The City Council is being asked to approve an agreement for the renewal of the labor contract between the International Association of Firefighters (IAFF) — Local 521 and the City of Billings.  This negotiated agreement will replace the one that was in effect from July 1, 2023, through June 30, 2026.  Staff recommends City Council approve the proposed collective bargaining agreement (CBA) with IAFF - Local 521.

The International Association of Firefighters (IAFF) Local 521 voted to approve a new collective bargaining agreement pending ratification by the City Council.  This three-year agreement provides Cost of Living Adjustments of 3% in the first and second years, and 3.5% in the third year.

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

The International Association of Firefighters 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 written proposals.  The IAFF and the City began negotiations on February 17, 2026, and continued bargaining for an additional 7-day-long sessions before reaching a tentative agreement on March 18, 2026.  The Union membership voted on April 7 and 8, 2026, and accepted the 3-year agreement.  The Union and City of Billings agreed to revise the following contractual items:

• The Cost of Living Adjustment (COLA) will be 3% in the first and second years, and 3.5% in the third year of the 3-year agreement.
• Extended the probationary period from six (6) months to nine (9) months.
• Uniform Allowance — Increased the allowance $200.00 in the first year of the 3-year agreement.
• Vacation — Revised vacation structure to allow for one additional vacation spot year-round.
• Increased the City's 457 contribution $3.46 per pay period beginning the second year of the agreement.
• Special Teams — The drone program will qualify for Special Certification Pay.
• Day Personnel Compensatory Time — Accrual cap increased from 80 hours to 160 hours.
• Added language allowing three (3) union members to participate in the recruit firefighter interview process.
• Provided compensation up to 96 hours annually for union members to help with recruit firefighter performance evaluations.
• Removed the 15-year service requirement for employees to be considered for promotion to BC.
• Deleted language regarding employees removing disciplinary actions from their personnel file after a period of four (4) years.
• Added language that disciplinary notices will remain in effect for 24 months.
• Clarified Arbitration language.

The costs associated with implementing this agreement are as follows:

Year 1: 

• A 3% increase effective July 1, 2026; the cost is approximately $480,000
• A $200 increase in uniform allowance; the cost is approximately $27,600
• Drone Specialty Certification Pay; the cost is approximately $2,400

Year 2:

• A 3% increase effective July 1, 2027; the cost is approximately $494,000
• An increase of $3.46 per pay period to the City's 457 contribution; the cost is approximately $12,414

Year 3:

• A 3.5% increase effective July 1, 2028; the cost is approximately $511,000

Firefighters 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.