as that term is defined in RCW 41.26.030;

...

__________

      Thereafter, RCW 41.56.465 specifies:

__________

      (1)  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)  (i)...

                  (ii)  For employees listed in RCW 41.56.030(7)(e) though (h),

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 may 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 circumstances under (a) through (d) of

this subsection during the pendency of the proceedings; and

            (f)  Such other factors, not confined to the factors under (a) through

(e) of this subsection, that are normally or traditionally taken into

consideration n the determination in the determination of wages, hours, and

conditions of employment. For those employees listed in RCW

41.56.030(7)(a) who are employed by the governing body of a city or town

with a population of less than fifteen thousand, or a county with a population

of less than seventy thousand, consideration must also be given to regional

differences in the cost of living.

...

__________

 

Bargaining History

      The Union has represented the City's firefighters for many years. The parties' last

collective bargaining agreement was facially effective from January 1, 1992, through

December 1, 1994. They commenced negotiations with respect to a successor in July of

1994. Eventually, when they were unable to reach agreement after some fourteen months of

negotiations, the Executive Director of Washington's Public Employment Relations

Commission certified a list of eleven issues for interest arbitration on September 21, 1995.

By the time the undersigned was notified of his selection as the Neutral Chairman of the

Arbitration Panel in October of 1996, the parties had pared down the list of issues in dispute

to the three on which evidence eventually was taken at the May 12, 1997, hearing, namely

wages, hours of work and, to the extent it is affected by the decision with respect to hours of

work, overtime compensation.

 

FINDINGS OF FACT AND DECISION

Approach of the Neutral Chairman

      The approach of the Neutral Chairman will be to quote the language appearing with

respect to each issue in the parties' last Agreement and then to set forth the parties' current

proposals and their arguments in support thereof. I shall then discuss and decide the hours

of work/overtime issue and the wage issue separately, commencing with hours of

work/overtime, a decision regarding which will affect the analysis of wages for the

remainder of 1997.

 

Hours of Work/Overtime

Relevant Provisions of the Collective Bargaining Agreement

      The 1992-1994 collective bargaining agreement contained the following hours of work

provisions:1

1 The parties' agreement does not contain a true overtime provision but only a set of detailed call back provisions in

Article XI. However, the parties are in agreement that overtime pay is appropriate after performance of the current 42-hour

work week and would apply equally after performance of the work week found appropriate pursuant to this proceeding.

_____

__________

ARTICLE II DEFINITIONS

      (a)  Full-Time Employees. An employee who is regularly scheduled to

work an average of forty-two (42) hours per week.

...

ARTICLE X WORK SCHEDULE

      (a)  The normal work day or shift for employees shall consist of

twenty-four (24) hours commencing at 0800. The normal work schedule for

said employees shall consist of one shift on and three shifts off.

 

Positions of the Parties

      The Employer seeks to increase the work week from forty-two to forty-five hours by

requiring each employee to work one debit day every eight weeks.2 It argues such an

increase is necessary to allow the Department to reduce the amount of overtime pay it

currently is required to pay and to improve its ability to train firefighters. It contends the

increase sought is more than justified in comparison to comparable jurisdictions, any

selection of which demonstrates that City firefighters work far fewer hours than the average

municipal firefighter.

2     In the course of a year the 2190 currently scheduled hours of work are spread over approximately 52.14 weeks, making

the average work week 42 hours.

_____

      The Union resists the increase sought by the Employer, asserting the current work

week was agreed to by its members more than thirty years ago in lieu of a wage increase and

should not have to be given back now no matter what is occurring in comparable

jurisdictions. The Union finds it particularly egregious that the City offers no corresponding

wage increase for the 7% increase in hours it seeks. In the Union's view, had the Employer

trimmed its initial bargaining demand for a fifty-three-hour work week to a request for forty-

five hours with a corresponding 7% wage increase during negotiations, the parties might

have been able to resolve that issue short of interest arbitration. Finally, the Union asserts it

is inappropriate to grant in interest arbitration the kind of novel result sought by the City.

 

Wages

Relevant Provisions of the Collective Bargaining Agreement

      The 1992-1994 collective bargaining agreement contained the following wage

provisions:

__________

APPENDIX A EMERGENCY MEDICAL TECHNICIANS

      The City of Centralia hereby agrees to pay One Hundred ($100.00)

dollars per month to all Certified Emergency Medical Technicians (EMTs)

employed by the Centralia Fire Department. It is further agreed by the City of

Centralia that such monthly pay be included for retirement purposes and not to

[sic] be included in computing the hourly wage for overtime purposes.

 

APPENDIX B WAGES

Classifications and Ranges

Captain                 16

Driver/Engineer   14

Firefighter            13

 

      Effective January 1, 1992: Employees covered by this Agreement shall

receive a cost-of-living adjustment equivalent to ninety percent (93% = 4%)

of the 1991 second half of the Seattle Consumer Price Index for all wage

earners (Seattle CPI-W). All wage increases for 1992 shall be retroactive to

January 1, 1992. Employees covered by this Agreement shall receive in the

month of December 1992 a six hundred dollar ($600.00) premium pay.

 

      Employees covered by this Agreement who hold the rank of Captain shall not

receive a current salary schedule step increase.

 

      Effective January 11 993: Employees covered by this Agreement shall

receive a cost-of-living adjustment equivalent to one hundred percent (100%)

of the 1992 first half of the Seattle Consumer Price Index for all wage earners

(Seattle CPI-W). In no case should the cost of living adjustment be less than

four percent (4.0%) nor more than six percent (6.0%). Said adjustment shall

be in addition to any step increases received by the employee.

 

      Effective January 1, 1993: Employees covered by this Agreement who hold

the rank of Captain shall receive a current salary schedule step increase.

 

      Effective January 1 1994: Employees covered by this Agreement shall

receive a cost-of-living adjustment equivalent to one hundred percent (100%)

of the 1993 first half of the Seattle Consumer Price Index for all wage earners

(Seattle CPI-W). In no case should the cost of living adjustment be less than

four percent (4.0%) nor more than six percent (6.0%). Said adjustment shall

be in addition to any step increases received by the employee.

 

CITY OF CENTRALIA - 1992 SALARY SCHEDULE

      This salary schedule shall become effective on January 1, 1992. This salary schedule

reflects a four percent (4% ) base wage increase and shall become part of the 92-94

Centralia Fire Department Collective Bargaining Agreement.

            Salary

            Range       A         B         C         D         E          F                G

            1                1066    1103    1142    1181    1224    1265          1309

            2                1142    1181    1224    1265    1309    1354          1401

            3                1225    1265    1309    1354    1401    1449          1499

            4                1309    1354    1401    1449    1499    1550          1604

            5                1401    1449    1499    1550    1604    1657          1715

            6                1499    1550    1604    1657    1715    1774          1836

            7                1604    1657    1715    1774    1836    1898          1965

            8                1715    1774    1836    1898    1965    2032          2102

            9                1836    1898    1965    2032    2102    2174          2248

            10              1965    2032    2102    2174    2248    2325          2407

            11              2102    2174    2248    2325    2407    2487          2575

            12              2248    2325    2407    2487    2575    2662          2755

            13              2407    2487    2575    2662    2755    2849          2947

            14              2575    2662    2755    2849    2947    3047          3153

            15              2755    2849    2947    3047    3153    3259          3374

            16              2947    3047    3153    3259    3374    3488          3611

            17              3153    3259    3374    3486    3611    3733          3864

            18              3374    3488    3611    3733    3864    3994          4134

            19              3611    3733    3864    3994    4134    4274          4424

            20              3864    3994    4134    4274    4424    4573          4734

            21              4134    4274    4424    4573    4734    4892          5065

            22              4424    4573    4734    4892    5065    5235          5417

            23              4734    4892    5065    5235    5417    5604          5800

 

      REVISED CITY OF CENTRALIA SALARY STRUCTURE

      ***CENTRALIA FIRE DEPARTMENT - 1994 - ***

               Salary                      A            B            C            D            E             F                   G

               RANGE                   ______   ______   ______   ______   ______   ______   ______

                  Hourly                   10.88      11.25      11.65      12.04      12.45      12.88      13.33

               9 Monthly                1,985      2,053      2,126      2,198      2,173      2,351      2,432

                  Annually               23,820    24,636    25,512    26,376    27,276    28,212    29,184

 

                  Hourly                   11.65      12.04      12.45      12.88      13.33      13.78      14.26

               10Monthly               2,126      2,198      2,273      2,351      2,432      2,515      2,603

                  Annually               25,512    26,376    27,276    28,212    29,184    20,180    31,236

 

                  Hourly                   12.45      12.88      13.33      13.78      14.26      14.73      15.26

               11Monthly               2,273      2,351      2,432      2,515      2,603      2,689      2,785

                  Annually               27,276    28,212    29,184    30,180    31,236    32,268    33,420

 

                  Hourly                   13.33      13.78      14.26      14.73      15.26      15.78      16.33

               12Monthly               2,432      2,515      2,603      2,689      2,785      2,879      2,980

                  Annually               29,184    30,180    31,236    32,268    33,420    34,548    35,760

 

                  Hourly                   14.26      14.73      15.26      15.78      16.33      16.89      17.47

               13Monthly               2,603      2,689      2,785      2,879      2,980      3,082      3,186

                  Annually               31,236    32,268    33,420    34,548    35,760    36,964    38,256

 

                  Hourly                   15.26      15.78      16.33      16.89      17.47      18.06      18.68

               14Monthly               2,785      2,879      2,980      3,082      3,188      3,296      3,410

                  Annually               33,420    34,548    35,760    36,984    38,256    39,552    40,920

 

                  Hourly                   16.33      16.89      17.47      18.06      18.68      19.32      19.99

               15Monthly               2,980      3,082      3,188      3,296      3,410      3,525      3,649

                  Annually               35,760    36,984    38,256    39,552    40,920    42,300    43,788

 

                  Hourly                   17.47      18.06      18.68      19.32      19.99      20.67      21.40

               16Monthly               3,188      3,296      3,410      3,525      3,649      3,773      3,905

                  Annually               38,256    39,552    40,920    42,300    43,788    45,276    46,860

__________

      Although the copies of the collective bargaining agreement given the undersigned did

not contain a separate wage table for year 1993, it is clear that all steps of the salary range

were increased by 4% in January 1993. Not only was this the recollection of Employer

Chief Negotiator Dombrowski it is confirmed by application of the provision quoted above

increasing that year's wages by... one hundred percent (100%) of the 1992 first half of

the Seattle Consumer Price Index for all wage earners (Seattle CPI-W)... [but not]...

less than four percent (4.0%) nor more than six percent (6.0%)... " and the fact the

relevant index reflected a 3.5% increase.3

3     City Exhibits No. 36 and 37 report that wages were increased 3.87% in 1993 and 3.88% in 1994. Performing the

math on the 1992 and 1994 schedules provided confirms the increase was actually 4% in both 1993 and 1994. As Ms.

Dombrowski testified, the 3.87% and 3.88% were arrived at by computing the change from 1992 to 1993 and from 1993 to 1994

employee wages after addition of the $100 per month EMT stipend to their base wage.

      In this connection, I note the City, on page 22 and note 13 of its brief, attempts to correct a similar oversight in City

Exhibit No. 37 which also reports that firefighters received a 3.87% wage increase in 1992. Unfortunately, in doing so, the

city mistakenly refers to the year "1991" on line 19 of page 22 rather than 1992 as intended. Interestingly, if the above-cited

contractual language regarding the agreed-upon increase for 1992 had been applied, i.e. "... ninety percent (93% = 4%) of

the 1991 second half of the Seattle Consumer Price Index for all wage earners (Seattle CPI-W)...", the appropriate 1992

increase would have been 3.87% inasmuch as the 1991 second half CPI-W was 4.3%.  However, it is clear that Ms.

Dombrowski testified correctly, and thus the city properly asserts at note 13 of its brief, that firefighters actually received a

4% increase when one compares the 1992 schedule reproduced above with the rates set forth in the 1990 schedule of wages

contained in the 1990-1991 contract provided the Neutral Chairman as part of Union Exhibit No. 1. While no schedule of 1991

wages is contained in the exhibits, the 1990-1991 agreement notes at Appendix B on page 14 that the increase to be applied to

the 1990 salary schedule in 1991 was "... 100% Seattle CPI-W... [but in no case... less than four percent (4.0%) nor

more than six percent (6.0%)...." Because City Exhibit No. 39 reflects the 1990 Seattle CPI-W was 7.1%, firefighters would

have received a 6% increase in 1991. Applying this knowledge to the top-step wage of a Range 13 firefighter confirms the 4%

increase received in 1992 since $2674 (1990 wage) x 1.06 (1991 wage) x 1.04 (1992 wage) leads to a 1992 wage of $2947,

precisely the amount set forth in the 1992 schedule of wages reproduced above. In any event, because the requisite math

confirms the correction sought by the City on brief, City Exhibit No. 37, as well as city Exhibit No. 36, since it contains the

same numbers, are hereby corrected.

_____

 

Positions of the Parties

      The Union seeks the following wages for 1995 through 1997:

      Effective January 1, 1995, a percentage increase in wages equal to

100% of the Seattle area CPI-W, mid-year 1994, plus an additional 2%

effective July 1, 1995;

      Effective January 1, 1996, a percentage increase in wages equal to

100% of the Seattle area CPI-W, mid-year 1995, plus an additional 2%

effective July 1, 1996; and

      Effective January 1, 1997, a percentage increase in wages equal to

100% of the Seattle area CPI-W, mid-year 1996, plus an additional 2%

effective July 1, 1997.

It argues the CPI-based increases are necessary in order to continue the historic practice of

the parties of giving annual cost of living increases and to maintain the historic position of

the bargaining unit relative to those other jurisdictions the Union presented the Interest

Arbitration Panel for comparison. It asserts the separate 2% mid-year adjustments are

necessary in order to compensate City firefighters for the significant increase in productivity

experienced over the last decade.

      The City contends the following wages are appropriate for the term of the

replacement agreement:

      1995: No change;

      1996: No change; and

      1997: Effective January 1, 1997, base salaries to be increased 3 5%.

The City contends its recommended wages are justified in light of the assertedly much higher

net hourly pay received by its Firefighters when compared to any set of comparables provided

by either party. In the City's view, this position is also supported by the need for continuing

internal equity between firefighters and police officers, the City's stagnant economic

condition and recent increases in the CPI.

 

Decision of the Neutral Chairman

      Having now had the opportunity to consider carefully the entire record in this case,

including the oral testimony, numerous economic exhibits, opinions of other neutrals and

arguments of the parties in support of their respective positions, I have determined that I

must adopt the City's position as to hours of work/overtime but that I cannot adopt either

party's proposal with regard to wages.

      As both parties advised on brief, Professor Carlton Snow noted at page 14 of his

interest arbitration opinion rendered in Seattle Police Management Association and City of

Seattle, PERC Case No. 6502-I-86-148 (unpub. 1988), Attachment B to the City's brief and

Attachment 2 to the Union's brief:

...   the goal of interest arbitration is to produce a final decision that will, as

nearly as possible, approximate what the parties themselves would have

reached if they had continued to bargain with determination and good faith.

To reinforce this point, both parties chose to quote yet another decision of Arbitrator Snow

wherein he held:

In interest arbitration, it is the task of an arbitrator to render an award

that applies statutory criteria. If the process is to work correctly, it should not

produce a result that is substantially different from what would have been

obtained had the parties resolved the dispute at the bargaining table. Interest

arbitration is an extension of the bargaining process, and it is not a forum in

which a party should expect to obtain a novel result...

...

As an extension of collective bargaining, the parties are under an

obligation to proceed in the utmost good faith. In interest arbitration, the

requirement of good faith means that an arbitrator should exclude unreasonable

positions and should expect the parties to submit a clear-cut, defensible

rationale for particular requests.

International Association of Firefighters, Local 1758, and City of Ellensburg

Washington (unpub. 1992), sl. op. at 6. I agree with the approach suggested by Professor

Snow. In the case at hand, whereas I believe the hours of work position advanced by the

City is reasonable and should be adopted; I believe the wage positions advanced by both

parties are unreasonable.

 

Selection of Comparable Jurisdictions

      It is beyond cavil that I am bound by statute, as Professor Snow found, to apply

certain criteria in reaching my decision in this dispute. Foremost among those, from the

perspective of an interest arbitrator, is the matter of comparability, i.e. a comparison of the

wages of the employees at issue with those of employees performing similar work in similar

jurisdictions. As Arvid Anderson, past president of the National Academy of Arbitrators has

said:

The most significant standard... in the public service is comparability.

Comparability relates to the subject matter at bargaining and the question of

with which employers and employees the comparison should be made.

3 The Labor Lawyer 745, 750 (1987). While there is still plenty of room for argument, the

field of comparison has been narrowed in Washington State to:

...   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

may not be considered.

RCW 41.56.465(1)(c)(ii). In this connection, although the Union is correct that this

comparison may include fire districts as well as city fire departments, assuming the requisite

size variable is met, I choose not to include fire districts for the reasons that they have very

different tax bases, purposes and authorities from those of cities as defined by statute and, in

my view, should only be used where it is impossible to devise an adequate list of city

comparators. Especially in view of the fact that, unlike cities, which exist to provide a

panoply of services to their citizenry, fire districts are single-purpose entities whose sole

responsibility is the provision of fire protection services, they simply do not provide

meaningful comparisons for city fire departments.4 The key to the selection process thus

becomes the matter of "similar size."5

4     If there ever was justification for including fire districts in the list of fire departments to be compared to the city, that

justification disappeared with the demise of the mutual, or automatic, response agreement between the City and Lewis County

Fire District No. 12 in recent years. As Union President Mack candidly testified, the Union did not seriously expect its original

list of eleven comparables, which included, inter alia, two King County, Washington, fire districts, to be adopted. Accordingly,

although it presented data regarding all the jurisdictions on its original list in the interest of a complete record herein, it pared

down its list to a "short list" of six municipal fire departments at hearing.

5     Neither party either contended I should consider out-of-state fire departments or provided any data with respect to such

departments.

_____

      The parties approached the question of size in somewhat similar fashion, beginning

with a selection of cities with populations and assessed valuations from 50% smaller to 100%

larger than Centralia.6 For the City, this resulted in a list of twenty comparables from

across the state after jurisdictions without fire departments were excluded. Viewing this list

as too large, the City attempted to restrict its bands, both population and assessed valuation,

to those cities from 25% smaller to 50% larger than Centralia. After excluding the City of

Enumclaw because it employed no shift workers and thus did not appear comparable, the

City's list shrank to six cities assertedly satisfying the selected parameters, namely

Anacortes, Tumwater, Aberdeen, Ellensburg, Moses Lake and Sunnyside.7 Although

preferring its list of six cities, in the event the Interest Arbitration Panel preferred more than

six comparables or perhaps a greater number of Western Washington cities, the City

provided data with respect to two more cities slightly outside its preferred bands, namely

Port Angeles and Mt. Vernon.

6     Initially, of course, in line with its first approach of attempting to combine Centralia and Lewis County for purposes

of the selection of comparables, the Union made its selections on the basis of the larger totals provided by that combination.

7     Unfortunately, as will be seen shortly, three of the cities do not fit.

_____

      Beyond its stated initial approach, the Union's methodology is not completely clear.

Thus the record does not disclose exactly how the cities and fire districts falling within the

50% smaller-100% larger band which appeared on the Union's first list actually were

selected. However, Union President Mack conceded that only Western Washington

jurisdictions were considered and that there "undoubtedly" were more cities falling within the

selected parameters than appeared on the Union's list. It is also clear that the Union left in

certain cities that it considered "close to" meeting the selected parameters. The Union's

resulting list of six cities included Port Angeles, Snohomish, Mt. Vernon, Shelton, Tumwater

and Camas.8

8     While the record contains data for the City's much smaller Lewis County sister city Chehalis, neither party proposed

using Chehalis as a comparator.

_____

      My approach has been to attempt to find an adequate number of cities which I believe

are most comparable to Centralia among those suggested by the parties.9 In doing so, I

agree with the City that its second tier of cities with populations and assessed valuations from

25% smaller to 50% larger than those of Centralia provides comparators which satisfy the

statutory mandate of "similar  size."  While the range of selection could be restricted further

in order to retain cities even more comparable in size, to do so would provide too few

comparators. In fact, as will be seen below, after removing cities which simply do not fit

the selection range and thus apparently were placed on the Employer's list in error and after

considering regional differences in the cost of living, as I am required to do by RCW

41.56.465(1)(f), I must remove a number of cities from the Employer's list, with the result

already being too few cities. On the other hand, to use the much wider approach of selecting

all cities between 50% below and 100% above Centralia's population and assessed valuation

provides too much variation for the cities on such a list to be called "comparable."10

Accordingly, what I shall do is apply the parameters assertedly used by the City and then

expand slightly on the list arrived at thereby in order to develop a selection of jurisdictions

which both satisfies the statutory criterion of similar size and provides a sufficient number of

comparators to make the act of comparison meaningful.

9     While it is certainly possible, if I were to compile a list sua sponte, that it would include other cities not relied on

by either party, the record does not contain sufficient evidence with regard to such cities to make such a determination here.

10    I was not provided the necessary evidence with regard to most of the cities which would fall within the expanded range,

in any event.

_____

      To reiterate, the City would use the cities of Anacortes, Tumwater, Aberdeen,

Ellensburg, Moses Lake and Sunnyside and possibly add Port Angeles and Mt. Vernon,

whereas the Union would use the cities of Port Angeles, Snohomish, Mt. Vernon, Shelton,

Tumwater and Camas. The 1996 populations and assessed valuations of these cities and the

Employer taken from Employer Exhibit No. 17 as well as the variations from the Employer

figures are set forth in the table below in descending order of population:

__________

City                         population                    Var.                     A. V.                          Var.

Mt. Vernon                 21820       +              70%               $1,122,899,001    +          143%

Port Angeles               18790       +              46%               980,756,365         +          113%

Aberdeen                    16700       +              30%               491,032,261         +          6%

Ellensburg                  13210       +              27%               466,925,569         +          1%

Anacortes                   13140       +              22%               927,343,777         +          101%

Moses Lake               13130       +              21%               464,598,738         +          1%

Centralia                     12860                       -----                461,213,339                     -----

Tumwater                   11790       -               8%                 697,799,480         +          51%

Sunnyside                   11720       -               9%                 307,400,875         -           33%

Camas                         8810         -               31%               942,572,392         +          104%

Snohomish                  7780         -               40%               371,935,509         -           19%

Shelton                        7705         -               40%               251,992,434         -           45%

__________

      A review of this table reveals, inter alia, that of the six cities proffered as most

comparable by the Employer, only Aberdeen, Ellensburg, Moses Lake and Tumwater, the

last of which the Union would also use, actually fall between approximately 25% below and

50% above both the population and assessed valuation of Centralia.11 While Anacortes and

Sunnyside fall well within the population range, they have assessed valuations outside the

selected range. The assessed valuation of Anacortes is slightly more than twice Centralia's

and that of Sunnyside is approximately 33% lower than Centralia's. As for Port Angeles and

Mt. Vernon which the Union would use and the Employer is willing to add, Port Angeles

falls within only the selected population band but substantially outside the assessed valuation

parameters whereas Mt. Vernon falls slightly outside the former and well outside the latter

band. None of the remainder of the Union's suggested list falls within either band.12

While Camas comes close at 31% below Centralia's population, its assessed valuation, like

those of Anacortes, Port Angeles and Mt. Vernon, is just over twice Centralia's. As a

result, strict application of the 25% below-50% above standard leads to the selection of only

four cities, namely Aberdeen, Ellensburg, Moses Lake and Tumwater.

11    As can be seen, of course, Tumwater's assessed valuation actually is 51% higher than Centralia's. However, since

it is impossible to apply absolute surgical precision to this analysis which necessarily involves a certain amount of judgment,

I shall consider it within range.

12    As shown above, Employer Exhibit No. 17 shows that Snohomish has an assessed valuation of $371,935,509.

Employer Exhibit No. 1A, which was entered in evidence at mediation by the Union, and Union Exhibit No. 3 here, both of

which reference 1994 values, give a vastly different number of $1,068,000,000. Similarly, Union Exhibits No. 6 and 12, the

second of which addresses the Union's short list of cities from which I understood all fire districts had been removed, both report

a figure of $1,303,195,920 for 1997. I infer those much larger valuations mistakenly continue to refer to Snohomish Fire

District No. 4 rather than to the City of Snohomish. However, for reasons set forth in note 14, infra, the City' of Snohomish

will not be selected as a comparator in any event.

_____

      Moreover, I believe that the consideration of regional differences in the cost of living

mandated by RCW 41.56.465(1)(f) may require the elimination of those Eastern Washington

cities on the Employer's list. Although the record does not contain precise cost of living

data for the cities in question, it is clear from Employer Exhibit No. 9 reporting wage data

from all Washington counties for 1994 and 1995 that wages in general, which relate to cost

of living, are considerably lower in Grant, Kittitas and Yakima counties, where Moses Lake,

Ellensburg and Sunnyside, respectively, are located than those paid in Lewis County. In

fact, that exhibit demonstrates the wages in those counties lagged from 14 to 19% behind

Lewis County in the reported years. Therefore I must either adjust the wages for those cities

in order to use them as comparators or remove them from the list. My preference is to

remove them initially. The possible list of four thus becomes a list of two since Sunnyside

was removed earlier. Because two comparators are simply not enough, I must find a way to

put some of the proffered cities back on the list.

      Because Anacortes fits neatly into the population band and fails to meet only the

assessed valuation test, it appears to be a candidate for reinsertion. The same is true of Port

Angeles. Moreover, Port Angeles shows up on the Union's list and on the Employer's

alternate list.13 Similarly, Sunnyside meets the population test and only barely fails to

satisfy the assessed valuation test. Although it is an Eastern Washington city and thus

subject to the regional cost of living differences referenced above, it is clear from Employer

Exhibits No. 10 and 11 which report median household income and per capita income by

county that, in contrast to the counties containing Ellensburg and Moses Lake, Yakima

County where Sunnyside is located experienced median household incomes which lagged

behind Lewis County by an average of only 2% in 1994-1996 and per capita income which

was only 1.6% lower in 1994.14

13    Mt. Vernon also appeared on both lists. However, I believe it is simply too large as to both population and assessed

valuation to be considered a city of similar size.

14    Of the remaining cities, Shelton has both a population and assessed valuation which are far too small to be comparable

whereas Snohomish has a population which is too small. In this connection, I have adopted the city's figure of 7780 for the

1996 population of Snohomish because the Union's much higher figures of 26800 and 21000 for 1994 and 1997, respectively,

do not coincide with any publicly-recognized census I am aware of and thus apparently refer to Snohomish County Fire District

No. 4 rather than to the city of Snohomish as I found in note 12, supra, was the case with respect to the assessed valuations

reported for "Snohomish" by the Union. Lastly, Camas presents something of an enigma in that its population is only roughly

two-thirds that of Centralia while its assessed valuation is more than twice the size of Centralia's, perhaps because of its close

proximity to the Portland, Oregon-Vancouver, Washington, metropolitan area, thereby making its use unreliable as well.

_____

      Before making a Final decision, however, I believe the potentially comparable cities of

Aberdeen, Tumwater, Anacortes, Port Angeles and Sunnyside should be compared to

Centralia one more time on the basis of per capita assessed valuation, as the Employer

suggested on brief. While this might appear at first blush to be an additional and

unnecessary step, it will confirm whether the relationship between the two indicia which

causes the cities being examined to appear to be comparable actually exists. Using the same

numbers appearing in the table above, that comparison appears as follows:15

__________

City                         population                      Var.                        A. V.                   Per Cap. Var.

Port Angeles               18790       +                 46%                   980,756,365          $52,196  +          46%

Aberdeen                    16700       +                 30%                   491,032,261          29,403    -           18%

Anacortes                   13140       +                 22%                   927,343,777          70,574    +          97%

Centralia                     12860                          -----                     461,213,339          35,864                -----

Tumwater                   11790       -                  8%                     697,799,480          59,184    +          65%

Sunnyside                   11720       -                  9%                     307,400,875          26,229    -           27%

__________

Clearly, only two of the cities, namely Port Angeles and Aberdeen, exhibit per capita

assessed valuations which also fall within the 25% below-50% above band selected as

preferable for the two individual components of population and assessed valuation.

However, Tumwater and Sunnyside are close to fitting these parameters. Anacortes, on the

other hand, which the Employer would include as a comparator, is simply off the chart.16

As the Employer concedes on brief:

... if two jurisdictions are roughly the same size, but one has an assessed

valuation that is twice as large as the other, that jurisdiction will be

substantially better off from an economic point of view. Since significant tax

revenues are generated by property values, this can be an important indicia in

terms of assessing comparability.

Accordingly, I cannot find Anacortes comparable to Centralia and I shall use only the cities

of Port Angeles, Aberdeen, Tumwater and Sunnyside as comparators. While I would prefer

a greater number that fit the selected parameters, four will provide adequate data. Clearly, it

is preferable to use a shorter list of cities which appear very comparable rather than a longer

list which includes substantially less comparable cities added merely to lengthen the list.

15    Several of the figures shown for assessed value per capita differ slightly from those reported by the City on brief.

However, with the exception of the number for Anacortes, the differences appear to be the result of rounding and all are

insignificant.

16    Had Camas been included in this table, it would have ended up even farther off the chart than Anacortes.

_____

 

Hours of Work/Overtime

      The following table illustrates the hours of work of Centralia unit employees and

comparator employees:

__________

      City                                         Weekly Contract Hours

      Port Angeles                           51.0

      Aberdeen                                50.2

      Tumwater                               49.8

      Sunnyside                               49.4

      Average                                  50.1

      Centralia                                 42.0

      Variation                                 -16%

__________

      I agree with the City that the hours worked by Centralia firefighting employees are

out of line with hours worked by employees of comparable jurisdictions. In fact, as the

various exhibits placed in evidence by both parties make clear, it really does not matter what

other jurisdictions are selected for this comparison. By any comparison, the scheduled hours

of unit employees here are extremely low. While I appreciate the Union's point that its

members acceded to Employer demands that it work these hours in lieu of a wage increase

over thirty years ago, collective bargaining is a fluid relationship. This is so for the labor-

management community in general as well as for individual bargaining relationships. The

hours worked by firefighting employees in other jurisdictions demonstrates conclusively that

the contract hours in Centralia are out of touch and that the City's demand for a modest

increase in those hours is reasonable.

      I am not inclined to find otherwise because the City waited until interest arbitration to

reduce the earlier unrealistic proposal for an increase to fifty-three hours advanced in

negotiations. I must evaluate those proposals which the parties bring to the interest

arbitration table. Nor am I convinced the Employer's proposal should not be adopted simply

because it may be a proposal less commonly advanced than many others that come to mind.

While Arbitrator Snow certainly cautioned against the expectation of a novel result from

interest arbitration, he uttered that caution in the context of explaining his view that interest

arbitration should not "... produce a result that is substantially different from what would

have been obtained had the parties resolved the dispute at the bargaining table."

International Association of Firefighters Local 1758, and City of Ellensburg

Washington, supra, at 6. In doing so, he quoted with approval the following observation of

the Illinois State Labor Relations Board made in Will County and Sheriff of Will County v.

AFSCME Council 31. Local 2961, (Nathan, Chair, 1988):

Interest arbitration is essentially a conservative process. While, obviously,

value judgments are inherent, the neutral cannot impose on the parties

contractual procedures he or she knows the parties themselves would never

agree to.

As Union President Mack conceded at hearing, had the City sought this modest increase in

hours and offered a commensurate wage increase during bargaining, the Union would have

"taken a close look." Accordingly, leaving aside for the moment the failure to offer an

equivalent increase in wages, a matter to be addressed in the next section of this decision, the.

City's request for a 7% increase in contract hours, standing alone, cannot be deemed an

unreasonable position.

      Moreover, as Arbitrator Wilkinson opined in Pierce County Fire District No. 2 and

International Association of Fire Fighters, Local 1488, (unpub. 1988), Attachment J to the

Employer's brief:

      I would caution against casting too heavy a burden on the party seeking

change. If that were to occur, the status quo would be perpetuated indefinitely

and interest arbitration would cease to be a viable means for resolving

differences regarding employment.

Id., sl. op. at 14. This is consistent with the view of Professor Snow expressed in the

above-cited Ellensburg opinion to the effect that a party seeking change must substantiate its

position with a "clear-cut, defensible rationale. " In this case, I believe the City's reasons of

reducing the amount of overtime pay from the 1996 level of an average of $11,400 per

firefighter and enhancing its ability to conduct firefighter training satisfy that requirement.

      As I have already found, it is clear that the increase sought is justified in light of the

hours worked in comparable jurisdictions. Even after increasing the weekly hours of work to

forty-five, Centralia firefighters will continue to work 10% fewer scheduled hours than their

contemporaries at the cities found comparable. Moreover, the impact of the added work, as

the City argues, will be minimal, requiring one additional day of work every eight weeks, or

six and one-half additional days per year. Put another way, as the City did on brief, instead

of forty-two days off out of every fifty-six, firefighters will have only forty-one days off

after implementation of the increase. Accordingly, I shall order that the new work week be

forty-five hours, with overtime at the contractual rate paid for all hours thereafter, the

scheduling of individual debit days aimed at accomplishing the increase in hours to be

negotiated by the parties, with the first such debit day to be worked no sooner than eight

weeks after issuance of the Final Award in this matter.17

17    As the City recognized at hearing, at the rate of three hours per week, it will be eight weeks before any employee will

owe the city a full debit day of twenty-four hours. That will give the parties ample opportunity to negotiate and reach

agreement with regard to the details of scheduling of those debit days, the various approaches to which need not be explored

here.

_____

 

Wages

      For purposes of determining the appropriate wage to appear in the parties' next

contract, I shall compare 1994 Centralia wages to the 1995 wages paid by the selected

comparators. I intend to make these comparisons for top-step firefighters with ten years

service.18 I shall not do a separate analysis of the driver/engineer position because there is

only one comparator, Aberdeen, which has such a classification. Instead, I intend to

continue to apply the existing 7% differential to the Range 13 wages eventually arrived at in

order to formulate the Range 14 driver/engineer wages. Nor do I intend to perform a

separate analysis for captains because, although I agree with the City that Centralia captains

would fare even better than Centralia firefighters if I made the same comparisons regarding

them as I shall make for firefighters below, the record contains insufficient evidence of the

basis on which the parties have arrived at the differential paid to captains over and above the

firefighter wage for me to entertain any thought of upsetting that relationship. As a result, as

in the case of driver/engineers, I shall continue to apply the existing differential, in this case

22.5%, to the Range 13 wages eventually arrived at in order to formulate the Range 16

captain wages.

18    According to Employer Exhibit No. 5, average length of service for the fourteen department employees on the payroll

as of the date of the hearing was 9.86 years.

_____

      With two exceptions, I also decline to add any additional values to the top-step

firefighter wages compared even though both parties have attempted to include a mix of

benefits and additional compensation in their analyses. I do so for the reasons stated by

Arbitrator Beck in his decision in City of Bellingham and International Association of Fire

Fighters, Local No. 106, (unpub. 1991), Attachment G to the Employer's brief, i.e. because

it makes an "apples to apples" comparison difficult if not impossible.19 The two exceptions

are holiday pay and EMT pay. As a careful comparison of Employer Exhibits No. 6 and 7

with the 1994 contractual wage schedule makes clear, both are received by all unit

employees,20 albeit holiday pay is received by employees in varying amounts depending on

the number of holidays actually taken.21 Although I am somewhat concerned about the

effect of adding EMT pay since Aberdeen was the only comparator to pay a separate EMT

stipend in 199522 and the record does not disclose how many of its firefighting employees

are EMT-certified, because both parties included it in their calculations, I shall do likewise

so that my eventual decision makes sense in light of the parties' positions. Lastly, I am

convinced, as are both parties, that the wages being compared have meaning only in the

context of the relative net hours, defined as base contract hours minus vacation and holiday

hours, worked by the employees under scrutiny.23 That computation will lead to a "net

hourly compensation" for Centralia and the comparators which will become the principal

basis for my final determination of the 1995-1997 wages I believe are appropriate under the

circumstances.

19    In this connection, I shall not follow the weighting approach taken by Arbitrator Krebs in City of Spokane and

International Association of Fire Fighters, Local No. 29, (unpub. 1988), Attachment F to the Employer's brief, since in that

case, unlike here, the parties agreed the separate wage paid to "equipment operators" should be taken into consideration in

arriving at the wage for firefighters. In this case, only the City would add the driver/engineer premium to arrive at a weighted

firefighter wage. In all the Union's comparisons, the unadulterated top-step firefighter wage is used.

20    The one exception may be Firefighter Foglesong, whose "base wage," as that term is use on Employer Exhibits No.

6 and 7, is not so easily susceptible of the same analysis in light of the 1994 wage structure as are the wages of other employees.

Thus it is not entirely clear whether Foglesong receives EMT pay. Additionally, of course, paramedic-certified employees

LeBoeuf and Fisher receive a higher level of compensation for their certifications but their pay may be presumed to include pay

for the EMT certification.

21    When employees take a holiday, they receive straight time pay for the holiday. Because shifts are scheduled around

the clock, everyone cannot take all eleven holidays set forth in Article XII of the parties' last contract. If employees work on

a holiday, they receive a premium of time and one-half in addition to straight time pay for the day.

22    Sunnyside began paying a separate monthly EMT stipend of $45.00 in 1996.

23    The parties are in agreement that the figure for net annual hours worked is arrived at by subtracting 144 vacation hours

received by employees with six to twelve years' service and twenty-four holiday hours received by all employees from the 2190

total contract hours. Union exhibits consistently take that approach. For some reason, however, whereas Employer exhibits

placed in evidence in support of its wage arguments do so as well, Employer exhibits received in connection with its hours of

work case take only the vacation hours into consideration and ignore holiday hours. I have taken both vacation and holiday

hours into consideration for all purposes.

_____

      The following table compares the 1995 top-step Firefighter annual base wages, annual

EMT and holiday pay, net hours worked and resulting net hourly compensation at the

comparators with the same 1994 variables at Centralia as well as the percentages by which

Centralia exceeded or lagged behind the average base wage, net hours worked and net hourly

compensation paid by the comparators:24

24    The figures I have used do not agree in all cases with those provided by the parties. Each one ultimately selected

either appeared to be the correct parry-supplied number or came from an examination of the relevant collective bargaining

agreement or other evidence in the record.

_____

__________

                                         FF           EMT        Holiday           Net Hours    Net

City                                  Base       Pay          Pay                  Worked        Hourly

Port Angeles                   $40,920  $0             $1636              2400             $17.73

Aberdeen                        39,876    798           0                      2320             17.53

Tumwater                        39,048    0               1991                2422             16.94

Sunnyside                        31,944    0               0                      2373             13.47

Average                          37,947    -               -                       2379             16.42

Centralia                         38,256    1200         2844                2022             20.97

Variation                         + 0.8%   -               -                       -15.0%         +27.7%

__________

Thus it can be seen that the 1994 net hourly wage of Centralia top-step firefighters was

27.7% higher than the 1995 net hourly wage of top-step firefighters at the comparables.

Even if Sunnyside, which pays a much lower net hourly wage than the other comparables,

were omitted and the comparison were restricted to the three Western Washington

comparables, the 1994 net hourly wage of Centralia top-step firefighters would remain

20.5% higher than the 1995 net hourly wage of top-step firefighters at those comparables.

To reiterate, the Union has proposed increases retroactive to January 1 of 1995, 1996

and 1997 equivalent to the previous mid-year Seattle area CPI-W (3.5%, 3.2% and 2.9%,

respectively) and an additional 2% retroactive to July 1 of 1995, 1996 and 1997, whereas the

City has proposed no increases for 1995 and 1996 and a 3.5% increase retroactive to

January 1, 1997. Additionally, of course, the Union believes that the increase in the work

week should be accompanied by a corresponding increase in base wages and the City

disagrees.

      I believe an intermediate result is appropriate in the circumstances present here and

thus will order that the City's recommended approach of no increase for years 1995 and

1996 and a 3.5% increase in base wages effective January 1, 1997, be adopted but that the

Union's request for a 7% increase in compensation for the increase in the work week from

forty-two to forty-five hours also be adopted effective on the date the Interest Arbitration

Panel's Award becomes final.25 I believe this Award is appropriate for the reasons which

follow.

25    The 7% wage increase will be calculated after addition of the 3.5% increase in base wages effective January 1, 1997,

i.e. via the following formula: 1994 base wage x 1.035 x 1.07.

_____

      Principally, although I can appreciate the Union's argument that it believes Centralia's

position as a wage leader should not be disturbed here, as the net hourly wage comparisons

above make abundantly clear, Centralia is simply too far out in front. The demand that this

trend continue is one of the two reasons the parties ended up in interest arbitration; the

Employer could not and would not agree to continue so far ahead of the pack. Thus it is

appropriate that Centralia firefighter wages be frozen in 1995 and 1996 in order that

comparable jurisdictions be allowed to make up a bit of the difference. On the other hand,

the Union was in no position to accede to the City's demand that it agree to an increase in its

members' hours of work with no accompanying increase in wages. This was the second

reason the parties found the statutory interest arbitration process unavoidable. While I have

agreed that the gap between Centralia and the comparators should be narrowed, a reduction

in the net hourly compensation received by Centralia firefighters is not the desirable way to

accomplish that goal.

      Lest the decision of the Neutral Chairman be viewed as a "splitting of the difference"

at odds with the opinion of one of the deans of Pacific Northwest arbitration, Arbitrator

LaCugna, expressed in his decision in Kent Police Officers' Guild and The City of Kent,

(unpub. 1980), Attachment A to the City's brief, let me assure the parties it is nothing of the

sort. Rather, it is the result of a diligent effort to fashion a case-specific ".. final decision

that will, as nearly as possible, approximate what the parties themselves would have reached

if they had continued to bargain with determination and good faith." Seattle Police

Management Association and City of Seattle, supra, at 14. It is a reasonable result which,

on balance, serves the needs of both parties.

      For example, it will assure that the City continues to attract and retain qualified

firefighters, thereby keeping turnover at the relatively low level historically experienced in

Centralia, a consideration noted by other interest arbitrators.26 See, e.g., Arbitrator

Lehleitner's interest arbitration opinion in Teamsters Local 58 representing Cowlitz County

Corrections Officers v. Cowlitz County, (unpub. 1996) and Arbitrator Axon's opinion in

Mount Vernon Police Services Guild and City of Mount Vernon, Washington, (unpub.

undated Ca. 1993). Low turnover is a factor which serves the interests of both parties as well

as the interest of the public because it assists in ensuring the presence of a qualified

firefighting force familiar with the environs it is called on to protect.27

26    The reduction in the net hourly wage of Centralia firefighters which would have occurred had I adopted the City's

request to increase hours without a corresponding increase in base pay might well have led to an increase in turnover.

27    Low turnover obviously also saves the City training dollars.

_____

      The result arrived at also survives internal equity comparisons vis-a-vis City police

officers whose base wages have increased by 15.27% since 1991 compared to the resulting

increase of 15.5% for firefighters, disregarding the 7% increase awarded for the 3-hour-per-

work-week increase and without taking into account any resulting compounding. A direct

comparison of base wages paid police officers and firefighters leads to a similar result;

whereas police officer monthly wages were $2174 in 1986, $2834 in 1991 and $3294 in

1997, firefighter wages, after properly subtracting the stipend paid for the separate EMT

certification, stood at $2117 in 1986, $2834 in 1991 and $3300 as of January 1, 1997.

      Additionally, I am convinced the increases are within the realm of reason in terms of

the City's economic condition. In this regard, the City does not claim an inability to pay.

As Arbitrator Snow recognized, "... unlike employers in the private sector, public

employers ordinarily cannot put forth a persuasive 'inability to pay' argument. " Seattle

Police Management Association and City of Seattle, supra, at 11.  The City asserts instead

that the stagnant economy and the deterioration of the average wage and per capita income in

Lewis County vis-a-vis the state average during the last two decades demand restraint.

While the evidence in the record substantiates that average wages in Lewis County declined

significantly in the 1980s and that both personal and per capita income rose less than

statewide averages during the 1970s and 1980s, average wages in Lewis County began the

same upward climb as the rest of the state in 1992 and Lewis County came in above the

median of counties in 1994 and 1995 monthly wages and near the median of counties in 1994

per capita income.28

28    It may be argued that medians provide a better gauge than means inasmuch as the latter are susceptible to skewing by

a few counties such as King and Snohomish which have much larger industrial and population bases. In this regard, while the

City is correct that Lewis County is considered a "distressed" county based on its recent unemployment figures, so are nineteen

of the thirty-eight other Washington counties, sixteen of which had unemployment figures equal to or higher than Lewis County

as of April 1, 1996.

_____

      Moreover, although City Manager/City Attorney Nelson testified without

contradiction regarding the substantial expenditures soon to be required in areas such as its

sewer treatment plant, the combination of wage and hours of work increases found

appropriate herein are not perceived as placing an onerous burden on the City, particularly in

view of the substantial savings in overtime payments to be realized as a result of the

increased work week, not to mention what may be regarded as the equivalent of savings

resulting from the 1995-1996 wage freeze. 29

29    Although the City will be paying base wages and benefits to a greater number of firefighters, additional overtime wage

savings will be realized by the hiring of the new firefighters aimed at providing the greater coverage desired by the City Council.

_____

      Both parties argue that the results they seek are supported by the CPI, although they

contend different indices should be applied. While I have studied carefully all the CPI data

placed in the record, I am not convinced that either the "All U.S. Cities" index preferred by

the City or the "Seattle-Tacoma" index urged upon me by the Union serves the City of

Centralia well.30 Moreover, although the parties historically have tied wage increases to the

Seattle CPI-W, as evidenced by their 1992-1994 contract, I am of the view that the specific

use of CPI data in the circumstances of this case is outweighed by other factors brought to

my attention by the parties.

30    Whereas the All U.S Cities index showed increases of 2.7% for 1994, 2.5% for 1995 and 3.3% for 1996, the Seattle

index recorded gains of 3.7%, 3.0% and 3.3% for the same periods.

_____

      I wish to make clear at this juncture that I have not forgotten the Union's additional

request for 2% extra pay in return for the increased productivity of its members. Without

question, as Union Exhibit No. 21, the outline of the Chief's April 1996 remarks to the City

Council, make clear, 1995 building inspections were up 2.8% over 1990 and a substantial

475% over 1985, 1995 fire responses had increased 9% since 1990 and 46% since 1985,

1995 medical responses were up 27% over 1990 and 116% over 1985, and 1995 service calls

had increased by 19% since 1990 and 59% since 1985. The 1995 combined increases for

fire, medical and service calls amounted to 22.7% since 1990 and 91% since 1985.

However, the City is in the process of returning the number of staff from the recent low of

eleven in 1994 to the historic high of sixteen; at the time of the hearing, fourteen firefighters

were on board; with the goal of sixteen soon to be realized. Accordingly, as the City

argues, relief from the significantly increased individual productivity required in the last

several years is on the way and I am of the view that an additional wage increase tied to

production is not appropriate.31

31    In so concluding, I have not relied on the general finding of Arbitrator Krebs in City of Spokane and International

Association of Fire Fighters, Local No. 29, supra, with respect to the increase in certain kinds of responses during the decade

prior to his 1988 decision therein. While he undoubtedly had the data before him on which to base such a finding, that data

is not contained in the record before me. However, I note that Union President Mack conceded on cross examination that the

entire industry is experiencing an increased number of calls.

_____

      The following table demonstrates the precise difference a wage freeze in 1995 makes

by comparing 1995 figures at the comparators to 1995 Centralia figures which use the actual

1995 holiday pay experienced by the City taken from Employer Exhibit No.6:

__________

                                       FF           EMT         Holiday          Net Hours        Net

City                                Base       Pay            Pay                Worked            Hourly

Port Angeles                  $40,920  $0              $1636             2400                  $17.73

Aberdeen                       39,876    798            0                     2320                  17.53

Tumwater                      39,048    0                1991               2422                  16.94

Sunnyside                      31,944    0                0                     2373                  13.47

Average                         37,947    -                 -                     2379                  16.42

Centralia                        38,256    1200          2537               2022                  20.77

Variation                        + 0.8%   -                 -                     -15.0%             +26.5%

__________

As can be seen, with no wage increase in 1995 and actual 1995 holiday pay slightly reduced

from 1994 levels, Centralia firefighters remain 26.5% ahead of their contemporaries

employed by comparable jurisdictions in net hourly pay received.

      Another table will serve to demonstrate the difference the combined 1995 and 1996

wage freezes make by comparing 1996 figures at the comparators to 1995 Centralia figures

which use the actual 1996 holiday pay experienced by the City taken from Employer Exhibit

No. 7:32

32    As in the preceding table, the figures shown do not agree in all cases with the numbers suggested by the parties. Those

selected either appeared to be the correct party-supplied number or came from an examination of the relevant collective

bargaining agreement or other evidence in the record.

_____

__________

                                       FF         EMT        Holiday        Net Hours    Net

City                                Base     Pay          Pay               Worked        Hourly

Port Angeles                  $45,792 $0             $1831           2400             $19.84

Aberdeen                       41,076   822           0                   2320             18.06

Tumwater                      40,416   0               2061             2422             17.54

Sunnyside                      35,220   540           0                   2236             15.99

Average                         40,980   -               -                    2345             17.86

Centralia                        38,256   1200         3030             2022             21.01

Variation                        6.6%     -               -                    -13.8%         +17.6%

__________

It is clear from this table that the wage freeze in 1995-1996 closes the unrealistic gap

between Centralia and the comparators seen in 1994 while preserving the negotiated historic

position of Centralia as a wage leader since Centralia firefighters continue to receive a net

hourly wage 17.6% higher than their fellow firefighters.33

33    Even if Sunnyside, which closed its own gap significantly in 1996, were removed from the equation, City firefighters

nevertheless would stay 13.7% ahead of comparator employees.

_____

      The following table compares the 1997 figures at the comparators34 to expected 1997

Centralia figures which include the 3.5% base wage increase effective January 1, 1997:35

34    The record does not contain 1997 data for Aberdeen and Sunnyside. Accordingly, the table continues to use 1996 data

for those two cities along with updated 1997 figures for Centralia, Port Angeles and Tumwater.

35    The 1997 Centralia annual wage was arrived at by multiplying the 1994 hourly rate of $17.47 by 3.5% and

multiplying that product by 2190 hours. The 1997 Centralia holiday pay figure was estimated by averaging the Employer's

actual 1994-1996 holiday pay experience and multiplying that number by 3.5%. An estimate was necessary because the

Employer's actual experience in 1994-1996 does not follow any expected formula and thus I cannot predict accurately what

impact the increase in the number of employees to fourteen and eventually to sixteen will have on holiday pay.

_____

__________

                                         FF        EMT        Holiday        Net Hours Net

City                                  Base    Pay          Pay               Worked     Hourly

Port Angeles                   $45,792                $0                 $1831        2400    $19.84

Aberdeen                        41,076 822           0                   2320          18.06

Tumwater                        41,832 0               2133             2422          18.15

Sunnyside                        35,220 540           0                   2236          15.99

Average                          40,980 -               -                    2345          18.01

Centralia                         39,598 1200         2902             2022          21.61

Variation                         -3.4%  -               -                    -13.8%      +20.0%

__________

Accordingly, after a two-year freeze and a 3.5% increase on January 1, 1997, Centralia top-

step firefighter net hourly wages are 20.0% ahead of similar wages at the comparables, thus

preserving the wage leadership role the parties themselves have developed over the years

while reducing the runaway differential seen as of 1994.36

36    If an increase occurred in the net hourly compensation of firefighters at Aberdeen and/or Sunnyside in 1997, the

relative difference between Centralia and the comparators would, of course, drop below 20%.

_____

      When the 7% increase in hours and the corresponding wage increase found

appropriate for Centralia are factored in subsequently, the comparison changes as follows:

__________

                                          FF         EMT         Holiday       Net Hours          Net

City                                   Base     Pay            Pay             Worked              Hourly

Port Angeles                     $45,792 $0              $1831          2400                    $19.84

Aberdeen                          41,076   822            0                  2320                    18.06

Tumwater                         41,832   0                2133            2422                    18.15

Sunnyside                         35,220   540            0                  2236                    15.99

Average                            40,980   -                 -                  2345                    18.01

Centralia                           42,370   1200          2902            2179                    21.34

Variation                           + 3.4% -                 -                  - 7.1%                +18.5%

__________

      The bottom line is that Centralia top-step firefighters continue to be paid ahead of

those employed at the comparators, but by 18.5% rather than the 27.7% previously seen.

Notwithstanding the City has realized the modest increase in hours it sought and forestalled

any wage increase until 1997, the Union has been able to accommodate the City's needs

without its members assuming any additional hours of work for which no extra pay is

received. This is precisely the sort of accord which the parties might have reached

themselves had face-to-face bargaining continued in good faith.

 

AWARD

It is the Award of the Neutral Chairman of the Interest Arbitration Panel that:

      A.  No wage increase shall be given for years 1995 or 1996;

      B.  A 3.5% increase in base wages shall be given retroactive to January 1,

1997;

      C.  The 7% differential between Range 13 Firefighter base wages and

Range 14 driver/engineer base wages and the 22.5% differential between

Range 13 firefighter base wages and Range 16 captain base wages appearing in

the parties' 1992-1994 collective bargaining agreement shall continue to apply;

      D.  The work week shall be increased from forty-two to forty-five

hours effective on the date of issuance of the Final Award in this matter, with

overtime at the negotiated contractual rate to be paid for all hours thereafter

and the scheduling of individual debit days aimed at accomplishing the increase

in hours to be negotiated by the parties, with the first such debit day to be

worked no sooner than eight weeks after issuance of the Final Award in this

matter; and

      E.   A 7% increase in base wages shall be given effective on the date of

issuance of the Final Award in this matter.

 

Monroe, Washington

Initial Award September 9, 1997

Amended Award September 17, 1997           M. Zane Lumbley, Neutral Chairman

 

Signatures of Party-Appointed Panelists

 

In the Matter of Interest Arbitration

between

City of Centralia, Washington,

and

International Association of Firefighters,

Local No.451

 

AAA Case No. 75 L 390 00218 96

PERC Case No. 11866-1-95-253

 

Michael Guerin, City-Appointed Member:

      I Concur   X          I Dissent _____

/s/

Signed

9-18-97

Date

 

Michael McGovern, Union-Appointed Member:

      I Concur _______ I Dissent  X

/s/

Signed

9-15-97

Date

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