The City Council is being asked to approve an agreement for the renewal of a labor contract between the Montana Federation of Public Employees (MFPE), Billings Police Officers' Unit and the City of Billings.  This negotiated agreement will replace the one that was in effect from July 1, 2018, through June 30, 2021.  Staff recommends City Council approve the proposed collective bargaining agreement with the MFPE - Billings Police Officers.

The MFPE and the City of Billings used Interest Based Bargaining (IBB), instead of Traditional Bargaining to reach an agreement.  In IBB, each team identifies issues, discusses options, and finds solutions without any formal written proposals. During the months both parties were negotiating, the Consumer Price Index (CPI-U) for December 2021 and January 2022 continued to increase from the same months a year ago.  Police applicant pools have become smaller over the past few years, so both parties agreed it was more critical than ever that pay remains competitive to attract quality applicants. These were the main drivers in negotiating the following changes.

MFPE and the City of Billings tentatively agreed to implement a new 20-year, 20-step pay system; the previous pay system included 13 steps over 22 years.  In an effort to help fund the new pay system, Police agreed to no pay increase from July 1, 2021, to June 30, 2022, and to utilize funds dedicated to Longevity pay for officers, effective July1, 2022.  Therefore, Longevity pay is now integrated into the pay range table by being rolled into the officers hourly rate.

The new pay range table will be effective July 1, 2022:
 

YEAR 1	2	3	4	5	6	7	8	9	10	11	12	13	14	15	16	17	18	19	20
29.5000	30.0900	30.6800	31.2700	31.8600	32.4500	33.0400	33.6300	34.2200	34.8100	35.4000	35.9900	36.5800	37.1700	37.7600	38.3500	38.9400	39.5300	40.1200	40.7100

In the third and fourth years of the contract, the Cost of Living Adjustment (COLA) will be 3% effective July 1, 2023, and July 1, 2024.

In addition, both parties tentatively agreed to revise the following items:

• Canine officers' training is currently two times per month instead of weekly.
• Certification pay will be paid to eligible officers the first payday in November instead of the first payday in December.
• Clothing and Equipment Reimbursement will be paid to officers on the second pay period of July.
• Both parties agreed to Joint Labor Management Committee (JLMC) meetings to develop an On-Call program for the detective division.  This committee will develop the on-call policies and associated job expectations.  This program will be implemented by July 1, 2022.

City Council may:

• Approve the contract as presented, with a new pay system effective July1, 2022;
• Postpone action on the contract to obtain additional information; or
• Deny approval of the contract, forcing both parties to resume negotiations.

The costs associated with implementing this contract are as follows:

• Year 1: No increase for July 1, 2021, of the contract; therefore, no retroactive pay and $0.00 cost for FY22. 
• Year 2: Longevity pay will be eliminated for Police Officers effective July 1, 2022,(FY23), and is being rolled into the new 20-step pay system which will be implemented July 1, 2022.  The cost of this change over 2 years is $545,000.
• Year 3: 3% Cost of Living Adjustment effective July 1, 2023, (FY24) and the cost is approximately $340,000.
• Year 4: 3% Cost of Living Adjustment effective July 1, 2024, (FY25) and the cost is approximately $345,000.

 

FY22	FY23	FY24	FY25
$0.00	$545K	$340K	$345K