FF-685-M - Public Employment Relations Boardgmail.com TIM KNITTEL President, IAFF Local No. 1507...

FACTFINDING REPORT AND RECOMMENDATION

In a Matter Between: ) ) ) ) ) ) ) ) ) ) ) )

IAFFLocat No. 1507 PERB Impasse Case No.: SF-IM-1 lOM

UNION,

And Hearing: January 22, 2013

CITY OF SOUTH SAN FRANCISCO Award: February4, 2013

EMPLOYER Hirsch Case No. H12-126

FACTFINDING PANEL

ROBERT M. HIRSCH, IMPARTIAL CHAIRPERSON Law Offices of Robert M Hirsch

PO Box 170428 San Francisco, CA, 94117

41 S-362-9999 [email protected]

TIM KNITTEL President, IAFF Local No. 1507

POBox2348 South San Francisco, CA, 94080

Tknittel@iafflocall 507.org

DEBORAH GLASSER Deborah Glasser Labor Relations, LLC

[email protected]

FF-685-M

Appearances By:

Employer:

Union:

SAMANTHA W. ZUTLER Meyers Nave

555 12th Street, Suite 1500 Oakland, CA, 94607

510-808-2000 [email protected]

CAROLL. KOENIG Wylie, McBride, Platten & Renner

2125 Canoas Garden Ave, Suite 120 San Jose, CA, 95125

408-979-2920 [email protected]

PROCEDURAL BACKGROUND

The City of South San Francisco ("SSF" or "City") and the International Association of

Firefighters, Local No. 1507 ("IAFF-" or ''Union") have been parties to a Memorandum of

Understanding ("MOU") for many years. The most recent contract expired on June 30, 2012.

The parties have been negotiating a successor agreement for about 11 months, starting before it

ever terminated, and held 12 negotiation sessions during that time frame .. All but two issues

were resolved in negotiations and the parties reached impasse on October 15, 2012. Thereafter,

the Union requested factfinding pursuant to Cal. Gov. Code Section 3505.4.

The Impartial Neutral was selected by the parties, and a hearing was convened in South

San Francisco on January 22, 2013. The parties identified the two issues below as the only

issues to be addressed by the factfinding panel. Both the City and the Union waived all time

limits set forth in the applicable Government Code provisions.

The parties presented written and oral evidence at the hearing, and also presented

arguments in favor of their respective positions. At the conclusion of the hearing, the panel met

to discuss the presentations and recommendations. No agreement was reached by the panel at

that time, and, accordingly, the matter is submitted to the Impartial Chairperson for a Decision

and Recommendation. The City submitted a written statement after the evidentiary hearing was

concluded. The Union chose not to. The Recommendations below are based upon the record as

a whole.

Unless indicated otherwise, the Recommendations are those of the Impartial Chairperson

alone.

IMPASSE ISSUES

The parties agreed to the following issues: Whether factual circumstances support the

City imposing on the IAFF for the time period of January 1, 2013 through January 1, 2014, the

following with regard to dental insurance and a vacation cap?

1) Dental Coverage: Effective January 1, 2013, the City shall pay a premium

for a core dental plan of $1500 CYM and $1000 Orthodontia, for employees and eligible

dependents. IAFF bargaining unit members may buy enhanced dental coverage of $3000

CYM and $4000 Orthodontia. All bargaining unit employees on the payroll as of

January 3, 2013 shall receive a one-time lump sum payment of $1500, payable (in

January 2013) immediately.

2) Vacation Cap: All bargaining unit employees shall accumulate vacation time

up to two-times their annual accrual, with no further accrual until the pay period after the

vacation balance has been reduced below the applicable two-year cap. All "Fifty-six

(56) hour employees" may cash out up to seventy-two (72) hours of vacation leave

during each calendar year. All "Forty ( 40) hour employees" may cash out up to eight (8)

hours of vacation leave during each calendar year. The Fire Chief, with approval of the

City Manager, shall have the ability to grant an exception to this provision for bargaining

unit employees who reach their cap and are unable to use their vacation due to

exceptional circumstances, to be defined by the Fire Chief. In these situations, the Fire

Chief, with the City Manager's approval, shall have the authority to grant the unit

member the right to cash out additional vacation or allow the member to temporarily

exceed the vacation cap.

STATUTORY CRITERIA

MMBA, at Section 3505.4(d), sets forth the criteria that factfinders must consider in

matters such as this one:

1) State and federal laws that are applicable to the employer.

2) Local rules, regulations, or ordinances.

3) Stipulations of the parties.

4) The interests and welfare of the public and the financial ability of the public

agency.

5) Comparison of the wages, hours, and conditions of employment of the employees

involved in the factfinding proceeding with the wages, hours, and conditions of

employment of other employees performing similar services in comparable

public agencies.

6) The consumer price ind.ex in goods and services, commonly known as the cost of

living.

7) The overall compensation presently received by the employees, including direct

wage compensation, vacations, holidays and other excused time, insurance and

pensions, medical and hospitalization benefits, the continuity and stability of

employment, and all other benefits received.

8) Any other facts, not confined to those specified in paragraphs (1) to (7),

inclusive, which are normally or traditionally taken into consideration in making

the findings and recommendations.1

DISCUSSION AND RECOMMENDATIONS

1) Dental Coverage:

SSF called one witness, Kathy E. Mount, Human Resources Director, to testify about the

City's position with regard to both impasse issues. She explained that SSF has focused on three

areas of concessions for its various bargaining units: two-tier retirement benefits, elimination of

1 The parties agreed at the hearing in this matter that .only factors 7 & 8 shall be applied in this factfinding and the Impartial Chair agrees with that assessment.

lifetime medical coverage for retirees, and medical plan cost-saving changes. With regard to the

enhanced dental coverage enjoyed by IAFF members, Ms. Mount testified that no other City

employees enjoyed those benefits. SSF offers a core dental benefit to all non-firefighter

employees of $1500 in dental coverage and $1000 in orthodontic coverage. The firefighters

secured the added coverage, which provides for up to $3000 in standard dental care coverage

and up to $4000 in orthodontia coverage, in 1998. According to the Union, the affected

employees agreed to move from the City's long-term disability ("LTD") plan to a firefighters

association ("CAPP") plan. All agree that the savings to the City is approximately $50,000 per

year.2

The problem with the enhanced dental offering, according to Ms. Mount, is the fact that

it has turned out to · be far more expensive than the City anticipated in 1998. To induce the

Union to accept the City proposal, which sets the IAFF coverage at the level for all other SSF

employees, the City proposed a one-time payment of $1,500 to all IAFF member-employees,

and a $50,000 life insurance policy for each member. Other City employees already have the

life insurance coverage, while the Union members have $12,000 of life insurance provided by

the City.

Arthur Mosqueda, a twenty-seven-year veteran with the SSF fire department, testified

that the benefit prized most by the bargaining unit members is the orthodontia benefit, even

though evidence showed that only 9 children used the benefit in 2008. The employees,

2 This LTD covers non-industrial injuries for the first year of disability and enhanced, work-related coverage beyond one year, according to the parties. Most disabilities affecting bargaining unit employees are industrial.

according to Mr. Mosqueda, as well as Mike Root, former Union President, and Todd Rael,

current Vice-President, feel strongly that they gave up other benefits and bonuses to secure and

maintain the benefit for the few families which really need it. In the 2009 negotiations, the

Union acquiesced to the City's two-tier retirement and medical coverage in exchange for

keeping the enhanced dental benefit. 3 The Union witnesses also suggested that Ms. Mount

promised that the City would not raise reducing the dental benefit again-although Ms. Mount

denied this allegation, and no IAFF witness could really establish that the Union's

understanding on this point was anything more than a unilateral belief.

The City emphasized that it was intent upon securing parity for all City employees with

regard to benefits, and obtaining sustainable economic savings. Ms. Mount did sqite several

times during the factfinding hearing that the City would seriously consider any "principled

reason" for deviating from this intention. It should also be noted that SSF has not claimed a

financial inability to continue providing the enhanced dental benefit.

Recommendation:

The Impartial Chair finds that the factual circumstances do not support the City's

proposal on the reduction in the dental benefit. The IAFF gives a ''principled reason" for its

unwillingness to give up the orthodontic benefit it secured back in 1998. Although the vast

majority of unit employees will not benefit from the continuation of this coverage, the

employees have rejected money, across the board, as well as additional life insurance for each

3 Retirement benefits went from "3% of SO to 3% of SS."

member in order to preserve a dental benefit valued by families with children. Moreover, the

benefit was initially obtained by the IAFF, and secured over the years, through economic

givebacks or benefit reductions over the years. Although it does not appear that any binding

promise was, or could have been made, securing the enhanced benefit in perpetuity, the

member-employees have taken a principled position, sacrificing financial gain for most in favor

of a dental benefit for families and children. The City's desire for benefit-uniformity among its

employees is outweighed by the willingness of the IAFF members t<> forego other economic

enhancements for the sake of a few. There appears no basis to conclude this benefit is not

sustainable for the term of the contract being negotiated. The evidence presented regarding the

overall compensation of the IAFF members by the City (Factor 7, above), does not militate

against continuing the dental benefit in light of the Union's willingness to forego other

economic benefits.4 Further, the willingness of the IAFF members to relinquish economic

benefits in prior years, and turn down other benefits offered in this year's negotiations to retain

the dental benefit, fit well within Factor 8 above, the catch-all set of criteria set out in MMB.

Under the circumstances, the Impartial Chair finds the facts do not support the City's

desire to impose a reduction in the dental benefit.

Deborah Glasser Concur: Dissent: X

Tim Kittel Concur: X Dissent:

4 The City suggested, through testimony of its witness Ms. Mount, that the IAFF members were compensated in the 60th percentile of city employees based upon a recent survey. No further survey specifics were offered by SSF.

2) Vacation Cap:

The City seeks to save $300,000 to $400,000 annually in vacation payouts by proposing

a "hard cap" on vacation accrual for unit members. Once an employee accrued twice his annual

allotment for vacation, he could no longer accrue further vacation time until the balance was

reduced below the cap. IAFF employees could "sell back" up to 72 hours, softening the impact,

somewhat, of the hard cap. All other City employees are subject to the hard cap. SSF proposes

an effective date for the hard cap of July l, 2013.

The Union takes issue with the "rolling" nature of the hard cap. Under the City plan, the

hard cap can hit during any pay-period where the vacation accrual hits the maximum allotment.

The Union argued at the factfinding hearing that employees out on disability leave pursuant to

California Labor Code Section 4·850, continue to earn vacation time and could be subject to the

harsh application of the cap, since they would not be in a position to take vacation time while

disabled. 5 The Union was amenable to a hard cap which was fixed in time-year end-rather

than a rolling cap. It contended that the fixed in time cap would allow employees to better plan

for the use of their vacation time.

SSF countered the Union argument with language in its proposal, which would allow the

Fire Chief, with the .approval of the City Manager, to approve a temporary exception to the

vacation cap and/or grant the righf to cash out additional vacation time, beyond the 72 hour

5 The record does not establish any significant issue around employees on 4850 leave.

ceiling. Thus, employees caught in a position where they could not use vacation time to avoid

hitting the hard cap, could petition the Chief for relief from the rule.

Recommendation:

The Impartial Chair finds that the factual circumstances support the City's imposition of

the vacation "hard cap" on the IAFF members. Uniformity is a reasonable goal for the City,

making administration easier, and reducing antagonism among the various City bargaining units.

The Union does not offer any compelling reasons to deviate from the standard city-wide practice

of imposing a rolling hard cap. Employees will have to take the time and anticipate their own

vacation accrual to manage the cap and payout option. This seems reasonable, and nothing in

the record suggests the member can't handle this as other City employees do. And, there is

always the discretionary authority of the Fire Chief and City Manager to grant exceptions where

to avoid a hardship.

II

II

II

II

II

II

Under the circumstances, the Impartial Chair finds the facts support the City's desire to

impose a rolling hard cap on vacation accrual.

Deborah Glasser

Tim Knittel

Concur: X

Concur:

Respectfully submitted,

Date: February 11, 2013.

Dissent:

Dissent: X

Robert M. Hirsch, Impartial Chair

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As probably expected. I concur with the fact-finder's recommendation regarding the enhanced dental benefit. In addition, as expected, I dissent from the fact-finder's recommendation regarding the fixed vacation accrual cap Initially, it was not my intent to provide a written rebuttal to the recommendation. However, given the written rebuttals submitted by Deborah Glasser, I must insist that a brief Union rebuttal also be included. First, I want to point out 1t was the City that provided the fact-finder with the basis he used in making the recommendation on both the dental and vacation cap issues The City's thome throughout the hearing was the need, or dasire, to provide the same benefits to all employees unless there was a principled reason to not do so. !n response, the Union attemptet:f to convinr.e the fact-finding panel that they were principled reasons as to why the Union members should be allowed to keep the enhanced dental benefit and have a modrfied version of the City's vacation accrual cap. In regard to the vacation cap, the Union presentad two ccmcerns that it regarded as principled reasons why the fbced cap should be substituted wrth a rolling cap. First, the short staffing in the department will make it very difficult for the Firefighters to actually utilize their accrued vacation dlJe to the limited number of vacation slots available. The rolling cap would mean that, in order to even have a chance of using their allotted vacation before losing tile right to accrue more, newer Firefighters would unfairly ~e required to take all of their vacation early in th~ year and thus have none remarning for summer vacations or holidays. The second, and more important. concern was expressed throughout negotiations and brought up numerous times at the bargaming table. That concern was with Firefighters who might b~ unable to lake vacation due to a work-related disability and thus lose the right to accrue vacation. The City's response during negotiations was to research the issue and come back to the Union with the "good news" that Firefighters on 4850 time could go on vacation in order to "burn" excess vace:1tion hours (i.e , give up a statutory right to paid sick li:!ave in order to "bum up" their earned vacation). Understandably the Firefighters did not find this an acceptable resolution. As for the provision the City reluctantly added that allows the Fire Chief and/or City Manager to have the discretion to grant exceptions to the fixed cap, given the City's refusal to include a specific exemption for 4850 situations, the Firefighters have little confide:nce that such exceptions wil! be granted. Having said that, the Firefighters understand and accept that the neutral fact-finder does not agree with Lhat assessment.

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In regard to the dental enhancement, it is interesting to note that the City criticizes the fact-finder for relying on assertions rather than on hard evidence in deciding the dental issue, but readily accepts his findmg of the vacation cap when that issue can be said to suffer from the same .. deficiency • Por example, the Crty finds fault with the neutral fact-finder · i:>ased on its claim that he relied primariiy on assenions made by the Union witn9'3ses rather than by any "evidence." Yet, it c.an be argued that he relied primanl~' on Kathy Mount's assertions for his findings on the vacation cap issue. The City called only one witness - Kathy Mount - and its entire case was pretty much b~sed on her "assertions." The City provided no "evidence" supporting her assertions. such aa that the Firefighters' compensation was 10% above market, foat they have "incredibly rich" compensation packages; that they are among the most highly compensated employees in the City; that they enjoy a total compensation weil beyond any other bargaining unit in the City; and that there are no deviations (other tha11 those enjoyed by Fire) from the "everyone the samen philosophy unless there is a principled reason behind the deviation. Additionally, the City provided absolutely no evidence or testimony supporting the contention that other bargaining units felt that they were being treated unrairiy beca1Jse the F1ref1ghters had a unique benefit A!though the City consistently makes this assertion, it has never cited to any specific bargaining unit has made such a claim. Certainly, it prov:deel no evid~nce at the hearing that this assertion was true. As stated above1 the Union disagrees wrth the neutral's findings regarding the vacation cap accrual. However, we do not agree with the Crty advocate's assertion that hts findings are inconsistent with the law or with his role. V'Jhat is inconsistent is t'ie City's position that the same process and criteria used by the neutral were consistent with tr1e law in regard to the vacation cap (the issue on which it prevailed) but inconsistent in regard to the dental enhancement (the issue on which it "lost.").

I hd ic\ \: t·ra1 L•)·..:ui 1507 <m<l 1h~· cit~· c:u1 com.; tu ag1 l·em..:m based m1 tb~ factfi,iding r::nort uf Local I Sn 7 k\.'qiing the dt:ntul bmdit i1Ild &grl'dng t0 the \ ac0,tion cap, .Ai1tl ch•! mc1nb~T.- nf local 1507 would pa~s a contract v.. ilh the ~~pport oflhe union h-;'latJ b1;cd on these iindblgs v,ithout the cit) h.ad nit to impo:;se a contract

Tim K11itt .::I. President ~outh San l· tanciscn Prot\.;s~ion:.J r ire Fighwrs lAFF I.v\;'.\l 1507 J'( > Ho.· ~.'.\48

~C111th ~<ill Franci.:;~u: CA Q4(180 7117-396-0692 \.:eJI

FF-685-M - Public Employment Relations Boardgmail.com TIM KNITTEL President, IAFF Local No. 1507...

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Transcript of FF-685-M - Public Employment Relations Boardgmail.com TIM KNITTEL President, IAFF Local No. 1507...