To All Delegates and Members

January 2003

2002 Arbitration Award — Additional 1.5%

BACKGROUND

As a component of our arbitration award, the arbitrator awarded the PBA, effective July 31, 2002, “available funds of 1.5% in rate to purchase recurring benefits.” The arbitrator required that the benefits be “mutually agreed to” by the City and the PBA. The 1.5% could not be used to enhance the general wage increases at base maximum (top pay) and the arbitrator stated that it was his “plain interest and the strongest possible recommendation” to spend the additional 1.5% “on ways and means specifically targeted to alleviate the expanding recruitment crisis . . .”

THE NEGOTIATIONS

With that background, the PBA negotiated with the City on how best to spend the 1.5%. The City initially took the position that, given the arbitrator’s recommendation that all of the 1.5% should be used in the first five steps (the first five years of service) to resolve the recruiting crisis and to make up for previous rounds of bargaining (going back to the 1980’s) that effectively sold out the unborn and that none of the 1.5% would go to senior members that have reached top pay. The PBA took the position that the 1.5% should be spread more fairly across the membership, with some of the monies being used in longevity upon the member reaching six years of service and beyond.

We moved the City significantly from its position that none of the 1.5% should be used for longevity for senior members; however, it became apparent, after numerous negotiating sessions and discussions with the City that the City would not go beyond roughly splitting equally the 1.5% between the first five steps and longevity. While we continued to push to add more monies to longevity, the final discussions turned on literally dollars. It was clear that no further progress would be made through negotiations, leaving another potential arbitration at OCB as the alternative. That process also would have extended by months our member’s receipt of the monies owed them and pushed back our negotiations for the next round, with no guarantee of better terms. With those considerations in mind, the PBA came to an agreement with the City at the amounts set forth below.

THE SETTLEMENT

The settlement provides a sliding scale of monies at the first five steps and between $500.00 and $525.00 added to longevity and ultimately to compensation that is pensionable and included in overtime computations.

Longevity increase:

Steps 5, 10 & 15 $500
Step 20 $525

New Longevity schedule:

5 year $3,745
10 year $4,745
15 year $5,745
20 year $6,770

New salary increases (steps 1-5)

1st step $2,364
2nd step $1,954
3rd step $1,500
4th step $1,500
5th step $1,155

These monies will be retroactive to July 31, 2002. If you have any questions, do not hesitate to contact your delegates and Trustees.

Fraternally,

Patrick J. Lynch
President