HomeMy WebLinkAboutIR 9666 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9666
To the Mayor and Members of the City Council September 16, 2014
Page 1 of 2
�i
�i7 Y
rrn SUBJECT: EXPIRATION OF THE COLLECTIVE BARGAINING AGREEMENT;
� FY2015 PROPOSED BUDGET IMPLICATIONS
Good-faith negotiations are underway with the International Association of Fire Fighters Local 440
(the 440). On August 28th, the City entered into a Rule 11 agreement that stayed discovery in the
440's good faith bargaining claim in state court until such time as impasse is reached. In addition,
we agreed that the City may exercise rights that exist under the current collective bargaining
agreement, which include the ability to modify pension benefits for fire fighters hired on or after
September 30, 2013. The September 16th City Council agenda includes an action item to adopt
pension changes for firefighters hired on or after January 10, 2015. City Council action on
proposed pension changes for existing fire fighters will be scheduled after September 30, 2015,
when the current collective bargaining contract expires, consistent with any progress during on-
going negotiations.
In anticipation of potential expiration of the current contract evergreen period on September 30,
2014, the City offered to enter into a Memorandum of Understanding that would also extend most
terms of the collective bargaining agreement; however, the 440 declined to sign during the
September 10th bargaining session. As a result, the department is preparing to revert back to the
standards outlined in the Local Government Code Chapter 143 that will no longer be pre-empted
by a contractual agreement. Two significant provisions are outlined below.
1. State Law only allows a single appointed rank. All other ranks are subject to civil service
promotional processes. The current contract pre-empts this standard and allows two
appointed ranks. As a result, upon adoption of the FY2015 budget, the staffing allocation
increases the Assistant Chief positions from three to nine and reduces the Deputy Chief
rank from six to zero. This will allow the temporary promotion of deputy chiefs to the
assistant chief rank to avoid cascading demotions throughout the department as the rank
goes away.
2. The current contract created the benefit of longevity supplement pay which is paid
according to the table below.
Tenure Current Supplement
5 Years 3%
10 Years 6%
15 Years 9%
Since agreement had not been reached when the budget was proposed to the City
Council, funding for this longevity supplement pay benefit was not included. However, even
though longevity supplement pay is not contemplated by Chapter 143 and we did not reach
agreement to extend any other terms of the evergreen period, the City's bargaining team
conveyed to the 440 that the budget that will be considered by the City Council on
September 16th has been modified to include $1 .5 million for this benefit through January
10, 2015. It is staff's opinion that this good faith attempt to avoid immediate adverse impact
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9666
To the Mayor and Members of the City Council September 16, 2014
Page 2 of 2
�i
�i7 Y
rrn SUBJECT: EXPIRATION OF THE COLLECTIVE BARGAINING AGREEMENT;
� FY2015 PROPOSED BUDGET IMPLICATIONS
to the represented employees is also in keeping with the spirit of the Rule 11 agreement in
state court. We also remain hopeful that we will successfully reach a contract by January
10, 2015, when payment of the longevity supplement pay will otherwise cease.
Separately, fire fighters receive longevity pay which is a requirement of State statute. It is
paid at a rate of$4 per year of service paid each month up to a maximum of$100 per
month. This benefit is not affected by the current status of contract negotiations.
City staff continues to bargain in good faith and has offered an alternative proposal that allows the
set-aside of the pension issue, acknowledging that the City may move forward but the IAFF Local
440 is not precluded from seeking a judicial remedy to contest that action. Staff is prepared to
recommend that the City Council restore this negotiated benefit in exchange for the other
provisions of our collective bargaining agreement that will vanish on October 1, 2014.
Please let us know if you have any additional questions.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS