City, unions make steps

Thu., May 31, 2007

By Jonathan Brunt jonathanb@spokesman.com (509) 459-5442

At a glance

Contracts

Fire officer contract details

“The contract with the Spokane Association of Fire Officers will increase members' compensation package by 5.5 percent in 2006, 7 percent in 2007 and 3 to 5 percent in 2008. The fire officers, including battalion chiefs and the fire marshal, have worked without a contract since the end of 2005.

“Before raises, officers made between $89,000 and $100,000 a year.

“Members will receive a payout for their 2006 raises, a 2.7 percent increase from the beginning of the year plus a 1 percent increase in July. For 2007, wages will be increased 4 percent from the start of the year plus 1 percent in July. In 2008, wages at the start of the year will rise between 2 and 4 percent, depending on the Consumer Price Index. It will increase an additional 1 percent in July.

“In addition, the city agreed to give members an amount equal to 2 percent of their 2006 wages and put it in their deferred compensation accounts. Those accounts are like 401(k) plans in which employers match the amount of dollars placed in the accounts by the employee to invest for retirement. But the fire officers will not be required to match the extra payout for 2006.

Assistant prosecutor contract details

“The Spokane City Prosecutors Association agreed to 3 percent wage increases this year and next. Members also will receive a bonus check equal to 2 percent of their annual salaries in August.

“The city agreed to reduce the number of years it takes to receive the highest salary from 10 years to five.

“The union represents 12 people.

City of Spokane officials are making progress in their stated goal of gaining medical benefit concessions from city unions.

But the two contracts where sides have reached agreement are the smallest of the city’s six unions, and they’ve come with a price.

Last week, the City Council approved a contract with the Spokane Association of Fire Officers that includes a provision that their 12 members pay 15 percent or 30 percent of their medical insurance premiums, depending on the plan they choose. And on Tuesday, the council approved a contract with assistant prosecutors that will require them to pay 10 percent of their premiums.

Both groups will switch to a cheaper dental plan, and the fire officers agreed to higher co-pays for prescriptions.

The city agreed to wage increases higher than inflation in both contracts.

While most city employees pay a portion of premiums for their spouses and children, only the fire officers and assistant prosecutors have agreed to pay a portion of their own insurance costs.

City officials are in the midst of negotiating a contract with the Spokane Police Guild, which has worked since the end of 2005 without a contract. Negotiations recently started with the city’s firefighter union, whose contract runs out at the end of the year. The city expects to start contract talks with the Managerial and Professional Association and its largest union, Local 270 of the American Federation of State, County and Municipal Employees, in a few months.

Spokane Mayor Dennis Hession announced earlier this year that he does not support reauthorizing the two-year property tax increase that was approved by voters in 2005 to save the city from further layoffs. The mayor said at the time that he hoped to solve forecasted budget shortfalls partly by getting unions to agree to pay for more of their benefit packages.

“Our position is that we want each of our collective bargaining units to partner with us,” Hession said.

Joe Cavanaugh, president of the city’s largest union, AFSCME Local 270, said the union is well aware of the city’s intent on medical benefits. But he pointed to medical concessions the union made on the last contract when workers agreed to pay 25 percent of their dependents’ health plan premiums.

In the two recently settled contracts, the city provided extra one-time bonuses in exchange for holding down permanent salary and benefit expenses, said the city’s acting human resources director, Chris Cavanaugh, who is the sister-in-law of Local 270’s president.

City Councilman Al French, who is running for mayor, said those contracts are “a step, but in terms of economic impacts it’s really insignificant.”

French said Hession has run negotiations similarly to former Mayor John Powers. He called it a “failed strategy.”

Union negotiations stalled under Powers. When Mayor Jim West took office in 2004, he settled contracts without some of the concessions Powers was holding out for. Critics said West gave in too easily. West argued that employee morale was low and that police and fire unions could have forced the city into binding arbitration – allowing a neutral party to set wages and benefits without considering budget implications.

“Before you knew it, we had this big pill we had to swallow,” French said. “We ought to be (negotiating) in good faith so we’re not put in the situation we are in now.”

Hession said negotiations with the Police Guild were slow at first but have improved as the city’s financial outlook has brightened.

He said he told Guild leaders: “When I had more resources I would be willing to share those resources.”

The city finished last year with $11 million more than expected largely because of robust sales tax revenues.

“We’re making progress with the Guild, and I think the negotiations are going fine,” Hession said.

Ernie Wuthrich, president of the Spokane Police Guild, did not return a call seeking comment Wednesday afternoon.

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