INTEREST ARBITRATIONS

Decision Information

Decision Content

City of Aberdeen

And

Aberdeen Police Association

Interest Arbitration

Arbitrator:      Gary L. Axon

Date Issued:   02/19/2000

 

 

Arbitrator:         Axon; Gary L.

Case #:              14678-I-99-00322

Employer:          City of Aberdeen

Union:                Aberdeen Police Association

Date Issued:      02/19/2000

 

 

IN THE MATTER OF                                           )

                                                                                 )    

INTEREST ARBITRATION                                )   PERC  14678-I99-322                                                                                     )

                           BETWEEN                                   )   ARBITRATOR'S OPINION

                                                                                 )

THE ABERDEEN POLICE ASSOCIATION,     )         AND AWARD

                                                                                 )

                           Association,                                  )   1999 WAGE REOPENER

                                                                                 )

                           and                                                )

                                                                                 )

CITY OF ABERDEEN, WASHINGTON,            )

                                                                                 )

                           City.                                              )

 

 

HEARING SITE:                                                      City Hall

                                                                                    Aberdeen, Washington

 

 

HEARING DATE:                                                    November 19, 1999

 

POST-HEARING BRIEFS DUE:                            Postmarked December 29, 1999

 

RECORD CLOSED ON RECEIPT OF BRIEFS:  January 4, 2000

 

REPRESENTING THE ASSOCIATION:               Sydney D. Vinnedge

                                                                                    Patrick A. Emmal

                                                                                    Emmal Skalbania & Vinnedge

                                                                                    10315 Greenwood Ave. N., Suite C

                                                                                    Seattle, WA 98109

 

REPRESENTING THE CITY:                                 Eric S. Nelson

                                                                                    Corporation Counsel

                                                                                    City of Aberdeen

                                                                                    200 East Market Street

                                                                                    Aberdeen, WA 98520

 

INTEREST ARBITRATOR:                                               Gary L. Axon

                                                                                    Post Office Box 190

                                                                                    Ashland, OR 97520

                                                                                    (541) 488-1573

 

I.          INTRODUCTION

 

            The City of Aberdeen, Washington (City) and the Aberdeen

Police Association (Association) are signatories to a Collective

Bargaining Agreement effective January 1, 1998, through December

31, 2000.   Included in the Collective Bargaining Agreement is

Article 29, which states:

 

                                                ARTICLE 29

                        REOPENING OF AGREEMENT FOR 1999 AND 2000

 

            The provisions of Article 19 covering salary

            ranges for Patrol Officer, Lead Patrol, and

            Sergeant,   and  including  an  Association

            proposal   for   creation   of   a   deferred

            compensation plan with a matching contribution

            from the Employer,  shall be reopened for

            negotiation upon written demand no earlier

            than  July  1,  1998,  and  no  later  than

            August 31, 1998, for the year 1999, and no

            earlier than July 1, 1999, and no later than

            August 31, 1999, for the year 2000.  During

            such negotiations, all Articles covering Wages

            and Benefits shall remain in effect until new

            terms for the above provisions of Article 19

            are mutually agreed upon or until the impasse

            procedure  is  exhausted.    This  paragraph

            affects and relates only to the provisions of

            Article 19 and benefits enumerated and no

            other article or provision shall be affected,

            and  any  changes  are  to be  effective  on

            January 1,   1999,  and  January  1,   2000,

            respectively.

 

The parties were unable to resolve the 1999 wage dispute through

negotiation and mediation.

 

            In a letter dated July 7, 1999, Marvin L. Schurke,

Executive  Director,  Public  Employment  Relations  Commission,

certified for interest arbitration under RCW 41.56.450 the issue:

 

                        1.         Article 29 - Reopening of Agreement for

                                    1999 and 2000.   Specifically, the 1999

                                    wage reopener.

                                                                        City Ex. 4, p. 1.

 

The case was scheduled for hearing before this Arbitrator for a

final and binding resolution.  The parties have agreed that the

wage increase awarded shall be retroactive to January 1, 1999.

            The City has a population of 16,420 persons and is

located in Grays Harbor County, Washington.  Grays Harbor County

(County) is located along the Pacific coast of western Washington.

The total County population was estimated at 68,300 for 1997.

Assoc. Ex. 16.  Aberdeen is the largest city in the County.  The

population growth for the County has increased by 5.34% from 1990

to 1999.  City Ex. 11.  The population of the City of Aberdeen has

remained constant over that same period of time.

            The City is located in a sparsely populated rural county.

The population per square mile within the City is 1,422.85.  City

Ex. 10.  The per capita assessed valuation for the City is $38,771

and its regular levy rate for 1999 is 3.09.  City Ex. 9.  The 1999

total property valuation was $636,624,943.

            The Association represents a bargaining unit composed of

32 police officers, including eight sergeants and three lead patrol

officers.  The majority of the police officers work patrol and are

rotated in and out of detective positions.  Seven officers receive

premium pay for participating in the City's "Advanced Officer"

program.  City Ex. 6.  The Chief of Police is Robert L. Maxfield.

            At the commencement of the arbitration hearing, the

opening statements from the parties revealed a sharp difference of

opinion over the issue of comparability.  In addition, the parties

also disagree over methodology and means by which to compare the

wages and contract benefits of Aberdeen police officers with their

counterparts in other cities. A significant amount of hearing time

was devoted to the presentation of evidence and argument on the

statutory factor of comparability.  The Arbitrator directed the

parties to address the issue of comparability separately at the

beginning of their post-hearing briefs.   The Arbitrator will

address  the comparability issue at the commencement of his

discussion and findings.

            The hearing in this case required one day for each side

to present their evidence and testimony.  The hearing was recorded

by a court reporter and a transcript was made available to the

parties and the Arbitrator.  Testimony of witnesses was received

under oath.   At the hearing the parties were given the full

opportunity to present written evidence,  oral testimony,  and

argument regarding the issue in dispute.  Both the Association and

the  City  provided  the  Arbitrator  with  substantial  written

documentation in support of their respective positions on the wage

issue.

            Moreover, the parties also submitted comprehensive and

detailed post-hearing briefs in further support of their respective

positions taken at arbitration. The approach of this Arbitrator in

writing the Award will be to summarize the major, most persuasive

evidence and argument presented by the parties on the wage issue.

After the introduction of the issue and the positions of the

parties, I will state the basic findings and rationale which caused

your Arbitrator to make an award on the wage issue.

            The overall context for review of this case is under the

terms of Article 29 providing for reopening of the agreement on the

subject of the 1999 wage schedule. The City offered an across-the-

board salary increase of 2% effective January 1, 1999.  The City

objected to consideration of an employer-matched contribution to a

new deferred compensation plan for members of the Association as an

illegal subject of bargaining. The Association proposed an across-

the-board salary increase of 13% effective January 1, 1999.  The

Association also made an alternative proposal of an 8% salary

increase  and  a  deferred  compensation  plan  with  matching

contribution from the City of 5% of gross earnings effective

January 1, 1999.

            This Arbitrator has 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, testimony, and argument 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 RCW 41.56.465, as

follows:

 

            (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 and extensive arguments

in this case, the parties waived the thirty (30) day period an

arbitrator would normally have to publish an interest award under

the statute.

 

II.        POSITIONS OF THE PARTIES

 

            A.        The Association

 

            The Association takes the position the award should be

based on a just and fair application of the statute.  A principled

approach to decision making in interest arbitrations rejects

extreme positioning by either party.  Pursuant to that principle,

the legislature intended the parties should not be allowed to gain

through arbitration that which would not reasonably be anticipated

through unrestricted collective bargaining.   The Association

submits the City has acted contrary to the legislative intent and

has engaged in extreme posturing throughout negotiations in the

hope that the arbitration proceeding would result in a wage

settlement which the City would not otherwise be able to acquire

through unrestricted collective bargaining.

            In 1998 the Association agreed to no wage increase in

1998 in exchange for a reopener in 1999.  The Association accepted

the City's arguments for a zero wage increase because the City had

"infrastructure expenditures" it needed to attend to in 1998.

According to the Association, it only agreed to no increase based

on an implicit understanding between both parties that the City was

going to "make it right" in 1999.   The presumption was the

Association would see a large increase in 1999 to make up for the

lack of any increase in 1998.  The evidence shows the City failed

to live up to this understanding when it took a hard line in the

1999 bargaining and seeks to deny the Association an appropriate

wage increase for 1999.

            With respect to the City's bargaining position, the

Association maintains the City chose to bargain to impasse and go

to arbitration, arguing an overly legalistic application of the

interest arbitration statute in order to produce a novel and unjust

result.  The Arbitrator should reject the City's position in order

to prevent management from turning the process into a legal

charade.   The Association must be able to trust the system;

otherwise, the damage to the relationship between the parties will

ultimately affect the public welfare of the citizens of the City of

Aberdeen.

            The  Arbitrator  should  adopt   the  Association's

comparability approach.  The arbitration awards demonstrate that

comparability  is  of  overriding  importance  in  an  interest

arbitration. While the statute provides for a number of criteria,

comparability has been recognized by interest arbitrators as the

predominant criteria to be used in determining the appropriate wage

increase.  The reason for the reliance on comparability data is

that it allows for a presumptive test to the fairness of a wage

structure.  Because these comparisons carry an aura of fairness,

they create an opportunity to produce a result acceptable to those

affected.

            The Association takes the position the City's approach to

selecting comparables is result oriented and inherently flawed.

After successfully extracting a zero increase from the bargaining

unit in 1998, the City realized it would have to pay in 1999 to

make up for the loss in 1998.  The City now hopes to avoid this

obligation by asking the Arbitrator to apply an extremely rigid

comparables analysis, and thereby minimize its obligation to the

Association. This is exactly what the City is trying to do when it

asks the Arbitrator to apply a strict up/down population criteria,

and disregard the statutory mandate of selecting like employers.

Arbitral authority holds that,  in determining comparability,

arbitrators  give  the  greatest  consideration  to  population,

geographic proximity or labor market, and assessed valuation.

            The Association takes the position its comparability

approach is superior because it looks to fundamental geographic and

labor market factors.  A major issue of comparability in this case

comes down to what is sometimes referred to as the "Cascade

Curtain." Arbitrators have held repeatedly that, where sufficient

comparables lie on one side of the Cascade mountain range, there is

no need to select comparables on the other side of the range.  The

Association submits there is a multitude of comparable cities on

the west side to choose from in measuring what the appropriate wage

increase should be for the members of this bargaining unit.

            Contrary to the arbitral authority, the City is asking

this Arbitrator to disregard the fact that there are sufficient

comparables on the west side and to utilize jurisdictions from the

east side in order to drive down the wages of the members of this

bargaining unit.  Both parties have provided the Arbitrator with

numerous west side comparators that fit within the statutory

criteria of "like personnel of like employers of similar size."

The eleven western comparators proposed by the parties are

sufficient.  If the Arbitrator finds the proposed comparators are

not adequate, he has the authority to select from many of the

alternate western Washington contracts contained in Volume 1 of the

Association's exhibit book.

            Regarding the City's proposal to use three comparators

from eastern Washington,  the Association points out that the

economies of eastern Washington cities are fundamentally different

from the economies on the west side.  The broad differences are

reflected in the economies, demographics, and industrial topology.

Sunnyside, Ellensburg, and Moses Lake are agrarian-based economies

with high levels of seasonal work and migrant farm worker

populations.  Aberdeen, located in Grays Harbor County, bases its

economy on manufacturing and government services and is fairly

close to the standard of a stable population.  Farming is the big

industry that dominates the economic life of Ellensburg and Moses

Lake. The same is true for Yakima, where substantial employment is

in the agricultural sector.

            A review of the unemployment claims reveals that 39% of

those claims  from Grays Harbor originate from white collar

professions and 61% from blue collar professions.  In Grant County

and Yakima County the largest percentage of unemployment claims

originate from agriculture which is prone to seasonal unemployment.

            Moreover,  the sufficiency of western comparators is

evidenced by those jurisdictions which both sides have offered as

comparable jurisdictions.  Mountlake Terrace, Kelso, and Tumwater

are all west side jurisdictions.   The Arbitrator should give

credence to the fact that both sides have recognized three west

side jurisdictions as appropriate comparators when developing the

full list of cities on which to base an award.

            The Arbitrator should adopt the Association's variance

range to select comparables and refuse to adopt the City's strict

up/down approach.  In the view of the City, a +1-50% range should

be used, yet at least one of the City's comparables exceeds 50% of

assessed valuation, suggesting agreement with the Association's

screen.  All comparables offered by the City and the Association

fit within the +1-50% screen on populations. Many arbitrators have

allowed the comparables to exceed a +50% screen by refusing to

adopt a strict up/down approach and allowing "other factors" to be

considered.  The key to assessing this range is understanding that

what is being utilized is a ratio of two-to-one in both directions.

It is also noted it is the task of the Arbitrator to sift through

the data to determine who truly has produced a more balanced set of

comparators.

            Turning to specific cities, the Association argues that

Hoquiam and Olympia are required under a labor market geographic

analysis.  Although Olympia and Hoquiam fall outside the 50/100

screen of population and assessed valuation,  they should be

included as comparators because of their influence and proximity to

the Aberdeen labor market.  Olympia should be included because it

falls within the sphere of influence of Aberdeen. Arbitrators have

consistently  held  that  close  geographic  proximity  between

jurisdictions warrants special consideration in the selection of

comparables.  In the instant case, the proximity of Olympia and

Hoquiam to Aberdeen is undisputed. The sphere of influence clearly

encompasses the City of Aberdeen. Thus, both jurisdictions deserve

to be seriously considered by this Arbitrator and included in the

final list of comparable jurisdictions.

            The Association takes the position that the comparables

support its wage proposal for 1999.  A straight wage analysis of

the western comparables proposed by the Association and the City

supports the Association's wage proposal.   The base five-year

monthly salary for a police officer in western Washington reveals

as follows:

            Anacortes                   $3,873.00

            Issaquah                     $4,288.00

            Port Angeles               $3,676.00

            Mountlake Terrace   $4,067.00

            Hoquiam                     $3,687.00

            Kelso                          $3,980.00

            Olympia                      $4,272.00

            Tumwater                   $3,975.00

            Average                      $3,977.00

            Aberdeen                    $3,721.00

                       

            Difference                  6.9%  

 

            The five-year base wages for the City's west comparables

are as follows:

            Mountlake Terrace   $4,067.00

            Kelso                          $3,980.00

            Tumwater                   $3,975.00

            Oak Harbor                $3,899.00

            Centralia                     $3,788.00

            Lake Forest Park       $3,857.00

            Average                      $3,928.00

            Aberdeen                    $3,721.00

 

            Difference                  5.6%

 

 

            The Association next argues that arbitrators have been

fairly consistent in considering both education and longevity

premiums  in measuring wage inequities.   When longevity and

education premiums are considered, neither of which Aberdeen

provides to its employees, the disparity grows even further:

 

  JURISDICTION                 5-YEAR BASE           LONGEVITY AA                  TOTAL

Anacortes                               $3,873.00                                                                                $3,873.00

Issaquah                                 $4,288.00                                                        $60.00             $4,348.00

Port Angeles                           $3,676.00                    $68.00                         $112.00           $3,856.00

Mountlake Terrace               $4,067.00                                                        $189.00           $4,256.00

Hoquiam                                 $3,687.00                                                        $74.00             $3,761.00

Kelso                                      $3,980.00                    $80.00                         $50.00             $4,110.00

Olympia                                  $4,272.00                                                        $85.00             $4,357.00

Tumwater                               $3,975.00                                                        $80.00             $4,055.00

AVERAGE                                                                                                                             $4,077.00

Aberdeen                                $3,721.00                                                                                $3,721.00

% Difference                                                                                                                          9.57%

 

For those with a B.A. degree, the disparity increases to an 11.72%

difference between Aberdeen and the comparables.  The Arbitrator

should take special note of the fact that 100% of the comparables

proposed by the City receive an education premium which amounts to

an  11%  difference between Aberdeen and  the  employer 5  own

comparators.  It is within the discretion of the Arbitrator to

accord weight to the education and longevity premiums.  The bottom

line is roughly one-third of Aberdeen's officers have a B.A. degree

and all comparables,  City and Association,  receive education

incentives.   Therefore, the Arbitrator in his analysis of the

compensation package should consider the impact of the premiums

paid in the comparators.

            The Association next argues that the settlement trends

support their proposal for 1999.  The following chart summarizes

the settlement trends:

                                                                                                            COMBINED

            WAGE INCREASES 1998                1999                1998 & 1999

            Mountlake Terrace                 5.00%             3.00%                  8.00%

            Kelso                                        2.64%             3.40%                  6.04%

            Tumwater                                 4.70%             3.10%                  7.80%

            Oak Harbor                             3.90%             5.50%                  9.40%

            Lake Forest Park                    7.50%             3.00%                  10.50%

                                                              5.40-                14.40-

            Centralia                                  9.00%             9.40%                  18.40%

            Moses Lake                            2.60%             2.00%                  4.60%

            Ellensburg                                7.20%             3.40%                  10.60%

            Sunnyside                                 3.00%             3.00%                  6.00%

            Olympia                                    3.10%             3.10%                  6.20%

            Port Angeles                            3.00%             5.50%                  8.50%

            Anacortes                                 4.50%             4.00%                  8.50%

            Issaquah                                   4.00%             2.50%                  6.50%

            Hoquiam                                   10.00%           3.00%                  13.00%

 

            Employer Comparables

            Average (%)                                                                                8.593

 

            Association Comparables

            Average (%)                                                                                8.068

 

Based on the wage trends described in the above chart,  the

Association concludes settlement trends alone justify the 8%

proposed by the Association.

            The Association next argues that the City's feeble

attempts to justify no wage increase in 1998 are misplaced.  The

wage trends indicate that police settlements have exceeded the CPI

rather than mirrored the CPI as claimed by the City.  Further, the

police contract settlement trends do not appear to be unrealistic

or out of line with the general economy.  Data indicates the wage

increases in the general economy have been greater than police

contract settlements.  The City's attempt to justify its position

by a CPI analysis is flawed.

            Even the other interest arbitration eligible group in the

City--the firefighters--indicates a wage increase substantially

above the CPI.  However, the City, in its arguments based on the

CPI, conveniently ignores the fact of the wage increase granted to

firefighters. Here, the City attempts to penalize police officers

for the same economic trend that results in increases in excess of

the CPI for its firefighters.

            Employer Exhibit 27, comparing CPI to Aberdeen wage

increases, is misleading and inaccurate. The City fails to provide

any source data for its wages in 1982 and 1987 and pulls them out

of thin air.  Even if it is assumed those numbers are accurate,

adding the annual CPI and annual wage increases demonstrates the

difference in the CPI and wage increases are negligible.   In

addition, the City failed to take into account the fact that it

provided no wage increases in 1985, 1986, 1987, and 1988, even

though the cost of living increased each of those years.  That is

a real wage loss for those years,  and the wages are lost

permanently.

            Turning to the City's argument that the slight increase

in the AOP plan was a benefit, the Association asserts this is

false for three main reasons.  First, only a handful of officers

are eligible for the AOP plan.   Second, the SERT premium was

eliminated for those participating while the City simultaneously

cut the SERT training opportunities in half.  Third, all sergeants

are precluded from participating in the AOP plan.

            The Association also rejects the City's argument that

employees received an economic benefit increase in 1998 because

they had to work 17 hours less per year.   According to the

Association, this is absurd because the 17 hours did not increase

take-home pay, nor did it increase the cost to the City.  The

Association concludes that the length of the normal work year of

2,080 hours reduced by 17 hours resulted in a negligible .0817%

reduction in work hours.

            During negotiations, the City never raised financial

considerations or inability to pay arguments, nor did they do so

at the arbitration hearing. According to the Association, this is

understandable because the fiscal condition of  the City is

extremely healthy.  By the end of fiscal year 1999, Aberdeen will

have a reserve fund of $2.5 million.  The total police budget is a

maximum of $3.6 million.  Aberdeen has consistently been running

budget surpluses in seven of the last eight years.  The economic

conditions of the City have been so good that the City Council

actually reduced taxes on pull tabs and commercial punch boards in

October 1998.   The City's reduction in taxes has come at the

expense of police officers' wages.  Given the financial condition

of the City, the Association concludes it can spare the meager 13%

increase sought by the Association over a period of two years.

            The Association proposed an alternative offer in these

negotiations in the form of a deferred compensation program. While

the City challenged the proposal as illegal, the Association urges

the Arbitrator to reject the City's legalistic arguments in light

of the fact deferred compensation proposals exist in the state of

Washington.  The deferred compensation proposal of the Association

has absolutely nothing to do with LEOFF I or LEOFF II. The City is

comparing apples to oranges in an attempt to mislead the parties.

The City offers a deferred compensation program to its non-

bargaining unit employees. The obvious goal of the City is to keep

the deferred compensation program as a management benefit.

            The Association next argues that both its comparables and

the City's comparables support a deferred compensation match of 5%.

Almost all comparables provide some kind of employer contribution,

either through Social Security or in a deferred compensation plan.

The record reflects an increasing number of comparables, and local

labor market  jurisdictions  are  adding deferred compensation

benefits, especially for employee groups who are not covered by

Social Security.   The fact is now that even Social Security

participants  are beginning  to  acquire  deferred compensation

benefits.  Even the City is acknowledging this trend by providing

deferred compensation to its non-union employees.

            The Association concluded in its post-hearing brief as

follows:

 

            This case represents a classic example of why

            the interest arbitration statute was adopted.

            The City has plenty of money, much of which

            has come from low police wages.  Aberdeen has

            a City Council which can,  but will not,

            provide comparable wages and benefits for its

            police department. Often, political

            survivorship depends on plausible deniability.

            Although the City Council does not have the

            political will to correct this situation, they

            invite the arbitrator to make the decision for

            them.   At best, they end up with a "novel

            result" that they would not have been able to

            achieve with unfettered bargaining. At worst,

            they can redirect their constituents to the

            statute   and   relinquish   themselves   of

            responsibility.   In the short run, it is a

            win-win situation for the Council members

            either way.  In the long run, if the City gets

            its "novel" request, it is only the Police

            Department and the general welfare of the

            citizens of Aberdeen that will be harmed.

 

            By the time the Arbitrator reads this brief,

            the Aberdeen Police officers will have worked

            more than three years without a wage increase.

            Moreover, it seems that the Employer intends

            on denying them an increase in 2000.  This is

            the time and place to change this clearly

            unsupportable   trend,   and   grant   the

            Association's proposal of an 8% wage increase

            effective January 1, 1999, and a 5% deferred

            compensation match.

                                                Association Brief, pp. 28-29.

 

B.        The City

 

            The City begins with a review of how it believes the

statutory criteria should be applied to this case.  In the view of

the City, the task of an interest arbitrator is to fashion an award

which constitutes an extension of the bargaining process.   If

arbitration is allowed to become an entirely separate and distinct

proceeding, collective bargaining will become little more than a

meaningless warm-up ritual for the arbitration "game." The parties

must not be allowed to view arbitration as a panacea  for

unrealistic proposals which would never be acceptable in the

underlying bargaining process.  The interest arbitration process

must involve a sifting and weighing of all of the factors in

deciding upon an appropriate wage application.  Application of a

mechanical formula, whether it be a flawed comparison of some, but

not all, components of compensation, or a single comparison with

the highest paying entity, must be rejected for failure to take

into account the full range of factors which must be applied.  The

City respectfully contends that, when all of the required relevant

factors are taken into account, the City's 2% wage proposal should

be adopted.

            The  City  next  described  its  method  of  selecting

comparables by using the factors of population and assessed

valuation.   The City began by selecting all Washington cities

within 50% above and below Aberdeen's population.  The City then

narrowed the list by selecting those jurisdictions which were

within 50% above or below the assessed valuation of Aberdeen.

Because this resulted in a list of fifteen cities, the City then

narrowed the list by eliminating the six cities with the lowest

population and assessed valuation.  The City offered the selection

of the following nine comparables for use by the Arbitrator as

follows:

 

                        Oak Harbor

                        Mountlake Terrace

                        Moses Lake

                        Ellensburg

                        Centralia

                        Lake Forest Park

                        Tumwater

                        Sunnyside

                        Kelso

 

            The City attacked the Association's methodology because

it began by selecting Washington cities within 200% above and 50%

below Aberdeen's assessed valuation.  This resulted in a list of

some 56 cities.  The Association then picked and chose among the

resulting group of cities based upon the wage and benefit packages

offered by the employer.  The Association next offered two cities

which did not meet its own criteria, that of Hoquiam and Olympia.

Olympia has a population that is almost 2.5 times as large as

Aberdeen and assessed valuation of over four times as large as

Aberdeen.  The only plausible explanation for the Association's

results is "benefits shopping."  The average five-year top step

monthly salary of the City's comparables is $3,586.  City Ex. 28.

The average five-year top monthly salary of the Association's

proposed comparables is $3,940.  Assoc. Ex. 23.

            A review of interest arbitration awards in Washington

supports the City's utilization of a similar population range and

assessed valuation for selecting comparables.  The cities proposed

by the Association have an average population 9.6% larger than

Aberdeen.   In addition, the average assessed valuation of the

Association's cities is 76.8% larger than Aberdeen.  Aberdeen's

assessed valuation is $636,494,452. The average assessed valuation

of the Association's cities is $1,125,610,003.  The Arbitrator

should reject the Association's proposed jurisdictions based upon

an assessed valuation which is not comparable to that of Aberdeen.

            Moreover,  the  Association  has  introduced  evidence

intended to suggest that Aberdeen and Grays Harbor County are

experiencing tremendous new growth and prosperity.  While it is

true the economy in the Aberdeen area is growing slowly, this has

been reflected in a modest increase in the City's budget. The 2000

general government budget reflects an increase in expenditures of

4.1% over 1999, and revenues are projected to increase by 6.6%.

This will be accomplished with no increase in property taxes for

the citizens of Aberdeen in 2000.  The City submits the modest

improvements in the local economy do not warrant a comparison to

such cities as Issaquah and Olympia.

            In resolving this dispute,  the Arbitrator needs to

understand the context in which the parties voluntarily agreed to

a zero percent increase for the first year of the three-year

contract.   The Association has argued that its proposed 13%

increase is appropriate to make up for the fact it agreed to a zero

percent increase in 1998.  At the time the parties negotiated this

agreement, they obviously did not believe there was any need for a

significant "catch-up" in wages.  Thus, the parties agreed to a

zero percent increase for 1998.

            The City next points to the historical relationship among

comparable jurisdictions as an extremely important factor in

setting compensation.   Fred Thurman,  City Finance Director,

testified that the City has focused more on what it could afford to

pay than what was happening with CPI or comparable employers.

However, Thurman did explain that the City needed to maintain pace

with the CPI over a long period of time.  An examination of the

relationship between wage increases and the CPI by Thurman revealed

that by 1998, police officers in this bargaining unit had received

salary increases that exceeded the CPI-W (Seattle) by 21.44%. City

Ex. 27.

            While the parties did agree to a zero percent wage

increase in 1998, members of this bargaining unit enjoyed other

economic gains.  The City agreed to implement a new disability

program, increased vision insurance, reduced work hours, increased

overtime payments, increased specialty pay for SERT officers, and

a match of up to 1.45% of base salary for the six members of the

Association who are prohibited from participating in Medicare. The

cost of the schedule change alone was the equivalent of a one

percent across-the-board salary increase.  Thus, the Arbitrator

should reject as entirely inappropriate the Association's attempt

to undo the bargain negotiated by the parties in 1998 under the

guise of a "wage catch-up." Adoption of the City's offer would put

Aberdeen police officers at only 1.6% below the comparable

jurisdictions.  The City's offer will maintain parity with the

comparables and the CPI over time.  Adoption of the Association's

proposal will radically change the historical relationship between

Aberdeen and the comparable jurisdictions.

            A review of Association Exhibits 23 and 24 shows how far

Aberdeen was behind  the  comparable  cities  proposed by  the

Association.   Even by including no base wage items, and the

obviously  dissimilar  cities  of  Issaquah  and  Olympia,  the

Association was only able to produce a 6.4% difference between

Aberdeen's  current  base  wage  and  the  Association's  loaded

comparables.  The obvious conclusion is that an award of a 13%

increase would substantially change the relationship between the

parties.

            The City's proposal would put Aberdeen officers 4% below

the average of the comparables proposed by the Association.  If

Issaquah and Olympia are eliminated from the list, the City's offer

of a 2% wage increase would place Aberdeen officers only .84%

behind the average of the Association's proposed comparables.  The

Association's proposal, if adopted, would move Aberdeen within less

than 2% of the Olympia wage schedule. Arbitral authority supports

the City's proposal as one which could logically be reached if they

had continued with bargaining in good faith.

            The issue before the Arbitrator is a second year wage

reopener in a three-year contract.  Both parties have proposed

"across-the-board" wage increases.  The City has used the top step

of the patrol officer base wage for comparisons.   In sharp

contrast, the Association has included longevity and education

incentives, as well as survey data which includes Social Security,

deferred compensation, hours of work, vacation, and holidays in its

computations.  The City submits it is inappropriate to include any

of these supplemental and unrelated benefits when analyzing a wage

only reopener.  The City concludes that, in this wage reopener

interest arbitration, a relatively simple and straightforward

"apples to apples" approach when analyzing the salary differential

should be adopted by the Arbitrator.

            Another related factor is the percentage wage increase

given in other comparables for 1999.  The average wage increase in

the comparables is 3.6%.  City Ex. 28.  The highest wage increase

in any of the comparables was 5.5%.  Again, this factor strongly

favors the City's position in this proceeding where the Association

is seeking a 13% increase which is totally inconsistent with wage

increases granted in the comparables.

            Turning next to the "metro/non-metro factor," interest

arbitrators have recognized there is a substantial difference

between metropolitan  Seattle  jurisdictions  and  jurisdictions

outside of the Seattle area.  Generally speaking, jurisdictions in

metropolitan areas pay more than non-metropolitan jurisdictions.

The City offered economic data to substantiate both the existence

and impact of this differential.

            The population density of King, Snohomish, and Thurston

counties is from 7.8 to 22 times greater than Grays Harbor County.

Per capital income in King County as of 1996 was $34,440, over 80%

higher than Grays Harbor's $18,884.  Median household income in

King County is nearly twice that of Grays Harbor.   When the

economic data is reviewed, the conclusion is inescapable that

Aberdeen is more similar to many cities in eastern Washington than

it is to cities in the Puget Sound metropolitan area.

            Against the background of the differentials in economic

data, the City claims it is entirely appropriate to put wages for

Aberdeen police officers somewhat below the average of  the

comparable jurisdictions.  Three of the City's seven comparables

are in the Puget Sound metropolitan area, five are in the "I-5

corridor," and four have significantly greater assessed valuations.

On the other hand, four of the Association's eight cities are in

the Puget Sound metropolitan area, and six are in the I-5 corridor.

According to the City, it would be entirely inappropriate to award

a  wage  increase  that  would move  Aberdeen police  officers

significantly over the average of the comparable jurisdictions.

Regardless of which methodology or comparison is used, the City's

wage increase of 2% will put Aberdeen police officers in an

appropriate place in comparison with the other jurisdictions.

            With respect to internal equity,  no City employee

received a pay increase in 1998.  For 1999, the majority of City

bargaining units and all non-represented employees received a 2%

wage increase, based on 80% of the CPI.   City Ex. 7.   The

firefighter bargaining unit received an increase of 2% effective

January 1, 1999, but with an additional 2% on July 1, 1999.  In 13

out of the past 16 years, all bargaining units have received either

the same increase or within one percent of each other.  The City's

proposal is to provide police officers with an increase which will

restore the historical relationship between the parties. The issue

of internal equity strongly favors the position of the City in this

interest arbitration.

            The factor of changes in consumer prices bolsters the

position of the City. The Consumer Price Index has been running at

less than 3% and was only 1.3% for 1998.  The CPI-W for Seattle

increased by 2.6% in 1998 and the CPI-W for Portland increased by

only 1.6%.   In the first half of 1999, the CPI-W for Seattle

increased by 3%.   The Association has completely ignored this

statutory factor in its attempt to obtain a 13% wage increase. The

evidence also shows that the Consumer Price Index overstates

inflation by about one percent. In the total tax factor, the eight

cities proposed by the Association reveals Aberdeen ranks next to

last.  This is the result of benefits shopping by the Association.

The Association did not even follow its own selection criteria when

it included Hoquiam and Olympia in the list of proposed cities.

All else being equal, it would be expected that the jurisdiction

with more revenue per capita would be in a better position to pay

its police officers.  This is consistent with the City's position

on the total tax revenue list and supports the City's position of

a 2% increase.

            The Association has suggested the Arbitrator should

consider the City's lack of participation in the Social Security

system in setting the wage increase. The Association is suggesting

the lack of Social Security benefits supports an across-the-board

increase of 13%.  The Association's reasoning should be rejected.

The Association's analysis does not give the City credit for other

benefits it provides police officers which are also included in the

Social Security program.  There is not any basis to include the

City's contribution to Social Security in determining whether an

additional 5% increase is necessary for Aberdeen police officers.

The Association is mixing apples and oranges in that all other

components of wage comparisons are limited to money that is

actually received by the police officers.

            Regarding deferred compensation, the City argues it is

entirely inappropriate to include deferred compensation as part of

a wage analysis.  Deferred compensation is a separate and distinct

benefit from wages.   The Association has proposed a required

employer matching contribution to the City's existing deferred

compensation program.  The deferred compensation program is an

option with the employees and therefore is not appropriate to mix

and match deferred compensation and wages as part of an overall

analysis.   The Arbitrator should find the City's offer is

reasonable and should not be compromised by the Arbitrator.  To do

so would be to reward the Association's use of:

 

1.         An inflated population band that expands

            the range to include cities more than

            twice the size of Aberdeen, with "loaded"

            comparators   from  the  Puget   Sound

            metropolitan area.

2.         Inflated methodology for making

            compensation comparisons that expand the

            issues far beyond the scope of this

            second-year wage reopener arbitration.

 

3.         Unreliable data  The union has submitted

            net hours of work that does not reflect

            the change in work schedule negotiated by

            the parties.

 

4.         Omitted data - The Guild's arguments give

            no  credit  for  favorable  compensation

            items  already  negotiated,  e.g.  life

            insurance, employer co-pay on the Guild

            disability plan, increased premium pays,

            reduction  in  work  hours,  increased

            overtime pay, and other work rules.

                                                            City Brief, p. 23.

 

            In sum, the Association has not offered any explanation

of how their proposal is in any way consistent with or supported by

any of the statutory factors and should be rejected.

            Based on all of the above-stated reasons, the City

respectfully requests that its wage proposal be adopted.

 

III.       DISCUSSION AND FINDINGS (1999 WAGES)

 

            A.        Background

 

            The parties' Collective Bargaining Agreement covers the

period from January 1, 1998, through December 31, 2000.  For 1998

the parties agreed to a zero percent increase on the 1997 salary

schedule.  While there were other benefits negotiated, the salary

schedule in place for 1997 was frozen for 1998 with reopeners for

1999 and 2000. Neither side is proposing a change in the structure

of the existing salary schedule.  The current salary schedule for

1999 is as follows:

 

                                                Current Pay Scale from 1998 Contract

                        Step 1              Step 2              Step 3              Step 4           Step 5       Step 6

Patrol              3,062               3,216               3,374               3,542             3,721

LPO                3,216               3,374               3,542               3,721             3,908

Sergeant         3,374               3,542               3,721               3,908             4,102         4,307

                                                                                                             Assoc. Ex. 36.

 

            This case was presented to the Arbitrator based on a wage

reopener for 1999 included in the parties' 1998-2000 Collective

Bargaining Agreement.   Two preliminary subjects need to be

addressed at the commencement of this discussion.   First, the

Arbitrator concurs with the City that a straight comparison of top

step wages for police officers should be applied in the instant

case.  In the judgment of this Arbitrator, it is inappropriate to

utilize a total compensation analysis when reviewing a wage only

reopener.

            A simple and straightforward "apples to apples" approach

when analyzing salary differentials would best serve the parties

under the contract for a wage reopener.  Any attempt to go further

and explore the value of other benefits received or not received,

such as longevity, education, medical insurance, etc., would enmesh

the parties and this Arbitrator in areas not subject to negotiation

under the wage reopener.  This is particularly true where both

parties are proposing across-the-board salary increases to the

existing schedule.  Therefore, this Arbitrator will confine his

assessment of the record to the top step wage paid to police

officers which is normally at the five-year experience level.

            The second threshold issue to be considered is the impact

of the 1998 salary freeze taken by members of this bargaining unit

on the 1999 wage reopener interest arbitration.  The answer of the

City is the parties agreed to a zero percent increase in the first

year as the appropriate way to settle the contract. Thus, the City

submits the agreed-on 1998 salary freeze is irrelevant to this

case.

            The Association argues the members agreed to a salary

freeze in 1998 to help the City out, with the underlying implicit

understanding the City would "make it right" in 1999.  Absent from

this record is any credible evidence that such an implicit

understanding existed between the parties.  There was no written

evidence offered by the Association to support that such an

understanding existed.  Therefore, the Arbitrator will attach no

special significance to the voluntarily agreed-on wage freeze

except to the extent the zero percent increase impacted on the

comparability evidence.

            As previously noted, the City is proposing a 2% across-

the-board increase.  If awarded by the Arbitrator, the 1999 salary

schedule would provide as follows:

 

                                                            2% Increase

 

                  Step 1           Step 2           Step 3           Step 4              Step 5               Step 6

Patrol        3,123.24       3,280.32       3,441.48       3,612.84          3,795.42             0.00

LPO          3,280.32       3,441.48       3,612.84       3,795.42          3,986.16             0.00

SGT          3,441.48       3,612.84       3,795.42       3,986.16          4,184.04             4,393.14

                                                                                                         As soc. Ex. 36.

 

                  Adoption of the Association's 13% proposal would yield a

1999 salary schedule as follows:

 

                                                                                                         13% Increase

 

                  Step 1           Step 2           Step 3           Step 4              Step 5                 Step 6

Patrol         3,460.06      3,634.08       3,812.62       4,002.46          4,204.73              0.00

LPO          3,634.08       3,812.62       4,002.46       4,204.73          4,416.04              0.00

SGT          3,812.62       4,002.46       4,204.73       4,416.04          4,635.26             4,866.91

                                                                                                            Assoc. Ex. 36.

 

            The Arbitrator will discuss separately the Association's

alternative proposal for a deferred compensation plan with a

maximum 5% contribution rate.  If this proposal is awarded by the

Arbitrator, the Association sought an 8% increase on the salary

schedule.  The deferred compensation plan would add a new benefit

to the contract.

            The Arbitrator finds, after review of the evidence and

argument, as applied to the statutory criteria, that a four percent

(4%) increase effective January 1, 1999, applied to the existing

salary schedule is justified for 1999.  Implementation of a 4%

increase will move the top step pay for an Aberdeen police officer

to $3,870 per month effective January 1, 1999.  By the time this

Award is implemented, the Aberdeen police officers will have worked

more than three years without a wage increase.  The Arbitrator

rejects the Association's proposal to add a deferred compensation

plan to the contract. The reasoning of the Arbitrator is set forth

in the discussion which follows.

 

            B.        Deferred Compensation Proposal

 

            Members of this bargaining unit do not participate in the

Social  Security  program.  The  Association  proposed  as  an

alternative to its 13% offer new language to state:

 

            In addition, for all members of the bargaining

            unit including those referenced above, the

            Employer shall match employee contributions to

            the deferred compensation plan in an amount

            equaling up to 5% of the employee's base

            monthly wage.

                                                            Assoc. Ex. 37.

 

            If the deferred compensation program were adopted, the

Association seeks an 8% increase on the salary schedule.  The City

objected to this proposal as an illegal subject of bargaining.

Given the way the Association deferred compensation plan is

structured and the fact the City currently has in place a deferred

compensation program  for non-bargaining unit  employees,  the

Arbitrator does not agree the proposal is illegal.  Lastly, PERC

certified Article 29 for interest arbitration which included the

potential for negotiations over a deferred compensation plan.

            The Arbitrator rejects the Association's proposal for a

deferred compensation plan as part of the 1999 wage reopener.

While Article 29 recognized the potential for the negotiation of a

deferred compensation plan, your Arbitrator was not persuaded this

new benefit should come into the contract as part of a wage

reopener in 1999.  The adoption of a deferred compensation program

should be considered in the context of negotiation where total

compensation is the subject of bargaining.

            Standing alone, the lack of a Social Security benefit is

not a justification for a deferred compensation program.   The

police unit opted out of Social Security and is not seeking to

become a part of the Social Security system.   Further,  the

comparability data offered by both parties was mixed on the issue

of Social Security and deferred compensation.

            In so holding, the Arbitrator wants to make it clear that

a deferred compensation program might be an appropriate benefit to

be included in a future Collective Bargaining Agreement.  In the

judgment of this Arbitrator, the topic of a deferred compensation

program should be left to future negotiations.   The point is

illustrated by the fact the Association offered no specific

language regarding its proposal until pressed by the Arbitrator to

do so.  Even the language presented by the Association at the

Arbitrator's request lacked detail and specificity as to how the

program would be implemented and administered.

            In sum, the subject of deferred compensation should be

left for future negotiations.  The Arbitrator will make an award

based on a straight percentage figure to be applied to the existing

salary schedule.

 

            C.        Stipulations of the parties

 

            The parties provided in Article 29 of the 1998-2000

Collective Bargaining Agreement for a reopener on the salary

schedule for 1999.  The parties agreed the wage award would become

effective January 1, 1999.  Beyond the above-stated agreements,

there were no significant stipulations of the parties relevant to

this interest arbitration.

 

            D.        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.

 

            E.         Changes During the pendency of this proceeding

 

            Regarding the factor of changes in any circumstances

during the pendency of the interest arbitration proceeding, none

were brought to the attention of the Arbitrator by the parties to

the dispute.

 

            F.         Comparability

 

            The driving force behind the positions of the parties is

comparability.  One of the threshold issues to be decided by this

Arbitrator is to determine the appropriate group of comparators

with which to utilize in establishing the level of wages for

Aberdeen police officers.  To the knowledge of this Arbitrator,

this is the first interest arbitration in which the parties have

had to resort to resolve a wage dispute.  Absent from this record

is any evidence that the parties have previously utilized a group

of comparators for the purpose of serving as a guideline to

establish wage rates for Aberdeen police officers.  The lack of

such evidence left the Arbitrator with no historical precedent for

determining the comparator group.

            The parties did agree to confine their comparator groups

to police officers in Washington cities.  The parties are in sharp

disagreement over which Washington cities should be included in the

comparator group.  Both sides devoted considerable time and effort

towards proving which cities best fit the statutory criteria.  The

methodology used by the City and the Association to develop their

separate lists of comparators varied widely.

            The parties did agree that three cities should be on the

final list of comparators for use as a guide in setting police

wages in Aberdeen.  The three cities agreed on are as follows:

 

                        Mountlake Terrace

                        Kelso

                        Tumwater

 

The Arbitrator will include the three above-named cities on his

list of comparators.

            Two main areas of disagreement divide the parties over

constructing a list of comparators.  First, the City is proposing

three jurisdictions from eastern Washington.  They are Moses Lake,

Sunnyside, and Ellensburg.  Second, the Association is proposing

Olympia, a city with a population of 40,210, and an assessed

valuation  of  $2,585,508,854  for  comparison.    All  of  the

Association's  comparators  are drawn  from western Washington

jurisdictions.

            The  Arbitrator  holds  the  Association  failed  to

demonstrate Olympia was a like employer under the statute.  The

Association argued for inclusion of Olympia based on Olympia's

alleged "sphere of influence" on Aberdeen. In the judgment of this

Arbitrator, Olympia is clearly distinguishable from Aberdeen on

three major grounds.  First, Olympia's population of 40,210 is

23,790 greater than Aberdeen's population of 16,420.   Second,

Olympia's assessed valuation of $2,585,508,854 is over four times

as large as Aberdeen's assessed valuation of $636,624,943. Assoc.

Exs. 20 and 21.

            Third, the Association's sphere of influence claim was

unsupported by relevant evidence.  Aberdeen is not a neighbor or

suburb of Olympia, but is located approximately fifty miles away.

Further, the economic characteristics of the two cities are not

sufficiently  similar  to  warrant  a  finding  the  cities  are

comparable.  Hence, the Arbitrator is compelled to conclude the

sphere of influence argument does not overcome the other factors

which make two cities like employers of a similar size under the

statute.

Moreover, the Arbitrator will not add Issaquah to the

list based on the fact it has an assessed valuation of over twice

that of Aberdeen.  In addition, Issaquah's proximity to Seattle

would give too much weight to the Seattle metro area cities on any

comparator list.  Based on population and assessed valuation, Lake

Forest Park provides a better choice for a Seattle metropolitan

area representative on the list of comparators.   The parties'

agreement to include Mountlake Terrace and the use of Lake Forest

Park by this interest Arbitrator provides a representative sample

of two cities located in the Seattle metro area.

            With respect to Hoquiam, the conclusion of the Arbitrator

is the exact opposite.  While Hoquiam is a smaller city with a

population of 8,995, it is located in Grays Harbor County, less

than five miles distance from Aberdeen.  Hoquiam shares all the

attributes of Grays Harbor County cited by the City to justify its

position on the economic and demographic factors in Grays Harbor

County.  Because Hoquiam is a neighboring city located in the same

county, Hoquiam belongs on the list of comparators, as proposed by

the Association.

            A major issue which interest arbitrators in Washington

have been required to address in selecting comparators is whether

to use eastern Washington cities to compare with western Washington

cities or vice versa. Arbitral authority instructs that, if there

are sufficient and reliable comparators in western Washington,

cities from eastern Washington should not be used in developing the

list of comparators.  The reason for not mixing the two geographic

areas of Washington is based on location, economic and population

differences,  and industrial development.   This Arbitrator is

generally in accord with the above-stated principle.

            The Arbitrator finds there are sufficient and reliable

jurisdictions in western Washington to serve as a guideline for

reaching a decision on the wages to be paid Aberdeen police

officers in this case.  Under such circumstances, the Arbitrator

finds there is no need to include eastern Washington jurisdictions

on the list of comparators.  The parties have agreed to three

western Washington cities, and the Arbitrator has added Hoquiam~

which was proposed by the Association. Further, the Arbitrator has

accepted the City's proposal to include Lake Forest Park as an

appropriate comparator representing the Seattle metro area.  The

obvious choice for the sixth city is Oak Harbor based on a similar

population size and assessed valuation to Aberdeen.   The same

reasoning holds true for Port Angeles.  The population, assessed

valuation, geographic location, and economic factors make Oak

Harbor and Port Angeles suitable guides to assist the Arbitrator in

resolving this wage dispute.

            With the three agreed-on comparators and the additional

four cities selected by the Arbitrator from those proposed by the

parties that are closely representative to Aberdeen in several key

factors, the comparator list has grown to seven.  In the judgment

of  this Arbitrator,  a meaningful number of comparators  for

resolving this case is nine.  The balance can be struck to bring

the total number to nine comparators by adding Anacortes and

Centralia to the list.

            Anacortes is a coastal city with a smaller population of

13,900  than  Aberdeen,  but  a  higher  assessed valuation  of

$991,970,442.  Given all the indicators, the Arbitrator concludes

Anacortes is a like employer of a similar size under the statute.

The equalizing force to the list of comparators is to include

Centralia.   By adding Centralia, a slightly smaller city in

population and a somewhat lower assessed valuation than Aberdeen is

added to the mix of comparators.  Centralia is also an appropriate

comparator because it is located in an adjacent rural county, not

far from Aberdeen.

            The Arbitrator adopts the following list of comparators

with the 1999 top step wage for police officers added:

            City                                                     Wage

            Mountlake Terrace                           $4,067

            Kelso                                                  $3,980

            Tumwater                                           $3,975

            Anacortes                                           $3,873

            Lake Forest Park                               $3,857

            Oak Harbor                                        $3,849

            Centralia                                             $3,788

            Hoquiam                                             $3,687

            Port Angeles                                       $3,676

 

            Average wage                                                $3,861

            Aberdeen 1998 wage                         $3,721

 

            The 2% increase offered by the City would place the top

step police officer wage at $3,795 per month, or $66 below the

average wage paid in the nine comparators.  Further, the $3,795

proposal of the City would position Aberdeen police officers at

number 7 in the ranking of the ten cities, including Aberdeen.

Aberdeen police officers would be in the bottom one-third of the

comparators.   The Arbitrator's award of 4% positions Aberdeen

police officers right in the middle of the comparators at number 5.

            Turning  to  the  Association's  proposal,  there  is

absolutely no evidence in the record which would warrant the 13%

increase sought by the Association for 1999.   The Arbitrator

disagrees with the Association's attempt to justify the 13%

increase based on the voluntarily agreed-on wage freeze in 1998.

The parties made a bargain in 1998 and must abide by its terms and

consequences.   Adoption of the 13% proposal would propel the

members of this bargaining unit to the top position on the

comparator list for police officers in a period of one year.

Nothing in the record of this case compels such a result.  Even

with the wage freeze for 1998 factored in, the Arbitrator concludes

a 13% increase for 1999 is not justified by any measure of the

statutory criteria.

            One advantage of holding an interest arbitration in the

year 2000 for a wage adjustment in 1999 is that the comparator

cities have reached agreement on their 1999 wage adjustment.  The

evidence shows that the wage adjustments for the comparator group

to be as follows:

                                                                        1999 Wage

            City                                                     Adjustment

            Mountlake Terrace                           3.0%

            Kelso                                                  3.4%

            Tumwater                                           3.1%

            Anacortes                                           4.0%

            Lake Forest Park                               3.0%

            Oak Harbor                                        5 .5%

            Centralia                                             5.4%

            Hoquiam                                             3.0%

            Port Angeles                                       5.5%

 

            As can be seen from a review of the above data, the 1999

settlement range for police officer contracts varied from 3% to

5.5%.  It is noteworthy that none of the comparators agreed on a 2%

increase, as proposed by the City, in this case. Each of the above

cities also provided a wage increase for 1998.   There is no

evidence that any of the cities on the comparator group agreed to

a wage freeze in 1998, other than Aberdeen.  When the 1998 wage

freeze is combined with the 1999 police officer wage settlements,

the Arbitrator finds the City's proposed 2% increase to be

inadequate.

            The  4% wage  increase  awarded by  this Arbitrator,

effective January 1, 1999, will raise the maximum salary for an

Aberdeen police officer to $3,870 per month. The maximum salary of

$3,870 will position Aberdeen police officers at number 5 in the

ranking of the ten cities.  In addition, the top salary will be $9

above the average of the nine comparators.  The award of a 4%

increase places Aberdeen within the range of reasonableness when

compared to their police counterparts in the nine other western

Washington  comparators.    There  is no  evidence before  this

Arbitrator that the City is unable to afford a 4% increase for its

police officers in 1999.

 

            G.        Cost of Living

 

            The record evidence established that the national CPI-W

and the CPI-U has been recording increases between 2.5% and 3% over

the past five years.  The 1998 Seattle CPI-W was 2.6%.  Assoc.

Ex. 10.  For the first half of 1999, the Seattle CPI-W showed a 3%

increase.

            The City believes the CPI overstates "consumer prices" by

about one percent.  The City reasons the Arbitrator should use a

revised CPI figure of 2% in analyzing the cost of living factor.

The Arbitrator declines the City's invitation to tinker with the

officially published CPI figures by a reduction of one percent to

account for the purported overstatement in the measurement of

increases in the price of goods and services.

            The Arbitrator concurs with the City and the Association

that the cost of living factor is to be used as one of the

guidelines  for  setting  the  appropriate  level  of wages  for

employees. The CPI measures price increases in a set market basket

of goods and services.  The CPI is not intended to measure the

impact on any particular individual because not all persons

purchase that same market basket of goods and services, nor does it

reflect changes in buying patterns.  However, the CPI is widely

recognized as an important factor in determining appropriate wage

adjustments.

            The Arbitrator finds the evidence regarding cost of

living supports a wage settlement closer to the City's position

than the 13% offered by the Association.  The City's evidence

proved the members of this bargaining unit have fared well in

recent years when negotiated wage increases are compared with the

corresponding changes in the CPI over the past several years. City

Ex. 27.  While the City's study is not perfect, the analysis does

give the Arbitrator a long-term picture of wage increases for

Aberdeen police officers in relation to the CPI.  The City's CPI

evidence does not factor in the Association's evidence that police

officers have generally enjoyed wage increases that have exceeded

the CPI and the fact the 1998 salary schedule was frozen for 1999.

            In sum, the 4% wage increase awarded by this Arbitrator

for 1999 is consistent with the past and projected increases in the

cost of living as measured by the Consumer Price Index.

 

            H.        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 explained

that no employee of Aberdeen received a wage increase in 1998.  In

addition, the City stated the majority of bargaining units and non-

bargaining unit employees received a 2% increase based on 80% of

the CPI for 1999.  City Ex. 7.  The City notes that firefighters

also received a 2% increase effective January 1, 1999, plus an

additional 2% to be applied on July 1, 1999, in recognition of the

fact that over the past fifteen years police wages have increased

faster than firefighter wages.

            The Arbitrator is authorized by law to resolve the wage

dispute between the City of Aberdeen and the Aberdeen Police

Association.   He is not here to settle the wages for other

employees of the City of Aberdeen.   The 4% awarded by this

Arbitrator is consistent with the statutory criteria and compatible

with wage increases enjoyed by other employees of the City of

Aberdeen.

                                                AWARD

 

            The Arbitrator awards the 1999 wages should be adjusted

as follows:

 

            Effective January 1, 1999, the existing salary

            schedule  for  police  officers  shall  be

            increased by four percent  (4%)  across the

            board.

 

 

                                                                                    Respectfully submitted,

 

                                                                                               

                                                                                    Gary L. Axon

                                                                                    Arbitrator

                                                                                    Dated: February 19, 2000

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