IN THE MATTER OF THE INTEREST ) ARBITRATOR'S ) ARBITRATION BETWEEN ) OPINION ) COWLITZ COUNTY, WASHINGTON ) AND ) "THE COUNTY" or "THE EMPLOYER" ) AWARD ) AND ) ) COWLITZ COUNTY DEPUTIES GUILD ) ) "THE GUILD" OR "THE UNION" ) INTEREST ARBITRATION HEARING: July 12, 2007 and July 13, 2007 Kelso, Washington BRIEFS: Employer's received: September 17, 2007 Union's received: September 17, 2007 HEARING CLOSED: September 17, 2007 ARBITRATOR: Timothy D.W. Williams 2700 Fourth Ave., Suite 305 Seattle, WA 98121 REPRESENTING THE EMPLOYER: Howard Rubin, Attorney Jim Zdilar, Personnel Director Duane Engler, Undersheriff CC Sheriff's Department REPRESENTING THE UNION: Daryl Garrettson, Labor Consultant Kelly Lincoln, Deputy - Guild President Brad Thurman, Guild 2nd Vice President Pat Schallert, Deputy - Negotiation Committee Dana Bennett, Senior Research Analyst Darren C. Ullmann, Deputy - Guild lSt Vice President, Negotiation Committee Dan Sheridan - Deputy Sheriff APPEARING AS WITNESSES FOR THE EMPLOYER: Jim Zdilar, Personnel Director Mark Nelson, Captain CC Sherif Reagan Smith, HR Grants County Duane Engler, Undersheriff CC Sheriff's Department APPEARING AS WITNESSES FOR THE UNION: Dan Sheridan, Dep. Sheriff - Guild Dana Bennett, Senior Research Analyst Pat Schallert, Deputy - Negotiation Committee Brad Thurman, Sgt. Cowlitz County Darren ullman, Guild lSt Vice President Graig Shelton, Deputy Troy Brightbill, Deputy Dave Smith, Sgt. CC Sheriff Kelly Lincoln, Deputy EXHIBITS Union 1. Guild Labor Agreement 2003-2005 2. Guild's Proposed Changes 3/23/2007 3. Employer's Proposed Changes 3/23/0007 4. Arbitrator Beck's Decision 4/7/1987 5. [withdrawn] 6. Comparable Jurisdictions in 1987 7. Population Tax Comparison 8. Washington County Map 9. 37.5 to 40 Hour Comparison 10. Market Summary - percentage behind in compensation 11. CPI - W US Cities, June 2007 12. Guild CPI Analysis 13. Newspapers on the Local Economy 14. Guild Total Leave Comparison 15. Fatigue on Police Work 16. NTSB Controllers - Fatigue and Air Safety 17. Physical Fitness Ability Test 18. Pay Comparison for A . Degree 19. Police Association for College Education 20. Projected Market Summary 21. Projected Market Summary County's Comparables 22. Projected Market Summary County's Comparables 23. Duty Weapon Provision - Comparables 24. Written Statement of Pat Schallert 25. 12/13/2006 Hire Three Deputies 26. 7/6/2007 Median Home Sold for $199, 250 27. Public Defenders Pay Increase 7/11/2007 28. Memo to file by J. Goldberg Employer 1. Letter from Marvin L. Schurke, Executive Director, Public Employment Relations Commission, to Jim Zdilar, Cowlitz County and Jaime B. Goldberg, Counsel for the Guild, dated August 1, 2006 2. Letter from Jaime B. Goldberg to Arbitrator Timothy D.W. Williams dated March 23, 2007 3. Letter from Howard Rubin to Arbitrator Timothy D.W. Williams dated March 23, 2007 4. Letter from Jaime B. Goldberg to Arbitrator Timothy D.W. Williams dated March 26, 2007 5. Letter of Understanding between Cowlitz County and Cowlitz County Deputies Guild dated March 8-9, 2007 (concerning County's contribution toward the cost of the monthly premium for medical, dental and life insurance) 6. Cowlitz County Sheriff's Agreement, 1/1/2003-12/31/2005 7. Employee list (with hire date, years of service, education, and position) 8. Map of State of Washington 9. Interest Arbitration Opinion and Award of Michael H. Beck In the Matter of Cowlitz County and Teamsters Local 58, dated April 7, 1987 10. Population of Selected Counties 11. Assessed Valuations of Selected Counties 12. Assessed Valuations Per Capita of Selected Counties 13. CPI - Urban Wage Earners and Clerical Workers - US City Average 9June 2005, June 2006) 14. Benton County Contracts 15. Clallam County Contracts 16. Grays Harbor County Contracts 17. Lewis County Contract 18. Skagit County Contract 19. Cowlitz County Profile, January 2007 20. Grays Harbor County Profile, May 2007 21. Clallam County Profile, December 2001 22. Adams and Grant County Profile, December 2002 23. Island County Profile, April 2000 24. Per Capital Income - 2005 25. Median Household Income - 2005 26. Unemployment Rate - 2006 27. Housing Market Snapshot - Median Price - First Quarter 2007 28. Comparisons Regarding Cowlitz County Proposals 29. Comparisons Regarding Cowlitz County Deputies Guild Proposals 30. Lehleitner Award 2/15/1996 31. Employee Insurance Options - 2006 32. Employee Insurance Options - 2007 33. Employer Contribution/Employee Contribution - 2006 34. Employer Contribution/Employee Contribution - 2007 35. Blue Notebook Deputies Comparables 36. Green Notebook Sgts. Comparables 37. Washington City and City Employee Salary Survey 38. Grievance List 6/3/2003 to 8/6/2006 39. Article on College Degrees and Police Work 40. Assessed Value of Taxable Property 41. Grant County Vacation E-Mail Memo 42. CC Sheriff Department Team Assignment 43. Patrol Calendar - 2007 44. Job Application Data 45. Summary of Separations from Service BACKGROUND The Cowlitz County Deputies Guild represents a bargaining unit made up of 41 employees in the County Sherifff s Department, ranging in rank from deputy through sergeant. The Guild and Cowlitz County were bound by a Collective Bargaining Agreement which expired on January 31, 2005. Presently, the Parties have come to an impasse in negotiations over the language of the successor agreement. RCW 41.56.450 provides that uniform personnel interest arbitration is to be used to resolve an impasse. The issues to be submitted to the arbitrator for determination "shall be limited to the issues certified by the executive director". By letter dated August 1, 2007 Executive Director of the Public Employment Relations Commission (PERC), Marvin Schurke, certified the following issues at impasse and thus subject to interest arbitration: Article 4, Sections 4.1, 4.2, 4.7, 4.9, and 4.10 Article 5, Sections 5.2 Article 6, Sections 6.4, 6.6, 6.7 Article 8, Sections 8.8 Article 11, Sections 11.3, 11.4, 11.7 Article 14, Sections 14.1, 14.2 Article 15, Sections 15.1, 15.2, 15.3, 15.5, 15.6 Article 16 Article 18, Sections 18.2, 18.3, 18.4, 18.5, 18.6 Appendix A: Salary Schedule Appendix B: Uniform and Equipment List New Article: Payroll Dates In accordance with WAC 391-55-205, each Party had the right to name one partisan Arbitrator to serve as a member of the arbitration panel. Part one (1) of the cited code provides that "The use of partisan arbitrators shall be deemed waived if neither Party has notified the executive director of its appointee within fourteen days following the issuance of a certification of issues for interest arbitration, and the Partiesf principal representatives shall then select the neutral chairperson". Both Parties waived the use of partisan arbitrators and Arbitrator Timothy Williams was selected as the neutral chairperson. For the purposes of this document, the terms "neutral chairperson" and "interest arbitrator" or "arbitrator" shall be interchangeable. The hearing was set beginning on February 27, 2007 and was subsequently rescheduled beginning April 9, 2007. WAC 391-55-220 provides that parties to an interest arbitration must provide the Arbitrator and each other with written proposals on all issues within fourteen (14) days of the hearing. Both Parties timely submitted their proposals on March 23, 2007. The Arbitrator received two emendations to the Guildf s proposal following the initial submission. By letter dated March 26, 2007, representative for the Guild, Jaime Goldberg, notified the Arbitrator that the Guild did not intend to seek the longevity component in Article 18.6, as had previously been indicated. By letter dated April 3, 2007, Mr. Goldberg further notified the Arbitrator that the Guild has decided to withdraw its proposal to increase the uniform and equipment allowance in Article 11.4. Ultimately, the hearing was again rescheduled and it took place in Kelso, Washington on July 12 and July 13, 2007. The proceedings began with a pre-hearing conference, in accordance with WAC 391.55.225 (1) which provides that "The neutral chairperson may, upon his or her own motion or upon request of a party, convene a prehearing conference or conferences." At the pre-hearing conference, the Parties notified the Arbitrator that they were able to resolve the following issues: Article 5, Section 5.2 Article 11, Section 11.3, 11.4, 11.7 Article 15, Section 15.1, 15.2, 15.3, 15.5, 15.6 Article 16 The issues remaining before the Arbitrator at the commencement of the hearing proper were the following: Article 4, Sections 4.1, 4.2, 4.7, 4.9, and 4.10 Article 6, Sections 6.4, 6.6, 6.7 Article 8, Sections 8.8 Article 14, Sections 14.1, 14.2 Article 18, Sections 18.2, 18.3, 18.4, 18.5, 18.6 Appendix A: Salary Schedule Appendix B: Uniform and Equipment List New Article: Payroll Dates While Article 4.10 was listed as an issue in dispute, neither Party presented a specific proposal, neither did either Party make an argument on this issue. Therefore, the Arbitrator determines that there is no remaining dispute over 4.10. Similarly, The Union's set of proposals (Union Exhibit #2) contains the existing language on Article 6.6, the Employer's proposals make no mention of this Article and neither Party presents argument with regard to this issue. Therefore, the Arbitrator determines that there is no remaining dispute over 6.6. At the hearing, both Parties had full opportunity to make opening statements, examine and cross-examine sworn witnesses, present documentary evidence, and make arguments in support of their positions. RCW 41.56.450 provides that "a recording of the proceedings shall be taken." In compliance with the statute, an official transcript of the proceedings was taken, and a copy was provided to the Arbitrator. At the close of the hearing, the Parties were given the opportunity to file written briefs. The Parties accepted, and the due date of August 31, 2007 was set for their submission. By letter dated August 29, 2007, the Arbitrator granted the Employer's request to postpone the filing of posthearing briefs until September 14, 2007. Both Parties timely submitted the documents and they were received by the Arbitrator on September 17, 2007. In accordance with WAC 391-55-240, the Arbitrator declared the hearing closed on September 17, 2007. The Arbitrator's opinion and awards are submitted on an issue-by-issue basis. For each issue I will begin by presenting the Partiesf respective positions, outline the Partiesf arguments in support of their positions, provide the analysis for the Arbitrator's opinion and conclude with the award. In that the issue of wage has serious impact on the consideration of all other proposed language, I consider it to be the central issue of the present negotiations. Accordingly, the opinion and award will begin with Appendix A (Wages) and proceed to address all other contract language in the order that it is presented in the Labor Agreement. The Arbitratorf s interest award is based on a careful analysis of the evidence and argument presented during the hearing, as well as the arguments found in the written briefs, and with full consideration of the following factors, found in RCW 41.56.465: (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 (2) Subsection (1) (c) of this section may not be 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. POSITIONS, ARGUMENTS, OPINION AND AWARD ISSUE I: APPENDIX A - WAGES Current Language: Effective January 1, 2003, all salaries listed in Appendix A have been increased by 80% of the percentage increase in the CPI-W, U.S. City Average measured from June 2001 to June 2002. Effective January 1, 2004, all classifications listed in Appendix A will be increased by 80% of the percentage increase in the CPI-W, U.S. City Average measured from June 2002 to June 2003. Effective January 1, 2005, all classifications listed in Appendix A will be increased by 80% of the percentage increase in the CPI-W, U.S. City Average measured from June 2003 to June 2004. Guild's Proposal: Effective January 1, 2006, all salaries listed in Appendix A have been increased by six percent (6%) . Effective January 1, 2007, all classifications listed in Appendix A will be increased by six percent (6%). Effective January 1, 2008, all classifications listed in Appendix A will be increased by the percentage increase in the CPI-W, U.S. City Average measured from June 2006 to June 2007 minimum 3%, maximum 6%. County's Proposal: Effective January 1, 2006, all salaries listed in Appendix A will receive a 2.1% increase aboie the 2005 level. Effective January 1, 2007, all classifications listed in Appendix A will receive a 2.1% increase above the 2007 level. Effective January 1, 2008, all classifications listed in Appendix A will be increased by 80% of the percentage increase in the CPI-W, U.S. City Average measured from June 2006 to June 2007. Guild's Position: The issue of determining equitable wages may be seen as a composite of two questions and the Parties address each of these separately in their briefs. The first is the question of which counties provide the most accurate comparables. The second question concerns the methodology utilized to compute wages in those counties deemed comparable. The Guild proposes the following counties as comparables for Cowlitz: Benton, Grant, Island, Lewis and Skagit. The legislature sets forth that population and the type of employer are the only two factors which must be used in the selection of comparables. It is undisputed that a large disparity in population will result in a large disparity of base wage calculations. The Guild has chosen the five Washington counties which are closest in population to that of Cowlitz County. The two counties which are larger than Cowlitz, Benton and Skagit, are mutually agreed upon by the Parties. The issue in dispute is which smaller counties to use. The Union defends its choice of Island, Lewis and Skagit on the grounds that these are the closest in population to Cowlitz County. In support of this choice, the Union cites the arbitration decision of Michael Beck (1987). The rational of Arbitrator Beck in selecting comparators was solely based on considerations of population. In the two decades since that decision, the population distribution of the area has changed such that the counties proposed by the Union are the closest in population to Cowlitz and therefore the most appropriate. Additionally, all five of the Guild's recommendations are within an acceptable range of assessed valuation and of total taxes due, and therefore provide a balanced estimation of the local labor market. The Union criticizes the County's argument that the specific jurisdictions chosen by Arbitrator Beck in 1987 should continue to be used today. Those comparables which have been historically used are now outdated and it would be a mistake to regard their selection as set in stone. As population changes, the rational used by Arbitrator Beck recommends a different set of comparables. The Union also criticizes the County's reliance on Arbitrator Lehleitnerf s decision (1996) , stating that "the question of what comparators would be appropriate was not part of Arbitrator Lehleitner decision" (p. 9, Union's brief). Additionally, the Union anticipates that the County will make a case against the use of Island County by noting that its high assessed value makes it a poor comparator to Cowlitz. According to the Union, total taxes due are a better measure of a local jurisdiction's ability to pay increased wages. Because Island County has significantly lower total taxes due, it is not an unreasonable comparator, especially when one takes into account that its assessed value is still lower than that of the agreedupon comparators, Benton and Skagit. Lastly, the Union takes issue with the County's use of a blended set of comparables, which it believes should be disregarded entirely. Because this set is comprised of only two larger jurisdictions and five smaller ones, the resulting average is heavily distorted towards the smaller jurisdictions and, consequently, lower base wages. The Union believes that its proposed comparators, selected on the basis of population, give the Arbitrator an accurate picture of the labor market within which the Guild member finds himself situated. On the contrary, the County's comparators have been chosen with an eye towards the smallest counties, "to justify their economic position. The County comparators have no basis in economic reality" (p. 10, U's brief). Once the Arbitrator has settled the question of which counties are appropriate for comparison for the purpose of determining an equitable wage increase, the question remains of which Party carried out the more accurate comparison - that is the question of methodology. The primary methodological dispute in this case centers on the incorporation of insurance costs into the analysis of base wages. After presenting its case for figuring insurance costs into the analysis, the Union proceeds to criticize the County's methods on three unrelated points. These are: how paid leave is accounted for, what benchmarks are appropriate, and whether comparison should be of hourly or of monthly wages. The Guild's arguments on these topics may be summarized as follows. First, the Union takes issue with the County's method of excluding the costs of health insurance when analyzing the wage data of comparable jurisdiction. The Union holds that the analysis required by the RCW must of necessity take into account total compensation, which includes health insurance. The County's position that insurance is difficult to calculate should not prevent the Arbitrator from recognizing the weight of its importance, especially considering the rapid inflation of healthcare costs and insurance. The great weight of arbitral authority prefers total compensation to any form of piecemeal analysis. The County's reason for seeking to exclude insurance from the analysis is that Cowlitz pays substantially less than the comparator jurisdictions for it, while its employees pay substantially more. At the same time, the County seeks to justify its offer of only 80% of the CPI by citing rising insurance costs. It is simply unreasonable to use health insurance as a component in the determination of salary to be paid, but to exclude it from the analysis when comparing salaries across jurisdictions. Second, the Union argues that there are a number of problems with the way in which the County accounts for paid leave. The first of these is a discrepancy between the County's selection of pay (the first full month of the start of the sixth, eleventh, and twentieth complete year of service, same as the Union) and the County's selection of vacation hours (at the start of the fifth, the tenth, and the twentieth year). This error causes the numbers generated by the County for the market average to be artificially low. Another problem with the way in which the County accounts for paid leave arises in their application of a net hourly system. In order to arrive at an hourly wage, the County subtracts vacation and holiday time from total hours worked and divides the remaining hours into the monthly wage. That position is invalid because not all of that leave is taken and both Cowlitz and its comparator counties have some form of buy-back for time not taken. Because employees can sell their unused paid time off, vacation and holiday benefits are clearly cash benefits and have a very real cash value. "The better methodology is to calculate the vacation and a total value for holiday time and add that to the net wage. This provides a more accurate picture not only of the cost of compensation to the employer, but also the value of the compensation received by the employee" (p. 15, U's brief). Third, the Union takes issue with the County's reliance on the eleven year benchmark in presenting its case. The Union argues that no demographic benchmark, especially not one based on averages, makes any sense when we lack the demographic information of comparator jurisdictions. An apples-to-apples comparison is only possible with standardized benchmarks, used consistently throughout the industry. The use of the eleven year benchmark is simply convenient for the County, as it highlights its highest compensation position. Lastly, the Union advocates a month to month comparison, over the hourly comparison generated by the County. The monthly wage is more appropriate because employees are paid by the month, in Cowlitz as well as comparator counties, and not by the hour. An hourly comparison is unreliable, as the number of hours worked in any given month varies tremendously due to the structure of the schedule. In order to account for the fact that Cowlitz employees do work fewer hours per month, the Union has created an adjusted forty hour schedule base wage. Before proceeding to summarize its analysis, the Guild makes a correction to its data regarding paid leave for Grant County. Readjusting the numbers reduces the aggregate deficiency for all four benchmarks of Cowlitz Deputies to 8.5% behind for 2006 rather than 9.4% behind. The Guild concludes that the appropriate comparable jurisdictions, when analyzed using the appropriate methodology, establish that the Deputies of Cowlitz County were substantially behind the market for all four benchmarks as of January 1, 2006. The disparity is between 6.3% (at five years) to 9.3% (at fifteen years), the average being 8.5%. The Guildf s request for a 6% wage increase is entirely reasonable, given these numbers. For 2007, the Guild applied a cost of living escalator, revealing that Cowlitz Deputies would be on average 12.4% behind. The County failed to make any adjustment for 2007, thereby skewing their data downward. The use of a CPI escalator is the approach preferred by arbitrators, because making no adjustment amounts to accepting the very unlikely assumptions that comparator employers would not increase their wages at all for 2007. For 2008, the Guild argues for 100% of the US All Cities CPI with a 3% minimum and a 6% maximum. The justification for this is that a salary increase equal to the CPI merely maintains an employee's current purchasing power. A reduction in the wage increase results in a real loss of purchasing power for the employee, especially in Cowlitz County where housing costs are rising much more quickly than the national average reflected by the CPI. The Countyfs justification for 80% of the CPI is that they would be potentially facing rising health insurance costs. This change is speculative and, if it does occur, would not result in the employee saving any money. "There are simply no justifications for reducing an increase below the cost of living" (U's brief, pg. 20.) The Union concludes its written arguments by drawing the Arbitrator's attention to the fact that, by the time the Arbitration award is rendered, employees will have gone without pay adjustments in over twenty-one months and some have retired. Both the Guild and the County have proposed retroactive pay increases beginning in January 1, 2006. The Guild asks that retirees not be denied the benefits of those increases. County's Position: The Employer proposes the following counties as comparables for Cowlitz: Benton, Clallam, Grays Harbor, Lewis and Skagit. The primary justification behind this choice is that it is a matter of past practice. Since the Beck decision in 1987, the County has used these comparables to negotiate wages with all of its bargaining and non-represented employees. In 1996, Arbitrator Lehleitner reaffirmed the use of these comparables, rejecting the Union's proposal to alter the set. All of these comparators fall within the acceptable range of population and assessed value, as well as assessed valuation per capita. The Guild has shown no need to change them, as it should have attempted to do in good faith negotiations. Plus, unlike the County, which has been consistent in its choice of Interest Arbitration between Cowlitz County and Cowlitz County Deputies Guild: Page 15 comparators, the Union has twice changed its proposed comparators during negotiations. Aside from the question of comparables, the County puts forth arguments in defense of its wage calculations on the basis of methodology. As noted above, the question of whether health insurance is to be figured into wage calculations is the major point of dispute here. The County argues against the inclusion of insurance in the comparison. The County also believes that a close look at the Guild's insurance numbers render their entire set of calculations inaccurate. The Employer devotes a considerable portion of its arguments to the issue of health insurance costs and contributions. The County begins by outlining the Partiesf Letter of Understanding of March 2007 regarding contributions to health and life insurance and the numerous insurance plan options available to employees. Although there are plans that require monthly employee contributions, the County focuses on the observation that "[tlhe average actual contribution per bargaining unit employee is extremely low ... the County paid over 98% of the bargaining unit's total health, dental, and life insurance costs in 2006, and over 95% of those costs in 2007" (E's brief, pg.4- 5) The Employer also takes issue with the Union's computations of employee insurance contributions, specifically with the Guild's "take away" item of $407.97 per person per month. This hypothetical number renders the Union's analysis entirely inaccurate, argues the County, because guild members actually pay much less for their insurance than the projection indicates. Such a "take away" is not a standard item on wage proposals and, generally, health insurance contributions are not included in salary proposals between the County and its represented employees. "The Guildfs use of an inflated, non-representative value for individual insurance contributions skews every one of the Guild's salary computations and calls their overall value into question" (p. 11). Another source of inaccuracy in the Guild's numbers is the fact that Cowlitz County uses a combined, rather than a tiered, system to compute insurance costs, and this is not the practice in the comparator counties. The Arbitrator should disregard the Unionfs computations of comparable salaries because these figures include employee contribution amounts which are greatly at odds with reality. "The Guild did not submit any evidence that its numbers for employee and employer insurance contributions in the comparator counties is actually an apples-to-apples comparison "(E's brief, pg. 12). Instead, the Arbitrator should accept the County's computations of comparable salaries, which exclude health insurance from wage calculations. The County argues that in order for the present analysis of comparable wages to be accurate, health insurance must be excluded from the calculation. This is because the Parties have already settled the matter of health insurance payments in a manner which provides for substantial increases in the County's insurance benefits contribution. Additionally, health insurance costs and benefits are notoriously difficult to calculate and the numbers provided by the Guild are based on woefully insufficient data. Many arbitrators, including Arbitrator Beck in his 1987 decision, decline to factor health insurance into wage comparison precisely due to the difficulty of establishing a valid comparison on the grounds of health insurance design, costs, and coverage. In the present case, the Union hasn't even attempted an apples-to-apples comparison, instead positing an impossible "take away" number in order to artificially lower the Cowlitz Deputiesf wage calculations. " [TI he Guildf s unrealistic inflation of the deputiesf health insurance contributions make its calculations unkeliable if not meaningless" (Ef s brief, pg. 29). Additionally, the Employer takes issue with the Guild's wage comparison charts and computations due to an erroneous vacation figure for Grant County. The Guild posits 231.96 hours per year for Grant County Deputies, but their yearly maximum is actually 176 hours, undercutting the validity of all of the Guild's calculations. The Employer concludes that "[t]he County's wage proposal should be adopted because it is reasonable, fair, well supported, and puts the County at or above the average compensation for the comparators (including the two new comparator counties proposed by the Guild) " (E's brief, pg. 25) while "[t]he Guild's proposal not only far exceeds all the averages, it also exceeds the hourly compensation for each an everyone of the seven proposed comparator counties" (E's brief, pg. 10) . With few exceptions, all permutations of years of service and education level, the County's offer is above average. The offer of 80% rather than 100% of the CPI is both fair and reasonable as it results in above-average wages while, at the same time, accounting for the significant contributions the County makes to employee's health insurance costs. The factor of 80% is consistent with the negotiated 2003-2005 labor contract. Additionally, arbitrators have previously held that less than the full CPI increase is reasonable where employer contributions protect the employee from fluctuations in the CPI, as is the present case with rising healthcare costs. Award APPENDIX A - WAGES Effective January 1, 2006, all salaries listed in Appendix A will receive a 4% increase above the 2005 level. Effective January 1, 2007, all classifications listed in Appendix A will receive a 3% increase above the 2007 level. Effective January 1, 2008, all classifications listed in Appendix A will be increased by 80% of the percentage increase in the CPI-W, U.S. City Average measured from June 2006 to June 2007. The above wage increases are fully retroactive with each bargaining unit member to receive additional compensation equal to the difference between what he or she has been paid and what he or she would have been paid under the above wage structure. In the event that a bargaining unit member would have received additional compensation (performed work after January 1, 2006) but for the fact that he or she left employment, the County will make a reasonable effort to locate the individual and provide whatever additional compensation is owing. Arbitrator's Analysis: Most of the Parties arguments focus on the issue of the appropriate comparators and, therefore, that is where the Arbitrator's analysis will begin. The Arbitrator finds that Benton, Skagit, Grant, Lewis and Grays Harbor are the appropriate comparators for Cowlitz County. In arriving at this conclusion he agrees with the Guild that it is the logic of the Michael Beck decision (Employer #9) more than the results that are important. On the other hand, the Arbitrator agrees with the Employer's conclusion that Island County is not a good comparator. The first point that led to this conclusion includes the fact that Island County is immediately adjacent to King County, Washington's largest population center including the cities of Seattle, Bellevue and Redmond. Cowlitz County and the other comparators do not share this relationship; none of them are immediately adjacent to a major metropolitan area. The second point of importance is the fact that the major employer in Island County is the Federal Government by way of the Whidbey Island Naval Air Station (Employer #23), a fact which also has an impact on the economic conditions of the county. Moreover, a review of the data provided by the Guild shows a substantial difference between Island County and the other comparators including Cowlitz County when looking at total taxes due compared to assessed value (divide assessed value by total taxes due) -- .000775 for Island County to -00169 for the 6 County average (Guild # 7 ) . Ultimately, it is the Arbitrator's conclusion that Island County, while a good comparator in terms of population size, is a poor comparator when considering economic factors. As to the choice of Grays Harbor County, the Parties have traditionally used five comparators which included Grays Harbor. Also, Grays Harbor is part of the set of five that are the closest in population size to Cowlitz County (leaving out Island County); two larger and three smaller. Moreover, Lewis County is immediately adjacent with Cowlitz County and Grays Harbor immediately adjacent to Lewis County. Geographic proximity combined with similar population size makes Grays Harbor County a logical addition to the other four. Having determined the five comparators, the Arbitrator is now left with the difficult task of determining what those comparators actually show. The key question is how the compensation provided by Cowlitz County to this bargaining unit stacks up against the compensation provided by the comparators. Compensation is provided in many forms which makes the mathematics of a comparison challenging. A significant point of disagreement between the Parties involves whether The Employer's contributions to medical insurance ought be included in the comparison; the Employer says no and the Guild says yes. The Arbitrator is in agreement with the Union on this point. The medical insurance premium is a major part of an employee's compensation. While a precise comparison is difficult since medical insurance takes many forms and at numerous cost structures(fn:1), as the Employer argues, it is the Arbitrator's conclusion that the disadvantages of not including it are greater than the problems around the preciseness of the comparison. ________________ fn:1 For example, the Evidence indicates that Cowlitz County has fourteen different insurance packages all of which have been different price tag. Thus, how do you arrive at a single number to be used for comparison purposes? Ultimately the choice was simply to use the Employer's maximum contribution; a good choice but certainly not without its inaccuracies. In the final analysis, the Arbitrator chose to use Guild exhibit 10 to make a final determination. However, he made two modifications: 1) substitute Grays Harbor County for Island County, 2) use the figure $86.26 instead of $406.97 for Cowlitz County under the column InsER. A look at Employer exhibit 33 indicates that the largest contribution by an employee for medical insurance in 2006 was $86.26. Since no employee ever contributed towards medical insurance a figure anywhere close to $406.96, it is the Arbitrator's conclusion that the data needed to be adjusted to what was actually happening. The Arbitrator further concludes that when the above adjustments are made, the gap between compensation in Cowlitz County and comparator compensation is substantially narrowed. For example, on the page for five years of service the adjusted base for Cowlitz County is not $5448.65 but rather $5770.36 (Guild # ) . In the final analysis the Arbitrator finds that there is some lack of comparability at the higher levels of the salary schedule and based on this conclusion he is awarding a 4% increase for 2006. The 3% that is awarded for 2007 is a "keeping pace" figure based on projections with regard to the comparators and cost of living. As to 2008 wages, the Arbitrator is convinced by Employer arguments that the 80% figure applied to the cost of living is both consistent with past practice and reasonable given a $50.00 increase in the Employer's contribution towards medical insurance. Finally, the Arbitrator is in agreement with the Unionfs arguments with regard to full retroactive pay both for employees on the current payroll and for those who have separated from service since January 1, 2006 - the effective date of the collective bargaining agreement. ISSUE II: ARTICLE 4 - HOURS OF WORK AND OVERTIME Article 4.1 Current Language: Hours of work - Patrol - Patrol employees shall work ten (10) hour shifts. The work shifts shall be 6:00 a.m. to 4:00 p.m. for day shift patrol. The work shifts for night shift patrol shall be 5:00 p.m. t o 3:00 a.m. or 8:00 p.m. to 6:00 a.m. Sergeants shall work either 7:00 a.m. to 5:00 p.m. for day shift or 4:30 p.m. to 2:30 a.m. for night shift. The workweek is defined as Sunday through Saturday. Patrol shall work; four (4) days on then three (3) days off; four (4) days on then three (3) days off; four (4) days on then four (4) days off; six (6) days on then four (4) days off; four (4) days on then three (3) days off; four (4) days on then three (3) days off; Four (4) days on then six (6) days off After two ( 2 ) complete cycles, a day shift to night shift & night shift to day shift rotation will occur at the end of the six days off. County's Proposal: Hours of Work - Patrol - Patrol employees shall work ten (10) hour shifts. The work shifts may be 6:00 a.m. t o 4:00 p.m., 8:00 a.m. t o 6:00 p.m., 10:OO a.m. t o 8:00 p.m. for day shift patrol. The work shifts for night shift patrol may be 5 p.m. t o 3:00 a.m. or 8:00 p.m. t o 6:00 a.m. Sergeants may work either 7:00 a.m. to 5:00 p.m. for day shift or 4:30 p.m. to 2:30 a.m. for night shift. The workweek is defined as Sunday through Saturday. Patrol may work: four (4) days on then three (3) days off four (4) days on then three (3) days off four (4) days on then four (4) days off six (6) days on then four (4) days off four (4) days on then three (3) days off four (4) days on then three (3) days off four (4) days on then six (6) days off The 2001 calendar is attached to this Agreement as Appendix C After two (2) complete cycles, a day shift to night shift & night shift to dayshift rotation, will occur at the end of the six days off. Guild's Proposal: No change. County's Position: The County proposes language which would give the Sheriff additional flexibility in making schedule changes. Capitan Nelson's undisputed testimony is that the present situation is problematic. Existing restrictions on schedule changes create staffing shortages at peak times and at special projects. Unnecessary overtime is created when the County calls people in early or holds them late to deal with emergency staffing needs. Sergeants on the front lines are made to handle the additional burden of calling in employees. The Countyfs proposal alleviates all of these problems. Guild's Position: Adopting the County's language would have a severe impact on the lives of the employees through complete destabilization to their schedules. By changing the word "shall" to "may", the Sheriff could create shifts with irregular start times, require split shifts, or alter the work week, which is currently defined in Article 4.1. "It would basically eliminate any scheduling protection whatsoever. As such, the County bears the burden of proof" (U's brief, pg. 26). The Guild believes that the County fails to meet its burden due to lack of compelling evidence. The County has not shown that calls have gone unanswered or that moving Deputies would solve any serious problems. At the same time, moving one employee to cover a hole in the schedule creates a hole elsewhere. The County failed to show that the significant change to the employeesf conditions of employment would have a positive result on law enforcement. As such, the change is not warranted. Article 4.2 Current Language: Except by mutual consent, employees assigned to non patrol positions shall work 7:00 a.m. to 5:00 p.m. Monday through Thursday or Tuesday through Friday. Provided mountain patrol will work Thursday through Sunday except by mutual agreement. The task force deputy will work Monday through Friday 2:00 p.m. through 10:OO p.m. except by mutual consent. In order to equalize hours of work with patrol an average calculation of the annual hours of work will occur. This number of hours will be calculated by averaging the number of hours of scheduled for patrol teams AC and BD, then adjusting the hours of non patrol personnel to match that average. Non patrol personnel by January lSt will submit a schedule of desired days off to their sergeant for approval. Once approved the schedules will be submitted to the Sheriff's administration. Such days off must be used within the quarter scheduled (January - March, April -June, July-September, October- December). The adjusted days off may be used at anytime within the quarter earned. However, if an assignment change occurs any extra days used and not yet earned will be deducted from the employee's vacation account, compensatory account, or result in loss of pay if no time off balances are present. These extra days off may be moved within the calendar quarter by mutual consent. Such movement shall not create any overtime nor cause the employee any loss of pay or benefit. If unused days off exist during the last two weeks of the quarter, the employee must use them or lose them. Such loss will not generate compensatory time or overtime. An extension of extra days into the next quarter may be granted with administrative approval. The DARE deputy shall be allowed to place his/her extra days off at mutually agreed dates throughout the entire year. County's Proposal: Except by mutual consent, of the employee and administration, employees assigned to non patrol or special patrol assignment (e.g: E Team) may work 7:00 a.m. to 5:00 p.m. Monday through Thursday or Tuesday through Friday. The task force deputy will work Monday through Friday 2:00 p.m. through 10:OO p.m. except by mutual consent. In order to equalize hours of work with patrol an average calculation of the annual hours of work will occur. This number of hours will be calculated by averaging the number of hours of scheduled for patrol teams AC and BD, then adjusting the hours of non patrol personnel to match that average. Non patrol personnel by January lSt will submit a schedule of desired days off to their sergeant for approval. Once approved the schedules will be submitted to the Sheriff's administration. Such days off must be used within the quarter scheduled (January - March, April -Junef July-September, October-December). The adjusted days off may be used at anytime within the quarter earned. However, if an assignment change occurs any extra days used and not yet earned will be deducted from the employee's vacation account, compensatory account, or result in loss of pay if no time off balances are present. These extra days off may be mobbed within the calendar quarter by mutual consent. Such movement shall not create any overtime nor cause the employee any loss of pay or benefit. If unused days off exist during the last two weeks of the quarter, the employee must use them or lose them. Such loss will not generate compensatory time or overtime. An extension of extra days into the next quarter may be granted with administrative approval. The DARE deputy shall be allowed to place his/her extra days off at mutually agreed dates throughout the entire year. The Sheriff shall establish work schedules and hours of work for deputies, who are paid fully or in part, through an agreement with any government agency, governmental department, or private entity in order to fulfill contractual obligations. Guild's Proposal: No Change County's Position: See County's Position for Article 4.1. Guild's Position: The County's proposed changed from "shall" to "may" is a drastic change in the present practice which is not justified by the evidence presented. What has been shown is that whenever the need arose to adjust an employee's schedule for a specific purpose, that individual has been agreeable. Likewise, whenever the County has reached agreements for privately or governmentally funded positions, the Guild has been agreeable to entering into the appropriate MOU for scheduling. "In fact it appears that all of the Counties Article 4 provisions are intended to punish the Guild for going to Arbitration over wages. That is the County has presented no evidence of an operational necessity for such a radical change in the accepted practice" (p. 29, U's brief). Article 4.7 Current Language: Training Days. Every effort will be made to schedule training at least (14) fourteen or more days in advance of occurring. Training which is posted (14) fourteen or more days before it occurs shall be considered the employee's assigned shift for that day. If such scheduled training is cancelled within (14) fourteen days of occurring and no other training is substituted, the employee has the option, with approval of affected supervisors, of either working the scheduled training hours for that day (usually 077- 1700) or move back to their regular shift hours. County's Proposal: Notification of training shall be made at least by the end of the employees regularly scheduled workweek, prior to training. Training in which posting or other notification was made by the end of the employees regularly scheduled work week shall be considered the employee's assigned shift for that day. The Sheriff shall determine the days and hours of such training. If the scheduled training is cancelled after the end of the employees last regularly scheduled workweek, and no other training is substituted, the employee shall work their regular shift hours. Guild's Proposal: No Change. County's Position: The Employer's basic position is that the above change is operationally effective since it provides that employees will work their regular shifts when a training activity is cancelled and thus allows the Employer to avoid having to arrange for substitute activity. Guild's Position: The schedule set forth in Article 4.1 provides for overlap days, Thursdays, which are typically used for training. The County's proposed language would eliminate the option for employees to stay on their scheduled shift when occasionally training does not take place. The County's concern, that everyone would elect to stay, is baseless. Once again, the County is proposing a change without any evidence to support the need to change the status quo. Article 4.9 Current Language: None Guild's Position: Green-time. Employees shall be allowed a rest period of eight (8) hours from the time they are released from any type of work related assignment to the start of their shift without loss of any paid time. County's Proposal: No change Guild's Position: The purpose for providing Deputies with eight hours of free time between work activities is clear: to provide adequate rest. The dangers and demands of law enforcement are made more strenuous by sleep deprivation and on-the-job exhaustion. Common sense as well as scientific studies tell us that our, as well as our deputiesf, judgment is significantly impaired by lack of rest. At the present time the only option available to a Deputy who is too tired to work is to use vacation time or sick leave. The County does not believe that mere fatigue warrants the use of sick leave. The question then becomes should a Deputy Sheriff have to burn their vacation or compensatory time in order to insure that they get adequate rest, when the reason that they are tired, is that they were performing work for the employer" (Uf s brief, pg. 25) . County's Position: The novel "green time" proposal would mean that the County would pay employees for time that they do not work. The justification for this proposal is that it would increase safety and performance. However, the Guild has presented no evidence to the effect that fatigue is a salient problem for Cowlitz County Deputies recently. None of the comparator counties have such a provision. "The Guild has not met its burden of persuading the Arbitrator that there is an actual problem to be remedied, or that a novel green time allowance would be a reasonable and appropriate remedy" (p. 34 E's brief). Award ARTICLE 4 - HOURS OF WORK AND OVERTIME The Arbitrator directs the Parties to maintain the language found in the prior agreement on Articles 4.1, 4.2 and 4.7. The Arbitrator does not grant the Union's request for a new provision on "Green Time" Arbitrator's Analysis: Most of the Parties arguments focus on the desire of the Employer to substitute the word "may" for the word "will." While the Employer raises some reasonable arguments around staffing needs and the realities of a small department, in the Arbitrator's view the proposed change is seriously flawed. The primary problem with the proposal is that it makes the language meaningless. When the language reads that employees will have a certain schedule it means that the employees know when they will be working. When the language is changed to say that the employees may work a schedule it provides the possibility of when work will be done but leaves open the fact that the employees may also work any number of other alternatives. If the Sheriff is to be permitted to set and reset the schedule at any time, then there is no reason to have the language in the agreement. The Arbitrator does not believe that this is the Employer's purpose but it is the outcome of the proposed change in language; no restrictions on the setting and resetting of the schedule. Thus the Employer's proposal is rejected by the Arbitrator. The Union's Green-time proposal is intriguing, appears to have some merit and is not supported by the comparables. While the Arbitrator basically agrees with the Union that an officer needs eight hours for rest between active duty assignments, he cannot support the proposed language as it places the Employer in the position of paying employees for not reporting to work. If there is a continuing problem around the issue of too little sleep, then there must be a better answer than the Union's proposal. The Arbitrator urges the Parties to continue to study the problem. ISSUE III: ARTICLE 6 - VACATIONS Article 6.4 Current Language: Vacation leave shall accumulate to a total of two hundred forty-eight (248) hours, after which time, if no leave is taken, no additional leave shall be credited. That is, an employee at no time shall have more than two hundred forty-eight (248) hours of accumulated vacation leave due, unless extended by the Employer. Guild's Proposal: Vacation leave shall accumulate to a total of three hundred (300) hours, after which time, if no leave is taken, no additional leave shall be credited. That is, an employee at no time shall have more than three hundred (300) hours of accumulated vacation leave due, unless extended by the Employer. County's Proposal: No change. Guild's Position: "The Guilds proposal for increase in the vacation accumulation is supported by an analysis of the comparable jurisdictions. As Exhibit G-14 obtained reflects, Cowlitz County is 57.2% behind the comparable jurisdictions in vacation and holiday hours" (U's brief, pg. 30). County's Position: The Guild proposed on average a 19.7% increase in vacation hours per month without - any economic or performance rational for support. The County does not propose any change to the vacation schedule because it is already meeting its goal of being "in the middle of the pack" with regard to comparator counties. "The Guild has not shown that its membersf vacation is inadequate or below average for any of the comparators, whether proposed by the Guild or by the County. Taking into account the actual scheduled hours of work per month, monthly vacation hours, and monthly holiday hours, the benchmark County deputy [works less] " (E's brief, pg. 34). 6.7 Current Language: The provisions of this Article are not applicable to persons regularly working less than twenty-one (21) hours per week, or to persons in temporary, intermittent, or occasional employment status. BONUS LEAVE Section 1 Bonus vacation days shall be granted to the employees and credited to their account on the anniversary date of employment and in accordance with the vacation schedule shown below. VACATION SCHEDULE
Number of Years of Employment Completed |
Vacation Hrs Earned |
Bonus Hours | Total Hours of Vacation Earned Per Year |
1 | 96 | 8 | 104 |
2 | 96 | 16 | 112 |
3 | 96 | 32 | 128 |
4 | 96 | 32 | 128 |
5 | 96 | 40 | 136 |
6 | 96 | 40 | 136 |
7 | 96 | 40 | 136 |
8 | 96 | 40 | 136 |
9 | 96 | 40 | 136 |
10 | 96 | 48 | 144 |
11 | 96 | 56 | 152 |
12 | 96 | 64 | 160 |
13 | 96 | 64 | 160 |
14 | 96 | 72 | 168 |
15 | 96 | 72 | 168 |
16 | 96 | 80 | 176 |
17 | 96 | 80 | 176 |
18 & over | 96 | 88 | 184 |
Number of Years of Employment Completed |
Vacation Hrs Earned |
Bonus Hours | Total Hours of Vacation Earned Per Year |
1 | 126 | 8 | 134 |
2 | 126 | 16 | 142 |
3 | 126 | 32 | 158 |
4 | 126 | 32 | 166 |
5 | 126 | 40 | 166 |
6 | 126 | 40 | 166 |
7 | 126 | 40 | 166 |
8 | 126 | 40 | 166 |
9 | 126 | 40 | 166 |
10 | 126 | 48 | 174 |
11 | 126 | 56 | 182 |
12 | 126 | 64 | 190 |
13 | 126 | 64 | 190 |
14 | 126 | 72 | 198 |
15 | 126 | 72 | 198 |
16 | 126 | 80 | 206 |
17 | 126 | 80 | 206 |
18 & over | 126 | 88 | 214 |
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