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268540 WHITE - CITV CLERK �(1���� PINK - FINANCE � CANARV - DEPARTMENT GITY OF SAINT PAUL COUIICII �j BLUE - MAYOR File NO. ouncil Resolution Presented By Referred To Committee: Date Out of Committee By Date BE IT RESOLVED, That the final position of the City of Saint Paul to be submitted to the arbitration panel in regard to Firefighters' Local 21 as submitted by the Mayor through the attached letter, is hereby approved and the Mayor is hereby instructed to proceed to arbitration on this matter. COUNCILMEN Requested by Department of: Yeas IVays Butler Hozza In Favor Hunt Levine �__ Against BY Roedler Sylvester Tedesco Adopted b ouncil: Date �E� 1 0 1977 Form pprov d b 'ty t rney I Ce ied Ya y Co ci Secretary BY v Approv Mayor: Date . �� �'� � Approved by Mayor for Submission to Council By BY vuei. fEA ! 9 t�� . . - + "'. ������ CI.'1'�" OI�' S.1I\1' 1�_1 i"7. va+l �323?ta9e � . ?��ea��E�b O 1'1'1 Ci l: (�I' "1'I I I: �I.�YO 1: s,�_—�, GEORGE LATI?IER MAYOR February 8 , 1977 Council President Robert Sylvester and Honorable Members of the City Council City of Saint Paul, Minnesota 55102 Dear President Sylvester and Council Members: As you know, the administration of the City of Saint Paul has been negotiating with the Saint Paul Fire Fighters for a collective bargaining contract for the year of 1977. Despite the fact that we have met with the Saint Paul Fire Fighters on a number of occasions and attempted to resolve the outstanding issues between the two parties, we have not been able to come to agreement. Therefore, we have submitted this matter to the Director of the Bureau of Mediation Services for arbitration, and the Director has certified this matter to arbitration. A list of potential arbitrators was sent to both parties, and the arbitration panel has been chosen. Pursuant to Seetion 25 of the Saint Paul Administrative Code, I am hereby submitting the City's final position in this arbitration matter to you for your appraval. The proposed position to be submitted to the arbitrators in regard to the Saint Paul Fire Fighters is as follows: � 1. Contract Duration - The City of Saint Paul seeks a two-year contract. 2. Wages - The City of Saint Paul has offered a five per cent in erc ase in wages for the year of 1977. In addition to the five per cent increase in wages, the City has also offered 3. 3 per cent for Fire Equipment Operator, Fire Alarm Dispatcher I and Fire Prevention Inspector, four per cent for Fire Alarm Dispatcher II, 4.4 per cent for Fire Captain, Fire Investigator and Supervisor of Fire Communications, 4. 6 per cent for Assistant Fire Marshal, and four per cent far District Fire Chief and Fire Marshal. For the year of 1978 , the City has offered a six per cent increase in wages to all positions. � �°--=_.,., �=--.__ . . Council President Robert Sylvester and February 8, 1977 Honorable Members of the City Council Page 2 3. Insurance - The City of Saint Paul proposes to provide the same benefits that the Fire Fighters are now receivi.ng. However, we wish to change the insurance Tanguage in the contract to reflect a specific amount of money� that will be paid towards this coverage, rather than saying that the City will pay for a certain percentage of the cost. This specific money figure will reflect the increased premium for the year of 1977, however, it will not reflect the increase for the year of 1978. Therefore, the members of the Fire Fighters unit will have to pay for any additional premium increase for this benefit for the year of 1978. It is most important to note that the City is not reducing the insurance benefit or coverage in any way. We simply wish to bring the cost for such additional increase in premiums into the collective bargaining process rather than give such benefit away on an annual basis as we have dane in the past. 4. Residency - The City of Saint Paul proposes to establish a new residency clause for Fire Fighters. This residency clause would be the same clause� that governs the other employees of the City of Saint Paul. Under the terms of such a residency clause, any new Fire Fighters would be required to move into the City of Saint Paul within one , year after their appointment. Such a clause would not apply to Fire Fighters who are presently employed by the City of Saint Paul. 5. Employer Authority - The City of Saint Paul proposes to add the Employer Authority provision that is presently in the Public Employees Labor Relations Act into the contract itself. 6. Sick Leave - The City of Saint Paul proposes to submit contract language which would preclude a Fire Fighter from � autside employment during the period of time that he is on sick leave with the City of Saint Paul. 7. Retroactivity - We propase that no retroactivity be given to this bargaining unit. We want to stress that every effort has been made ta reach agreement with this bargaining group, but it appears that they do not wish to come to any reasonable settlement. The final offer and final position proposed by the City of Saint Paul is a fair and reasonable offer and compares favorably with those offers and settlements reached with other bargaining units of the City of Saint Paul. As you know, � . , � Council President Robert Sylvester and February 8, 1977 Honorable Members of the City Council Page 3 we have reached agreement with the Police Federation for the years of 1977 and 1978. The Police settlement for 1977 was 7.2 per cent of the payroll, and the Police settlement for 1978 was 6. 2 per cent of the payroll, for a total of 13.6 per cent. The total cost for 1977 of the proposal for the Fire Fighters would be 7 .75 per eent for 1977, and 6.0 per cent for 1978, for a total of 13.75 per cent. As you can see, the per cent cost of the Fire proposal would be even greater than that settlement already reached with the Police. There are two points which we feel we must stress in this proposed arbitration position that we are submitting to you. The first point deals with the matter of the proposed dollar limit for health and welfare benefits. As T stated above, the City of Saint Paul has no intention of reducing any of the benefits that the Fire Fighters presently receive. However, the cost of such benefits in the past have routinely increased, and these increases have routinely been borne by the City of Saint Paul with absolutely no credit given to the City for such additional payment in the collective bargaining process. We simply propose to insert a dollar limit in the contract language so that any future increases may be negotiated between the parties. Thus, all fringe benefits would then become incorporated into the collective bargaining process as well they should be. It is common practice to provide for specific dollar amounts for such insurance benefits in collective bargaining contracts. In fact, the City of Minneapolis has a dollar limit in its contract for health and welfare programs for their employees. This request by the City of Saint Paul is reasonable, prudent and necessary. The seeond point that I wish to make deals with the coll.ective bargaining process itself. Section 25 of the Saint Paul Administrative Code provides that the administration must submit final proposa3s for arbitration to the Council for their approval. This is an entirely sound provision because it institutionalizes our joint responsibility in these matters. I welcome your joining me in this matter, and I note that any failure in the past to use this provisian, improperly � excludes you from the process. I commit myself to strictly adhere to Section 25 on this and all future matters. I submit to you that the prop�sal now before you is eminently fair and should not be rejected by this Council. Inasmuch as the final position of the City is a reasonable position, any action by this Council capitulating to the demands of the union could have disastrous effects not only with future bargaining with this particular union, but with the bargaining of all city unions. The Fire Fighters have been offered a proposal equal to that that was offered and accepted by their counterparts, the Police Department. They now feeZ that � . � ~ ������ Council President Robert Sylvester and February 8, 1977 Honorable Members of the City Council Page 4 they have obtained all that they can from the administration, and they have absolutely nothing to lose by proceeding to further forums. Tf they are successful in skirting the negotiations of the administration, all future negotiations will be held in three stages. First, they will negotiate with the administration to obtain the maximum they can from them. They will then go to the City Council and negotiate with the Council as they are attempting to do now and obtain the maximum _ that they can from the Council. Third, they will then proceed to arbitration; and w'ith the understanding that they would have nothing . to lose, and can obtain only additional benefits. I therefore respectfully request that you approve the final proposal submitted by the City of Saint Paul and allow this matter to be submitted to arbitration for final determination. Finally, tomorrow I will distribute materials to you regarding the City' s position with respect to Local 320 and the impending arbitration. I will ask your confirmation of the City' s position � on Thursday, February 10. Sincerely, GEO LATIMER Mayor GL/jfr ������ GiT�� or� S��Ilv�r Pl�t�L s��.�.�m c�i�-i�ic>>: <�r Tti�: ��nYOiz ....�.s�o.a !9liB�OB GEORGE LATIMER MAYOR February 8, 1977 TO: COUNCIL PRESIDENT ROBERT SYLVESTER MEMBEs3S OF CITY COUNCIL FR: MAYOR GEORGE LATIMERQ � � RE: COLLECTIVE BARGAINING PROCESS I would like to appear before the City Council today at approximately 11 a.m. to �resent the City's final positions on collective bargaining issues with respect to the Fire Fighters, Local #21 and the Teamsters , Local #320. Thank you fcr your cooperation. GL:ejt - O