The POLICEPAY Journal®

Thursday, August 31, 2006

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Matt Barnard, Editor   matt@policepay.net    (405) 234-2235    

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TULSA, OK

Police: More Pay?: 8 percent increase favored for

ANCHORAGE, AK

City police department raises salary hoping to bring in more recruits

MCALLEN, TX

Police union attempts to force McAllen to reach deal

PATERSON, NJ

Paterson cop raises delayed

OAKWOOD, OH

Oakwood police likely to get labor deal

ALLENTOWN, PA

Allentown, police have pension agreement

                                             BACK ISSUES OF THE JOURNAL

Police: More Pay?: 8 percent increase favored for '07
From the Tulsa World, August 29, 2006

(Editor’s Note: POLICEPAY.NET’s Ron York and Matt Barnard were used as Expert Witness’s in this Arbitrator.)

 

The recommendation by an arbitrator would add $940,000 to the city's budget this fiscal year.

 

An arbitrator recommended Monday that Tulsa police receive an 8 percent, across-the-board pay increase that would be effective Jan. 1, adding $940,000 to the city's budget.

 

"We're cautiously optimistic that we're going to get it," said Darin Filak, the president of the local Fraternal Order of Police.

 

"We purposely made the offer effective Jan. 1 to minimize the cost this year, and it also allows us to get closer to market (pay rates)," he said.

 

The city had offered a 4.5 percent raise for the entire fiscal year, which runs from July 1 to June 30.

 

Mayor Kathy Taylor can choose to accept the recommendation, and the City Council can approve a budget amendment to fund the raise, Deputy Mayor Tom Baker said.

 

But Taylor also could let voters decide whether the pay increase should be the 8 percent requested by the FOP or the 4.5 percent offered by the administration, he said.

 

Taylor has not decided what to do yet, Baker said.

 

"The mayor's goal is to find a resolution," he said.

 

Budget Director Pat Connelly said that if Taylor does nothing, the arbitrator's recommendation will stand.

 

Filak said the FOP would be disappointed if Taylor tries to fight the recommendation by handing the issue off to voters.

 

"We feel we presented our case, and a neutral party looked at the facts and agreed the police deserve the 8 percent, and the city can afford it," he said.

 

Connelly said the city could cover the $940,000 this year through a budget surplus, but he cautioned that the cost would be ongoing and the surplus is not.

 

Taylor has already announced that the city's 1,700 nonunion employees will receive one-time bonus payments totaling about $2.1 million. The money will come from an expected surplus of more than $4 million from the 2005-06 fiscal year, which ended June 30.

 

Connelly said that if the city treats all employees the same, the cost for this fiscal year would increase to $3.2 million. The city still has outstanding contracts with the Tulsa Firefighters Local 176 and the American Federation of State, County and Municipal Employees Local 1180, which represents about 880 labor, trade and emergency communications employees.

 

"The real problem is going to be next year," when the 8 percent increase applies to the entire year, Connelly said. "The money just isn't there. Something is going to have to give. The city has to have a balanced budget."

 

Filak said that the arbitrator, as well as police, thinks the money will be available because Tulsa's economy is improving.

 

"City officials are predicting a record general fund balance this year, and we have all indications that is going to continue through next fiscal year," he said.

 

"We're optimistic that the general fund can take the hit, but if it looks like it can't, the contract is just for one year, and we're more than willing to go back to the table and see where we can cut costs or what we can do to help the city out."

 

In a worst-case scenario, he said, "the city can take us to arbitration next year and make the same arguments we made for a pay reduction."

 

Filak said the raise would make Tulsa more competitive with Owasso, Broken Arrow and Oklahoma City in hiring new police officers and retaining veteran officers. He said it also forces the city to rank public-safety funding as important in the budget process.

 

 

City police department raises salary hoping to bring in more recruits

From the Anchorage Daily News,  August 31, 2006

 

ANCHORAGE -- The Anchorage Police Department this week said that it will raise police officers' starting salaries to entice more new recruits to sign up for the understaffed department.

 

The police department has 33 vacant positions, it said.

 

The new entry-level pay for police officers will be for a two-year trial period to boost the department's numbers, the police said.

 

New recruits will start at $25.97 an hour, an increase of 20 percent. The increase makes the Anchorage Police Department the highest starting recruit pay in the state among police departments and the Alaska State Troopers.

 

The increase in pay does not affect the department's budget, police said.

 

Police union attempts to force McAllen to reach deal
From the Monitor, August 26,2006

McALLEN — The police union representing most of McAllen’s sworn officers sued the city Thursday to try to force officials back to the bargaining table after a four-month-long impasse in contract negotiations.

 

The lawsuit claims the city broke state law by not engaging in "substantive and meaningful" contract negotiations and mediation. It requests the court compel the city to bargain in good faith and submit to arbitration.

 

The current contract runs out Sept. 30. The city and the union started collective bargaining talks eight months ago but have been deadlocked since their last meeting April 27.

 

The sticking point had been retirement benefits for officers, said Sgt. Mike Zellers, president of the McAllen Police Officers’ Union.

 

"We agreed to raise our contribution rate to 7 percent for retirement in the second year of the contract," he said about the last offer the union made to the city. The city currently contributes the equivalent of 6 percent of an officer’s salary a year to his or her retirement plan, matching the 6 percent officers contribute each year from their salaries.

 

The city bargaining team rejected that "last best offer."

 

"They’re the one that’s cut off the negotiations," City Manager Mike Perez said. "They sent us a letter saying, ‘This is our last and best offer, and if not, we’re going to see you at the courthouse."

 

The union said in a July 31 letter to Perez that it wanted to continue contract negotiations and "never intended to communicate to the City that we wanted negotiations to cease."

 

Several days later, Perez responded with his own letter saying that wouldn’t cut it. Referring to the union correspondence as a "memo," he said it did not rescind the union’s notice of impasse, a legal step that allowed it to request the appointment of an arbitration board.

 

This week, in a letter dated Tuesday, the city responded to another missive from the union’s general counsel in which the city finally agreed that the union’s last best offer was withdrawn and negotiations could resume — but only under certain conditions:

 

 The union must submit an alternative offer for the City Commission to consider.

 

 The union must agree to take any final negotiation to its membership for a vote on ratification.

 

 The union must withdraw the grievance it filed relating to the continued negotiations.

 

Zellers says he did not receive the letter until Thursday, an hour before the union planned to file the suit.

 

"The city can’t legally set conditions on meeting," Zellers said. "If it is a good deal, I would take it to the members anyway."

 

Perez defended the demands, saying they were in taxpayers’ best interest.

 

"We want to see what they're going to be putting on the table," he said of the union.

 

"If they’re going to start again where they were last time, there’s no need for anyone to waste anybody’s time, because there’s no way that we're going to agree to all those things that they wanted.

 

"We want to treat our employees fairly. We want to compensate them fairly," he added. "At the same time, we have a fiscal responsibility to the taxpayers that we don’t create any long-term unfunded liability for them. And so we have to do the balancing of those two things."

 

McAllen City Attorney Jim Darling said shortly after noon Friday that the city had not been served with the lawsuit yet, but that he had an opportunity to review a copy of it.

 

"We're kind of surprised we got this lawsuit," he said, noting the Tuesday letter to the union had opened the door to resuming negotiations.

 

"We don’t know if that’s just a timing problem or whatever," he said.

 

City officials continue to deny union claims that they have failed to bargain in good faith.

 

"They alleged in their petition, for lack of a better term, spotty attendance at the bargaining session on behalf of the City Commission," Darling said. "But we had staff members there and we were meeting.

 

"I think one of our things that we had a problem with is they initially asked for an awful, awful lot," he added. "And we already had an existing contract, and I think the commission felt, ‘Gee whiz, they want everything at once, and this is an ongoing process, because you have contracts renewed every couple years.’ And I think that was one of the stumbling blocks."

 

Paterson cop raises delayed

 

From the Herald News, August 25, 2006

 

PATERSON -- More than three months ago, the city's police officers -- among the most poorly paid in the state -- won salary raises through a new contract, something they haven't had since 2003.

 

But they have not seen any difference in their paychecks yet.

 

"It's frustrating when you haven't had a decision in three years and when the decision comes down and you are expecting a raise -- and it takes a while to get it," said Detective Lt. Richard Reyes, president of the Paterson chapter of the Superior Officers Association.

 

Hopes ran high among officers that they would see their stagnant wages rise soon after a state arbitrator in May awarded a new five-year retroactive contract that the city and police unions, the local SOA and the Policemen's Benevolent Association, must honor.

 

The previous contract between the city and unions expired Aug. 1, 2003.

 

City officials and attorneys for both sides say the money has been put aside in the annual budget over the past three years to cover the retroactive raises in anticipation of a settlement and final decision but that events beyond their control will probably leave the officers waiting until mid- to late-September.

 

The chief reasons cited for the delay were a need for legal clarifications to the state arbitrator's award, the city's fiscal cycle, the need to calculate modified salaries, and the City Council's slow summer schedule.

 

Anthony Zambrano, Paterson's finance director, said the city intends to deliver the new contract for the City Council's review in September. "Because of year-end and new-year budget calculations, it had to be fit into the schedule of the budget staff," he said.

 

Paterson Police Director Michael C. Walker, who is appointed by the mayor, said the city wanted to clarify the language in the state arbitrator's decision.

 

"We just want to make sure what he says in writing is what he meant," he said.

 

"Obviously, we would have wanted it settled three years ago. But it wasn't."

 

The state arbitrator came back to the unions and city with the clarified language about three weeks ago, he said.

 

"I want the cops to get paid what they deserve to make," Walker said.

 

Second Ward Councilman Aslon Goow said Wednesday he had not yet seen the text of the state arbitrator's award. "The last thing that I heard was that the language in the contract was not what they expected," said Goow, who is also the public safety committee chairman.

 

Most police officers who have joined the force over the past three years have a base salary of $20,125 for the first six months, and $22,025 for the following six months, according to the decision from the state arbitrator.

 

Union officials testified that half the Paterson Police Department is eligible for food stamps and other public benefits, and that 40 percent of the department's work force has resigned for jobs in other police departments, mostly in the suburbs.

 

In contrast, the maximum first year base pay for a police officer in Newark is $34,286 and $36,616 in Jersey City, according to PolicePay.net, an Oklahoma-based police collective bargaining consulting company. Paterson is the third-largest city in the state, behind Newark and Jersey City, with a population of 149,843, according to the U.S. Census.

 

The new contract between the Paterson and the Police Department, when it takes effect, would raise the base salary for most officers 4.75 percent over each year -- and it would be retroactive to Aug. 1, 2003. That would mean, for instance, that police who started in January 2004 would make $25,260 in their first six months and $27,669 in the subsequent 18 months, according to the decision. Those hired in January 2006 would have a base pay in their first six months of $27,717.

 

The city's Rahway-based labor attorney, Gerald L. Dorf, called the arbitrator's decision fair. "He looked over everything," Dorf said. "Would we have liked it to be a little different? Yes."

 

State arbitrator James W. Mastriani's decision on May 25, contained in a 100-plus page document, covers a slew of additional subjects, including salary, retroactive pay, grievance procedures, work schedule and conditions, sick and injury leave and off-duty employment.

 

Richard D. Loccke, of Loccke & Correia in Hackensack, an attorney representing the police unions, said the entire arbitration process had taken a great deal of time but that now it was just a matter of waiting for calculations to be done before raises can be sent out.

 

"We would have liked to have been paid earlier," Loccke said. "But we are attempting to work with the city to bring this long open matter to a close."

 

 

Oakwood police likely to get labor deal

Collective bargaining won't go on ballot

From the Plain Dealer, August 30, 2006

 

The special village council meeting in Oakwood Tuesday night was on the verge of chaos. But it ended harmoniously, with the police force likely to get a new labor deal.

Oakwood police, with less than 15 full-time officers, have been working without a contract for at least three years, said Sgt. Sam Bigham, who is also a union representative.

 

But based on negotiations with the village at the council meeting, Bigham said police will probably get a new deal that goes through 2006.

 

 

Details in collective bargaining laws caused a problem in negotiations. Mayor Gary Gottschalk wanted voters to decide in the upcoming election whether to keep collective bargaining laws in the village.

 

Gottschalk said the village had spent more than $170,000 on labor lawyers in the past eight years, which is more than it can afford.

 

The police union was opposed because without binding arbitration in collective bargaining, it would be toothless.

 

"There wouldn't be any point in having a union," Bigham said.

 

The Village Hall was packed Tuesday night with police union supporters.

Gottschalk came under attack from residents and a member of council. They claimed he was unreasonable in his negotiations.

 

"I have been disappointed with misinformation and double talk we've received from the mayor," Councilman-at-large Joe Fouche said.

 

As residents increasingly spoke out of turn, Councilwoman Eloise Hardin interjected:

"Let's respect each other and keep it together."

 

In the end, council struck down the ordinance to place the collective bargaining issue on the ballot. The village and the police union agreed to hold another meeting on Sept. 5 with the intention of signing the deal that extends through the end of the year.

 

Allentown, police have pension agreement

Deal over hefty retirement payments for 53 officers will save city $16 million, mayor says.

From the Morning Call, August 29, 2006

 

Allentown and its police union have settled their protracted pension dispute, striking a deal that Mayor Ed Pawlowski said Monday will save the city $16.1 million in pension payments over the next 20 years.

If approved today by Lehigh County Judge Lawrence J. Brenner, the agreement would head off a lengthy court battle between the city and Queen City Lodge 10 of the Fraternal Order of Police over the generous pensions earned by 53 officers who took early retirement last year.

 

''This is a major step forward for both sides and the city,'' Pawlowski said. ''We took a case that could have dragged on for years in court and resolved it in six months.''

Under the deal, the city expects to reduce its anticipated payment to the police pension fund by $838,500 in 2007, $899,000 each in 2008 and 2009 and $1.1 million a year between 2010 and 2016 — savings Pawlowski said will be critical in the city's effort to repair its finances.

The 53 pensions had been expected to cost an additional $3 million a year. The total police pension payment for 2007 was expected to be $6.9 million. It would be reduced to about $6.1 million.

Most of the savings for the city comes from a reduction in the pensions. Officers whose pensions are in the $45,000 to $50,000 range would see a 5 percent reduction. Pensions in the $50,000 to $60,000 range would be reduced 10 percent, and pensions over $60,000 would be cut 12 percent.

Under the deal, the top annual pension would drop to $80,000 from its current $91,000.

The settlement leaves in place until 2008 a provision that allows officers to purchase up to four years of retirement eligibility so they can retire early, and Pawlowski said he is not sure how many of the 41 eligible officers will take advantage of that over the next two years.

It also includes a provision that kicks in after 2008 and caps future retirees' ability to pile up overtime in their final 30 days of work to earn inflated pensions.

City Council, which received the agreement Monday morning, voted unanimously to endorse it in the evening, although Councilman Tony Phillips said he wanted more time to review the agreement and to allow public comment.

''I think we should be looking at public review on this,'' Phillips said.

City Republican Party Chairman Joe Hilliard said council should take at least a few days to review the deal to make sure there were no surprises. ''If it's a bad deal again, there's going to be a lot of anger out there,'' Hilliard said.

But city attorney Maxwell Davison and solicitor Hank Perkin said that was not an option because Brenner told them he would not extend the deadline today he had set for the settlement to be in place.

Other members of council said they were satisfied with the administration's answer to their questions in a private session before the meeting, and that they had enough time to read through the agreement.

''It is not perfect, but it is a lot more than many of us hoped for,'' Councilman Julio Guridy said.

Pawlowski went all out trying to reach a settlement, spending about $150,000 in legal fees and bringing in high-powered labor attorney Kenneth Jarin from the Philadelphia law firm of Ballard Spahr Andrews and Ingersoll to help complete the deal.

Pawlowski said the certainty of achieving $16.1 million in savings over 20 years beat taking his chances in the courts by far. ''I would have liked to see the whole thing reversed,'' he said. ''But the likelihood of that happening would have been unlikely.''

By Monday, most of the 53 retirees had agreed to accept the terms of the settlement, said Donald French, a former union president who helped organize the group.

The pension provisions that led to the 53 retirements were in a 2004 arbitration panel decision. It awarded the union a four-year contract that included an early retirement program that offered officers up to five years of credit toward the 20 years of service needed to retire.

The deal also changed the basis for calculating pensions from a three-year average wage to an officer's earnings in his final 30 days of work, making it easier for officers to boost their pensions by working extra overtime in their last days of work.

City Council voted to file a lawsuit seeking to overturn the award, but in June 2005, after the lawsuit was tossed out of Lehigh County Court, and with an election looming, a slim majority of council voted to settle, and dropped the lawsuit.

By the time the early retirement plan was offered in August 2005, many more officers were eligible than in 2004, and some earned higher pensions than expected. Officers' pensions ranged from $32,000 to $92,000.

Elected in November, Pawlowski vowed to fight the pensions. In January, he filed a lawsuit seeking to overturn the pensions and the contract that allowed them.

At Brenner's insistence, Allentown and the police union attempted for three months to negotiate a compromise that would head off the legal battle, to no avail. Those talks broke down in May.

When the case resumed in July, the two sides quickly asked for another chance to negotiate, a process that produced the deal announced Monday.

 

 

 

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