City Proposal and Evidence for Impasse with IAFF Local 1596
July 2009
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ISSUE: COMPENSATION |
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City |
IAFF 1596 |
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Approximately 1% ($75,173) available for compensation adjustments for 2010. This amount would fund the full merit step program ($63,125) with $12,048 available for other adjustments. Other compensation opportunities as outlined below.
Total Cost: $75,173
Difference from IAFF cost: $63,125 |
1% General Wage Adjustment ($75,173) plus full merit step program ($63,125) in 2010.
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City Justification:
· The City’s compensation and benefit package is within the market.
§ A salary and benefit survey jointly conducted in May 2009 indicated that the City of Lawrence was over in both the median range minimums and maximums for the firefighter ranks, which are generally the entry level of the Fire Pay Plan. (See the salary survey summary, detail salary survey and benefit survey sheets.) While Lawrence is under the survey market in some of the other union-covered ranks, the City believes it is a competitive and desirable employer.
§ There are a number of compensation elements that are not included in the base pay. The 2008 actual median gross salary, including overtime, longevity, and additional skill incentive pay, is the following:
· Firefighter (Basic): $54,847.78
· Firefighter EMT-I: $46,262.83
· Firefighter Paramedic: $54.592.01
· Fire Engineer (Basic): $65,403.83
· Fire Engineer EMT-I: $66,934.24
· Fire Engineer Paramedic: $72,147.61
· Fire Lieutenant EMT-I: $77,959.04
· Fire Lieutenant Paramedic: $85,974.23
· Fire Inspection Officer: $74,233.80
§ The City offers a very generous benefit package.
§ The City is aware that a number of our peer cities are making no pay adjustments for 2010. These include the cities of Overland Park, Lenexa and Shawnee.
§ The City believes that we should continue to monitor base pay annually.
· The City’s proposal will enable full funding of the step merit system for 2010 and provide some modest upward movement for those who are at top of scale.
§ The City’s proposal will enable the full funding of steps on anniversary date for MOU-covered employees. The step system offers a 2.5% or 5% adjustment, based upon performance, on anniversary date for those individuals who are not yet at the top of the pay range.
§ Additionally, $12,048 would be available for adjustments for individuals who are at the top of the pay scale. The City proposes these bonuses to be allocated based on a flat amount that does not accrue to base. The bonuses would be provided to each topped out individual on the first full pay period of 2010. The dollar amount would be determined based upon the number of topped out individuals on December 31, 2009 and dividing the funds available by that number. Based upon the projected number of topped out as of this date, approximately $350 would be distributed to each employee at the top of scale.
· Longevity pay is budgeted at the full rate for 2010.
§ Longevity pay is a benefit that very few peer communities offer.
§ The City’s 2010 budget includes full funding of longevity pay, a pay item which is determined annually at the City Commission’s discretion, and which recognizes our tenured employees by providing employees with over five (5) years of service with a payment commensurate with service.
§ At the rate of $4 per month of service, this equates to $480 for a 10-year employee and $960 for a 20-year employee. The total estimated 2010 longevity compensation for the fire bargaining group is approximately $60,000.
· Employees will continue to have opportunities for a variety of skill based incentives which enable additional compensation opportunities on top of base pay.
§ These skill based incentives provide opportunities to add 2%-7.5% on to base pay, depending upon the incentive.
· Recruitment and retention rates indicate that the City is a desirable employer.
§ During the most recent recruitment for extra-board firefighter positions, the City received over 90 applications for nine (9) open positions.
§ Over the past one year period (July 2008-June 2009, there have been four (4) MOU-covered individuals leave City employment. Based upon the total number of MOU covered employees of 104 this equates to a very low 3% turnover rate. This percentage drops to 0% when retirements and other involuntary separations are excluded.
· The City’s revenues are not growing at the same pace as previous years.
§ Sales tax and property tax are a main source of general fund revenues. While assessed valuation has typically grown at a rate of over 5% annually, assessed valuation is expected to decrease by 0.8% for 2010. The decrease in the property tax base is the first decline in more than a decade. Sales tax is also not growing at historic rates. Sales tax is anticipated to grown 2% in 2010. The attached chart shows historic compensation growth trends compared to key revenue trends.
· The City’s proposal is fair to all employees of the City.
§ The City Manager’s recommended budget includes an approximate 1% of salary allocation for salary adjustments in 2010 for all employees. To allocate more to the adjustments to the MOU groups would not be fair to other City employees. The City’s proposal utilizes the same dollar amount as the 1% allocation available to other City employees.
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ISSUE: LONGEVITY |
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City |
IAFF 1596 |
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City language proposes emphasizing the discretionary nature of longevity and indicates that the City Commission has several options related to the longevity issue, including funding it at the rate of $4 monthly, $2 monthly, or any other such amount as the Commission determines appropriate.
The City Manager’s Recommended 2010 Budget includes full funding of longevity at the $4 monthly rate for 2010.
Full funding of longevity is estimated to cost approximately $60,000 for the IAFF Local 1596 in 2010.
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IAFF 1596 language proposes emphasizing the discretionary nature of longevity and indicates that longevity shall be credited at the $4 monthly rate.
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City Justification:
· The City’s proposed language provides the maximum flexibility for the City Commission.
§ The IAFF 1596 language seemingly limits the City Commission’s options to funding at the $4 rate, or nothing. The City’s proposed language offers the City Commission several options for funding longevity. However, both language proposals emphasize the discretionary nature of the longevity payments.
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ISSUE: SICK LEAVE ACCRUAL RATE AND CAP |
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City |
IAFF 1596 |
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Proposes maintaining current sick leave accrual rates and cap. Currently, sick leave is accrued at a rate of 5.6 hours per pay period, or approximately 145.6 hours per year (approximately 6 days at 24 hours per day).
Currently accrual cap is 1,464 hours, or 61 days at 24 hours per day).
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Proposes increasing the accrual rate to 9.908 hours per pay period for shift employees (257.608 hours per year/10.7 days at 24 hours per day) and 6.55 hours per pay period for non-shift employees.
Proposes removing the cap on sick leave accrual.
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City Justification:
· Sick leave accrual rate and cap are only one part of the City’s compensation and benefit package.
§ Sick leave accrual rate and cap are only one part of the City’s compensation and benefit package. One part cannot be viewed in total isolation from the other components. Recruitment and retention rates would indicate that the City is a desirable employer.
· Currently, very few employees in the MOU group are at the maximum accrual of sick leave, indicating that there is no need to adjust the cap.
§ Seven (7) of the 106 MOU-covered Fire/Medical Department employees are at the maximum sick leave accrual. This is equivalent to only 6% of the employees who are at the accrual cap.
· The City of Lawrence utilizes a sick leave bank for employees who have exhausted their own sick leave, but are still in need of sick leave time.
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ISSUE: TERM OF AGREEMENT |
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City |
IAFF 1596 |
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The City desires a two (2) year agreement. The City proposes a wage opener during 2010 to discuss 2011 wages. The City proposes that the agreement only be extended to 2011 upon mutual agreement between the City Commission and the Union. |
Proposes a one (1) year agreement.
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City Justification:
· A 2 year agreement would allow for the continuation of agreement language for 2010 and 2011, while still providing flexibility to address 2011 wages.
§ The City’s proposal of opening discussions for 2011 wages during 2010 would ensure that wages are discussed for 2011. Also, other agreement language would continue for a two (2) year period.
§ The City’s language indicates that the agreement would only be extended to 2011 upon mutual agreement between the City Commission and the Union.