INTEREST ARBITRATIONS

Decision Information

Decision Content

City of Bremerton

And

Bremerton Police Offices Guild

Interest Arbitration

Arbitrator:      Gary L. Axon

Date Issued:   08/03/1998

 

 

Arbitrator:         Axon; Gary L.

Case #:              12924-I-97-00279

Employer:          City of Bremerton

Union:                Bremerton Police Officers Guild

Date Issued:      08/03/1998

 

 

IN THE MATTER OF                                                          )                      

                                                                                                )          

                                                                                                )             

INTEREST ARBITRATION                                               )     PERC CASE 12924-I-97-279                                                                                                                  )

            BETWEEN                                                                 )           ARBITRATOR'S OPINION

                                                                                                )          

BREMERTON POLICE OFFICERS GUILD,                   )           AND AWARD

                                                                        Guild,              )

                                                                                                )           1997-99 AGREEMENT

                                                                                                )

                                                                        and                  )

            THE CITY OF BREMERTON,                               )

            WASHINGTON,                                                       )

                                                                                                )

                                                                        City.                )          

 

 

HEARING SITE:                                                                  City Hall

                                                                                                Bremerton, Washington

 

HEARING DATES:                                                              April 20 and 21, 1998

 

POST-HEARING BRIEFS DUE:                                        Postmarked June 1, 1998

 

RECORD CLOSED ON RECEIPT OF BRIEFS:              June 4, 1998

 

REPRESENTING THE GUILD:                                         James M. Cline

                                                                                                Sydney D. Vinnedge

                                                                                                Cline & Emmal

                                                                                                Attorneys at Law

                                                                                                Suite 250

                                                                                                6800 E Greenlake Way

                                                                                                Seattle, WA 98115

 

REPRESENTING THE CITY:                                             Glenna Malanca

                                                                                                City Attorney

                                                                                                City of Bremerton

                                                                                                239   4th Street

                                                                                                Bremerton, WA 98337

 

INTEREST ARBITRATOR:                                               GaryL. Axon

                                                                                                1465 Pinecrest Terrace

                                                                                                Ashland, OR 97520

                                                                                                (541) 488-1573

 

 

Table of Contents

 

ISSUE                                                                                                 Page

 

Introduction                                                                                        1

Comparability                                                                         7

1 -  Wages                                                                                          18

2 - Salary Advancement                                                                    40

3 - Longevity Pay                                                                               44

4 - Reassignment Non-Probationary Einployees                             48

5 - Health and Welfare Medical Co-Pay                                          49

6 - Non-Uniform Allowance                                                               52

7 - Entire Agreement                                                             55

8 - Deferred Compensation                                                               56

9 - Duration                                                                                        60

10 - Sick Leave Donation                                                                  64

11 - Master Police Officer                                                                

           

 

I.          INTRODUCTION

 

            The parties  are  signatory  to a written Collective

Bargaining Agreement in effect for the period January 1, 1995,

through December 31, 1996.  Guild Ex. 5  In early 1996 the parties

began preparations to negotiate a successor contract.  The parties

held several negotiating sessions- -but were unable to resolve their

differences.  Subsequent mediation sessions failed to resolve the

dispute.

 

            On January 24, 1997, the PERC certified eleven issues for

interest arbitration pursuant to RCW 41.56.450.   The case was

originally set for hearing on November 3, 4, and 5, 1997.  Due to

health problems of the Guild attorney, the Guild requested the

hearing postponed.  The City objected to the postponement of the

hearing.  In a letter to the parties dated October 26, 1997, the

Arbitrator held the Guild had shown good cause to postpone the

hearing.  The November 1997 hearing dates were canceled.

 

            A  significant  amount  of  time  elapsed  after  the

postponement of the November 1997 hearing dates until new hearing

dates could be agree on.  The parties ultimately rescheduled the

hearing for April 20, 21, and 22, 1998.  Following negotiations and

mediation, the parties remained at issue over several key subjects

until the April 1998 hearing dates.

 

            The City of Bremerton is located in Kitsap County,

Washington.  The City is situated along the western shore of the

Central Puget Sound region.   Guild Ex.  2.   Because of its

relatively water-bound situation, Kitsap County depends on the

Washington State Ferry System for direct access to King, Pierce,

and Snohomish counties.  Highway passage to the eastern side of the

Puget Sound area is by driving to the south and across the narrows

at Tacoma, Washington.

 

            The population of Bremerton is approximately 38,600.

Kitsap County had an estimated population in 1995 of 220,600,

ranking it the 6th largest of Washington's  39 counties. The county

population increased from 189,731 in 1990 to 220,600 in 1995.  The

Puget Sound Navel Shipyard and related naval operations play a

significant role in the economic health cf the area.  Guild Ex.

106.     Community leaders are seeking to expand Bremerton's economic

base beyond the strong government related business and employment

opportunities which exist in the Bremerton area.

 

            The Bremerton Police Department is managed by Chief Paul

L. DuFresne.  The Guild represents 63 sworn officers in the rank of

sergeant or below.  The parties most recent contract covered a two-

year period and expired on December 31, 1996.

 

            At the commencement of the arbitration hearing, the

opening statements of the parties revealed a deep division on the

issue of comparability.  In addition, the parties also disagreed

over the methodology and means by which to compare the wages and

benefits of Bremerton police officers with their counterparts in

other cities.  A significant amount of hearing time was devoted to

the statutory factor of comparability. The Arbitrator directed the

parties to address this issue at the beginning of their post-2

hearing briefs.   The Arbitrator advised the parties he would

address the comparability issue at the commencement of the Award.

 

            This case is an interest arbitration conducted pursuant

to the Public Employees Collective Bargaining Act.  The parties to

this dispute are the Bremerton Police Officers Guild (Guild) and

the City of Bremerton, Washington (City) .  The Guild and the City

are parties to Collective Bargaining Agreements dating back to the

1970s.  The parties went to interest arbitration in 1979   The

interest arbitrator issued an award dated August 14, 1979.  Guild

Ex. 3.

 

            Bargaining between the parties produced agreement on

several  issues.    However,  the parties were unsuccessful  in

resolving all of  the  issues  that divided them in contract

negotiations.   Eleven fundamental issues were presented by the

parties for interest arbitration.  To the credit of the parties,

they were able to reach agreement on four of the impasse issues

during the course of the April 1998 arbitration hearing.

 

            The hearing in this case took two days for each side to

present their evidence and testimony.   Because there were few

stipulations by the parties, it was necessary for the Guild and the

City to present detailed evidence on the issues for the purpose of

establishing the terms of the successor Agreement to the 1995-96

contract.   The majority of the hearing time was consumed with

different  attempts  by  the  parties  to  make  comparisons  of

compensation among the comparator jurisdictions

 

            The hearing was tape-recorded by the Arbitrator as an

extension of his personal note taking.  Testimony of the witnesses

was received under oath. At the hearing the parties were given the

full opportunity to present written evidence, oral testimony, and

argument. Both the Guild and the City provided the Arbitrator with

substantial written documentation in support of their respective

cases.

 

            The parties also submitted comprehensive and lengthy

post-hearing briefs in support of their respective positions taken

at arbitration.  The approach of this Arbitrator in writing the

Award will be to summarize the major and most persuasive evidence

and argument presented by the parties on each of the issues. After

the introduction of the issue and positions of the parties, I will

state the basic findings and rationale which caused the Arbitrator

to make the award on the individual issues. A considerable portion

of the evidence and argument related to more than one of the issues

and will not be duplicated in its entirety in the discussion of the

separate issues.

 

            This Arbitrator carefully reviewed and evaluated all of

the evidence and argument submitted pursuant to the criteria

established by RCW 41.56.465.  Since the record in this case is so

comprehensive, it would be impractical for the Arbitrator in the

discussion and Award to restate and refer to each and every piece

of evidence and testimony presented.  However, when formulating

this Award the Arbitrator did give careful consideration to all of

the evidence and argument placed into the record by the parties.

 

            The statutory criteria are set out in ROW 41.56.465(1):

 

            (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)  For employees listed in RCW

                        41.56.030(7)(a) through (d); 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)(e) through (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 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.

 

            Because of the voluminous record in the case, the parties

waived the thirty-day period an arbitrator would normally have to

publish an award under the statute. The parties later accepted the

Arbitrator's need for additional time to prepare the Award due to

a personal situation in the Arbitrator's immediate family which

delayed publication of this Award.

 

 

 

II.        COMPARABILITY

 

 

            A .       Background

 

            The threshold issue to be resolved by the Arbitrator

involves the statutory factor of comparability.   Both parties

offered strong and compelling arguments as to why their respective

list of cities should be the one adopted by the Arbitrator to

utilize in formulating an Award for police wages and working

conditions in Bremerton.  The differences between the parties on

the issue of comparability were further complicated because each

party used a different methodology for selecting the purported

comparable jurisdictions to Bremerton.

 

            The disparity between the parties was demonstrated by the

lack of substantial agreement on cities which should be used as the

comparators. The Guild offered a list of 14 cities drawn from what

it believed to be the Central Puget Sound labor market.  In reply,

the City presented a list of 11 jurisdictions which it asserted had

historically been applied by the parties in developing a fair wage

schedule.    The  City's  list  previously  included  Vancouver,

Washington,  but because of massive annexations of land and

population growth in Vancouver, the city of Vancouver was dropped

from the City's list of comparables.

 

            A review of the 14 comparators presented by the Guild and

11 offered by the City revealed agreement on only 6 jurisdictions

out of the 25 jurisdictions offered by the parties as comparators.

The initial task of your Arbitrator is to formulate a list of

comparable jurisdictions that is consistent with the statutory

mandate enumerated in RCW 41.56.465(1).   The following is the

statement of the positions of the parties and your Arbitrator's

resolution of the comparability issue.

 

 

            B.        The Guild

 

            The Guild takes the position that the Award should be

based on a principled application of the statute rather than a

compromise between each party's position. According to the Guild,

the City has engaged in posturing both through negotiations and in

interest arbitration.   The Arbitrator should reject the City's

implicit invitation to compromise and be rewarded with terms and

conditions they could not otherwise achieve by voluntary agreement.

 

            The Guild's approach towards comparability is more

consistent and more reasonable than the approach taken by the City.

Comparability has long been recognized as the predominant criteria

used in interest arbitration proceedings.   Arbitral authority

instructs that the reliance on comparability data is that such a

comparison allows a "presumptive test to the fairness of a wage."

Because these comparisons carry an aura of fairness, they create an

opportunity to produce a result acceptable to the parties to a

labor dispute.

 

            The Guild asserts its method for selecting comparables is

superior to the method advocated by the City.   The Guild's

arguments with respect to why its comparables should be adopted are

summarized as follows:

 

            1.         The statute specifically mandates that

            comparisons be based on "like personnel of

            like employers of similar size." According to

            the Guild, this requirement has generally been

            interpreted to mean that comparison is made

            between  commissioned  police  officers  of

            similar rank in municipal police departments.

            "The requirement that comparisons be made

            between  employers  of  'similar  size'  has

            usually been interpreted to mean population

            jurisdictions at issue."  Population provides

            a rational basis  to measure comparability

            because  it  is  a  good  indicator  of  the

            complexity of a city and the type of crime

            problems and working conditions an officer

            would face in the jurisdiction.

 

            2.         If  demographic  factors  other  than

            population  are  to  be  used  in  selecting

            comparables, a wide range of factors should be

            used and not just assessed valuation.   It

            makes little sense in Washington State to rely

            heavily on assessed valuation while ignoring

            such measures as sales tax and business and

            occupation tax revenues.   The tax base for

            Washington municipalities is much broader than

            the value  of  land  and  buildings.    The

            Arbitrator should reject the City's invitation

            to  develop  a  list  of  comparables  based

            exclusively  on  population  and  assessed

            evaluation. The demographic data introduced by

            the Guild concerning the various proposed

            comparables  is  available  for  use  as  a

            screening device to limit or fine-tune the

            comparable list.

 

            3.         The comparables should be selected only

            from the relevant Puget Sound labor market.

            Arbitrators  have  a  long  tradition  of

            recognizing  labor  market  and  geographic

            proximity   as   a   factor   in   selecting

            comparables.   Jurisdictions which share a

            defined   labor   market   deserve   special

            consideration   in  the  determination  of

            comparables. Bremerton is part of the Central

            Puget Sound labor market which makes up the

            Seattle- -Tacoma- -Bremerton PMSA.  The

            extensive data offered by the Guild indicates

            the relevant labor market consists of the

            region from which the Guild selected its

            comparables.  Specifically, the data reveals

            that the relevant labor market consists of the

            cities located in Snohomish, King, Pierce,

            Thurston, and Kitsap counties.

 

            The leading measure of  the general labor

            market is the data provided by the census

            bureau defining metropolitan  areas.    The

            consolidated metropolitan standard area that

            Bremerton is a part of, in fact, is labeled

            the  Seattle--Tacoma--Bremerton  PMSA.    In

            addition, regional planning and development is

            evolving in a direction which will incorporate

            Bremerton into the Central Puget Sound labor

            market in an even more integrated manner.  The

            evidence further indicates that the specific

            labor market for Bremerton police officers is

            the Central Puget Sound area.  The existence

            of a Central Puget Sound labor market for

            police work is further indicated by the fact

            that police wages in the Seattle Metropolitan

            area are substantially higher than in other

            regions of the state.

 

            4.         The City's claim that there are agreed or

            historical comparables is incorrect. Contrary

            to the City's position that there was some

            kind of agreement as to comparables, is the

            lack of evidence to support this agreement or

            the parameters of any such alleged agreement.

            The evidence shows there is no historical set

            of comparables that have been used by the

            parties.  The fact is the parties have moved

            back  and  forth  between  comparables  as

            circumstances have changed.   The interest

            arbitration decisions involving the City of

            Bremerton and the police have confirmed the

            use of divergent sets of comparables.   The

            credibility of the City's list of selected

            comparables is suspect because it failed to

            provide a clear and coherent explanation of

            how it arrived at its comparables that was

            consistent with the actual demographic data.

            The City could not explain the absence of

            Mountlake Terrace or Des Moines on their

            proposed list of comparables.  The City also

            was forced to admit that Bremerton was more

            than twice as large as Port Angeles. The City

            had to concede that Oak Harbor and Port

            Angeles did not make very good comparables for

            Bremerton.  Finally, the City was unable to

            explain why its list of comparables would be

            reasonable when all of its comparables, except

            for Olympia were smaller than Bremerton or

            describe why it dropped the only larger city- -

            Vancouver--from its list of comparators.

 

            5.         The significant advantage of the Guild's

            set of comparables is that it is drawn from

            the relevant Puget Sound labor market while

            several of the City's comparables are drawn

            from outside the relevant labor market.  In

            addition, the Guild's comparables taken as a

            whole are a more reasonable set of comparables

            because the City of Bremerton tends to rank

            closer to the middle on most of the relevant

            demographic factors on the Guild's comparables

            than on the City's set of comparables.  Two of

            the comparables proposed by the City--Mount

            Vernon  and Longview--provide  a  reasonable

            match on demographic factors alone, but both

            are removed from the Central Puget Sound labor

            market.  The evidence before this Arbitrator

            indicates the City of Bremerton is competing

            with other Seattle area jurisdictions for

            police officers.  The Arbitrator should stay

            within the relevant Central Puget Sound labor

            market  from  which  the  Guild  drew  its

            comparables and reject the City's attempt to

            depart from the local labor market.

 

 

The Guild proposed the following list of cities as its list of

comparators:

 

            Rank               Jurisdiction                 County            Population

            1                      Kent                            King                62,006

            2                      Renton                        King                45,920

            3                      Kirkland                     King                43,720

            4                      Redmond                    King                42,230

            5                      Olympia                      hurston            38,650

            6                      Bremerton                  Kitsap             38,600

            7                      Auburn                        King                36,720

            8                      Edmonds                     Snohomish      35,470

            9                      Lynnwood                   Snohomish      33,070

            10                    Puyallup                      Pierce              29,490

            11                    Lacey                          Thurston         27,570

            12                    Des Moines                King                27,030

            13                    Bothell                        King                26,350

            14                    Mercer Island            King                21,550

            15                    Mountlake Terrace   Snohomish      20,360

 

 

            C.        The City

 

            The City begins by pointing out that the parties used

comparable jurisdictions in previous negotiations to reach an

agreement on wages and benefits.   In 1994 the City prepared a

comprehensive wage and benefit survey which derived a set of

Western Washington cities with populations and assessed valuations

within one-half to twice the populations and assessed valuations of

the City of Bremerton.  The survey produced in 1994 supported the

Guild's proposal for a parity adjustment.  The employer accepted

the survey as fair and accurate and agreed that both the CPI

increase and a 1% market adjustment were appropriate. Accordingly,

the wage increases were implemented on settlement of the Agreement.

 

            During negotiations for the 1997 labor Agreement the

employer conducted a  similar  survey using the same set of

comparable jurisdictions,  but excluded the city of Vancouver

because it almost quadrupled in population.  The City submits that

its list of 11 comparators has survived the test of time.

 

             The City points to both reasonableness in its method of

selection based on population and assessed valuation and the

historical use made of the comparables by the parties.  During

negotiations, the Guild also used the City's comparables in its

wage submission to the City in October of 1996.  It was not until

March 27, 1998, that the Guild offered a new set of comparables by

injecting 9 King County cities and deleting 4 of the 10 previously

used comparables.   Four of the King County cities now top the

population list and 7 top the 1997 assessed valuation rankings.

 

            The City urges the Arbitrator to reject the Guild's

position that its comparables are based upon a "well defined common

labor market" the Central Puget Sound labor market.  The 9 King

County cities added to the list results in Bremerton being ranked

number 7 in 1997 population.   A flaw in the Guild's proposed

comparables is the City's rank at 14 in 1997 assessed valuation.

Kent, Redmond, Kirkland, and Renton have assessed valuations of

approximately  three  times  that  of  Bremerton.    The  larger

jurisdictions are among the top five 1997 police budgets of the

comparables and all are located in King County.

 

            The Guild's arguments are further weakened by the fact

they are based upon a "hypothetical world."  For example, the

Guild's claim the impact of the predicted number of retirees in the

Seattle Police Force will cause officers to move from Bremerton to

Seattle is totally without factual evidence.  The hopeful signs of

an increased interest in Kitsap County real estate were not

supported by the Guild's own real estate expert. Kelly's testimony

that prices are lower in the Bremerton area provides excellent

support for the City's proposed use of the 90% CPI-W for 1998 and

1999 wage increases.

 

            The City also took its analysis relating to assessed

valuation and population one step further with a per capita

analysis. Per capita is indicative of the tax base of a community,

relating to both the issues of size as well as ability to pay.

While per capita analysis was not part of the 1994 wage survey,

such an analysis at this time is an excellent citation to the

viability of the City's comparables.  While the City's population

is at 138% of its own comparables, the City is at 60.47% of the

assessed valuation per capita, and 63.59% of the sales tax per

capita in the comparables.  It is true the Guild's comparables are

more compatible to the City in population, but the economic

incompatibility of the Guild's comparables is found in the per

capita positions of 43.10% for Bremerton in assessed valuation, and

54.51% in sales tax.  In sum, the City concluded:

 

            The City encourages the Arbitrator to adopt

            the City's comparable jurisdictions due to the

            history of use and acceptance; the durability

            of their status as valid comparables, their

            relevance to today's economy; contrasted with

            the inappropriateness of the speculative and

            exclusively King County injections by the

            Guild.

                                                                        Brief, p. 6.

 

 

The City proposed the following list of cities as its list of

comparators:

 

            Rank               Jurisdiction                 County            Population

            1                      Olympia                      Thurston         38,650

            2                      Bremerton                  Kitsap             38,600

            3                      dmonds                       Snohomish      35,470

            4                      Longview                    Cowlitz            33,620

            5                      Lynnwood                   Snohomish      33,070

            6                      Puyallup                      Pierce              29,490

            7                      Lacey                          Thurston         27,570

            8                      Mount Vernon            Skagit             22,280

            9                      Mountlake Terrace   Snohomish      20,360

            10                    Oak Harbor                Island              20,190

            11                    Port Angeles               Clallam           18,890

 

 

            D.        Discussion and Findings

 

            The Arbitrator begins with the premise that the parties

agree  that  Olympia,  Edmonds,  Lynnwood,  Puyallup,  Lacy,  and

Mountlake Terrace are jurisdictions with which to compare Bremerton

for  establishing  wages  and  working  conditions.    These  6

jurisdictions form the core for developing a list of "like

employers of similar size."  The population and geographic location

of the 6 cities all comport to the statutory factor of like

employers.

 

            The City maintains its list of 11 jurisdictions, minus

Vancouver, should be adopted based on history of use, acceptance,

and assessed valuation. The Arbitrator rejects the City's argument

that its list constituted a group of cities that were agreed on and

historically used for comparison by the parties.

 

            The Arbitrator finds two compelling points drive the

decision on which cities should be included on the list of

comparators.   The  first  is population.   Both parties have

identified cities that are of comparable population.  The ability

to have a sufficient number of similarly sized cities provides a

solid ground on which to compose a list of comparators.

 

            The second reason which strengthens the population factor

is geographic proximity to Bremerton.   There are a sufficient

number of similarly sized cities in the Puget Sound labor market to

compose a strong list of comparators that meet the statutory test

of "like personnel of like employers of similar size on the west

coast of the United States."

 

            Moreover, the Arbitrator finds the evidence justifies one

exception  to  compiling  a  list  composed  of  cities  located

exclusively in the Puget Sound area.  Four factors argue for the

inclusion of Longview on the list of comparators.   First, the

population of Longview at 33,620 is extremely close to Bremerton's

population of 38,600.  Second, the assessed valuation of the two

cities is within $1,440,935.

 

            Third, even the Guild concedes the demographic factors of

Longview match closely with Bremerton.  Fourth, the historical use

of a city from outside the Puget Sound area- -which closely mirrors

Bremerton in size and demographic factors--provides a balance to

the larger King County cities.

 

            The geographic locations of Oak Harbor and Port Angeles

are far removed from the Central Puget Sound labor market.

Further, these two cities are significantly smaller in population

than Bremerton.  They even failed the City's assessed valuation

test and thus should not be included on the list.

 

            Regarding the Guild's list of comparators, the Arbitrator

concurs with the City that the Guild's list of 14 cities which

includes 8 King County cities in unacceptable.  Bremerton is not

located in King County.  Establishing a list of comparators which

included  8  King  County cities  would give undue weight  to

jurisdictions located on the east side of Puget Sound.   The

Arbitrator is persuaded that Redmond and Auburn should be added to

the list.  Redmond's population of 42,230 is 3,630 higher than

Bremerton.   Auburn's population is 1,880 less than Bremerton.

These two cities certainly meet the test as to similarly sized

jurisdictions.

 

            Based on all of the cited reasons,  the Arbitrator

concludes the appropriate group of comparators are as follows:

 

            Rank               Jurisdiction                 County            Population

 

            1                      Redmond                    King    4          2,230

            2                      Olympia                      Thurston         38,650

            3                      Auburn                        King                36,720

            4                      Edmonds                     Snohomish      35,470

            5                      Longview                    Cowlitz            33,620

            6                      Lynnwood                   Snohomish      33,070

            7                      Puyallup                      Pierce              29,490

            8                      Lacey                          Thurston         27,570

            9                      Mount Vernon            Skagit             22,280

            10                    Mountlake Terrace   Snohomish      20,360

__________________________________________________________

                                    Bremerton                  Kitsap             38,600

 

 

            This group of 10 cities- -with the exception of Longview- -

are located in the Puget Sound area.  The Arbitrator is convinced

the above list is consistent with the statutory criteria and will

serve as an acceptable "guideline to aid" in reaching a decision on

wages and working conditions for Bremerton police officers.  For

purposes of reference the Arbitrator will refer to the comparators

as the "Puget Sound 10" or "PS 10."

 

 

            ISSUE 1  - WAGES

 

 

            A.        Background

 

            The  1995-96  salary  schedule provides  for  two  job

classifications.  The two classifications are police officer and

sergeant.  Each schedule has five steps through which the officer

progresses. Neither side is proposing a change to the structure of

the existing salary schedule.

 

            One of the complicating factors in making comparisons

with the other cities is that Bremerton police officers do not

participate  in  the  social  security  system.    The  lack  of

participation in the social security system has two sides.  First,

the members do not receive social security benefits on retirement.

Second, the members do not pay a social security tax while employed

by the City to secure future social security benefits so their

take-home pay is greater.

 

            The deferred compensation program discussed in Issue 8

provides some recognition in the total economic package for the

lack of social security benefits.  Further, the wage dispute is

closely connected with Issue 3, Longevity Pay.  Bremerton police

officers earn additional amounts of money based on length of

service with the City.  The Arbitrator will address the longevity

pay dispute in Issue 3.

 

            Moreover, members of this unit do have a longevity and

deferred compensation program. However, the Collective Bargaining

Agreement does not require the payment of education incentives.

The combination of benefits paid and not paid created a vigorous

dispute between the parties over the appropriate methodology with

which to compare total compensation paid to Bremerton police

officers with their counterparts in other cities.

 

            The parties do agree the benchmark wage for purpose of

comparison is the five-year level.   The basic wage scale for

Bremerton police officers for 1996 was as follows:

 

            Police Officer                         1996  Current

            Step     1                                  3 ,074

            Step     2                                  3,189

            Step     3                                  3,340

            Step     4                                  3,484

            Step     5                                  3,789

 

            Sergeant                                 1996  Current

            Step     1                                  4,003

            Step     2                                  4,091

            Step     3                                  4,178

            Step     4                                  4,264

            Step     5                                  4,354

 

 

The salary progression is approximately 12 months between steps.

Longevity pay commences with the sixth year of employment and

continues until retirement.

 

            In a preliminary ruling on the comparability issue the

Arbitrator determined that, with the exception of Longview, 9 Puget

Sound cities provided the appropriate list of comparators with

which to measure wages and benefits for Bremerton police officers.

The Arbitrator will not repeat the discussion on comparability in

this section of the Award. Further, the Arbitrator will not burden

this record with an extensive discussion on the results of either

parties' comparison studies.  The Arbitrator will give the greater

weight to the data and studies produced by the parties which

concentrates on basic wages, for establishing the wages in the

1997-99           Collective Bargaining A~reement.

 

 

            B.        The Guild

 

            The Guild proposed a two-year Agreement which would

adjust the salary schedule as follows:

 

 

            Police Officer

 

            Effective  1/1/97:        An  across  the  board

            increase of 5% for all wage steps.

 

            Effective  1/1/98:        An  across  the  board

            increase equal to 100% of the CPI (CPI-W).

 

            Sergeant

 

            Effective  1/1/97:    An  across  the  board

            increase of 5% of all wage steps plus an

            additional 2%.

 

            Effective  1/1/98:        An  across  the  board

            increase equal to 100% of the CPI (CPI-W), plus

            an additional 2%.

 

 

Because the consumer price index figures are known at this time the

effective increase for January 1, 1998, under the Guild's proposal

would be 3.7% or 8.7% over the two-year term.  It should also be

noted that the Guild proposes an additional 2% to be added to the

sergeant's wage schedule.

 

            If the Guild's proposals were adopted, the following wage

schedule would be implemented for 1997 and 1998:

 

            Police Officer             1/1/1997 - 5%             1/1/1998 - 3.7%

 

            Step     1                      3,228                           3,347

            Step     2                      3,348                           3,472

            Step     3                      3,507                           3,637

            Step     4                      3,658                           3,793

            Step     5                      3,978                           4,125

 

            Sergeant                     1/1/1997 - 7%             1/1/1998 - 5.7%

            Step     1                      4,283                           4,527

            Step     2                      4,377                           4,626

            Step     3                      4,470                           4,725

            Step     4                      4,562                           4,822

            Step     5                      4,659                           4,925

 

 

            The Guild argues that an analysis of the comparables

supports  its  wage proposal.    According  to  the  Guild,  its

methodology is reasonable and consistent with arbitrable precedent.

That precedent distinguishes between wage analysis and total

compensation analysis with predominate weight given the former and

secondary weight given the latter.  The Guild submits the City's

analysis  blurs  the  lines  by  combining  elements  of  total

compensation into wage analysis on a selected basis.

 

            The City's analysis suffers from three major defects.

First, it incorporates longevity into the wage analysis, but not

education premiums.  Second, the City's methodology selectively

incorporates only one aspect of retirement payments- -deferred

compensation--into its wage analysis.  Third, the City omits any

type of comprehensive "total compensation" analysis.  The charts

developed by the City are results oriented.  In the post-hearing

brief the Guild argued:

 

            By including longevity (which it pays) while

            excluding education premium (which it does not

            pay)  and  including  deferred  compensation

            (which  it  pays)  while  excluding  social

            security and MEBT contributions (which it does

            not  pay) ,   it  has  rigged  the  charts

            grotesquely.   

                                                                        Brief, p.13.

 

 

            Turning to the decision of this Arbitrator in the City of

Centralia, which was relied on by the City to sustain its position,

the Guild argues the City has misread the decision. The parties in

the City of Centralia case argued that the union should receive a

larger increase on its base wages because of the lack of either

deferred compensation or social security.  There, the Arbitrator

rightfully rejected that claim indicating that those retirement

costs were not part of the base wages.  In the present case, the

City is doing precisely what this Arbitrator ruled in the City of

Centralia that the parties should not do.  Specifically, the City

added deferred compensation or social security into the base wage

analysis.    Even  if  there was  a case  for  adding deferred

compensation as an element of base wages, all similar types of

contributions including MEBT and social security should be included

in the analysis.  The City did not do so.

 

            The Guild next argues that its proposal for an 8.7%

increase over two years is strongly supported by its wage chart.

Even though five of the fourteen comparators were not reporting

1988  wages  to  date,  Bremerton averaged  9.46% behind  those

comparators as an overall average encompassing all years of service

and education.  Guild Ex. 67.  A reasonable projection the other

five jurisdictions would likely settle,  in light of overall

settlement trends, would leave the City an additional 1.25% to

1.50% behind the comparators in 1998 wage terms.  While the gap is

not wide, the City's position is flawed because it included Oak

Harbor and Port Angeles on its list of comparables.  If those two

cities alone are excised from the City's list, a wage gap would

exist which far exceeds the amount the City's 90% cost of living

offer would cover.

 

            It is also the Guild's position that total compensation

should be given some consideration in support of the Guild's

proposal. On a total compensation basis, the gap between Bremerton

and the comparables is even wider.  Two reasons account for this

substantial gap. First, the City of Bremerton does not make social

security contributions.   Second, the City of Bremerton expends

relatively less for health and welfare than other jurisdictions.

The Arbitrator should factor in these important benefits when

measuring the total effort and impact of the City's compensation

package that should be made available for its officers.

 

            The economic conditions support the Guild's proposal.

The evidence presented by the Guild concerning the strength of the

national, state, and local economy strongly supports an increase in

line with the Guild's proposal. The Washington State economy is in

a period of exceptional growth.  The employment picture is strong

for employees and unemployment is unexceptionally low. Wage rates

are increasing in an amount substantially above the CPI Index, as

labor shortages push up wages higher than the CPI.  The economic

outlook for Kitsap County is especially good.  Thus, there is no

reason for the Arbitrator to depress wages based upon poor economic

conditions.

 

            Turning to police contract settlement trends, the Guild

argues its proposals are in line with the market.   For the

comparables proposed by the Guild, the average settlement in 1997

was 3.14% and settlements thus far in 1998 averaged 3.87%.  Guild

Ex. 93. An examination of the City's proposed comparables supports

an even stronger settlement trend existing of an average increase

of 3.59% for 1997 and 4.34% for 1998.  Guild Ex. 94.  The Guild's

proposal of an 8.7% increase over two years is in line with

industry settlements.

 

            The Guild next argues that the increased rate of turnover

within the department supports its wage proposal. The trend in the

department is for more officers to leave the City to take better

paying  positions  in  the  region.    As  the  City  witnesses

acknowledged, a number of Bremerton officers may well be on hiring

lists for other departments.  Failure to provide a wage increase in

line with wage adjustments  in other departments will likely

accelerate the trend of officers departing for higher paying

positions.

 

            The internal settlements support the Guild's proposal.

Here,  the City has agreed to a generous wage increase for

firefighters. Guild Ex. 112. The City has indicated it will match

wage increases for the police managers for whatever amount is

ordered here. Guild Ex. 113. The internal settlements support the

Guild's proposal on wages.

 

            The cost of living factor should be considered, but under

the current economic situation it is not a significant criteria.

Where the strength of the local and state economy and the

settlement trends indicate increases in excess of the CPI Index,

the cost of living factor should be given limited weight.  The

City's attempt to calculate regional differences in the cost of

living should be rejected.  In sum, there is no basis to indicate

that the cost of living for these officers is appreciably less than

the cost of living for officers elsewhere in the Puget Sound

region .

 

            Based on all of the above stated reasons, the Arbitrator

should award the Guild's proposal as presented during interest

arbitration.

 

 

            C.        The City

 

            The City begins by noting that  the prior use of

comparable jurisdictions produced a fruitful list which provided a

basis whereby the parties were ultimately able to reach agreement

on wages and benefits.  The 1995-96 contract provided for a parity

adjustment that put the members of this unit in a competitive

position with their counterparts in other police jurisdictions.

The Guild has changed its methodology for determining compensation

during this round of bargaining in order to bolster its position

for a wage increase that is not justified.  The Arbitrator should

reject the Guild's result oriented methodology as corrupt and

unjustified.

 

            The City interprets the base wage to be used when making

comparisons with other jurisdictions to be that which is actually

paid to the officers. Those same reasons are equally applicable to

this case and provide the basis for rejection of the Guild's

attempt to argue the lack of social security participation for

Bremerton police officers as leverage to increase the wages paid to

the members of this unit.  The City believes that it offers the

fair and reasonable analysis of the base wage.   The City's

methodology is one that enjoys a history with the parties and is

consistent with the Washington statute.   This methodology is

routinely cited by arbitrators in Washington interest arbitration

awards.

 

            The three-year proposal of the City was stated as

follows:

 

City Proposal

 

            1-1-97  - 2.6% of December 31, 1996 base wage,

            not retroactive- -paid in lump sum does not

            ncrease wage rate.

 

            1-1-98  - 90% CPI (3.3%), Greater Seattle CPI W,

            July/July not to exceed 4%

 

            1-1-99  - 90% CPI,  Greater Seattle CPI W

            July/July not to exceed 4%

 

            No additional increase for sergeants.

 

 

            The City's proposed lump sum payment in 1997 is based on

the premise that the 1994 adjustment brought the members of this

bargaining  unit  into  parity with  comparable  jurisdictions.

Application of the lump sum payment would be a one-time payment to

officers, not incorporated into the salary schedule.  The City

concludes that with this method of addressing the 1997 salary

schedule Bremerton would remain competitive among its comparators.

 

            The lump sum payment calculated by 90% of the CPI W,

which was at 2.6% for 1997 would provide a single lump sum payment

to the members of this bargaining unit as follows:

 

 

1997 - 2.6% LUMP SUM

 POLICE OFFICER 

            Step 1              Step 2              Step 3              Step 4              Step 5

            $959.00           $ 995.00          $1,042.00        $1,087.00        $1,182.00

 

SERGEANT  

            Step 1              Step 2              Step 3             Step 4              Step 5

            $1,249.00        $1,276.00        $1,304.00        $1,330.00        $1,358.00

 

            The 1998 wage increase would be 90% of the CPI, Greater

Seattle CPI W, July/July not to exceed 4%.  Because the actual CPI

figures are known, 3.3% would be added to the 1996 wage schedule to

create the 1998 wages for the members of this bargaining unit.

 

            The resulting 1998 wages with the 3.3% increase would be:

 

 

1998 WAGES WITH 3.3% INCREASE

 

POLICE OFFICER  

            Step 1              Step 2              Step 3              Step 4              Step 5

            $3,175.00        $3,294.00        $3,450.00        $3,599.00        $3,9l4.00

 

 

SERGEANT  

            Step 1              Step 2              Step 3              Step 4              Step 5

            $4,135.00        $4,226.00        $4,316.00        $4,405.00        $4,498.00

 

 

            Turning to 1999, the City proposes the same CPI driven

formula.  According to the City, no vidence was offered by the

Guild which would justify the additional 2% increase for sergeants

in each of the two years of the Guild's proposed Agreement.

 

            The City submits it has utilized a principled and

accepted method for measuring the components of compensation.  In

the view of the City, it has tried to use a basic and simple method

which provides a realistic picture of the wages and benefits paid

in its proposed list of comparators.   A review of the City's

calculations reveals that Bremerton pays a competitive wage and

that no additional compensation beyond what the City offered is in

order during this round of bargaining.

 

 

City Proposal

 

            1-1-97  - 2.6% of December 31, 1996 base wage,

            not retroactive--paid in lump sum does not

            increase wage rate.

 

            1-1-98  - 90% CPI (3.3%), Greater Seattle CPI W,

            July/July not to exceed 4%

 

            1-1-99  - 90% CPI,  Greater Seattle CPI W

            July/July not to exceed 4%

 

            No additional increase for sergeants.

 

 

            The City's proposed lump sum payment in 1997 is based on

the premise that the 1994 adjustment brought the members of this

bargaining  unit  into  parity  with  comparable  jurisdictions.

Application of the lump sum payment would be a one-time payment to

officers, not incorporated into the salary schedule.  The City

concludes that with this method of addressing the 1997 salary

schedule Bremerton would remain competitive among its comparators.

 

            The lump sum payment calculated by 90% of the CPI W,

w~ich was at 2.6% for 1997 would provide a single lump sum payment

to the members of this bargaining unit as follows:

 

 

 

1997 - 2.6% LUMP SUM

 

POLICE OFFICER  

Step 1              Step 2              Step 3              Step 4              Step 5

$ 959.00          $ 995.00          $1,042.00        $1,087.00        $1,182.00

 

 

SERGEANT  

Step 1              Step 2              Step 3              Step 4              Step 5

$1,249.00        $1, 276.00       $1,304.00        $1,330.00        $1,358.00

 

 

            The 1998 wage increase would be 90% of the CPI, Greater

Seattle CPI W, July/July not to exceed 4%.  Because the actual CPI

figures are known, 3.3% would be added to the 1996 wage schedule to

create the 1998 wages for the members of this bargaining unit.

 

            The resulting 1998 wages with the 3.3% increase would be:

 

 

1998 WAGES WITH 3.3% INCREASE

 

POLICE OFFICER

Step1               Step 2              Step 3              Step 4              Step 5

$3,175             $3,294.00        $3,450.00        $3,599.00        $3,914.00

 

SERGEANT                                      

Step 1              Step 2              Step 3              Step 4              Step 5

$4,135.00        $4,226.00        $4,316.00        $4,405.00        $4,498.00

 

 

            Turning to 1999, the City proposes the same CPI driven

formula.  According to the City, no evidence was offered by the

Guild which would justify the additional 2% increase for sergeants

in each of the two years of the Guild's proposed Agreement.

 

            The City submits it has utilized a principled and

accepted method for measuring the components of compensation.  In

the view of the City, it has tried to use a basic and simple method

which provides a realistic picture of the wages and benefits paid

in its proposed list of comparators.  A review of the City's

calculations reveals that Bremerton pays a competitive wage and

that no additional compensation beyond what the City offered is in

order during this round of bargaining.

 

 

            D.        Discussion and Findings

 

            The Arbitrator  has  awarded  a  three-year Agreement

covering the period from January 1, 1997, through December 31,

1999.  The Arbitrator finds the City's proposal to pay a lump sum

settlement for 1997 should not be adopted. None of the comparators

offered by either party support such an approach.  Further, once a

salary schedule is frozen the employees lose the benefit of the

loss of the salary adjustment in all succeeding years because the

base is lower from which future calculations are made.

 

            The Guild's proposal to add an additional 2%  for

sergeants is rejected.  The Arbitrator will award that sergeants

receive the same pay adjustments as the patrol officers.  The wage

spread between police officers and sergeants was not shown to be

inadequate or unreasonable.

 

            The Arbitrator finds that after review of the evidence

and argument, as applied to the statutory criteria that a 4%

increase effective January 1, 1997, on the existing salary schedule

is justified for 1997.  Further, an additional increase of 3.5%

effective January 1, 1998, is warranted.  The Arbitrator finds for

the third year of the contract that a CPI driven formula is the

appropriate way in which to adjust wages for 1999.  The Arbitrator

will award the City's proposal for 1999 with modifications that the

increase shall be by 90% of the change in the Consumer Price Index

with established minimum and maximum amounts for the increase.

 

            The adjustments ordered by the Arbitrator will set the

top pay for a police officer effective January 1, 1997, at $3,941

per month and $4,079 per month effective January 1, 1998.  The

sergeant's pay would be set at $4,528 per month effective January

1, 1997, and $4,686 per month as of January 1, 1998.  The reasoning

of the Arbitrator--as guided by the statutory criteria- -is set

forth in the discussion which follows.

 

            At the outset the Arbitrator needs to address the

argument of the parties which relied on my decision in City of

Centralia.  The City attempts to read too much into the holding in

the Centralia decision.  The parties in the Centralia case limited

their comparison studies to the single factor of base wages.  Faced

with that type of case presentation, your Arbitrator held it was

improper to factor in the lack of social security as a means to

justify a larger wage increase.  I did comment in the award that

social security, or the lack of it, might be an appropriate

consideration where the parties to an interest arbitration used a

sophisticated total compensation analysis.

 

            The second threshold point to be made is the Arbitrator

has rejected the Guild's proposal for a two-year Agreement.  In so

doing, the Arbitrator will award a three-year wage package.  I have

also delayed other improvements and changes to the Collective

Bargaining Agreement to the third year in order to minimize their

impact on the City.

 

 

Constitutional and Statutory Authority of the Employer

 

            Regarding the factor of constitutional and statutory

authority of the City, no issues were raised with respect to this

factor which would place the Award in conflict with Washington law.

 

 

Stipulations of the Parties

 

            The parties reached agreement on a number of contract

provisions in dispute which were not the subject of this interest

arbitration.   In addition, four issues were settled during the

arbitration hearing.  Beyond the resolution of contract disputes

through  the  negotiation process,  there  were  no  significant

stipulations of the parties relevant to this interest arbitration.

 

 

Comparability

 

            In a preliminary ruling, the Arbitrator adopted a list of

ten cities (PS 10) to utilize as a guide in reaching a decision in

this  case.    With  the  exception  of  Longview,  all  of  the

jurisdictions are located in the Puget Sound area.  The PS 10 are

appropriate comparators because they are employers of "similar

size" and located in the same geographic region as Bremerton.

Consistent with the consensus of the parties, the Arbitrator has

used 6 jurisdictions common to both lists.   The City dropped

Vancouver from its former list of comparators because it no longer

fits the statutory criteria of similar size.   The Arbitrator

deleted Oak Harbor and Port Angeles from the City's list of

proposed comparators because they do not match up population wise

or with the demographic factors.

 

            The Arbitrator added Redmond and Auburn to arrive at the

PS 10 for three primary reasons.  First, the Auburn population at

36,720 is almost identical to the population of Bremerton at

38,650.  Redmond's population is 3,630 greater than Bremerton, and

is the next City on the population scale above the agreed on

comparator of Olympia.

 

            Second, a credible list of Puget Sound comparators cannot

ignore the impact of King County on the local labor market.

Without Auburn and Redmond there would be no representative

jurisdictions from King County on the list of comparators.  Given

Bremerton's economic and social ties to King County, the absence of

any King County cities from the list would be unrealistic.

 

            Third, the Arbitrator has retained as part of the PS 10,

Longview  and  Mount  Vernon.    Both  sides  agree  these  two

jurisdictions share common demographic factors and have a history

of use by the parties in establishing a list of comparators.  They

also provide a suitable balance to the cluster of cities located in

what the Guild referred to as the Central Puget Sound labor market.

 

            The next topic to be addressed is the widely divergent

methodologies each side used to calculate total compensation.

Given the way the evidence developed in this case, the Arbitrator

is persuaded to focus on base wages in formulating the 1997-99

Award.  Rather than attempt to reconcile the computations offered

by the parties on total compensation to support their respective

positions, the Arbitrator will acknowledge the primary benefits.

By recognizing those differences, the base wage format will stand

as an appropriate comparison.

 

            The members of this unit enjoy a competitive health and

welfare program largely paid for by the City.  Bremerton police

officers also have the opportunity to earn additional compensation

based on longevity.  Five of the PS 10 offer longevity pay and 5 of

the PS 10 do not offer longevity pay.  Noticeably, the highest

paying jurisdiction on the PS 10 list, Puyallup, does not provide

longevity pay.

 

            Approximately 8 jurisdictions offer an education premium,

which Bremerton does not.  In those cities where both longevity and

education premiums are available, the employee normally must elect

either longevity or education pay.

 

            The participation in social security, MBET, or deferred

compensation is a mixed bag among the comparators.  A substantial

number of the comparators do not participate in any of the three

named programs. Other cities who are not in social security may be

a part of one or two alternative benefits to social security.

While the members of this unit are not in social security, they do

have a deferred compensation program and longevity pay.   The

Arbitrator has considered total compensation.  Based on the record

in this case, the Arbitrator concludes that by concentrating on the

five-year base wage rate of the comparators, a result consistent

with the statute has been attained.

 

 

            The base wage for a five-year police officer on the PS 10

list for 1997 is as follows:

 

 

1997

 

            Rank               Jurisdiction                 Wage 5-Year Police Officer

            1                      Puyallup                                              4,161

            2                      Redmond                                            4,041

            3                      Longview                                            3,964

            4                      dmonds                                               3,963

            5                      Lynnwood                                           3,926

            6                      Olympia                                              3,921

            7                      Auburn                                                3,888

            8                      Bremerton (1996 wage schedule)      3,789

            9                      Mountlake Terrace                           3,762

            10                    Lacey                                                  3,754

            11                    Mount Vernon                                    3,621

                                                            Guild Ex. 66 & City Ex. A.

 

 

The City would keep the top step at the current $3,789 based on its

lump sum offer.  This would place Bremerton at the bottom quarter

of the comparators.  Given Bremerton's populatiqn and assessed

valuation, the City should not be at the lower end of the pay

ranking.

 

            The settlement trends for 1997 wages ranged from 2.61% to

5%.  The single 5% increase was for Olympia, which was at the low

end of the wage comparators.   The City's lump sum offer that

amounted to a one-time increase of 2.6% is unacceptable based on

the settlement trends and its impact on future settlements.

Adoption of the 5% proposal of the Guild would place Bremerton as

the third highest paying jurisdiction.  Taking into account the

total compensation evidence, there is no justification for placing

Bremerton as the third highest paying city on the list.

 

            The 4% increase awarded by this Arbitrator will set the

top salary at $3,941 or at a ranking of number 5 in pay for the 11

cities on the list.  The critical point for both parties to take

note of is the spread between--number 3 Longview and number 8

Auburn--is $76 per month.  Bremerton at $4,941 per month is right

in the middle of the group of 6 cities in the mid-range on the PS

10.       This places Bremerton within the range of reasonableness when

compared with their counterparts in the PS 10.

 

            The 1997 wage comparison with a 4% increase for Bremerton

appears as follows:

 

1997

 

            Rank               Jurisdiction                 Wage 5-Year Police Officer

            1                      Puyallup                                              4,161

            2                      Redmond                                            4,041

            3                      Longview                                            3,964

            4                      Edmonds                                             3,963

            5                      Bremerton                                          3,941

            6                      Lynnwood                                           3,926

            7                      Olympia                                              3,921

            8                      Auburn                                                3,888

            9                      Mountlake Terrace                           3,762

            10                    Lacey                                                  3,754

            11                    Mount Vernon                                    3,621

 

 

            The 1998 adjustment is somewhat more complicated because

settlements have not been reached in all of the comparators.  A

review of the settlement trends for 1998 shows a range of 3.3% to

6%.     Guild Ex. 94.   The City's evidence also indicates 1998

settlements are in line with the CPI-W.  The 1998 increase offered

by the City was based on a 3.7% increase in the CPI.  The City

offered 90% of the CPI-W or 3.3%.  The Arbitrator will round this

number up to 3.5% for 1998.

 

            The implementation of a 3.5% increase for 1998 will serve

to maintain the competitive position of Bremerton police officers

with the PS 10 jurisdictions and will be consistent with increases

recorded in the CPI.  With a 3.5% increase the top step for a

police officer in 1998 will be set at $4,079.  This is a figure

that is totally compatible with the City's own study of 1998 base

wages.  City Ex. A-12.  The City's study of its own comparables

shows 6 cities will be paying a top-step police officer a minimum

of $4,000 per month.

 

            Turning to 1999, the Arbitrator will award the City's CPI

driven formula for a wage increase, with two modifications.  The

Arbitrator also concurs with the City there should be no additional

increases for sergeants over what was ordered for the Bremerton

police officers.

 

 

Cost of Living

 

            Regarding the cost of living factor, the Arbitrator finds

this factor of little assistance in resolving the current dispute.

The City offered no documentary evidence or argument on this

component of the statute.  This is somewhat surprising since the

City's second and third year wage proposals were based on a CPI

driven formula.  The Guild's data on cost of living was similarly

meager.

 

            Given the strength of the economy and settlement trends,

the Arbitrator will give little weight to this factor.   The

Arbitrator's award on wages for 1997 and 1998 is consistent with

the increases recorded in the CPI figures used by the parties to

calculate their proposed wage adjustments for 1997 and 1998.

 

 

Changes During the Pendency of this Proceeding

 

            Regarding the factor of changes in any circumstance

during the pendency of the proceedings, none were brought to the

attention of the Arbitrator by the parties.

 

 

Other Traditional Factors

 

            A host of potential guidelines are suggested by the

catchall of "other factors .   . normally or traditionally taken

into consideration in the determination of wage,  hours,  and

conditions of employment."  RCW 41.56.465(1) (f) . As this case was

driven by the comparability factor, neither party made a strong

argument there were "other factors" at play in this dispute which

would override the enumerated statutory criteria.

 

            The  issue  of  internal  comparability  is  of  some

significance to the resolution of this dispute.  The City offered

that it had a low turnover rate.  In addition, the City stated it

has no trouble attracting qualified applicants to the police

department.   The City asserts the Guild's  claims regarding

potential turnover are speculative at best.

 

            The Guild did cite to a marked rise in officer workload

over  the past 10 years as  justification for its proposal.

According to the Guild, calls for service per officer have steadily

risen without a commensurate pay increase.

 

            The Arbitrator concludes the "other factors" criteria

bolsters the Guild's case for an increase in excess of the CPI

formula proposed by the City.

 

            In  reaching  a  conclusion on  the wage  issue,  the

Arbitrator was mindful of the additional pay members of this unit

earn under the deferred compensation program and longevity pay

plan.   The continuation of the incentive plans will provide

additional dollars for the members of this unit who do not

participate in social security.  The Arbitrator also took into

account in framing the award on salaries that members of this unit

will continue to enjoy fully paid medical and dental insurance

programs for the duration of the 1997-99 contract.  On the other

hand, co-pay will be introduced during the 1999 contract term. The

members of this unit also enjoy a number of premium pay benefits

which are consistent with the comparators.

 

 

 

AWARD

 

 

On the wage issue, the Arbitrator awards as follows:

 

 

            1.         Effective January 1, 1997, the existing

            wage  schedule  for  police  officers  and

            sergeants shall be adjusted across-the-board

            by 4%.

 

            2.         Effective January 1,  1998,  the wage

            schedule for police officers and sergeants

            shall  be  adjusted  across-the-board by an

            additional 3.5%.

 

            3.         Effective January 1, 1999, the wage rates

            shall be adjusted by 90% of the Seattle CPI-W

            July 1998 Index with a minimum adjustment of

            3% and a maximum adjustment of 6%.

 

 

 

            ISSUE 2 - SALARY ADVANCEMENT

 

 

            A.        Background

 

            Pursuant to Article 5.1.1 employees advance through the

salary schedule on the completion of a full year of continuous

service.  Neither party proposes to modify the existing five-step

salary schedule that is in place both for police officers and

sergeants.  This dispute centers over a City proposal to amend

Article 5.1.1 to allow management to withhold a step increase based

on unsatisfactory performance.

 

            The current language states:

 

            5.1.1    Advancement through the hourly wage

            rates from the first rate through the final

            rate of the longevity scale will occur upon

            completion of the prescribed number of full

            year(s) of continuous, employment since the

            employee's last wage placement.  In the event

            an employee is on approved leave of absence

            without pay, the employee's next wage rate

            advancement date will be extended by the

            actual number of days the employee was absent

            on such leave.

 

 

            B.        The City

 

            The City proposed to modify Article 5.1.1 to read:

 

            5.1.1    Advancement through the hourly wage

            rates from the first rate through the final

            rate of the longevity scale will occur upon

            completion of the prescribed number of full

            year(s) of continuous, employment since the

            employee's last wage placement provided, the

            employer may withhold a step increase for

            unsatisfactory performance  or disciplinary

            action.  A step increase can be withheld for a

            maximum of twelve (12) months during which

            time  the  employee  will  receive  monthly

            evaluations.  In the event an employee is on

            approved leave of absence without pay, the

            employee's next wage rate advancement date

            will be extended by the actual number of days

            the employee was absent on such leave.

 

 

            The City believes the proposed language merely recognizes

an  inherent  management  right  in  dealing  with  substandard

performance.  Automatic step increases provide no incentive for

police officers to improve performance. The comparables offered by

the City support the City's proposed language and the proposal

should be adopted.

 

 

            C.        The Guild

 

            The Guild rejects the City's proposal as a "wide open

right which currently does not exist."  According to the Guild,

adoption of the City's proposal would give management carte blanche

to determine when an individual has performed poorly.  The Guild

also interprets the City's proposal as not allowing a grievance

over a withheld step increase.

 

            The Guild next argues the parties have already entered

into a Memorandum of Understanding which allows management to

discipline by reducing an officer "to a lower step for a specified

period of time. "  City Ex. F-2.  The Guild submits the Memorandum

of Understanding grants the City all the power it needs to address

substandard performance.

 

 

            D.        Discussion and Findings

 

            The Arbitrator concurs with the City that advancement on

the salary schedule should be based on more than just putting in a

year of service.   However, a review of the language from the

comparable contracts does not favor the language offered by the

City.  The language found in the Olympia contract makes a strong

and simple statement concerning step increases.

 

            Article IX, Section B.2 from the Qlympia contract states:

 

            No  such  step  increase  shall  be  denied

            employees who have met acceptable performance

            standards.

 

 

The Arbitrator will award the language from the Olympia collective

bargaining agreement with the modification to make it clear a

denial of a step increase is subject to arbitration.   The

Arbitrator will also place a limit of six months on the length of

time a step increase may be withheld.

 

 

AWARD

 

 

            The Arbitrator awards that Article 5.1.1 be modified to

read:

 

            5.1.1    Advancement through the hourly wage

            rates from the first rate through the final

            rate of the longevity scale will occur upon

            completion of the prescribed number of full

            year(s) of continuous, employment since the

            employee's last wage placement.  In the event

            an employee is on approved leave of absence

            without pay; the employee's next wage rate

            advancement date will be extended by the

            actual number of days the employee was absent

            on such leave. No such step increase shall be

            denied  employees  who have met  acceptable

            performance standards.  Step increases may be

            withheld for a maximum of six (6) months.  The

            denial of a step increase is subject to the

            grievance procedure.

 

 

ISSUE 3 - LONGEVITY

 

 

            A.        Background

 

            Article 5.2 provides for a longevity premium starting 6

years after continuous employment with the City, based on hourly

pay.  Section 5.2 currently reads:

 

            5.2       LONGEVITY PAY:  Longevity pay, which is a

            rate of pay based on the length of completed

            continuous service with the City, shall be

            calculated on the individual employee's hourly

            wage rate and shall be paid as follows:

 

            Length of Continuous Service                                               Rate Per Hour

            0 through 5 years continuous employment                                       0%

            Commencing   6 through 10 years continuous employment 1%

            Commencing   11 through 15 years continuous employment           2%

            Commencing   16 through 20 years continuous employment           3%

            Commencing   21 years and over continuous employment              4%

 

 

The Guild has proposed to double the rates for each category.  The

City would continue the existing longevity rates.

 

 

            B.        The Guild

 

            The Guild's proposal would set the rates as follows:

 

            Length of Continuous Service                                               Rate Per Hour

            0 through 5 years continuous employment                                       0%

            Commencing 6 through 10 years continuous employment   2%

            Commencing 11 through 15 years continuous employment 4%

            Commencing 16 through 20 years continuous employment 6%

            Commencing 21 years and over continuous employment                8%

 

 

The Guild submits its arguments on wages equally apply to this

proposal.   Both total compensation and wage data support this

proposal.

 

            Moreover, the members of this unit do not receive an

education premium, as many of their counterparts do.  The lack of

social security and education premium argue in favor of this

proposal.   The comparables and the longevity provision in the

Bremerton fire contract warrant adoption of the longevity proposal.

 

 

            C.        The City

 

            The City begins by pointing out 6 of its proposed

comparators provide no longevity premium. In the view of the City,

the current rate is competitive with the amounts paid in the

comparable jurisdictions.

 

            Moreover, the City has some concern about the value of

longevity pay.  When an employer pays a competitive base wage, the

City argues better wages reward veteran employees.  The Guild has

provided no evidence to justify implementation of its proposed

increase.

 

            The current system is percentage based rather than a

fixed dollar amount.  As the police officers base pay increases,

the longevity pay also rises to a higher amount.  The City submits

the weight of the evidence favors retaining the status quo.

 

 

            D.        Discussion and Findings

 

            The starting point to recognize is that longevity pay

will rise over the course of the three-year contract without a

change in the current rate. Because the longevity premium is based

on a percentage figure,  the amount paid to Bremerton police

officers will rise in direct proportion to the increases this

Arbitrator has ordered on the salary schedule.

 

            Approximately 50% of the comparators offer a longevity

premium.  While the City's longevity premium is not at the top of

the scale, it is not at the bottom of the rate paid in these

jurisdictions.  The rate paid is comfortably positioned in the

middle range. Hence, the Arbitrator was unconvinced of any need to

double the longevity premiums.

 

            The Arbitrator was persuaded to make one change to

Article 5.2.  An additional step was added to the Bremerton fire

contract after 26 years of continuous service. The Arbitrator will

order that effective January 1, 1999, an additional step shall be

added to the longevity schedule for officers with over 26 years of

service. By including this additional step, the City's recognition

of veteran employees in the police and fire services will be

equalized.

 

 

AWARD

 

 

            The Arbitrator awards that effective January 1, l999,

Article 5.2 shall be amended to read:

 

 

            5.2 LONGEVITY PAY: Longevity pay, which is a

            rate of pay based on the length of completed

            continuous service with the City, shall be

            calculated on the individual employee's hourly

            wage rate and shall be paid as follows:

 

            Length of Continuous Service                                               Rate Per Hour

            0 through 5 years continuous employment                           0%

            Commencing 6 through 10 years continuous employment               1%

            Commencing 11 through 15 years continuous employment             2%

            Commencing 16 through 20 years continuous employment             3%

            Commencing 21 through 25 years continuous employment             4%

            Commencing 26 years and over continuous employment                5%

 

This provision shall become effective January 1, 1999.

 

 

ISSUE 4 - REASSIGNMENT OF NON-PROBATIONARY EMPLOYEES

 

 

            The parties reached agreement at the arbitration hearing

on language to resolve this issue.  The dispute was settled by

agreement to add language at Article 6.2.3 of the contract to read:

 

            Notwithstanding 6.2.1 and 6.2.2, the Chief of

            Police  may  reassign  any  non-probationary

            employee for just cause twice each year and

            probationary employees may be reassigned to

            shifts at the discretion of the Chief of

            Police.

 

 

ISSUE 5 - CO-PAY

 

            A.        Background

 

            Pursuant to Article 14, the members of this unit enjoy a

full range of insurance benefits.  The majority of the insurance

benefits for the employees are fully paid by the City.  Members

have the option of selecting coverage through the Kitsap Physicians

Service Plan or Group Health.

 

            Group Health recently included a co-pay charge of $5.00

at the time service is rendered. The dispute in this issue centers

over a City proposal to require police officers to be responsible

for the co-pay amount.

 

 

            B.        The City

 

            The City proposed to add new language to the contract

which states:

 

            Should any of the above plans require a co-pay

            now or in the future, it shall be paid by the

            employee.

 

 

According to the City, employee co-pay is the standard.  Bremerton

firefighters and employees represented by the Teamsters all pay a

co-pay amount.   Further, Guild members who participate in the

Kitsap Physicians Service Plan are responsible for a co-pay.  The

Guild's objection to co-pay is untenable.

 

            In sum, the City concludes the Arbitrator should adopt

the City's proposed language.

 

 

            C.        The Guild

 

            The Guild takes the position the proposed language would

allow the City total freedom to define the amount of the co-pay.

In the Guild's view, this clause runs counter to the City's duty to

bargain over wages and benefits. None of the collective bargaining

agreements relied on by the City permit management to unilaterally

set the co-payment levels.

 

            The Arbitrator shduld reject the City's proposal as

without adequate factual support. When the lack of factual support

is combined with the vague language, the Arbitrator should reject

the City's co-pay proposal.

 

 

            D.        Discussion and Findings

 

            The Arbitrator agrees that a small co-pay is reasonable

and supported by the evidence. This is particularly true when most

of the insurance benefits are fully paid for the members of this

unit by the City. Both the external and internal comparators argue

for the City's position.  However, the Arbitrator does share the

Guild's concern the language as proposed is vague and uncertain as

to scope and liability.  A careful review of all of the collective

bargaining agreements by this Arbitrator revealed none with the

broad language proposed by the City.

 

            The Arbitrator will modify the City's  language  to

establish a cap on the amount of co-pay that might be required of

an employee.  Further, I will delay implementation of the co-pay to

January 1, 1999, to allow for a period of adjustment.  This will

also permit time to work out details with the insurance carriers.

 

 

AWARD

 

            The Arbitrator awards new language shall be added to

Article 14 which states:

 

            Effective  January 1,  1999,  should  either

            Kitsap Physicians Service Plan A or Group

            Health  Cooperative now or  in  the  future

            require a co-pay, the co-pay will be paid by

            the employee.   The amount the employee is

            obligated to pay shall not exceed $5.00 per

            visit.

 

 

ISSUE 6 - NON-UNIFORM ALLOWANCE

 

 

            A.        Background

 

            Article 15 addresses the subject of clothing and uniform

cleaning allowance. The dispute in this issue centers over a Guild

proposal to increase the clothing allowance for non-uniformed

officers.   Article 15.2 of the current contract establishes a

clothing allowance for non-uniformed officers at the annual rate of

$425.00 per officer. The Guild would increase the annual amount to

$450.00 in 1997 and to $475.00 in 1998.  The City would continue

the current contract language.

 

 

            B.        The Guild

 

            The Guild argues this is an economic benefit which should

be determined in light of the comparability data. According to the

Guild, the collective bargaining agreements from both the City and

Guild comparables  support an increase in the plain clothes

allowance.  The trend in the collective bargaining agreements is to

increase the clothing allowance.

 

 

            C.        The City

 

            The City argued that existing contract language should be

retained.  It is the City's position the current clothing allowance

is adequate.   Hence, the Arbitrator should reject the Guild's

proposal.

 

 

            D.        Discussion and Findings

 

            The clothing allowance paid to the members of this unit

is on the low end of the comparables offered by both the City and

the Guild.  A range of $450.00 to $500.00 is the commonly accepted

amount for plain clothes allowances.  The Arbitrator will order

that effective January 1, 1998, the clothing allowance be increased

to $450.00.   Further, effective January 1, 1999, the clothing

allowance should be increased to $475.00.

 

 

 

AWARD

 

 

            The Arbitrator orders that Article 15.2 be modified to

read as follows:

 

            15.2     CLOTHING ALLOWANCE: An annual allowance

            effective  January  1,  1998  equal  to  four

            hundred  and  fifty  dollars  ($450.00)  and

            January 1,  1999 equal to four hundred and

            seventy-five dollars ($475.00) per year will

            be provided to non-uniformed, sworn personnel.

            Such allowance shall be paid one-half during

            the month of January and July.  In the event

            an employee is transferred to the Detective

            Division and is assigned as a Detective,

            he/she will  receive  a pro  rata clothing

            allowance payment.

 

 

ISSUE 7 - ENTIRE AGREEMENT

 

            The parties reached agreement at the arbitration hearing

to continue the current contract language found in Article 21.  The

issue was withdrawn from arbitration.

 

 

ISSUE 8 - DEFERRED COMPENSATION

 

 

            A.        Background

 

            Members of this unit do not participate in the social

security system.   In negotiations for the 1995-96 Collective

Bargaining Agreement, the Guild proposed a deferred compensation

program.   Negotiations over the deferred compensation program

resulted in a new economic benefit being added to the 1995-96

Collective Bargaining Agreement.

 

            The new provision provided as follows:

 

            ARTICLE 25  DEFERRED COMPENSATION

 

            25.1     DEFERRED  COMPENSATION:    Effective

            January 1, 1996 the Employer shall match the

            payroll deduction of any written request by an

            employee covered by this Agreement,  in an

            amount not to exceed two percent (2.0%) of the

            employee's base monthly wage rate.

 

 

The center of disagreement over this issue concerns a Guild

proposal to increase the matching amounts.

 

 

            B.        The Guild

 

            The Guild proposed to modify Article 25.1 to state:

 

            25.1   DEFERRED COMPENSATION:   The Employer

            shall match the payroll deduction of any

            written request by an employee covered by this

            Agreement, in an amount not to exceed four

            percent (4%) in 1997 and five (5%) in 1998 of

            the employee's base monthly wage rate.

 

 

It is the position of the Guild the deferred compensation program

should be viewed as a wage related economic benefit.  Deferred

compensation is part of the total compensation package.   The

particular focus of total compensation being on total retirement

and comparables exempt from social security.

 

            Since the City does not participate in social security

for police officers, the task of the Arbitrator is to determine an

appropriate substitute which will bring the economic package in

line with the comparators.  Deferred compensation is the agreed on

vehicle for such retirement payments.  The only issue is the level

of payment.

 

            The trend in police contracts is toward adding or

increasing the amount of deferred compensation.  According to the

Guild, increases in the 6% to 7.5% range are necessary to bring the

City in line with the comparables.  As a compromise, the Guild is

proposing to phase in adjustments at the 4% and 5% levels.

 

            The City's proposal to freeze the deferred compensation

program is out of touch with the trends. Therefore, the Arbitrator

should award the Guild's proposal.

 

 

            C.        The City

 

            This  program  was  implemented  during  the  1995-96

Collective Bargaining Agreement.   Adoption  of  the  deferred

compensation program was part of a market adjustment to increase

total compensation.  Participation in the deferred compensation

program is voluntary on the part of the members.  The Guild has

provided no evidence to justify an increase in the current program

matching amounts.

 

 

            D.        Discussion and Findings

 

            The deferred compensation program was first implemented

with the 1995-96 Collective Bargaining Agreement.  In the judgment

of this Arbitrator, the Guild has made no compelling showing for

its proposal to double the contribution during this round of

bargaining.  It is a new benefit that should be allowed to develop

as originally agreed in the previous contract.

 

            The Arbitrator is not holding that future changes in this

program might not be warranted.  However, those changes should be

left for future negotiations.  With the three-year contract as

awarded by the Arbitrator terminating December 31, 1999,  the

parties will have the opportunity to revisit this issue in a

relatively short period of time.   At that time the deferred

compensation program will be ripe for negotiations.

 

            Moreover, in rejecting this proposal, the Arbitrator

remains mindful that his focus has been on the wage schedule.

Changes awarded on economic issues have been minor in order to

concentrate on the issue of basic wages.

 

 

AWARD

 

 

            The Arbitrator rejects the Guild's proposal and orders

that current language found in Article 25.1 continued unchanged.

 

 

 

ISSUE 9 - DURATION

 

 

            A.        Background

 

            The current two-year contract expired on December 31,

1996.  For over two and one-half years the parties have been unable

to negotiate a successor Agreement.  The Guild has proposed a two-

year contract and the City has proposed a three-year contract.

 

 

            B.        The Guild

 

            While the Guild has proposed a two-year contract, it

acknowledges that under the circumstances of the instant case this

Arbitrator will probably grant  a three-year  contract.    In

recognition of this possibility, the Guild urges the Arbitrator to

award an overall economic package which accounts for current and

anticipated trends in police labor agreements.

 

            The Guild's evidence indicates 1998 settlements are

exceeding those of 1997.  The City's 90% of cost of living offer

appears out-of-line with current settlement trends.  Hence, the

Guild submits the Arbitrator should award a third year wage

increase which will enhance the ability of members of this unit to

remain competitive with police officers in the PS 10.

 

 

            C.        The City

 

            Given the long delays in this case, the City argues a

third year will provide the parties with a much needed hiatus from

the bargaining table.  The City relied on the reasoning stated by

this Arbitrator in two recent interest arbitration awards for doing

the same in the instant case.

 

 

            D.        Discussion and Findings

 

            If the Arbitrator awarded a two-year Agreement, it would

expire in less than six months from the date of this Award.  The

reasoning for ordering a three-year Agreement which was expressed

by this Arbitrator in earlier cases is equally applicable in this

case.  The negotiations have been long and at times bitter.  In the

judgment of your Arbitrator, the time has come to conclude the

negotiations and move on with the business of policing the City.

 

 

            In Clark County and Clark County Deputy Sheriffs Guild,

PERC No. 11845-1-95-252, I wrote:

 

                        The Arbitrator can think of no valid

            reason for awarding a contract which would

            compel  the  parties  to  immediately begin

            negotiations for a successor to the Guild's

            proposed 1995-96 Agreement. If the Arbitrator

            were  to  adopt  a  two-year  Agreement,

            approximately 75% of the contract's duration

            would  fall prior  to  the  signing of  the

            Agreement.  As the County correctly pointed

            out, the "shelf-life" would be approximately

            seven months.  The idea of compelling these

            parties  to  turn  right  around  and begin

            bargaining  for  a  successor  Agreement  is

            totally without merit. . .

 

In City of Everett and Everett Police Officers Association, PERC

No. 12476-1-96-272, this Arbitrator reasoned as follows:

 

            The Arbitrator holds that the City's proposal

            for a contract extending through the last day

            of December 1998 should be adopted.  There is

            little to say for awarding a contract which

            would be approximately 75% elapsed at the time

            it  is  concluded.    The  parties  to  this

            Agreement  need a reprieve  from the  time

            consuming  and  expensive  aspects  of  the

            collective bargaining process.  The adoption

            of a three-year Agreement will allow for a

            return to stable labor relations.

 

 

AWARD

 

            The Arbitrator awards that Article 26.1  should be

modified to read:

 

            This Agreement shall become effective January

            1, 1997 and shall remain in effect through

            December 31,  1999  and  may  be  extended

            thereafter by mutual agreement.  It is further

            agreed that the City or the Association may

            request reopening of this Agreement any time

            within six (6) months of the expiration for

            the purpose of negotiating changes  to be

            effective following the expiration of this

            Agreement with such notice to be in writing to

            the other party.

 

 

ISSUE 10 - SICK LEAVE DONATION

 

 

            The parties reached agreement on this issue during the

arbitration hearing and the matter was withdrawn from arbitration.

 

 

ISSUE 11 - MASTER POLICE OFFICER

 

 

                        The parties reached agreement on this issue. The parties

agreed to the following language:

 

 

The number of MPO's shall not exceed fourteen

(14).

 

 

Respectfully submitted,

 

 

Gary L. Axon

Arbitrator

Dated: August 3, 1998

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