City of Centralia

And

Teamsters, Local 252

Interest Arbitration

Arbitrator:      Gary L. Axon

Date Issued:   06/08/1996

 

 

Arbitrator:         Axon; Gary L.

Case #:              11884-I-95-00255

Employer:          City of Centralia

Union:                Teamsters Local 252

Date Issued:      06/08/1996

 

 

 

 

           

             IN THE MATTER OF                                 )

                                                                                    )

            INTEREST ARBITRATION                       )           CASE NO. 11884-1-95-255

                                                                                    )

                  BETWEEN                                               )              ARBITRATOR'S AWARD

                                                                                    )

            TEAMSTERS LOCAL 252,                         )           1996 INTEREST ARBITRATION

                                                                                    )

                                                            Union,             )

                                                                                    )

                                    and                                          )

                                                                                    )

CITY OF CENTRALIA, WASHINGTON,  )

                                                                                    )

                                                            City.                )

 

 

 

 

 

 

HEARING SITE:                                                                  City Hall

                                                                                                Centralia, Washington

 

HEARING DATE:                                                                March 6, 1996

           

POST-HEARING BRIEFS DUE:                                        Postmarked April 18, 1996

 

RECORD CLOSED ON RECEIPT OF BRIEFS:              April 25, 1996

 

REPRESENTING THE UNION:                                         David W. Ballew

                                                                                                Davies, Roberts and Reid

                                                                                                Attorneys at Law

                                                                                                Suite 550

                                                                                                101 Elliott Avenue West

                                                                                                Seattle, WA 98119

 

REPRESENTING THE CITY:                                             Otto G. Klein, III

                                                                                                Heller, Ehrman, White

                                                                                                 & McAuliffe

                                                                                                6100 Columbia Center

                                                                                                701 Fifth Avenue

                                                                                                Seattle, WA 98104-7098

 

ARBITRATOR:                                                                    GaryL. Axon

                                                                                                1465 Pinecrest Terrace

                                                                                                Ashland, OR 97520

                                                                                                (541) 488-1573

 

                                                            Table of Contents

ISSUE                                                                                                 Page

 

Introduction                                                                                        2

 

1 -        Wages                                                                                     6

 

2 -        Premium Pay                                                              32

 

3 -        Holidays/Vacations                                                                33

           

I.          INTRODUCTION

 

            This case is an interest arbitration conducted pursuant

to the Public Employees Collective Bargaining Act.  The parties to

this dispute are Teamsters Union Local 252 (hereinafter "Unioni")

and the City of Centralia, Washington (hereinafter "City")   The

Union and the City are parties to a Collective Bargaining Agreement

that covered the period January 1, 1992, through December 31, 1994.

The  parties  entered  into negotiations  to  reach  a  successor

Agreement to the 1992-94 Collective Bargaining Agreement.   The

parties were successful in resolving most of the issues that

divided them in contract negotiations.  Three issues were submitted

to the Arbitrator for resolution.

 

            Centralia, Washington is located in Lewis County.  The

City has a population of 12,730 persons.  Lewis County is sparsely

populated with a population of 24.7 persons per square mile.  The

Union represents 22 police officers and 5 sergeants.  On July 1,

1995, the patrol officers fell within the statutory definition of

"uniform personnel"  which  granted  them  interest  arbitration

according to the Public Employees Collective Bargaining Act.  RCW

41.56.030(7) (b) (i) .  Prior to July 1, 1995, the members of this

bargaining unit were statutorily prohibited from engaging in any

economic activity in support of its bargaining proposals.

 

            At  the commencement of  the arbitration hearing the

parties agreed to use a list of comparable jurisdictions to assist

in the resolution of this contract dispute.  The ten jurisdictions

are the same group of comparators used by an Ad Hoc Salary Review

Committee in 1992 composed of individuals from management and

labor.   The jurisdictions stipulated to as comparable for the

purposes of this interest arbitration are:

            Chehalis          Tumwater

            Kelso              Ellensburg

            Issaquah         Hoquiam

            Enumclaw       Oak Harbor

            Marysville      Moses Lake

 

Because of the stipulation of the parties, it was unnecessary for

either the City or the Union to present evidence on the issue of

the appropriate jurisdictions with which to compare Centralia for

the purposes of establishing the terms of the successor Agreement.

 

            The hearing was tape recorded by the Arbitrator as an

extension of his personal note taking.  Testimony of the witnesses

was received under oath.  At the arbitration hearing the parties

were given the full opportunity to present written evidence, oral

testimony and argument.  The parties provided the Arbitrator with

substantial written documentation in support of their respective

cases.

 

            The parties also submitted comprehensive and lengthy

post-hearing briefs in support of their respective positions taken

at arbitration.  The three issues identified for an Award by this

Arbitrator are as follows:

 

 

1.         Wages

2.         Premium Pay

3.         Holidays/Vacations

 

            This Arbitrator carefully reviewed and evaluated all of

the evidence and argument submitted pursuant to the criteria

established by RCW 41.56.465.  The approach of your Arbitrator in

writing the Award will be  to  summarize  the major and most

persuasive evidence and argument presented by the parties on each

of the issues.  After the introduction of the issue and positions

of the parties, I will then state the basic findings and rationale

which caused the Arbitrator to make the Award on the individual

issues.

 

            The statutory criteria are standards or guidelines to aid

an interest arbitrator in reaching a decision in a case subject to

this procedure in resolving disputes.  The statutory factors to be

considered by the Arbitrator may be summarized as follows:

 

(a)        the  constitutional  and  statutory

authority of the employer;

 

(b)        the stipulations of the parties;

 

(c)        the wages,  hours  and conditions  of

employment of like personnel of like employers

of similar size on the West Coast of the

United States;

 

(d)        the average cosumer prices for goods and

services,  commonly  known  as  the  cost  of

living;

 

(e)        changes  in  any  of  the  foregoing

circumstances  during  the  pendency  of  the

proceedings; and

 

(f)        such other factors, not confined to the

foregoing, which are normally or traditionally

taken into consideration in the determination

of wages, hours and conditions of employment.

 

            For those employees in a city with a population less than

15,000, consideration must also be given to regional differences in

the cost of living. The jurisdictions agreed to by the parties for

purposes of comparison included cities from both eastern and

western Washington.

 

A.        Background

 

            The most significant fact in this case is that the

parties have agreed upon wage increases for 1995, 1996 and 1997.

Pursuant to the parties' agreement, bargaining unit members will

get a 2.7% increase for all of 1995, a 2.25% increase for 1996 and

an increase based upon the change in the Seattle/Tacoma CPI-U Index

for 1997.  Thus, the issue of annual wage increases for the members

of this bargaining unit is not in dispute.

 

            Centralia police officers do not participate in the

social security program. As such, there is no deduction from their

wages for the employee contribution to the social security system

or an employer cost for social security.

 

            In 1987 the City implemented a salary schedule consisting

of 23 ranges with 7 steps per range. At that time, patrol officers

were placed in Range 13 of the salary schedule where they have

remained since 1987.  The Union proposed moving patrol officers to

Range 14 as of July 1995.  The City objects to the movement of the

patrol officers from Range 13 to Range 14 of the salary schedule.

 

B.        The Union

 

            The Union takes the position that the time has come to

adjust the salary range for patrol officers which has been in

existence for nearly ten years.  The Union submits its proposal

will protect the integrity of the 7-step advancement system, as

well as spreading out the economic impact on the City over time.

 

The Union is proposing moving individual patrol officers up one

step on Range 14.  As of July 1995, seven of the twenty-two patrol

officers in the bargaining unit had topped out at Range 13, Step G.

Under the Union's proposal, those seven officers would receive a

new step advancement date as of July 1, 1995. The remaining patrol

officers would retain their existing step advancement date for

further adjustments.

 

            The Union maintains its position is supported by the

internal comparators.  Teamsters Local 252 represents the clerical

and support staff.  The contract for that bargaining unit called

for negotiated COLA increases and movement of some employees to a

higher range on the salary schedule.  Under the police clerical

contract, the Department's secretary was also moved up one complete

range.

 

            Turning to the external comparators, the Union begins by

noting the City spent a considerable amount of time attempting to

persuade the Arbitrator that Issaquah should be excluded from the

group.   The Union maintains that the City's attempt to exclude

Issaquah from the comparator group was based on flawed information.

 

            Moreover, the City's Exhibits 10 through 13 list each of

the comparator cities by name and purport to set forth data

pertaining to population, demographics, per capita personal income,

median household income, average net earnings and average wage for

covered employment. At the arbitration hearing it was learned that

the data as to the comparator cities was not based upon economic

data on a city by city basis.  The economic data was instead culled

from information as  to  the  entire  county within which  the

comparator cities are located.  The legislature in developing the

interest arbitration statute expressly provides that comparisons

should be made to "employment of like personnel of like employers

of similar size." The statutory directive to interest arbitrators

has resulted in arbitrators routinely rejecting comparing uniform

personnel in cities to uniform personnel in counties.

 

            The statutory directive to interest arbitrators has

resulted in arbitrators routinely comparing uniform personnel in

cities to uniform personnel in other cities.  Nor is there support

for comparing uniform personnel of the City to all personnel of all

employers of all counties in which the mutually agreed upon

comparators lie.   The entire purpose of  furnishing data on

comparator cities is to provide an arbitrator the information to

make a principled-based decision.

 

            Union witness Mark Endresen prepared a series of exhibits

which included a breakdown of population, valuation and taxes as

provided by the State Auditor.  Un. Exs. 2-11.  Union Exhibit 12

consisted of eight separate summaries of raw data drawn from

information contained in the State Auditor's Office reports.  The

witness also ranked compensation paid in the comparators based on

the collective bargaining agreements from the ten cities. Endresen

compared the longevity pay, educational incentive pay and whether

the employer participated in social security in the ten other

cities.

 

            Under the Union's proposal the highest step that any

patrol officer would attain in 1995 would be Range 14, Step F which

has a base pay of $3,254.  This would place the top step base pay

for a patrol officer at Step G at $3,368 per month.  Without the

increase in the range from Range 13 to Range 14, Centralia would be

ranked number seven at $3,148 per month.

 

            Union Exhibit 12, page 9 reflects various items of

compensation including longevity pay, educational incentive and

FICA/Medicare in order to show what the Union alleges is the actual

cost of the proposal to the City.  The Union calculated the cost to

the City with this proposal to move to Range 14 to be $3,527 per

month.  If officers remained at Range 13 the top step would cost

the City $3,305 per month.  The Union's calculation of the total

cost revealed the following rankings if the cost of FICA/Medicare

are factored in for the comparators.

 

            CITY                                                               TOTAL

                                                                                   

            1.         Issaquah         .           .           .           $4062  MO.

            2.         Kelso              .           .           .           $3767  MO.

            3.         Enumclaw       .           .           .           $3681  MO.

            4.         Tumwater       .           .           .           $3594  MO.

            5.         Oak Harbor    .           .           .           $3556  MO.

            6A.      Centralia(#14)            .           .           $3527  MO.

            6.         Marysville      .           .           .           $3481