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
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Approv Mayor: Date . �� �'� � Approved by Mayor for Submission to Council
By BY
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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.
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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,
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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
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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
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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
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