queen city - Appendix Public Sector Mock Bargaining...

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Unformatted text preview: Appendix Public Sector Mock Bargaining Exercise The following materials provide the basic data for a mock exercise in the public sector. The exercise involves negotiations between @cmlgmoliw association representing police officers employed by the city, the Queen City Police Association. (Both the City and union names, as well as the material and data, are fictitious.) The students should divide into union and management teams. Three students per team are preferred. The roles on the union bargaining committee include the union pres1dent and chief negotiator, the union attorney, and the union secretary-treasurer. The roles on the management bargaining team include the director of labor relations and chief negotiator, an assistant city attorney, and a deputy police commissioner. More union and management roles may be added if desired. ‘ t The task confronting the negotiators is to bargain a new contract covering the police offi- cers. A copy of the current police contract and other pertinent data are prov1ded at the end of the case. The material below presents background material to the police negotiations. Bargaining between Queen City, New York, and the Queen City Police Association (lnd.) Background . Queen City is an aging central city of about 350,000 (2006 estimate) located in upstate New York, and is the center of a standard metropolitan statistical area (SMSA) of more than one million people. The city’s job base is in heavy manufacturing, but the area has become steadily less attractive to em loyers because of obsolete lants and e ' merit hi h taxes, of Jo s W1 . is job decline is reflected in the SM A’s h' h unemployment ra e (W). The hardest-hit part of the area has been Queen City itself. W Note: Peter Feuille developed this exercise and we are grateful for his permission to use it. An earlier version of the exercise appears in David Lewin, Peter Feuille, Thomas A. Kochan, and John T. Delaney, Public Sector Labor Relations: Analysis and Readings, 3d ed. (Lexington, MA: Lexington Books, 1987): 597-61 7. Appendix B Public Sector Mock Bargaining Exercise 449 The city has been losing population for years (in 1950 it had 560,000 residents), and it is no secret that most of the city’s emigrants are middle—class white people, fleeing What they perceive as unsafe streets, poor schools, and high taxes. Over the past two decades there has been an influx of black people and Puerto Ricans, to the point where African Americans currently make up about the City’s population and Hispanics about 10 percent. As a result of a variety of pressures, the tax roll as not rown in recent ears. The city government is organized on a strong-mayor basis (that is, the mayor has appoint— ive, budgetary, and veto powers over the city council), with the city council consisting of 15 seats elected on a ward basis. The mayor and the council members serve four-year terms, with hWMWThe elections are partisan, and the city is solidly Democratic (the mayor and 13 of the 15 council incumbents are Democrats). The mayor is not only the dominant elected official but also the local strongman in the Democratic party—the closest thing Queen City has to a political boss. As a result, the council tends to pass what the mayor wants and to re'ect what he doesn’t want. The annual City finances strongly reflect the city’s weak economic situatign. The 2006 city budget totals $350 million (the city school district has its own budget, and the school district has been similarly hit by stagnating revenues and increasing costs), and the city expects that its 2007 budget will require even more money. The current budget includes about $175 million in county— and state-collected revenues of various kinds and about $80 million in federal revenue, so the city has become the fiscal handmaiden of higher level governments. With stagnatin local revenu increasin costs (the city’s population decline has not been mate a similar de ' ' t emand for cit ser ' ' olice and fire services), each year is a struggle to break even. Next year promises to be tough because of the state’s own financial problems and proclaimed inability to increase the amount of aid to local 0 ents. City officials are EoHWWWfifiit-g; functions (and, of course, their associated costs); but, given that county government is largely Republican, the Wgnegative. The city has reached the constitutional ceiling on its property tax (taxes equal to 2 percent of the full value of city property), which means that in coming years only minimal additional revenues can be derived from this source. Because of very strong voter resistance to higher taxes (New York citizens on a per capita basis pay among the hi hest state and local taxes in the nation), city officials are reluctant to increase prop— erty tm a city sales or income tax (the latter two taxes would need enabling legislation from Albany). For 2007 the city’s best estimate is that it will have 2 percent more money to spend on services and functions that it now provides. Labor costs account for about 70 percent of the city budget. T ci overnment employs about 5,300 people (down from 6,500 in 1980), most of whonmmfimndem Queen City Police Association represents the patrol officers and communications operators in the police department; the International Association of Fire Fighters, AFL-CIO, represents the uniformed, non— supervisory employees in the fire department; the American Federation of State, County, and Municipal Employees, AFL-CIO, represents most of the city’s blue-collar employees (the majority of whom are in the public works and parks departments); the independent Queen City Civil Service Association represents most of the city’s white—collar employees 450 Appendix B Public Sector Mock Bargaining Exercise (who are scattered across virtually all city departments); and the Queen City Building and Construction Trades Council, AFL-CIO, represents the various craft classifications (electri- cian, carpenter, plumber, and so on). The city has a reputation as a union town because of the high incidence of unioniza- tion in the private sector. Although this union influence contributed to the early and solid organization of the city’s employees, and although some private sector union officials play important roles in local politics, it is not entirely clear how this union context has Wfltted city employees: Except for speCial cases, the cilXWy general hirin mfié'paa‘savéiai years, and municipal employee ranks have been thinned bra—\attrition- Cth in recent yewwt bw_ssary. I The ci ’sdirector of labo; riations (DLR) heads the city’s Ofiice of Labor Relations and is responsible for the negotiation and administration of contracts with all the city unions. He is appointed by and sw: at Mtgheip/Ieasure of the mayor, and he currently enjoys the mayor’s complete confidence. He receives policy (that is, maximum dollar limit uidance from the mayor and has been able to convince the mayor an t e council to shut off union end runs ' on matters within the scope of bargaining. The DLR also maintains good relations with city department heads and works closely with them on contract language questions so that city labor contracts will not unduly limit managerial prerogatives. The city’s collective bargain- ing takes place under the aegis of New York’s Taylor Law (except as expressly modified for the purposes of this case) and the state Public Employment Relations Board’s (PERB) decisions regarding the interpretation of the Taylor Law. The Queen City Police Department is one of the most important of the city’s depart- ments. The police budget for 2006 totals about $74 million, of which almost 50 percent goes for labor costs (including fringes, which average about 50 percent of salaries). The average 2006 salary (excluding fringes) in the entire department is about $29,000, and the depart- ment consists of about 1,050 sworn officers and about 125 civilian employees, with the civilians employed in a wide variety of j obs (clerical, custodial, mechanical, administrative, communications, and so forth). The police bargaining unit consists of grwgpatrolgofficers (including detectives) and 40 communications offi_o:eIS (COS). The COs are civilians, but they wear uniforms and some of them eventually become patrol officers. The department is directed by the W at the pleasure of the mayor. The department is divided into 10 ' ecincts, eac with its own stationhouse. Patrol officers assigned to regular patrol duty work out of the various station houses. Most patrol officers and C03 work rotating shifts, which rotate every three months. The police department has the usual big city problems of poverty, police-minority group friction, and increasing violence (much of which is associated with drug trade). A recent incident stirred much controversy and antagonism between the police force Appendix B Public Sector Mock Bargaining Exercise 451 The police union consists of two occupational groups, the patrol officers and the COs The patrol officers naturally look down on the COs because of the latter’s civilian status; they have no arrest powers and carry no weapons. The COs are in the unit, however because there is some measurable “community of interest” across the two groups and bedause the umon leadership wants the COS there in case of a strike so that the police communications processes will be disrupted and there will be fewer personnel available for management to use during the stoppage. The union’s membership (which includes 98 percent of the eligibles) is divided along the usual lines: aggflrdggiojtyjthe older officers are interested in pensions; the oun er ones are interested in wages and, more recently, job security), duties (the street patrol officers, or the “combatants,” sneer at the desk jocke s, or “noncombatants,” 1n headquarters) and so on. There 1s—for a police union—the usual rank—and-file m1 name to get “more” and get it yesterday. The parties negotiated 5 percent pay increases each year in the current two-year con- tract covering 2005 and 2006. Because these pay raises lagged behind increases in some other New York cities, tflwjfimflmbflmlookmgionarnice catch-up increase In addition, the younger and shorter service officers, concerned over Wm looking for job security protection in this year’s contract as well usual bundle of cash and other benefits. C’fxfi . . u . urrently there is police and fire pay parity—not contractually, but as a result of a long- standing political custom. As a result, pay increases ne otiated b one ublic safe group are t the other grou . In some years the police settle first, and in other years the fire fighters are the pacesetters. Neither group has settled yet for 2007, and each group is keeping a sharp eye on the other. The City also is engaged in negotiations with all the other unions representing municipal employees. .Each of these unions is jockeying for position while keeping an eye on what is gomg on With the other groups. Union Demands After careful evaluation of membership desires, the police union leadership has formulated the following package of contract demands to be submitted to management. They are listed in no particular order of importance, though the weights bargainers may choose to attach to them should reflect the facts of the case. To facilitate cost calculations, background infor- mation is provided for some of these demands. The union wants: 1. In light of police salaries elsewhere and increases in inflation, a 12 percent pay increase QbF‘ at all steps for patrol officers and communications operators. 2. The city to pay the entire cost of the family Blue Cross-Blue Shield—maj or medical cov- erage. The city already pays the emp oyees remium an most 0 t e famil premium. The current employee-only premium is $1,200 per year; the current family premium is $2,400 per year ($1,200 additional). Blue Cross benefits are the same across all city groups. Premiums have increased about 5 percent annually during the past three years. i) lljtipat/roleffieer’shot a‘15;ear;old black cuthaflersmppinglhflyfluthigulue$39933- VM‘i \ y A\( (I; yho are mostly white males) and community groups representing the black community. A . R , r‘ I J t A) \ ‘1,“ he officer claimed the youth had reached into his pocket as if to go for a gun. Community ( ~ «It,» ,xx groups saw this asan/otherin alongseilesmtfilde‘ihB‘EeiSlflq‘? was About 80 ercent 0f th m b i A "i wfigamsttheabhlclgcomgmumty. These groups demanded the creation of a public review single covefiage The he:lth :flluildst133Vflafamlly co‘llm'ge2 and about 20 percent have S; X x \ board to investigate this and other police actions. After an investigation directed by the 3 The ma or andtil 1' h' p n covers a my employees. " ‘ " police chief, the police officer in question was exonerated and the mayor pledgefiilslllfly . f 1' y - 6 p0 we 0 lefto go on record Opg‘osed—kL-fito an sort 0f ublic revjew board 7 , 0 p0 ice actions. If such a board were to be created, the police want to be guaranteed that 4- . “ ' I thgpqsisjulitx of a muster/13W ' I I ' \\\ N they and their representatives Will be prov1ded 6W in any such board. 452 Appendix B Public Sector Mock Bargaining Exercise 4. \ I g \' 25 Wt \“ it i" [It WAT) N l \ {7| 3/ \ 7 8 9. I I 10. flf‘o‘ 1 <’%Ui’-./ / 1 mid/1 \ "a ,7 ‘I. ', Kim 10‘» J J 14. . A 10 ercent shift remiurn for all hours worked between the hours 0W J hours are worked between 6 pm. and 6 am. . An increase in annual lon evity pay for patrol officers as follows: from the present ’ . An increase in 5W to 18 days per year of service (or one and one-half . . . . . a: . An increase in vacation time to three weeks after five years, four weeks after 10 years, . A new Section 2.3 to be added to Article II that will establish an aggrg/shgpgAbout 98 A [4W9 i (I DR ~01 \1‘1 ,r A ‘ (975 l ‘ i " fiJV/Q l i . no- ayotf clause. \\ \ 16. A requirement that seniorit b Appendix B Public Se ~ ~ ' . An increase in life insurance coverage from $25,000 to $40,000, and the city to con- m, M0le Bargammg Exemse 453 tinuem premiumremiums currently are $80 per year per employee; the premium for $40,000 coverage would be $120 per year per employee. Police and fire - in tor in 1a Off k _ fighters receive the same life insurance benefits, but other city employees receive frflom I ' . , and holiday scheduling. AS a resmt :f ill/0r aSSIgtlments, $5,000 to $10,000 less coverage, depending on the unit. ," wig/[14)" 1 000 (7/ tom, semority is currently used on a de facto basis fo Ong'Standlng cuS- A denmmsuranegplan covering each employee and his or her family. Premiums are $125 per year for single coverage and $300 per year ($175 additional) for family cover- 1, age. No other city group has dental insurance. . No other city group receives such a prermum. Approximately 50 percent of all police $300 to $600 after 10 years’ service and $900 after 15 years’ service; from the present $600 to $1,200 aftér 20 years’ service and $1,500 after 25 years’ service. For COS, increases will be from $150 to $300 after 10 years’ service, to $450 after 15 years’ ser- vice, to $600 after 20 years’ service, and to $750 after 25 years’ service. Fire fighters receive the same longevity pay as police; other city employees receive lesser amounts depending on the unit. days per month), including the first year, with the maximum accrual increased to 300 days.YVhenever an employee is terminated for any reason/,the employee shall receive a cash payment equal to the value of all accrued sick leavi/ WK An increase in the uniform allowance to $450 for patrol officers andKSZZS for COs. V Four more paid holidays (Martin Luther King’s birthday, Washington’s birthday, Lin- coln’s birthday, and the day after Thanksgiving). Other city employees receive the samefi number of holidays the police currently receive. All officers are given one day’s pay for each holiday. Officers who work on a holiday receive the one day’s holiday pay just V mentioned plus time—and-one-half for working on that day. Q WU) i; W 9‘ {‘5‘ contract and because of the city’s ' demands. The city wants: 1. In light of the city’s finances and the 2007, a 2 \ modest rate of inflation no ' ' ' . , increase in a du ercent salar increase on Januar l, 2008, and another 2 rmg l, 2009, and no increase in any fringe benefit at any efit increases spread to other city bargaining units benefit increases. k percent on January ' - e ben- ‘ ager o avoid time. Consi - I , the city is specially five weeks after 15 years, and SlX weeks after 20 years. At present all city employees, includin olice, receive the same amount of vacation. ' — I ty Court a earance a ’ ' I g P I i ’ . 100 officers per Week make Off—dupp P y mlnlmum guarantee to one hour. About 12. /An increase in the s andb ay rate as follows. 60 percent of the employee s straight W Court appearances, an t e City estimatest at about 50 percent of them complete their appearances in less t ' han three hours 3. Sick leave accrual to remain the sam I time hourly pay rate for the first eight hours; $35 for each 12—hour period (or fraction) ; h ‘ , or retired Officers. e owever, there shall be no payment to terminated thereafter. In an average week approximately 15 officers will be required to stand by for one shift (eight hours) each. . . . 4. The definition of a rievance to be chan ed so Section 5.1 is deleted. During 2006, about 300 of these went all the way to arbitration. The asso court appearance pay, and standby pay), and the c tion, assoc1ation representation at a step 1 grieva cases involved contractual interpretation disput rie ' ' g vances did not. The City does not want to process city or department rules com— plaints through the grievance ' procedure, and it notes that these matt » . . . . through the ex1sting c1v1l serVice appeals procedure. 5 can be processed 5. DelWor at least reasonabl sentence of Section 5.4. that everything beyond the comma in step 1 grievances were filed, and five ciation won three cases (overtime pay, ity won two (sick leave pay at termina- nce meeting). All five of the arbitration es, but about one-quarter of the step 1 percent of the unit already belong to the union, but union leaders believe that everyone should help pay for the costs of collective bargaining services. Section 5.6 (Civil Service) to be deleted and replaced by a new section: “JIM No disciplinary action shall be taken against any member of the bargaining unit except for just cause.” In 1998 seven major disciplinary cases were processed and discipline was levied by the police commissioner according to departmental and civil service regulations. Two of these cases involved discharges (for on-the-job misconduct), and both cases have been appealed to court (with the association’s assistance). Close t i i i n I y x 0 these time limgts 1n the second ...
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queen city - Appendix Public Sector Mock Bargaining...

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