FF-685-M - Public Employment Relations Boardgmail.com TIM KNITTEL President, IAFF Local No. 1507...
Transcript of FF-685-M - Public Employment Relations Boardgmail.com TIM KNITTEL President, IAFF Local No. 1507...
FACTFINDING REPORT AND RECOMMENDATION
In a Matter Between: ) ) ) ) ) ) ) ) ) ) ) )
IAFFLocat No. 1507 PERB Impasse Case No.: SF-IM-1 lOM
UNION,
And Hearing: January 22, 2013
CITY OF SOUTH SAN FRANCISCO Award: February4, 2013
EMPLOYER Hirsch Case No. H12-126
FACTFINDING PANEL
ROBERT M. HIRSCH, IMPARTIAL CHAIRPERSON Law Offices of Robert M Hirsch
PO Box 170428 San Francisco, CA, 94117
41 S-362-9999 [email protected]
TIM KNITTEL President, IAFF Local No. 1507
POBox2348 South San Francisco, CA, 94080
Tknittel@iafflocall 507.org
DEBORAH GLASSER Deborah Glasser Labor Relations, LLC
FF-685-M
Appearances By:
Employer:
Union:
SAMANTHA W. ZUTLER Meyers Nave
555 12th Street, Suite 1500 Oakland, CA, 94607
510-808-2000 [email protected]
CAROLL. KOENIG Wylie, McBride, Platten & Renner
2125 Canoas Garden Ave, Suite 120 San Jose, CA, 95125
408-979-2920 [email protected]
PROCEDURAL BACKGROUND
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The City of South San Francisco ("SSF" or "City") and the International Association of
Firefighters, Local No. 1507 ("IAFF-" or ''Union") have been parties to a Memorandum of
Understanding ("MOU") for many years. The most recent contract expired on June 30, 2012.
The parties have been negotiating a successor agreement for about 11 months, starting before it
ever terminated, and held 12 negotiation sessions during that time frame .. All but two issues
were resolved in negotiations and the parties reached impasse on October 15, 2012. Thereafter,
the Union requested factfinding pursuant to Cal. Gov. Code Section 3505.4.
The Impartial Neutral was selected by the parties, and a hearing was convened in South
San Francisco on January 22, 2013. The parties identified the two issues below as the only
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issues to be addressed by the factfinding panel. Both the City and the Union waived all time
limits set forth in the applicable Government Code provisions.
The parties presented written and oral evidence at the hearing, and also presented
arguments in favor of their respective positions. At the conclusion of the hearing, the panel met
to discuss the presentations and recommendations. No agreement was reached by the panel at
that time, and, accordingly, the matter is submitted to the Impartial Chairperson for a Decision
and Recommendation. The City submitted a written statement after the evidentiary hearing was
concluded. The Union chose not to. The Recommendations below are based upon the record as
a whole.
Unless indicated otherwise, the Recommendations are those of the Impartial Chairperson
alone.
IMPASSE ISSUES
The parties agreed to the following issues: Whether factual circumstances support the
City imposing on the IAFF for the time period of January 1, 2013 through January 1, 2014, the
following with regard to dental insurance and a vacation cap?
1) Dental Coverage: Effective January 1, 2013, the City shall pay a premium
for a core dental plan of $1500 CYM and $1000 Orthodontia, for employees and eligible
dependents. IAFF bargaining unit members may buy enhanced dental coverage of $3000
CYM and $4000 Orthodontia. All bargaining unit employees on the payroll as of
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January 3, 2013 shall receive a one-time lump sum payment of $1500, payable (in
January 2013) immediately.
2) Vacation Cap: All bargaining unit employees shall accumulate vacation time
up to two-times their annual accrual, with no further accrual until the pay period after the
vacation balance has been reduced below the applicable two-year cap. All "Fifty-six
(56) hour employees" may cash out up to seventy-two (72) hours of vacation leave
during each calendar year. All "Forty ( 40) hour employees" may cash out up to eight (8)
hours of vacation leave during each calendar year. The Fire Chief, with approval of the
City Manager, shall have the ability to grant an exception to this provision for bargaining
unit employees who reach their cap and are unable to use their vacation due to
exceptional circumstances, to be defined by the Fire Chief. In these situations, the Fire
Chief, with the City Manager's approval, shall have the authority to grant the unit
member the right to cash out additional vacation or allow the member to temporarily
exceed the vacation cap.
STATUTORY CRITERIA
MMBA, at Section 3505.4(d), sets forth the criteria that factfinders must consider in
matters such as this one:
1) State and federal laws that are applicable to the employer.
2) Local rules, regulations, or ordinances.
3) Stipulations of the parties.
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4) The interests and welfare of the public and the financial ability of the public
agency.
5) Comparison of the wages, hours, and conditions of employment of the employees
involved in the factfinding proceeding with the wages, hours, and conditions of
employment of other employees performing similar services in comparable
public agencies.
6) The consumer price ind.ex in goods and services, commonly known as the cost of
living.
7) The overall compensation presently received by the employees, including direct
wage compensation, vacations, holidays and other excused time, insurance and
pensions, medical and hospitalization benefits, the continuity and stability of
employment, and all other benefits received.
8) Any other facts, not confined to those specified in paragraphs (1) to (7),
inclusive, which are normally or traditionally taken into consideration in making
the findings and recommendations.1
DISCUSSION AND RECOMMENDATIONS
1) Dental Coverage:
SSF called one witness, Kathy E. Mount, Human Resources Director, to testify about the
City's position with regard to both impasse issues. She explained that SSF has focused on three
areas of concessions for its various bargaining units: two-tier retirement benefits, elimination of
1 The parties agreed at the hearing in this matter that .only factors 7 & 8 shall be applied in this factfinding and the Impartial Chair agrees with that assessment.
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lifetime medical coverage for retirees, and medical plan cost-saving changes. With regard to the
enhanced dental coverage enjoyed by IAFF members, Ms. Mount testified that no other City
employees enjoyed those benefits. SSF offers a core dental benefit to all non-firefighter
employees of $1500 in dental coverage and $1000 in orthodontic coverage. The firefighters
secured the added coverage, which provides for up to $3000 in standard dental care coverage
and up to $4000 in orthodontia coverage, in 1998. According to the Union, the affected
employees agreed to move from the City's long-term disability ("LTD") plan to a firefighters
association ("CAPP") plan. All agree that the savings to the City is approximately $50,000 per
year.2
The problem with the enhanced dental offering, according to Ms. Mount, is the fact that
it has turned out to · be far more expensive than the City anticipated in 1998. To induce the
Union to accept the City proposal, which sets the IAFF coverage at the level for all other SSF
employees, the City proposed a one-time payment of $1,500 to all IAFF member-employees,
and a $50,000 life insurance policy for each member. Other City employees already have the
life insurance coverage, while the Union members have $12,000 of life insurance provided by
the City.
Arthur Mosqueda, a twenty-seven-year veteran with the SSF fire department, testified
that the benefit prized most by the bargaining unit members is the orthodontia benefit, even
though evidence showed that only 9 children used the benefit in 2008. The employees,
2 This LTD covers non-industrial injuries for the first year of disability and enhanced, work-related coverage beyond one year, according to the parties. Most disabilities affecting bargaining unit employees are industrial.
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according to Mr. Mosqueda, as well as Mike Root, former Union President, and Todd Rael,
current Vice-President, feel strongly that they gave up other benefits and bonuses to secure and
maintain the benefit for the few families which really need it. In the 2009 negotiations, the
Union acquiesced to the City's two-tier retirement and medical coverage in exchange for
keeping the enhanced dental benefit. 3 The Union witnesses also suggested that Ms. Mount
promised that the City would not raise reducing the dental benefit again-although Ms. Mount
denied this allegation, and no IAFF witness could really establish that the Union's
understanding on this point was anything more than a unilateral belief.
The City emphasized that it was intent upon securing parity for all City employees with
regard to benefits, and obtaining sustainable economic savings. Ms. Mount did sqite several
times during the factfinding hearing that the City would seriously consider any "principled
reason" for deviating from this intention. It should also be noted that SSF has not claimed a
financial inability to continue providing the enhanced dental benefit.
Recommendation:
The Impartial Chair finds that the factual circumstances do not support the City's
proposal on the reduction in the dental benefit. The IAFF gives a ''principled reason" for its
unwillingness to give up the orthodontic benefit it secured back in 1998. Although the vast
majority of unit employees will not benefit from the continuation of this coverage, the
employees have rejected money, across the board, as well as additional life insurance for each
3 Retirement benefits went from "3% of SO to 3% of SS."
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member in order to preserve a dental benefit valued by families with children. Moreover, the
benefit was initially obtained by the IAFF, and secured over the years, through economic
givebacks or benefit reductions over the years. Although it does not appear that any binding
promise was, or could have been made, securing the enhanced benefit in perpetuity, the
member-employees have taken a principled position, sacrificing financial gain for most in favor
of a dental benefit for families and children. The City's desire for benefit-uniformity among its
employees is outweighed by the willingness of the IAFF members t<> forego other economic
enhancements for the sake of a few. There appears no basis to conclude this benefit is not
sustainable for the term of the contract being negotiated. The evidence presented regarding the
overall compensation of the IAFF members by the City (Factor 7, above), does not militate
against continuing the dental benefit in light of the Union's willingness to forego other
economic benefits.4 Further, the willingness of the IAFF members to relinquish economic
benefits in prior years, and turn down other benefits offered in this year's negotiations to retain
the dental benefit, fit well within Factor 8 above, the catch-all set of criteria set out in MMB.
Under the circumstances, the Impartial Chair finds the facts do not support the City's
desire to impose a reduction in the dental benefit.
Deborah Glasser Concur: Dissent: X
Tim Kittel Concur: X Dissent:
4 The City suggested, through testimony of its witness Ms. Mount, that the IAFF members were compensated in the 60th percentile of city employees based upon a recent survey. No further survey specifics were offered by SSF.
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2) Vacation Cap:
The City seeks to save $300,000 to $400,000 annually in vacation payouts by proposing
a "hard cap" on vacation accrual for unit members. Once an employee accrued twice his annual
allotment for vacation, he could no longer accrue further vacation time until the balance was
reduced below the cap. IAFF employees could "sell back" up to 72 hours, softening the impact,
somewhat, of the hard cap. All other City employees are subject to the hard cap. SSF proposes
an effective date for the hard cap of July l, 2013.
The Union takes issue with the "rolling" nature of the hard cap. Under the City plan, the
hard cap can hit during any pay-period where the vacation accrual hits the maximum allotment.
The Union argued at the factfinding hearing that employees out on disability leave pursuant to
California Labor Code Section 4·850, continue to earn vacation time and could be subject to the
harsh application of the cap, since they would not be in a position to take vacation time while
disabled. 5 The Union was amenable to a hard cap which was fixed in time-year end-rather
than a rolling cap. It contended that the fixed in time cap would allow employees to better plan
for the use of their vacation time.
SSF countered the Union argument with language in its proposal, which would allow the
Fire Chief, with the .approval of the City Manager, to approve a temporary exception to the
vacation cap and/or grant the righf to cash out additional vacation time, beyond the 72 hour
5 The record does not establish any significant issue around employees on 4850 leave.
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ceiling. Thus, employees caught in a position where they could not use vacation time to avoid
hitting the hard cap, could petition the Chief for relief from the rule.
Recommendation:
The Impartial Chair finds that the factual circumstances support the City's imposition of
the vacation "hard cap" on the IAFF members. Uniformity is a reasonable goal for the City,
making administration easier, and reducing antagonism among the various City bargaining units.
The Union does not offer any compelling reasons to deviate from the standard city-wide practice
of imposing a rolling hard cap. Employees will have to take the time and anticipate their own
vacation accrual to manage the cap and payout option. This seems reasonable, and nothing in
the record suggests the member can't handle this as other City employees do. And, there is
always the discretionary authority of the Fire Chief and City Manager to grant exceptions where
to avoid a hardship.
II
II
II
II
II
II
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Under the circumstances, the Impartial Chair finds the facts support the City's desire to
impose a rolling hard cap on vacation accrual.
Deborah Glasser
Tim Knittel
Concur: X
Concur:
Respectfully submitted,
Date: February 11, 2013.
Dissent:
Dissent: X
Robert M. Hirsch, Impartial Chair
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As probably expected. I concur with the fact-finder's recommendation regarding the enhanced dental benefit. In addition, as expected, I dissent from the fact-finder's recommendation regarding the fixed vacation accrual cap Initially, it was not my intent to provide a written rebuttal to the recommendation. However, given the written rebuttals submitted by Deborah Glasser, I must insist that a brief Union rebuttal also be included. First, I want to point out 1t was the City that provided the fact-finder with the basis he used in making the recommendation on both the dental and vacation cap issues The City's thome throughout the hearing was the need, or dasire, to provide the same benefits to all employees unless there was a principled reason to not do so. !n response, the Union attemptet:f to convinr.e the fact-finding panel that they were principled reasons as to why the Union members should be allowed to keep the enhanced dental benefit and have a modrfied version of the City's vacation accrual cap. In regard to the vacation cap, the Union presentad two ccmcerns that it regarded as principled reasons why the fbced cap should be substituted wrth a rolling cap. First, the short staffing in the department will make it very difficult for the Firefighters to actually utilize their accrued vacation dlJe to the limited number of vacation slots available. The rolling cap would mean that, in order to even have a chance of using their allotted vacation before losing tile right to accrue more, newer Firefighters would unfairly ~e required to take all of their vacation early in th~ year and thus have none remarning for summer vacations or holidays. The second, and more important. concern was expressed throughout negotiations and brought up numerous times at the bargaming table. That concern was with Firefighters who might b~ unable to lake vacation due to a work-related disability and thus lose the right to accrue vacation. The City's response during negotiations was to research the issue and come back to the Union with the "good news" that Firefighters on 4850 time could go on vacation in order to "burn" excess vace:1tion hours (i.e , give up a statutory right to paid sick li:!ave in order to "bum up" their earned vacation). Understandably the Firefighters did not find this an acceptable resolution. As for the provision the City reluctantly added that allows the Fire Chief and/or City Manager to have the discretion to grant exceptions to the fixed cap, given the City's refusal to include a specific exemption for 4850 situations, the Firefighters have little confide:nce that such exceptions wil! be granted. Having said that, the Firefighters understand and accept that the neutral fact-finder does not agree with Lhat assessment.
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In regard to the dental enhancement, it is interesting to note that the City criticizes the fact-finder for relying on assertions rather than on hard evidence in deciding the dental issue, but readily accepts his findmg of the vacation cap when that issue can be said to suffer from the same .. deficiency • Por example, the Crty finds fault with the neutral fact-finder · i:>ased on its claim that he relied primariiy on assenions made by the Union witn9'3ses rather than by any "evidence." Yet, it c.an be argued that he relied primanl~' on Kathy Mount's assertions for his findings on the vacation cap issue. The City called only one witness - Kathy Mount - and its entire case was pretty much b~sed on her "assertions." The City provided no "evidence" supporting her assertions. such aa that the Firefighters' compensation was 10% above market, foat they have "incredibly rich" compensation packages; that they are among the most highly compensated employees in the City; that they enjoy a total compensation weil beyond any other bargaining unit in the City; and that there are no deviations (other tha11 those enjoyed by Fire) from the "everyone the samen philosophy unless there is a principled reason behind the deviation. Additionally, the City provided absolutely no evidence or testimony supporting the contention that other bargaining units felt that they were being treated unrairiy beca1Jse the F1ref1ghters had a unique benefit A!though the City consistently makes this assertion, it has never cited to any specific bargaining unit has made such a claim. Certainly, it prov:deel no evid~nce at the hearing that this assertion was true. As stated above1 the Union disagrees wrth the neutral's findings regarding the vacation cap accrual. However, we do not agree with the Crty advocate's assertion that hts findings are inconsistent with the law or with his role. V'Jhat is inconsistent is t'ie City's position that the same process and criteria used by the neutral were consistent with tr1e law in regard to the vacation cap (the issue on which it prevailed) but inconsistent in regard to the dental enhancement (the issue on which it "lost.").
I hd ic\ \: t·ra1 L•)·..:ui 1507 <m<l 1h~· cit~· c:u1 com.; tu ag1 l·em..:m based m1 tb~ factfi,iding r::nort uf Local I Sn 7 k\.'qiing the dt:ntul bmdit i1Ild &grl'dng t0 the \ ac0,tion cap, .Ai1tl ch•! mc1nb~T.- nf local 1507 would pa~s a contract v.. ilh the ~~pport oflhe union h-;'latJ b1;cd on these iindblgs v,ithout the cit) h.ad nit to impo:;se a contract
Tim K11itt .::I. President ~outh San l· tanciscn Prot\.;s~ion:.J r ire Fighwrs lAFF I.v\;'.\l 1507 J'( > Ho.· ~.'.\48
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