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Item 1.E.
 
City Council Regular
Date: 12/19/2022
Title: Approval of July 1, 2020 and July 1, 2021 IAFF - Local 521 Wages
Presented by: Karla Stanton, Human Resources Director
Department: Human Resources
Presentation: No
Legal Review Not Applicable

RECOMMENDATION

Staff recommends the City Council approve the Fact Finder's recommendation and adjust IAFF - Local 521 hourly base wages accordingly:
  • 3.5% effective July 1, 2021, and 
  • 3.3% effective July 1, 2022.

BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)

The City Council is being asked to approve a tentative agreement for wages for the final two years of the labor contract between the International Association of Firefighters (IAFF) Local 521 and the City of Billings.  In July 2021, Local 521 and City of Billings reached a tentative agreement of 3% in each year of the 2-year wage reopener.  However, in August 2021, members of the IAFF voted the tentative agreement down.  Therefore, both sides agreed to begin negotiating again in December 2021, and IAFF offered November 2021 NW Region CPI-U, non-seasonally adjusted, which was 6.5%.  City agreed to calculate costs and reconvened again in January 2022.  

On January 13, 2022, the City countered IAFF's offer with 0% July 1, 2021, and 6.1 % effective July 1, 2022.  IAFF rejected that offer and countered with 3% effective July 1, 2021, and 6.1% effective July 1, 2022.  City countered that proposal with 3.3% effective July 1, 2021, and 3% effective July 1, 2022.  At that point, IAFF countered with a Last, Best, and Final offer of 3% effective July 1, 2021, and 5.8% effective July 1, 2022, with retroactive pay to July 1, 2021.  City declined IAFF's Last, Best, and Final offer, and both parties agreed to request help from a Department of Labor mediator to help resolve the differences.

Mediation was held on February 28, and again on March 29, 2022, but no agreement was reached between the parties.  On April 11, 2022, both parties agreed to meet again, without success.  As a result, both parties agreed to Fact Finding and Arbitrator Ms. Vaile was selected as the Fact Finder to review the facts of the case and make a recommendation to the parties.  Fact Finding was held on October 25, and both sides presented information to Ms. Vaile to support their positions.  On November 14, 2022, Ms. Vaile sent her recommendations to both the IAFF and City via email, and her recommendation stated:

"...the undersigned recommends that the bargaining unit members receive a COLA of 3.5% for the fourth year of the CBA (FY 2022) and a COLA of 3.3% for the fifth year of the CBA (FY 2023)."

On December 6, 2022, members of the IAFF voted to accept the Fact Finder's recommendation of 3.5% effective July 1, 2021, and 3.3% effective July 1, 2022.

 

STAKEHOLDERS

City of Billings Firefighters and the City of Billings.

ALTERNATIVES

City Council may:
  • Approve the recommendation of the Fact Finder;
  • Postpone action on the wage reopener to obtain additional information; or,
  • Deny approval of the Fact Finder's recommendation, forcing arbitration between IAFF and City of Billings.

FISCAL EFFECTS

All funds will be paid from the Public Safety Fund. The FY22 amounts (3.5%) will cost approximately $461,386 in additional wages and benefit costs. The FY23 amounts will be an additional $435,000. The FY23 budget assumed a COLA of 3%. No budget amendment will be needed, amounts in excess of the 3% budgeted will be covered by reduced expenses within the Fire Department budget.