The City Council is being asked to approve an agreement for the renewal of the labor contract between the Montana Federation of Public Employees (MFPE) — Billings Police Officers Local 7769 and the City of Billings.  This negotiated agreement will replace the one that was in effect from July 1, 2021, through June 30, 2025.  Staff recommends City Council approve the proposed collective bargaining agreement (CBA) with the MFPE - Billings Police Officers Local 7769.

The Montana Federation of Public Employees (MFPE) — Billings Police Officer Local 7769 voted to approve a new collective bargaining agreement pending ratification by the City Council.  This 3-year agreement includes 3% Cost of Living Adjustments in each year of the contract.  In lieu of retroactive pay in year 1 of the contract, the officers agreed to a one-time lump sum payment to each officer ranging from $1,500 to $4,620, depending on years of service.

Please see the Background section of this memo for additional details. 

The Montana Federation of Public Employees and the City of Billings engaged in Interest-Based Bargaining (IBB) to negotiate the Collective Bargaining Agreement.  In IBB, each team identifies issues, discusses options, and finds solutions without any formal written proposals.  Needless to say, this was a challenging negotiation due to the funding impacts created by the recent property tax legislation and the reality that the City of Billings wages are lagging behind the other Montana cities.  The MFPE Union and the City began negotiating on March 6, 2025, and continued bargaining for 12 day-long sessions before reaching a tentative agreement on June 17, 2025.  However, on July 23, 2025, the union membership overwhelmingly rejected the City's initial offer.  As a result, negotiations continued between the Union and the City until the second "tentative" agreement was reached.  On August 11, 2025, the Union membership again rejected the second "tentative" agreement with the City.  

As a result, both parties agreed to request mediation in an effort to work towards an agreement.  The Department of Labor and Industry assigned a mediator, and the first session was held on September 10, 2025, and the final session was held on December 9, 2025.  During the mediation, both parties reached a third "tentative" agreement.  The Union membership voted again and the voting closed on December 16, 2025, and the Union membership accepted the 3-year agreement 87% to 13%.  The Union and City of Billings agreed to revise the following contractual items:

• The Cost of Living Adjustment (COLA) will be 3% in each year of the 3-year agreement.
• In lieu of retroactive pay to July 1, 2025, the Union and City agreed to a one-time lump sum payment ranging from $1,500 to $4,620 depending on the police officers' years of service.  This payment will be made once the City Council approves the agreement.
• Clarified Court Time Pay language to state, Court Time pay is not payment for each court appearance on the same day or for preparation time with attorneys.  In addition, police officers must check their email for court cancellations, and if the officer fails to check their email and there was a cancellation notice before 2000 hours on the day before the scheduled court appearance, then the member is not entitled to court time pay.
• Clarified Call Out pay language to state, a call-out occurs when an officer is required to report to duty more than 1 1/2 hours from their regularly scheduled shift in response to an unplanned or urgent situation requiring immediate attention as initiated by Command staff. Call out requires the officer's physical presence at a designated location.
• Clarified Field Training Officer pay for phases 1–4.
• Added Secondary Employment language stating officers will not be allowed to work more than 16 hours in a 24-hour period. This calculation commences at the start of the first full shift worked, regardless if the first shift is the extra duty/off duty or the officer’s regular duty assignment. This does not apply to preapproved non-law enforcement employment during the officer’s regular period of days off.
• Revised vacation bidding to state, it must be completed prior to the annual shift change. 
• Defined Labor-Management Relations Committee rules, procedures, and frequency of meetings.
• Corrected grammar throughout the Collective Bargaining Agreement.

The costs associated with implementing this agreement are as follows:

Year 1: 3% increase effective once City Council has ratified the agreement; the cost is approximately ($195,000). In lieu of retroactive pay, a one-time lump sum payment to police officers ranging from $1,500 to $4,620 depending on years of service; the cost is approximately $397,000.

Year 2: 3% increase effective July 1, 2026; the cost is approximately $401,000. 

Year 3: 3% increase effective July 1, 2027; the cost is approximately $414,000.

Police officers and the City of Billings.

City Council may:

• Approve the contract as presented;
• Postpone action on the contract to obtain additional information; or 
• Deny approval of the contract, forcing both parties to resume negotiations.