INTEREST ARBITRATIONS

Decision Information

Decision Content

International Association of Machinists And Aerospace Workers

And

City of Milton

Interest Arbitration

Arbitrator:      John H. Abernathy

Date Issued:   05/18/1999

 

 

Arbitrator:         Abernathy; John H.

Case #:              13396-I-97-00285

Employer:          City of Milton

Union:                IAM; Local 160

Date Issued:      05/18/1999

 

 

 

IN THE MATTER OF THE INTEREST                            )           INTEREST

            ARBITRATION                                                        )           ARBITRATOR'S

                                                                                                )

            BETWEEN                                                                 )           OPINION

                                                                                                )

THE CITY OF MILTON, WASHINGTON                        )           AND

                                                                                                )

                                                (City)                                       )           AWARD

AND                                                                                       )           ON THE FOLLOWING

                                                                                                )

INTERNATIONAL ASSOCIATION OF                            )           SUBMITTED ISSUES:

MACHINISTS AND AEROSPACE WORKERS,  )           1.  Wages for Police LODGE NO. 160                                                                                             )                 Officers and Sergeants

                                                                                                )           2.   Retroactivity of any

                                                (Union.)                                   )                 Wage Increase

                                                                                                )           3.   Educational Incentives

                                                                                                )           4.   Overtime work/7(K)

_____________________________________                      )                 Exception.

 

HEARING SITE:      9315 15th Place South Seattle, Washington

 

HEARING DATE:    May 13 and 14, 1998

 

ARBITRATOR:        John H. Abernathy

                                    207 Enders Alley

                                    Ashland, OR 97520

 

 

APPEARING FOR THE CITY:

 

                                    Bruce E. Heller, Attorney at Law

                                    Reed McClure Law Firm, Seattle

 

APPEARING FOR THE UNION:

 

                                    Don Hersey, Business Representative

 

 

BRIEFS RECEIVED:

                                    June 25, 1998

 

 

 

                                                            INTRODUCTION

 

            Pursuant to RCW 41.56.450, the Executive Director of the Public Employment

Relations Commission for the State of Washington declared that in the police bargaining

negotiations between The City of Milton ("City") and International Association of

Machinists and Aerospace Workers, Lodge 160 ("Union") there remained four unresolved

issues (wages, retroactivity, education incentives and overtime work/7(k) exception). The

Executive Director then directed those four issues be submitted to interest arbitrati on.

The parties selected John H. Abernathy to serve as the interest arbitrator.

            Arbitrator Abernathy conducted an Interest Arbitration hearing in this matter on

May 14, 1998 in Seattle, Washington. Business Representative Don Hursey represented

the Union and Mr. Bruce Heller, Attorney at Law, represented the City. It was agreed at

the conclusion of the hearing that each parry would submit a post-hearing brief

postmarked no later than June 15, 1998, with a copy to the other party. This date was

extended to June 22, 1998, by mutual agreement of the parties. The Interest Arbitrator

declared this hearing closed upon the timely receipt of those briefs on June 25, 1998.

            Milton Washington is a city of 5,525 population in an area of 2.2 square miles,

with a total assessed valuation of $2417258,951. The City is located on the King-Pierce

County line, about 25 miles south of Seattle and five miles North of Tacoma The City is

operated under the Mayor-Council form of government, and has an overall employment

compliment of 39 full time and 11 part time employees.

            The Milton Police Department employs 11 full time employees. IAM Local 160

is a labor organization representing two bargaining units within the department: 1) two

non-commissioned support: services personnel who are part of a non-uniformed personnel

unit; and 2) nine commissioned employees in the Police Department - seven police

officers, one detective and one sergeant. Only these nine commissioned employees are

subject to interest arbitration, and it is that bargaining unit which is at impasse The

average length of service of employees in the police commissioned unit as of the date of

the hearing was nine years, excluding the one probationary police officer.

 

                                    SUMMARY OF CURRENT NEGOTIATIONS

 

            A labor agreement between the parties covering this unit of employees was set to

expire December 31, 1996. Negotiations toward a successor contract began in April 1996

with District Lodge 160 Business Representative Don Hursey bargaining for the Union

and then-Mayor Leonard Sanderson bargaining for the City. Historically, although the

parties had not been eligible for interest arbitration prior to July 1, 1997, they had

according to the union, employed methodology of comparing cities with one-half to twice

the population and total assessed valuation of the City of Milton. The City denies there

was an agreement to do so. To further narrow their differences, Don Hursey claimed that

he and then-Mayor Sanderson agreed to limit their comparables to a four county area in

Western Washington of Snohomish, King, Pierce, and Kitsap.

            Shortly after the Union presented a set of contract proposals in July 1996, the City

advised the Union that then-Mayor Sanderson would not be conducting the negotiations

on behalf of the City. Thereafter, negotiations were suspended while the City selected a

new negotiator and a new negotiating team; a process which was not completed until

December 1996. The City's new negotiator, Attorney Bruce Heller, met with Don Hursey

in December of 1996. Productive bargaining began in earnest at the turn of the year after

the then pending labor agreement had expired.

            Once negotiations between Hursey and Heller were underway, the City began

proposing comparators beyond the four county area agreed to by Don Hursey and

then-Mayor Sanderson - including cities in Eastern Washington. This altered approach

was employed by the City for the remainder of the negotiations, including mediation, and

remained so until the interest arbitration hearing. At the interest arbitration hearing, the

City no longer offered Eastern Washington Jurisdictions as comparators.

            In addition, after HelIer became the City's chief spokesman, the City began to

utilize a methodology of 33% plus or minus in population and total assessed valuation to

select comparable cities.

            When the parties were unable to reach agreement through their own efforts on all

issues, mediation was requested from PERC and a mediator was assigned. After

mediation and at the recommendation of PERC Mediator Katrina L Boedecker, four

issues were directed to interest arbitration by PERC Executive Director Marvin Schurke

by letter dated September 12, 1997. This interest arbitration resulted.

 

                                                STATUTORY GUIDELINES

 

            Interest arbitration in Washington State is governed by Title 41 RCW: Public

Employment, Civil Service and Pensions. Relevant portions of Title 41 for this interest

arbitration are:

 

            RCW 41.56.030 Definitions - which defines public employees as:

 

            ". . .any officer, board, commission, council, or other person or body acting on

            behalf of any public body governed by this chapter, or any subdivision of such

            public body."

 

            and specifics where interest arbitration for law enforcement officers may be

            used as:

 

            "(a)(i) Until July 1, 1997, law enforcement officers as defined in RCW 41.26.030

            employed by the governing body of any city or town with a population of seven

            thousand five hundred or more and law enforcement officers employed by the

            governing body of any county with a population of thirty-five thousand or more

            (ii) beginning on July 1, 1997, law enforcement officers as defined in RCW

            41.26.030 employed by the governing body of any city or town with a population

            of two thousand five hundred or more and law enforcement officers employed by

            the governing body of any county with a population of ten thousand or more; . . ."1

 

1              This means that the City of Milton (pop. 5525) was not subject to interest

arbitration in its law enforcement bargaining unit prior to July 1, 1997, but was after that

date.

 

            RCW 41 .56.465 requires interest arbitrators to consider the following factors in

making their determination:

 

". . . the legislative purposed enumerated in RCW 41.56.430 and, as additional

standards or guidelines to aid it in reacting 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 4156.030(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 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.

            (2)        Subsection (1)(c) of this section may not construed to authorize the

panel to require the employer to pay, directly or indirectly, the increased employee

contributions resulting from chapter 502, Laws of 1993 or chapter 517, Laws of

1993 as required under chapter 41.26 RCW. (1995 c 273 paragraph 2; 1993 c 398

paragraph 3.)"

 

                        APPLICABLE STATUTORY FACTORS IN THIS CASE

 

            Not all of the statutory factors in RCW 41.56.465 were in dispute in this case. For

example the parties agree that the City has the constitutional and statutory authority to

enter into negotiations with the Union and since July 1, 1997, has the authority to submit

unresolved issues to interest arbitration for a binding decision. Therefore, statutory factor

(a) is not in dispute.

            Nor is factor (b). The parties stipulated: 1) to waive the tripartite panel called for

in RCW 41.56.450; 2) that only the four issues certified for interest arbitration remain in

dispute; and 3) that the agreed upon general wage increases for 1997, 1998, and 1999

would be 3%, 3%, and 4% respectively. This stipulation as to the negotiated wage

increases for the three contract years largely renders factor (d) cost of living, of lesser

importance than under circumstances where the general wage increase is an issue in

interest arbitration

            The remaining factors - (c) comparability, (e) changes in circumstances, and (f)

other factors - are the most relevant factors for this dispute. Factors (e) and (f) were not

relied upon to any great degree by either party except for the controversy over what was

the relevant year for comparative data. The most hotly debated of these three factors was

comparability. Each party had a different methodology for arriving at comparable

jurisdiction and each party was critical of the other's methodology and list of comparables.

            The section below summarizes the comparability dispute: first, by presenting

Methodology (the Union's and the City's); Supporting Arguments (Union and City); and

Criticisms (of the other's methodology). Then I shall analyze the comparability evidence

and make findings. These findings will later be applied to the four issues in dispute.

            In addition to these statutory factors I have found it useful in my experience in

factfindings and interest arbitrations over the past 28 years to place the burden of

proof/persuasion on the party seeking a change. To prevail, the party seeking change

must be able to prove that a problem exists and that the proposed change will correct this

problem. I shall use this assignment of burden in this case.

 

                                                            PRELIMINARY ISSUE

                                                COMPARABLE JURISDICTIONS

 

            Statement of the Issue: What jurisdictions should be adopted by the Arbitrator for

comparison to the City of Milton?

 

                        Union's MethodoIogy Used in the Selection of ComparabIes

 

            The Union utilized: (1) population; (2) assessed valuation; and (3) jurisdictions

within close proximity to Milton to select comparable jurisdictions. The Union searched

for all jurisdictions within one-half to twice the population of Milton (-50% to +200%),

the same range in assessed valuation and local geographical proximity to Milton, i.e. cities

within Snohomish, King, Pierce and Kitsap Counties The following table provides the

Union's first list of 17 possible comparable jurisdictions.

 

Rank   Jurisdiction                 County            1995 Assessed Valuation                  1995 Population

1          Enumclaw                   King                $453,253,013                                      10,170

2          Bonney Lake              Pierce              $380,528,732                                      9.085

3          Sumner                       Pierce              $363,969,796                                      7,700

4          Snohomish                  Snohomish      $357,876,663                                      7,495

5          Port Orchard              Kitsap             $257,629,361                                      6,240

6          Stellacoom                  Pierce              $424,849,253                                      6,120

7          Monroe                       Snohomish      $345,276,752                                      6,095              

8          Brier                           Snohomish      $309,127,765                                      6,030              

9          Poulsbo                       Kitsap             $311,817,476                                      5,765  

10        Fircrest                       Pierce              $263,650,746                                      5,375              

11        Arlington                     Snohomish      $336,665,539                                      5,350

12        Milton                         Pierce              $241,258,951                                      5,270

13        Lake Stevens             Snohomish      $228,943,105                                      4,955

14        Fife                              Pierce              $464,886,415                                      4,250

15        Gig Harbor                 Pierce              $327,234,425                                      3,890

16        Buckley                      Pierce              $129,322,203                                      3,870

17        Duvall                         King                $180,383,137                                      3,490              

18        Clyde Hill                   King                $473,081,072                                      3,000

                                                                        $324,986,356                                      5,786

 

 

            The Union narrowed this list to 12 jurisdictions by selecting the 6 entries

immediately greater and the 6 entries immediately smaller than Milton. That resulted in

the following list of 12 possible comparable cities

 

 

Rank   Jurisdiction                 County 1995               Assessed Valuation               1995 Population

1          Stellacoom                  Pierce                          $424,849,253                          6,120

2          Monroe                       Snohomish                  $345,276,752                          6,095

3          Brier                           Snohomish                  $309,127,765                          6,030

4          Poulsbo                       Kitsap                         $311,817,476                          5,765

5          Fircrest                       Pierce                          $263,650,746                          5,375

6          Arlington                     Snohornish                  $336,665,539                          5,350

7          Milton                         Pierce                          $241,258,951                          5,270

8          Lake Stevens             Snohomish                  $228,943,105                          4,955

9          Fife                              Pierce                          $464,886,415                          4,250

10        Gig Harbor                 Pierce                          $327,234,425                          3,890

11        Buckley                      Pierce                          $129,322,203                          3,870

12        Duvail                         King                            $180,383,137                          3,490

13        Clyde Hill                   King                            $473,081,072                          3,000

                                                                                    $335,498,707                          4,881

 

            The Union further refined this list by deleting Stellacoom (because police officers

there also serve as firefighters) and substituted Port Orchard (because it met the other

Union selection criteria). This resulted in the following final Union's List of Comparables

 

Rank   Jurisdiction     County  1995 Assessed Valuation    1995 Population

            Arlington                     Snohomish                  $336,665,539                          5,350

            Brier                           Snohomish                  $309,127,765                          6,030

            Buckley                      Pierce                          $129,322 203                          3,870

            Clyde Hill                   King                            $473,081,072                          3,000

                                                                                    $335,498,707                          4,881

            Fife                              Pierce                          $464,886,415                          4,250

            Fircrest                       Pierce                          $263,650,746                          5, 375

            Gig Harbor                 Pierce                          $327,234,425                          3,890

            Lake Stevens                         Snohomish                  $228,943,105                          4,955

            Monroe                       Snohomish                  $345,276,752                          6,095

            Poulsbo                       Kitsap                         $311,817,476                          5,765

            Port Orchard Kitsap                         $257,629,361                          6,240

 

            The Union contends that its list of comparable jurisdictions is appropriate as it is

drawn from a methodology accepted in the industry and historically utilized by the parties

and, appropriately, utilizes data available to the parties at the time of their negotiations.

The Union urges the Arbitrator to adopt its lists of comparables.

 

                        The City's Methodology Used in the Selection of Comparables

 

            The City focused on the customary measurements of a city's size (population) and

source of taxable wealth (assessed valuation) to arrive at its initial list of comparable cities.

The City then used a 33% range, i.e., cities and towns with populations between 33% less

than and 33% greater than that of the City of Milton which provides a population range of

between 3,683 to 7,348. The City arrived at this + or - 33% factor by researching police

and fire interest arbitration awards since 1990 where arbitrators have applied the "similar

size" criterion. The table below summarizes that research:

 

Date of Arb    Interest                       Parties to the Min. Population          Max. Population

Award Arbitrator Name        Arbitration                  of Comps                    of Comps.

5/27/97            Axon                           Everett v. EPOA                    -31%               +31%*

7/30/97            Axon                           Sno Co v. Teamsters             -50%               +50%

                                                            No. 763

6/20/96            Abernathy                   Camas v. IAFF                       -50%               +50%*

2/06/92            Axon                           Pullman v. PPOG                   -10%               +86%

6/17/91            Beck                           Bellingham v. IAFF                -28%               +90%

2/12/90            Krebs                          Pasco v. PPOG                       -30%               +30%

10/04/90          Levak                         Pasco v. IAFF             -50%               +50%*

6/17/91            Beck                           Moses Lake v. IAFF             -38%               +60%

4/02/96            Latsch                         Bellingham v.                         -50%               +50%

                                                            Teamsters No. 231

9/17/97            Lumbley                      Centralia v. IAFF                   9%                  +46%*

7/01/97            Beck                           Vancouver v. VPOG              -50%               +50%*

 

            *In each of these cases, the Union wanted to utilized twice as much cut-off point

(or greater), and it was expressly rejected by the Arbitrator.

 

            Through this process the City identified a rather large group of 35 Washington

cities and towns, including Milton. Other population ranges in the record where the

parties could not agree include: +1-20% in City of Lynnwood v Teamsters Local No 763

(Abernathy, 1980), +/-33% in Ciwkutz County v. Teamsters Local No. 763 (Beck, 1987),

-27% to +47% in City of Seattle v. Seattle Police Management Association (Beck, 1983),

45% to 40% in Snohomish County v. Teamsters Local No. 763 (Krebs, 1986). Also,

Krebs in Seattle v. Seattle Police Management Association Krebs, 1984) concluded that

Seattle, a city 80% larger than Sacramento is not similar in size. He also concluded that

"... to include such cities as San Diego that have a population of 75% or more than that of

Seattle would, in the opinion of your Chairman, not be in accord with the statutory

mandate to compare cities of similar size.'' (pp.11-12). When large ranges have been

used, such as the -50% to 200% proposed by the union in this proceeding, it has been

when the parties had agreed to consider such a range. This was the case in City of

Bellingham v. IAFF Local No 106 (Beck, 1991) at pp.6-7 and (Beck, 1994) at p. 6

However, when the comparables were finally selected, Arbitrator Beck selected the closest

five up and five down in population and the resulting range was much narrower. In that

case, Bellingham's population was listed as 47,290. The largest population selected by

Arbitrator Beck was Clark at 80,000 (+69%) and the smallest population selected was

Kennewick at 36, 880 (-22 %). See p.22 (Beck, 1991). Finally a +1-30% population band

was agreed upon in King County IAFF LocaI No. 2459 (Beck, 1988).

            Contrary to the Union's contention at the hearing that the +200% and the -50%

band was commonly used, the City could find no arbitration awards to support the

Union's approach. The City argued that its proposed range of +/-33% is more consistent

with prior arbitration awards than the +200% and -50% proposed by the Union.

            Applying the +1- 33% range the City found the following cities comparable in

population to Milton:

 

                                                            Cities and Towns

                                                   With Resident Populations

                                                     +/-33% of Town of Milton

 

            Town                                       Population

            Ferndale                                 7,235

            Normandy Park                      7,122

            Chehalis                                  7,035

            Port Orchard                          6,965

            Battleground                          6,948

            West Richland                        6,930

            College Place                         6,980

            Clarkston                                6,870

            Steilacoom                              6,185

            Brier                                       6,180

            Poulsbo                                   6,175

            Arlington                                 6,010

            Ephrata                                   5,945

            Fircrest                                   5,895

            Selah                                       5,730

            Pacific                                     5,640

            Milton                                     5,525

            Burlington                               5,445

            Othello                                    5,395

            Union Gap                              5,325

            Lake Stevens                         5,290

            East Wenatchee                     5,245

            Prosser                                   4,840

            Colville                                   4,690

            Fife                                          4,545

            Ornak                                     4,495

            Sequim                                    4,375

            AIrway Heights                      4,139

            Gig Harbor                             4,130

            Quincy                                    4,030

            Buckley                                  3,920

            Wapato                                   3,880

            Duvall                                     3,813

            Montesano                             3,810

            Medical Lake                         3,790

 

            Source:           Official 1997 Population of Washington Clties.

 

            To reduce this list to more manageable proportions the City then applied assessed

valuation, again using the +33% to -33% range resulting in an assessed value range of

$175,285,798 to $349,695,167. Milton's 1997 assessed valuation for 1998 taxes was

$228,955,105 in Pierce County and, $33,973,592 in King County, for a total assessed

valuation of $262,928,697.

            This process resulted in the elimination of 15 jurisdictions resulting in the

following 20 cities and towns. During the arbitration, the City explained that it had

inadvertently included several comparables that fell outside the +1-33% band in assessed

valuation. They were Pacific with an assessed valuation of $174,848,233 (-33.5%);

Buckley with an assessed valuation of $~43,364,48l (45.5%) and Poulsbo with an

assessed valuation of $362,488,539 (+37.9%). As Pacific, Buckley, and Poulsbo fall

outside the +1- 33% band they should be removed from the list. The following list of cities

resulted.

 

                                                Washington State Cities and Towns

                            With Resident Populations and Assessed Valuations

                                                      ~/-33% of Town of Milton

 

            Jurisdiction                 Population       Assessed Valuation

            Chehalis                      7035                $336,655,619

            Brier                           6180                $332,388,303

            East Wenatchee         5245                $311,599,785

            Port Orchard              6965                $296,559,770

            Sequim                        4375                $281,314,679

            Fircrest                       5895                $276,133,034

            Battleground              6948                $271,837,895

            Milton                         5525                $262,928,697

            Selah                           5730                $253,096,028

            Lake Stevens             5290                $250,403,048

            Union Gap                  5325                $244,737,028

            Othello                        5395                $244,030,063

            West Richland            6930                $231,611,746

            Colville                       4690                $226,055,376

            Prosser                       4840                $224,305,425

            Duvall                         3813                $209,403,955

            Clarkston                    6870                $191,416,799

            Ephrata                       5945                $182,558,934

            Quincy                        4030                $180,250,960

            College Place             6980                $178,966,585

 

            In light of the new requirement of RCW 41.56.030(7)(a), consideration to regional

differences in the cost of living, PEW 41.465(1)(f), the City used geographical proximity

to Milton as a further screening criteria. Consequently, the City next looked more closely

at the neighboring counties with cities and towns of similar size in the Puget Sound Area

(King, Kitsap, Pierce, Snohomish, and Thurston Counties).2 According to the U.S.

Department of Commerce, Bureau of the Census, these counties comprise the

Consolidated Metropolitan Statistical Area (CMSA), as defined by the Federal Office of

Management, and Budget on June 30, 1993 Cities outside those counties were

eliminated. This process resulted in the elimination of 11 more of the City's possible

jurisdictions, which provided the following 8 cities and towns, all of which have their own

police departments and employ police officers, to utilize as comparables.

 

2 Thurston County was not used by the Union but the other four Counties were.

 

                                                            The City of Milton's

                                                Comparable Cities and Towns

                        With Resident Populations and Assessed Valuations

                                                +1- 33% of Town of Milton and

                                         Located in Puget Sound Labor Market

 

Jurisdiction                 Population       Assessed Valuation   Location

Port Orchard              6,965               $296,559,770  Kitsap

Brier                           6,180               $332,388,303  Snohomish

*Poulsbo                     6,175               $362,488,539  Kitsap

Fircrest                       5,895               $276,133,034  Pierce

*Pacific                       5,640               $174,848,233  Pierce, King

Milton                         5,525               $262 928 697  Pierce/King

Lake Stevens             5,290               $250,403,048  Snohomish

*Buckley                    3,920               $143,364,481  Pierce

Duvall                         3,813               $209,403,955  King

 

            Average:         5,485               $255,698,670

            Variance         +0.7%             +2.8%

 

*          The City explained in the arbitration hearing why these cities should be eliminated from

the City's final list of comparables but the City failed to do so

 

            The City argues that the above eight cities provide a well balanced set of

comparators that is consistent with statutory, judicial and arbitral direction, common sense

and objectivity. All cities and towns are within +1- 33% in population and assessed

valuation and all are located in the five county area denominated by the Bureau of Labor

Statistics as the Puget Sound Labor Market. The City argues that the comparables

proposed by The City of Milton should be adopted by the Arbitrator.

 

                        UNION'S CRITICISMS OF CITY'S METHODOLOGY

 

            The City's approach is flawed and should not be adopted. Absent a compelling

need for change, the historical practice honored by the parties should be continued. See

e.g. City of Bellevue v. IAFF Local No 1604; PERC Case 68114-87-162 (Gaunt 1988)

(I.87-88). Apart from the fact it draws comparable jurisdictions more favorable to its

position, the City of Milton has established no basis for abandoning the historical practice

of using a 50% to 200% methodology.

            More fundamentally, the flaw in the City's approach can be seen from simply

applying the methodology they suggest. According to the City of Milton, adopting a 33%

plus or minus methodology results in a total assessed valuation range of $175,285,798 to

$349,695, 167. Therefore, the jurisdictions of Poulsbo, Buckley and Pacific, offered by the

City as comparable, are disqualified, as they fall outside the City's proposed assessed

valuation range. Were this not enough reason to disqualify the City of Pacific from

consideration, there are at leas two more reasons for its disqualification. First, the City of

Pacific did not even have a police force as of 1996 making the comparison of that city,

during the relevant time period of negotiations between the parties, inappropriate.

Second, the disproportionately low salary range of police officers employed by the City of

Pacific warrants its exclusion from consideration on that basis alone. See City of Walla

Walla and Walla Walla Police Guild, PERC Case 6213-1-86-139 (Levak 1986) (133)

Elimination of these jurisdictions leaves only five (5) jurisdictions as comparable, all of

which, incidentally, are included on the Union's list of comparators.

            The error in the City's approach likewise stems form the data it uses. Rather than

using data available to the parties at the time of negotiations, the City uses data which

would be pertinent if negotiations were being undertaken currently. Examination of the

City's data reveals that the population and total assessed valuation numbers being used are

those which were not available until, at the absolute earliest, July 1997. While RCW

41.56.465(1)(e) calls for consideration of "changes in circumstances . . . during the

pendency of the proceedings," at Ieast one arbitrator operating under this statutory

language found the utilization of data not available at the time of negotiations between the

parties inappropriate. In the City of Kent and IAFF 1747, (1980), Arbitrator Sutermeister

adopted an approach which seeks to avoid the delay inherent in encouraging the parties to

withhold settlement in hopes that more favorable data will become available if one just

waits long enough. About this, Arbitrator Sutermeister said:

 

            The panel further believes that CPI figures introduced for 1980 should not be

            considered. If negotiations had been concluded on time, before the end of 1979

            the parties would have used cost of living figures available in 1979. The panel

            believes it should encourage the parties to settle the wage issue themselves in

            future years, and that using 1980 cost of living figures for an arbitration award

            would only encourage one or the other part (sic) to delay future settlements until

            figures more favorable to their side become available (emphasis added).3

 

            In this regard, Arbitrator Sutermeister's approach is consistent with statuary

purposes. RCW 41.56.465 directs the interest arbitrator to "be mindful of the legislative

purpose enumerated in RCW 41.56.430" and then to use the other factors listed in RCW

41.56.465 as a guideline. The statement of legislative purposed of the Act has not

changed since its adoption in 1973. The intent and purpose language of RCW 41.56.430

says:

 

            The intent and purpose of this 1973 amendatory act is to recognize that there

            exists a public policy in the State of Washington against strikes by uniformed

            personnel as a means of settling their labor disputes; that the uninterrupted and

            dedicated service of these classes of employees is vital to the welfare and public

            safety of the State of Washington; that to promote such dedicated and

            uninterrupted public service there should exist an effective and adequate alternative

            means of settling disputes (emphasis added)

 

3              As of the time of Arbitrator Sutermeister's decision, the relevant statutory

language was found in RCW 41.56.460 which proceded RCW 41.56.465 poor to the

1995 amendments to the statute.

 

Quite clearly, a system by which the parties would be encouraged to withhold settlement

with hopes that next year's data will produce a more favorable data is inconsistent with

the statutory purpose of prompt dispute resolution, the Union argues.

 

            In contrast to the flaws in the approach recommended by the City, the comparators

offered by the Union are drawn from a methodology that has been historically utilized by

the parties, accepted in the industry, and properly based upon data available to the parties

at the time of their negotiations. Accordingly, the Arbitrator should select the list of

comparators suggested by the Union. When those comparators are examined, the Union S

proposals on the issues at impasse will be judged to be appropriate, the Union concludes.

 

                        CITY'S CRITICISM OF UNION'S METHODOLOGY

 

            During the hearing, the Union claimed that its methodology was commonly

accepted by cities and unions. The Union offered no evidence to support this claim. As

noted above in the comparison of lnterest Arbitrator's awards, this contention is rebutted

by prior arbitration awards.

            The Union also claimed that its methodology had been adopted by both the City

and Union in previous negotiations. There is no support of this assertion in the record. In

fact, record evidence is to the contrary. The Union called Mr. Michael Meglemre, labor

consultant and negotiator for the City under the prior Mayor's term. He testified that he

utilized the "twice as big and half as big" bands as a starting point only. He then narrowed

his starting point list of cities from there by selecting those cities closest in population and

assessed valuation to Milton's. Prior Mayor, Leonard Sanderson, testified that while he

had discussed the +200%/-50% band with the Union, he had never agreed to it. More

importantly, he did not have the authority to bind the City on this matter since the City

Council sets the parameters for negotiations. Moreover, union Exhibit 5, the Union's

comparability document, states on the cover page: "For illustrative purposes only. This

report does not imply, nor should the reader assume a stipulation of comparability by the

author, the negotiating committee, or by the Employer."

            The selection process by the Union should be rejected because it is grossly results

oriented It is skewed towards larger cities and ignores cities that are closer in population

and assessed valuation to Milton. For example, the Union includes Monroe in its list of

comparables with a population of 8,670 (3,145 greater than Milton) but excludes

Satinwood with a population of 3,050 (only 2,475 less than Milton). Both are cities

located in Snohomish County.

            It is not reasonable for the Union to claim that the City of Milton is comparable to

such jurisdictions as Clyde Hill with an assessed valuation of $475 Million (80.7% greater

than Milton) or Fife with an assessed valuation of $527 Million (100.4% greater than

Milton). At the same time, the Union seeks to exclude the City of Pacific with a

population within 2% of Milton and an assessed valuation within 34% of Milton.

            The City argued that even if the arbitrator were to utilize a larger population band,

e.g., +1-50%, the results would not support the demands of the Union. Below is a list of

all cities within a +1-50% population/assessed valuation with King, Snohomish, Pierce,

Thurston and Kitsap Counties, and the salaries for their top step police officer and top

step sergeant for 1997.

                                                                        1997                            1997

            City                                                     Top Step                     Top Step

                                                                        Police Officer             Sergeant

            Arlington                                             $3,469                         $3,859*

            Brier                                                   $3,094                         $3,445

            Buckley                                              $3,054                         $3,190

            Duvall                                                 $3355                          $3,441

            Fircrest                                               $3,385                        $3,762

            Gig Harbor                                         $3,590                         $4,281

            Lake Stevens                                     $3,154                         $3,624

            Pacific                                                 $2,871                         $3,137

            Port Orchard                                      $3,541                         $4,002

            Poulsbo                                               $3,557                         $4,011

            Shelton                                                $3,262*                       $3,621*

            Satinwood                                           $3369                          $3740 

            AVERAGE:                                        $3,308                         $3,676

            MILTON                                            $3,294                         $3,813

            Variance                                             4%                              +3.6%

 

            A similar comparison for 1998 is contained in the following chart.

           

                                                            1998                            1998

                                                            Top Step                     Top Step

            City                                         Police Officer             Sergeant

            Arlington                                 $3,594                         $3,998*

            Brier                                       $3,193                         $3,555

            Buckley                                  $3,143                         $3,330

            Duvall ('97)                             $3,489                         $3,579

            Fircrest                                   $3,603                         $4,005

            Gig Harbor                             $3,805                         $4,439

            Lake Stevens                         $3,233                         $3,719

            Pacific ('97)                             $2,871                         $3,137

            Port Orchard ('97)                  $3,541                         $4,002

            Poulsbo                                   $3,692                         $4,160

            Shelton                                    $3,360*                       $3,730*

            Satinwood                               $3504                          $3920

                       

            AVERAGE:                            $3,419                         $3,798

            MILTON                                $3,393                         $3,927

            Variance                                 -.8%                            +3.3%

 

*          These figures are based on the AWC wage survey, which was utilized by the Union for

all of its comparisons. while collective' bargaining agreements are clearly a more accurate

source of information, when wage schedules are based on future CPI developments,

utilizing AWC survey is easier and more practical.

 

            As the chart above shows, even using a +1-50% band, Milton's 1997/1998 wage

offer would be less than 1% below the average of police officers, but more than 3%

above the average for the sergeants. These figures clearly do not justify the 5% increase

sought by the Union, the City argued..

 

                                                            ANALYSIS

 

            The City of Milton's methodology and the Union's methodology agree in several

respects. First, the City and the Union agree that population and total assessed valuation

are the ''first-select" criteria by which to determine comparables. Second, the City and die

Union agree that the comparable jurisdictions would be drawn from counties in the

Western Washington area. The Union would use King, Pierce, Snohomish and Kitsap

Counties; the City would use those four but add a fifth, Thurston County. Third, they

agree that in order to determine whether a parity adjustment is warranted, maximum wage

for police officer and sergeants is relevant consideration. Fourth, the parties agree that the

total list of possible cities should be reduced by adopting a population and assessed

valuation range above and below Milton and by excluding cities outside this range. They

disagree on what this range should be. The Union proposed a -50% to +200% range and

the City proposed a 41- 33% range, but indicates that a +/- 50% range could be used as

well.

            The comparable cities arrived at by the Union and the City (in both approaches)

are listed below.

 

                                                            City                             City

            Union                                      +/-33%                        +1-50%

            Arlington                                                                     Arlington

            Brier                                       Brier                           Brier

            Buckley                                  Buckley                      Buckley

            Clyde Hill                               Clyde Hill

                                                            Duvall                         Duvall

            Fife

            Firecrest                                 Firecrest                     Firecrest

            Gig Harbor                                                                 Gig Harbor

            Lake Stevens                         Lake Stevens            Lake Stevens

                                                                                                Pacific

            Poulsbo                                   Poulsbo                       Poulsbo

            Port Orchard                          Port Orchard              Port Orchard

                                                                                                Shelton*

            10                                            8                                  11

 

*Sheldon is not in the 4 or 5 county area used by the parties.

 

            While there are some differences, there are also several common cities. In

comparing the Union's list with the City's +133% list, one finds that the cities of Brier,

Buckley, Firecrest, Lake Stevens, Poulsbo, and Port Orchard on both lists. Only Fife, Gig

Harbor, Clyde Hill, Pacific, and Duvall are not on both lists. When the Union's list is

compared with the City's +1- 50% list, the common cities are Arlington, Brier, Buckley,

Firecrest, Gig Harbor, Lake Stevens, Poulsbo, and Port Orchard The City's +1- list does

not contain Fife, and Clyde Hill, but does contain two cities not on the Union's list -

Pacific and Sheldon (but Sheldon is not in the 4 or 5 counties of Western Washington used

by the parties).

            Thus one can see that the choice of the range is the disputed selection factor, and

that factor largely determines the comparative cities. In my opinion the Union has not

made a compelling case for the +200% part of its range. The evidence of historical use is

disputed. The City is correct in its argument that twice as big comparisons push the data

upward and is therefore result oriented.  None of the upward ranges in any of the prior

interest awards provided by the City was a +200% upward range. The largest is a +90%,

but +75% and +80% have been rejected by interest arbitrators. Of the 15 interest

arbitration decisions provided by the City and not disputed by the Union, five use the

+1-50% range and the average is about 42% to +55%. Therefore I reject the Union's

+200% upward figure.

            I also reject the City's +1- 33% figure. The City's own documentary evidence

shows that figure was used only once in the 15 interest arbitrations. (There is a +/-30%

and a +/-31% however.)       

            I shall utilize a +/- 50% range because I find that prior interest arbitrators have

used it about a third of the time, and because the Union agrees on a -50% lower range and

because the City uses +/-50% in its comparisons. I find the Union's reasons for excluding

Poulsbo and Pacific compelling and will exclude those cities from my final list of

comparables I will also exclude Sheldon from my final list because it is not in the 4 or 5

county area used by; the parties. It is in Marion County

            I also reject the cities of Clyde Hill and Fife for the reasons argued by the City

            I also find the City's averaging methodology to be incorrect The City added the

population and assessed value of the City of Milton to get population and assessed

valuation averages. The City then compared Milton to those averages that included

Milton. The City of Milton should have been excluded from the calculation of averages to

have a meaningful comparison of the City to the average.

            The remaining eight cities are the cities that I shall use as comparables:

 

                                                                                    1995                1995

            Area                            County                        Population       Assessed Value

            Arlington                     Snokornish                 5,350               $336-$337 M

            Brier                           Snokomish                  6,030               $309 M

            Buckley                      Pierce                          3,870               $129 M

            Duvall                         King                            3,870               $209M

            Firecrist                      Pierce                          5,375               $263M

            Gig Harbor                 Pierce                          3,890               $327M

            Lake Stevens             Snokomish                  4,955               $229 M

            Port Orchard              Kilsap                         6,240               $258 M

 

            AVERAGE                                                     4,940               $257M

 

 

            These eight comparables will be used to judge the proposals of the four issues

remaining in dispute.

            I agree with the Union and Arbitrator Sutermeister that the appropriate data to be

used is the data that was available at the time of negotiations. I shall use the Union's data

for these comparables.

 

                        ISSUE  NO. 1 - RANGE INCREASE/MARKET ADJUSTMENT

 

            Issue: Whether or not police officers and sergeants should receive a "market

adjustment'' in the form of reclassifying their positions to a 5% higher pay range in the

City's classification pay plan?

            Current Contract (1995 through 1996);

            The 1995 - 1996 contract provided for assignment of police officers to pay Range

16 and sergeants to pay Range 19 the negotiated adjustments to Range 16 (Police

Officers) and to Range 19 (Sergeants) of the base wage schedule was as follows:

 

            Year                Percentage Increase

            1995                3.0%

            1996                3.0%

 

            Union's Proposal - The Union proposed to add Range 17 for Police Officers and

Range 20 for Sergeants which would result in a 5% increase for each rank.

 

                                                                        STEP

            Range             A                     B                     C                     D                     E

P.O.     16                    2,632               2,763               2,902               3,046               3,198

add      17                    2,763               2,902               3,046               3,198               3,358

 

Sgts.   19                     3,046               3,198               3 358               3,526               3,702

add      20                    3,198               3,358               3,526               3,702               3,886

 

 

            Union' s Arguments:

 

            The Union contends that the following comparability data for a 40 hour week

supports its proposal.

 

                                                    UNION COMPARABLES

                                                POLICE SERGEANT (1/1/97)

 

                                                Police Officer's           Police Sergeant's

            City                             Maximum Wage        Maximum Wage

            Arlington                     3469                            3866

            Brier                           3094                            3445

            Buckley                      3051                            3187

            Clyde Hill                   3343                            - 0 -

            Duvall                         3355                            3544

            Fife                              3686                            4136

            Fircrest                       3491                            3879

            Gig Harbor                 3590                            4274

            Lake Stevens             3139                            3619

            Monroe                       3550                            4441

            Poulsbo                       3574                            4010

            Port Orchard              3541                            4002

 

            Average:                     3406                            3855

            Milton                         3199                            3702

 

            Using the average salary range for the Cities comparable to Milton, under the

contract rate schedule in evidence the salary range for the City's Police Officers should be

increased two ranges and the sergeant rate increased one range, the Union contends.

            Examining the maximum wage rates of those jurisdictions as of January 1, 1997, as

drawn from the collective bargaining agreements submitted by the parties and verification

through the city administration of the jurisdictions listed, the following is revealed:

                       

                                                Police Officer Poise Sergeant

City                                         Maximum Wage        Maximum Wage

Arlington                                 $3,469                         $3,866

Brier                                       $3,094                         $3,445

Buckley                                  $3,051                         $3,187

Clyde Hill                               $3,343                         N/A    

Duvall                                     $3 355                         $3,544

Fife                                          $3,686                         $4,136

Fircrest                                   $3,491                         $3,879

Gig Harbor                             $3,590                         $4,274

Lake Stevens                         $3,139                         $3,619

Monroe                                   $3,550                         $4,441

Poulsbo                                   $3,574                         $4,010

Port Orchard                          $3,541                         $4,002

 

            AVERAGE                 $3,406                         $3,855

Milton                                     $3,198                         $3,702

 

 

            The Union argues that when these figures are compared to the contract rate range

for full time employees of the City of Milton, it shows that to achieve parity, the range for

the City of Milton police officer classification should be set at range 18 which, under the

schedule in evidence is a top wage of $3,526, and the range for the City of Milton police

sergeant classification should be set at range 20 which is a top wage of $3,886. Hardly a

windfall as an examination of the wage structure of these comparable jurisdictions

demonstrates, the Union argues.

            According to the Union, a wage parity adjustment is warranted even if the City's

comparability methodology is adopted. Eliminating those jurisdictions which the City's

total assessed valuation range dictates must be excluded, namely Pacific, Poulsbo and

Buckley, the average top step police officer salary, according to the City's 1997 figures is

$3,305.80 which would still dictate a parity adjustment to step 17. It is only if one

includes those jurisdictions which the City's methodology says are disqualified can one

arrive at the calculations the City offers.

            The Union argues that the City's effort at slight-of-had should be rejected. The

Union's proposal of an additional range for police officers and police sergeants should be

adopted, the Union argues.

 

            City Proposal (1997 through 1999): - The City rejects the Union's demand to

reclassify the bargaining unit positions to a higher salary range.

 

            City's Arguments:

 

            The 1995-1996 contract provided for assignment of police officers to pay range 16

and sergeants to pay range 19. Now the Union proposes a reclassification to pay range 17

for police officers and pay range 20 for sergeants, a 5% increase. The City proposed that

the classifications of police officer and sergeant continue to be classified in range 16 and

19, respectively, in the City of Milton Contract Rate Schedule. The Union has the burden

of proof to justify a special increase of 5% for police officers and sergeants and has failed

to do so, the City argues, even by arguing for a greater population and assessed valuation

cut-off band than proposed by the City. Additional City arguments include:

 

            1..        The City has already agreed to the wage increases for 7/1/97 (3%), for

4/1/98 (3%) and 1/1/99 (4%) as follows:

 

            2.    The salary schedule proposed by the City is well within the range of salary

schedules for police officers and sergeants in comparable cities. There is no justification

for a reclassification of police officers and sergeants to a higher pay range.

 

            3.    The City of Milton's offer of 3.0% for 1997 is on par with the average

wage increase of 3.0% for police officers in the comparable cities for 1997. A comparison

of the top step police and sergeant wages in the comparable cities for 1997 shows that the

average top step police officers wages in those cities was $3251 compared to the $3294

that will result from the City's 7/1/97 offer.

 

            4.         These salary increases are the same- as salary increases negotiated with

other labor unions representing City of Milton employees, including IAM Lodge 160 on

behalf of the police department support staff: To grant this City bargaining unit a greater

wage increase will cause other Unions in the City to feel they have not been treated fairly

and will generate ''catch-up'' demands from them in their next negotiations. This internal

equity argument should be given ''considerable weight''. See Arbitrator Axon's decision.

Similarly the average for top step sergeants ($3,577) is 6.6% higher than the Milton's

7/1/97 offer for sergeants.

 

            5.         The general wage increase for Milton Police Officers and Sergeants for

1998 is 3.0% which compares to the current 1998 wages (as of May 13, 1998) in the

comparable cities as follows:

 

                                                            1998                            1998

                                                            Top Step                     Top Step

                                                            Police                          Officer Sergeant

            Average                                  3346                            3555

            Milton (7/1/97 offer                3393                            3927

            Variance                                 +1.4%                         +6.5%

 

            6.         The Wage increases for City of Milton Police Officers and Sergeants is also

quite generous, even the settlements already reached in four of the eight comparable

cities:

 

City                 1999 Wage Increase                          Estimate

Brier               90% CPI-U                                         90% of 2.9% = 2.6%

Buckley          3.0%                                                   Fixed   3.0%

Fircrest           100% CPI-U                                       2.9%

Poulsbo           100% CPI-W                                      2.6%

 

Average                                                                      2.8%

 

Milton (Offer for 1999)                                              4.0%

Variance                                                                     +1.2%

 

*CPI estimates are based on the most recent available information reported for the second

half of 1996 to the second half of 1997, i.e., 2.9% for the CPI-U and 2.6% for the CPI-W,

Seattle-Tacoma-Bremerton Area.

 

            The cities of Duvall, Lake Stevens, Pacific and Port Orchard have not yet settled

for 1999

 

            7.         In addition, Milton police officers and sergeants receive longevity pay increases.

Three of the City's eight comparables (Brier, Buckley and Fircrest) receive no longevity

pay at all. The monthly longevity pay schedule for police officers and sergeants is above

average in comparison to comparable cities. No comparable cities receive both longevity

and education pay.

 

City                             5 Years           10 Years         15 Years         20 Years

Brier                           None               None               None               None

Buckley                      None               None               None               None

Duvall ('97)                 None               $50                  $100                $150

Firorest                       None               None               None               None

Lk. Stevens                None               $97                  $97                  $97

Pacific ('97)                 $35                  $100                $180                $180

Pt. Orchard ('97)        $71                  $81                  $124                $170

Poulsbo                      $37                  $74                  $111                $148

 

Average                      $18                  $50                  $77                  $93

Milton (Offer 1/1/98) $34                  $68                  $102                $102

Variance                     +$16                +$18                +$24                + $9

 

            8.         The salaty increases already agreed to by the parties are reasonable when

compared to recent trends in the Consumer Price Indexes for the Seattle-Tacoma Area.4

 

            9.         The City has the ability to recruit and retain police officers with its present

salaries. The average years of service in this bargaining unit is nine years.

 

                                                            ANALYSIS

 

            The Union is the moving party for this issue. Therefore, I place the burden of

proof/persuasion is placed on the Union. I have already determined the list of

comparables I will use for this analysis and I have already determined I will use the data

provided by the Union. Thus the Union must meet this burden of proof/persuasion with

its own data.

            The chart below compares the maximum salary for police officers and sergeants

for 1997 according to the Union's data for a 40-hour week in the 8 cities I have chosen as

comparable.

 

                                                Maximum Wage        Maximum Wage

                                                Police Officers            Police Sergeants

                                                1997                            1997

 

Arlington                                 3,469                           3,866

Brier                                       3,094                           3,445

Buckley                                  $3,051                         $3,187

DuvalI                                     $3,355                         $3,544

Fircrest                                   $3,491                         $3,879

Gig Harbor                             $3,590                         $4,274

Lake Stevens                         $3,139                         $3,619

Port Orchard                          $3,541                         $4,002

 

     Average:                            $3,341                         $3,727

            Milton                         $3,199                         $3,702

 

4       Since the issues were certified for arbitration on September 12, 1997, the CPI

actually declined.

 

            Top step police officers in Milton are $142.00 below the average of these eight

comparable cities, but top step sergeants are only $25.00 below the average for these eight

comparable cities.

            Based on this comparison alone, I do not find persuasive evidence of a need for a

change in the structure of the salary schedule. Salary schedules generally have a ceiling

and some employers will eventually bump up against that ceiling. Police officers in Milton

who do so still have the option of seeking promotion to sergeant and obtaining a raise and

a new ceiling if they do so.

            Three other uncontested facts support my decision. First the parties have agreed

to the amounts of the general wage increases for the next three years. Those increases

will be applied to all steps in the salary schedule. So top step police officers and sergeants

will not be without a salary increase over the next three years. They will not get a step

increase however.

            Second, it is undisputed that Milton police officers and sergeants receive longevity

pay increases, while three of the eight comparable jurisdictions do not (Brier, Buckley, and

Firecrest). In addition, Milton's longevity pay appears to be higher than the longevity pay

of the remaining five cities.

            Finally, there is evidence that the City has the ability to recruit and retain police

officers and sergeants. The average years of service in the bargaining unit is not out of

line with police bargaining units in comparable cities. If they were, police employees

would move to higher paying jobs.

 

AWARD:

 

            Reject Union's Proposal to Modify Structure of Salary Schedule.

 

                                    ISSUE NO. 2 RETROACTIVITY

 

            Issue: Whether the arbitration award on salaries should be retroactive prior to

July 1, 1997, the date when the commissioned police officers and sergeants became

eligible for interest arbitration?

            The Washington State Legislature in the 1995 Regular Session amended RCW

41.56.030 to make law enforcement officers employed by the governing body of any city

or town with a population of two thousand five hundred or more eligible for interest

arbitration (for the first time) beginning July 1, 1997.

 

            Union Proposal:          The 1997 wage adjustment shall be effective retroactive to

January 1, 1997 and the 1998 wage adjustment shall be effective retroactive to January 1,

1998.

 

            City Proposal:            The 1997 wage adjustment shall be effective retroactive to July 1,

1997 and the 1998 wage adjustment shall be effective retroactive to January 1, 1998.

 

            Union's Argument:

 

            1.    The retroactivity proposal of the City for 1997 is consistent with the

application of the interest arbitration statute for cities the size of Milton, i.e., effective July

1, 1997.

 

            2.         The City's delay in negotiations, including the failure, until the arbitration

hearing, to utilize comparators from the four Counties agreed upon at the outset of

negotiations, warrants a retroactive adjustment to January 1, 1997.

 

            3.    There is ample authority for this request. See: e.g., City of Longview and

Longview Fire Fighters Local 828 PERC Case (Lehleitner 1987) (1.52,77); Wooster City

Board of Education, 109 LA 502, 507 (Feldman 1997).

 

            4.    The Arbitrator should reject the City's argument that the Arbitrator could

not make a retroactive adjustment to a time prior to July 1, 1997 as the parties' access to

interest arbitration, by statute, did not begin until that date. The City offers no reference

to statutory language or legislative history or authority of any other type to support this

argument.

 

            City's Argument

 

            1.    The retroactivity proposal of the City for 1997 is consistent with the

application of the interest arbitration statute for cities the size of Milton, i.e., effective July

1, 1997.

 

            2.    The retroactivity proposal of the City for 1998 is consistent with the

application of the interest arbitration statute for cities the size of Milton, i. e. , effective July

1, 1998.

 

                                                            ANALYSIS

 

            Both parties have proposed retroactivity. They disagree on the effective date for

retroactivity in 1997.

            Based on the arguments of the parties, I have concluded that under the interest

arbitration statues affecting smaller Washington cities, e.g. Milton, my authority to make

binding interest arbitration awards began on July 1, 1997.

 

                                                            AWARD

 

            Retroactivity for 1997 - effective July 1, 1997

 

            Retroactivity for 1998 - effective January 1, 1998

 

                                                            ISSUE NO. 3

 

            FLSA 207(k) EXEMPTION FROM DAILY OVERTIME STANDARD

 

            Issue:

 

            Whether overtime is to be paid for all hours worked in excess of 160 hours per

            28-day work cycle, as authorized by section 207(k) of the Fair Labor Standards

            Act (FLSA)?

 

            Current Contract Language:

 

            A.5      Overtime shall be paid only upon the approval of the department director for

each hour worked beyond the normal working day at one-and-one-half time the

employee's regular straight-time hourly rate of pay. The Mayor or his designee may

approve the employee's requests for compensatory time of fin lieu of cash at the same rate

of time and one half for each hour worked. All such approvals shall be in writing.

 

            City's Proposed Contract Language:

 

            A.5      Overtime shall be paid only for hours approved by the police chief or his

designee. All hours worked in excess of 160 hours per 28 day work cycle shall constitute

overtime, as authorized by section 207(k) of the Fair Labor Standards Act. All overtime

shall be paid at one and one-half times the employee's regular straight hourly rate of pay.

 

            Union' s Proposed Contract Language:

 

            A.5      No change proposed.

 

            City's Argument:

 

            Section 207(k) allows cities to pay law enforcement officers overtime based on the

number of hours worked in a work cycle, rather than based on a forty hour work week.

This exemption from the standard forty hour work week is based on the recognition that

because of shift rotations, the hours of law enforcement officers (and firefighters) often

fluctuate during a month. During one week officers may work 60 hours, and the next

week only 20. As long as the overall hours during a particular work cycle do not exceed a

predetermined number, section 7(k) does not require the payment of overtime. In short,

the purpose of section 7(k) is to provide public employers with greater flexibility in

scheduling the shifts of its law enforcement personnel.

            A number of the City's comparable cities utilize the 7(k) exemption, including

Brier, Buckley, Duvall, Fircrest, Lake Stevens, and Poulsbo5 .

 

5           Union Exhibit 4 is in error m that the record refutes the Union's "No" in the 7(k)

exemption Column for the cities of Poulsbo, Fircrest and Duvall, which have adopted

the 7(k) exemption.

 

            The City's 7(k) proposal is eminently reasonable. Under Article 14.4, the City is

paying holiday overtime in the form of time and one-half the employee's regular straight

time hourly rate of pay, in addition to the employee's holiday pay, for hours worked on all

of the holidays - even though the time worked is part of the employee's regular work

schedule. Under the Department of Labor Regulations, the City is exempted from paying

overtime unless the employee works more than 171 hours in a 28 day period. This, In

effect, increases the weekly overtime threshold to 43.25 hours. Here, the City is

proposing a smaller number of hours than Dept. of Labor Regulations permit 160 hour

per 28 day work cycle, which will maintain the average overtime threshold at 40 hours.

            The major purpose for the exemption is to allow the City scheduling flexibility.

            Other arguments offered by the City are as follows: The Police Chief needs

flexibility in the administration of his overtime budget when it comes to shift changes,

training requirements, covering for holidays (Article 14.1 ), vacations (Article 15.1), illness

and injuries (Article 16.3), family and medical leaves (Article 18.1), prolonged disabilities

(Article 18.2), military leave (Article 18.3), jury duty (Article 18.4), bereavement leaves

(Article 18.5), and other operational contingencies.

 

            Union's Argument: Comparability data does not support this City proposed

change. As the Union demonstrated, the vast majority of the Cities comparable to Milton

have not adopted a section 7(k) overtime exemption. For this reason, the City's proposed

contract amendment to adopt this exemption is unwarranted and should be denied.

            The City bears the burden of establishing a need for change from the existing

contract language. See City of Bellevue v. IAFF Local No 1604, PERC Case

6811-I-87-1622 (Gaunt 1988) (I.87-88). The City has not met this burden.

            The City's proposal draws upon the same comparators it uses with respect to its

wage parity argument. Here again, the City' s approach is flawed in three respects. First,

the City proposes the wrong comparables. Second, even under the City's methodology,

jurisdictions of Buckley, Pacific and Poulsbo are disqualified under the City's total

assessed value range. Excluding those jurisdictions from consideration, and assuming for

the sake of argument the information provided by the City is correct, a majority of the

remaining five jurisdictions proposed by the City (Duvall, Fircrest and Port Orchard) do

not employ the section 7(k) exemption.

            Finally, the information offered by the City on this point is not correct. In

examination of the Brier and Lake Stevens collective bargaining agreements, it is revealed

that the Chief of Police in those cities has the option of electing a 40 hour per week or 160

hours in 28 work days approach to overtime. The 40 hour option is in effect.

Consequently, once the jurisdictions the City says must be disqualified under its

methodology are removed, none of the jurisdictions the City lists as comparable utilize the

section 7(k) exemption.

            Using the comparables offered by the Union shows that the vast majority of the

properly considered jurisdictions do not utilize the section 7(k) exemption. Accordingly,

the City's proposed change in contract language concerning overtime compensation is

without basis and should be rejected.

 

                                                            ANALYSIS

 

            This City proposal calls for changes in the existing contract language. The City

has the burden of proof/persuasion on this issue.

            In my opinion the City has failed to meet this burden. First, according to the City

the major purpose of this proposed change is to give the Police Chief flexibility (or more

flexibility) in scheduling. However, there is no evidence that the Police Chief is having

problems in scheduling. Nor is there any evidence that alleged scheduling problems are

due entirely to the current language in the collective bargaining agreement. Lack of

evidence as to the existence of and causes of a problem are grounds for denying this

proposed change.

            Second, I am also disturbed by remarks by the City that hint at another reason for

this City proposal - to avoid paying both holiday overtime and that regular straight time

pay to employees who are scheduled to work and who do work on holidays. If that is the

real objective of the City, again they failed to submit evidence of a problem in this area.

            Finally, the comparables I have selected do not justify the change.

 

AWARD:

            Retain Current Contract Language.

 

                                                            ISSUE NO. 4

                                                Education Incentive Pay

 

            Issue:  Whether or not police officers and sergeants should receive additional pay

increases based on college credits, regardless of when obtained?

 

            Current Contract Language:   No premiums are paid for college credits.

 

            Union's Proposal:  The Union proposes that the police officers and sergeants

receive a 2% increase in pay if they obtain an AA degree or 90 college credits and a 4%

increase in pay if they obtain a BA degree.

 

            Union's Argument:

 

            The Union has presented ample evidence that an education incentive is warranted.

Of the twelve (12) comparables offered by the Union, seven provide an education

incentive. (Union Ex. 4). Of the five that do not, three (Port Orchard, Poulsbo and Fife)

offer significantly higher than average maximum wage to both their police officers and

sergeants. (Union Exs. 2 and 3). In fact, the maximum wage rates in these jurisdictions

exceed the wage rate for police officers and sergeants employed by the City of Milton

after grant of the parity increase proposed by the Union (Union Exs. 2,3 and 6).

 

            City's Proposal:   The City rejects the Union's demands for education pay.

 

            City's Arguments:

 

            Presently, there are no education incentive pay increase for Milton police officers

or sergeants, and none should be awarded. The Union has the burden of proof to justify

its demand and has failed to do so.

            Among the City's comparables only the City of Buckley has included a pay

increase for college credits. No other City of Milton employees receive increases in pay

based on the obtaining of degrees including other employees in the Milton Police

Department. Even among the Union's comparables less than half of them have pay

increases for education.  Union Exhibit 4 is in error with regard to Fircrest and Brier,

which do not provide education incentive pay for police officers

 

            1.  No other employee in the City of Milton receives any increase in pay if

obtained an AA degree or BA degree, including other employees in the Milton Police

Department.

 

            2.  No objective information is available to the City to support the Union's argues

that police officers with more college education display superior performance over Police

officers with less education.

 

            3 .  The City already pays longevity pay for years of service, i.e. 1% after S years,

after 10 years and 3% after 15 years. The City should not be required to pay both

longevity and education incentive pay. The City of Buckley--which is the one comparable

city in the Puget Sound area that gives police officers an increase in pay for college

education - pays no longevity pay.

 

                                                            ANALYSIS

 

            This is a Union proposal for a new contract benefit. The Union has the burden of

proof/persuasion on this issue.

            In my opinion the Union has failed to meet this burden. There is no evidence of a

problem and no evidence that additional college credits are being required in the

department for promotions. Should the Department require a certain number of college

credits for hiring and/or promotion, then compensation for that requirement could be more

easily justified.

 

AWARD:

 

            Reject Union Proposal.

 

 

IN THE MATTER OF THE INTEREST                            )             INTEREST

        ARBITRATION                                                            )           ARBITRATOR'S

                                                                                                )

         BETWEEN                                                                    )             AWARD

                                                                                                )

TEE CITY OF MILTON, WASHINGTON             )

                                                                                                )

                                                 (City)                                      )

                                                                                                )

AND                                                                                       )

                                                                                                )

INTERNATIONAL ASSOCIATION OF                            )

MACHINISTS AND AEROSPACE WORKERS,  )

                                                (Union.)                                   )

_____________________________________                      )

 

            After careful consideration of all oral and written arguments and evidence and for

the reasons set forth in the opinion that accompanies this award, it is awarded that:

 

Submitted Issue No. 1: Wages for Police Officers and Sergeants:

            Award:            Reject Union's Proposal to Modify Structure of Salary Schedule.

 

Submitted Issue No. 2: Retroactivity of Any Wage Increase:

            Award:            Retroactivity for 1997 - effective July 1, 1997

                                    Retroactivity for 1998 - effective January 1, 1998

 

Submitted Issue No. 3: Overtime Work/7(K) Exception:

            Award:            Retain Current Contract Language

 

Submitted Issue No. 4: Educational Incentives:

            Award:            Reject Union Proposal

 

            Respectfully submitted on this 24th day of July, 1998 by

 

                                                                        _________________________

                                                                        John H. Abernathy

                                                                        Arbitrator

 You are being directed to the most recent version of the statute which may not be the version considered at the time of the judgment.