n June 28, 2005, shortly after midnight, the PERB panel issued its award in the PBA’s 2002-2004 Contract Arbitration, ending a protracted round of bargaining that began in September 2002. While we deserve much more and that was clearly proven in our arbitration hearings, this award represents a significant upward departure from anything offered by the city across the negotiating table or during the mediation process. It also represents the second in as many rounds that an arbitrator has awarded raises well in excess of the civilian settlement, reversing a trend that stunted the growth of police officers’ salaries throughout the 1990’s and that has had a dramatic negative impact on our current salary structure, as shown in the chart below.

Finally, the arbitrator wrote an opinion that favorably addresses significant issues that the PBA has been trying to have resolved for nearly 20 years. He also concluded that we needed 20% to bring our pay more in line with other jurisdictions. We will use that part of the decision, and other favorable statements made by this arbitrator as a starting point in our next round of bargaining.

With respect to new hires, the arbitrator implemented a new salary schedule that frankly we believe makes little sense in light of the current recruitment problems. The decision to seek salary and benefit reductions from new hires — “sacrificing the unborn,” as it’s called — was first suggested by the city in bargaining and adopted by the arbitrator in fashioning his award over repeated objections by the PBA.

Our position from the outset, through arbitration and deliberations, was that the Department is in a crisis and unable to recruit enough qualified candidates as it is. The NYPD and the city disputed this and produced senior officials to testify under oath that the NYPD has plenty of qualified candidates. Perhaps PERB Arbitrator Schmertz credited the NYPD’s testimony and concluded that since recruiting is so “robust,” changes could be made to the beginning of the schedule. That’s the background of the new salary schedule for new hires, plain and simple.

The award provides:
As of August 1, 2002, a 5% increase
As of August 1, 2003, a 5% increase compounded for a total increase  of 10.25%

For current MOS, the arbitrator removed the Personnel Leave Day (“P.L.D.”) that was lost by other police unions in previous rounds and allowed 5 additional rescheduled tours.

For current MOS and those hired in the July 2005 academy class, the schedule appears in the accompanying illustration. As to future hires, those who are appointed beginning January 2006, the following will be the salary schedule:

To recap briefly: During negotiations, we were offered the DC 37 package of 0 ($1,000 cash payment), 3% and 1% over threes years. During mediation, we were offered the same package described to you in our newsletter of July 2004, the so-called “insulting proposals” that included draconian reduction in salary and benefits.

This award represents a 7.25% greater increase than the civilian deal. Using the city’s own figures, it represents more than $180 million in additional value for our members.

Also, under this award, retroactive checks will be significantly greater than they would have been under the DC 37 settlement. For example, at Basic Max, without overtime, night differential and holiday pay – our members will receive approximately $13,782 gross, as opposed to approximately $3,243, which was the retroactive check we would have received under the city’s final offer. (See accompanying chart.)

Each member will receive approximately 3 years of retroactive money. (It’s a two-year award, but because we were out for 3 years we get an increase for our 3rd year that is also retroactive.)

We wouldn’t have received these payments at the bargaining table or had the PERB forum not been available to us. In four short years, we’ve increased compensation for police officers by 22%. By contrast, in the entire 1990’s salaries rose just over 23%.

When do we get our retroactive checks? While it’s still too soon to give you a definite date, we remind you of what happened after the last award. The award was issued on September 4, 2002; the salary increases showed up in our checks two pay periods later on October 11; the retro on our salary increases were paid on November 22, approximately three pay periods after the salary increases went into effect; retro on overtime, night shift differential and holiday pay took longer because the calculations are different for each member. We intend to push the city for quick payments of retroactive money owed to our members.

When the award was issued, we were already out without a contract for 11 months, as we all are painfully aware. We intend to press the city for a speedy resolution of the next contract. On June 28, 2005, we hand-delivered a letter to Jim Hanley, the city’s Labor Commissioner, requesting that negotiations begin immediately for the 2004 bargaining round. We followed that up with a letter of July 6, asking the city to schedule negotiation dates. We’ll make every effort to speed the bargaining along.

In terms of bargaining goals, we’ll continue to push the city to bring our compensation up to that of those at the top of our profession. The PERB panel chairman in this round agreed with the PBA that that’s the appropriate level of compensation for New York City police officers. Our goal is to continue to repair the damage done by the 1990’s and move towards pay that properly recognizes all our contributions to this city and our status as the finest police officers in the world.

We thank you for your continued support and will need the full measure of your cooperation and backing as we move into the next round of bargaining, one that will undoubtedly be as difficult as the one just completed.