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Home My WebLink AboutRES 071 Draft 01 2002-2004 COUNTY OF HAWAII STATE OF HAWAII RESOLUTION NO. 71 03 A RESOLUTION COMMITTING TO FUNDING THE COST ITEMS AWARDED TO THE HAWAII FIRE FIGHTERS ASSOCIATION BY ARBITRATION, AFFECTING FIRE FIGHTERS IN BARGAINING UNIT 11 FOR THE CONTRACT PERIOD JULY 1, 2003 THROUGH JUNE 30, 2005. WHEREAS, Sections 89-11(e) and (g) of the Hawaii Revised Statutes relating to collective bargaining requires that in the case of a "final and binding" decision by an arbitration panel, "[a]II items requiring any moneys for implementation shall be subject to appropriations by the appropriate legislative bodies"; and WHEREAS, this section further requires that the employer "...shall submit all such items within ten days after the date on which the agreement is entered into is provided herein, to the appropriate legislative bodies"; and WHEREAS, an arbitration decision has been rendered by the arbitration panel to resolve an impasse between the employers and the Hawaii Fire Fighters Association on behalf of Bargaining Unit 11; and WHEREAS, the cost items included in the settlement are shown on the attached exhibit; and WHEREAS, the estimated cost to the County of Hawaii for the period July 1, 2003 through June 30, 2005 due to the provisions of the new contract, as shown in the exhibit attached to this resolution, will be paid in FY2004 and FY2005. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAII that the funds necessary to pay the obligations under this agreement will be included in the operating budget in FY2004 and FY2005. ffi ~URT'~~R F~~~OtaV~~ th,~t copios of fihis resolution bo forwarded to tho Departments of Civil Service and finance. ~AT1~: xilo , i~~awai`i, this 4th day of Junes , 2003. INT'~OD''~:~D SY: V ~ COUNCIL M~i~1SE , COUNTY O ~ ~-iR~Jl6AI`I COUNTY COUNCIL ROLL CALL VOTE County of Hawaii Milo, Ilawai`i AYES NOES A16S EX ARAKAICI X I hereby certify that the foregoing RESOLUTION ,z~as by the cxlmTG X vote indicated to tl~e right hereof zdclted by the COUNCIL of ELARIONOFF X the County of Ilawai`i on Ju.?~~ ~ , 2003 HOLSCT-IUH ATTEST: 1ACOI3SON X LEITIIEAD-TODD X REYNOLDS X SAFARIK X TYLER X 7 0 2 0 2 R.~.:: .u: (F Reference C-2.3 /FC--1(? COUNTY CLERK C'f-IAIRIO~IAPv & I;FtESIT~I7~'~a OFFICER RESOLUTION NO. County of Hawaii Bargaining Unit 11 Settlement Costs July 1, 2003 (FY2004) through June 30, 2005 (FY2005) Annual Affect on Payroll Cos[ Base Pay Effect nn pnyrol[: Base pay at 6/30/03 11,001,468 11,001.468 FY04: 1.5%across-the-board (ATB) increase on July 1, 2003 165,022 165,022 Step movements effective July 1, 2003 226,230 226,230 "total payroll cost in FY04 $ 11,392,720 Base pay at 6/30/04 $ 11,392,720 Base pay at 6/30/04 $ l 1,392,720 $ 11,392,720 FY05: LS% A1B increase on July 1, 2004 170,891 170,891 Step movements effective July 1, 2004 and carryforward effect of prior year step movements 430,523 430,523 Total payroll cost in FY05 $ l 1,994,134 Base pay at 6/30/05 $ 11,994,134 Less base pay at 6/30/03 $ (11,001,4 Increase to base pay due to this settlement $ 992,666 FY04 FY05 Total 2003-04 20( 04.0.E FY04-FY05 Determination of total increase in cos! due ro proposed contract: Total payroll cost for each fiscal year as per above calculations $ 11,392,720 $ 11,994,134 Less base pay at beginning of each fiscal year (I 1,001,468) 1( 1,392.720) Total additional cost 391,252 601,414 $ 992,666 Add affect of prior year increase in base pay - 391.252 391,252 Total increased cost subject to fringe benefits 391,252 992,666 1,383,918 Certain fringe benefit costs (21.61%)* 84,550 214,515 299,065 Other cost items: Rank for rank recall -overtime effective on November 1, 2003 380,732 571,098 951,830 Increase in proficiency pay for MICT's and EMT's on July 1, 2003** _ 44,150 44.150 88,300 Increased costs to be paid during fiscal years 2004-OS 900,684 1,822,429 2,723,113 Employer's contribution to ERS (10.34% of total increased cos[ subject to Cringe benefits)* * * 40,455 102,642 143,097 Vacation, sick leave and holidays (21'!0 of total increased cost subject to fringe benefits) 82,163 208.460 290,623 Total increased costs $ 1,023,302 $ 2,133,531 $ 3,156,833 *Fringe benefits included are overtime, double time, premium pay, temporary assignment, compensatory time, meals, workers' compensation, and unemployment compensation. Proficiency pay is reimbursable from the State under the EMS contract. ***Ac[uarially determined contribution rate for classes B and D per ERS annual actuarial valuation dated 6/30/02. However, the amount of the County's contribution for fiscal year 2004 is already established and will not change because of this payroll increase. Future years' contributions will be affected. ****The cost information was prepared by the State of Hawaii and the annual effect of the step movements will not be known until individual calculations are made at the time of payment. Attachment: Report to County Council Page A-1 COLLECTIVE BARGAINING REPORT TO COUNTY COUNCIL HFFA AGREEMENT FOR BARGAINING UNIT 11 Negotiations with the Hawaii Fire Fighters Association (Union) began in April of 2002 and continued until July 1, 2002, when the Union filed for impasse with the Hawaii Labor Relations Board (HERB). On July 3, 2002, the HERB issued an Order Appointing A Mediator and appointed Federal Mediator Carol Catanzariti for the mediation process. The parties were unable to resolve the issue of wages and other cost and non-cost issues, and subsequently proceeded to final and binding arbitration. The parties selected athree-member panel for the purpose of conducting the arbitration proceedings. The parties selected one member of the panel and mutually agreed to appoint Catherine Harris as the neutral and chair person of the arbitration panel. Hearings were conducted from December 16, 2002 through December 20, 2002 and February 10, 2003 through February 15, 2003. The arbitration panel's decision dated April 11, 2003, mandated wage increases and other cost issues which are final and binding on both the union and the employers, subject to appropriations by the respective legislative bodies. Positions Covered in County of Hawaii Total Included Positions: 295 Excluded Positions: -0- Total 295 Attachment: Report to County Council (Continuation) Page A-2 Cost Items The cost items resulting from the arbitration panel's decision are as follows: Effective July 1, 2003: Waves 1. Across-the board increase ofone-and-one-half percent (1.5%). 2. Anew salary schedule incorporating longevity pay differentials shall be established and employees placed on the new salary schedule. Employees will move to the next higher step in the salary range on the employees' service anniversary dates, based on cumulative years of service as follows: Step Cumulative Years of Service E 0-3 F 4-6 G 7-9 H 10-12 L1 13-15 L2 16-18 L3 19-21 L4 22 or more Employees shall receive no more than one step movement between July 1, 2003 and June 30, 2004. 3. Employees with 25 or more years of service as of June 30, 2003, whose salaries are below the maximum step shall be place don Step L3 of the employees' salary range. Employees with 25 or more years of service on or after July 1, 2003 shall he placed on Step L4 of the employees' salary range. Rank-For-Rank Recall I . Pilot program to distribute overtime to ranked fire fighters for scheduled vacations. Attachment: Report to County Council (Continuation) Page A-2 Effective July 1, 2004: W aEes 1. Across-the-board increase ofone-and-one-halfpercent (1.5%). 2. Employees continue to move a step in accordance with their cumulative years of service. Employees shall receive no more than one step movement from July 1, 20(14 to June 30, 2005. 3. Employees with 25 or more years of service whose salaries are below Step L4 of the employees' salary range shall be placed on Step L4 of the employees' salary range. Duration The BU 1 I collective bargaining agreement is effective from July 1, 2003 through June 30, 2005. NOTE: The across-the-board increase and step movement total a 11.00% increase over the biennium. Attachment: Report to County Council (Continuation) Page A-3 COUNTY OF HAWAII -COST ESTIMATES HFFA BARGAINING UNIT -FISCAL PEPRIOD 2003-2005 FY 03-04 FY 04-OS* 2003-2005 Wages** $519,952 $1,251,331 $1,771,283*** Rank-for-Rank $380,732 $ 571,098 $ 951,830**** TOTAL $900,684 $1,822.429 $2,723,113 * Includes rollover from previous year Includes wage-related fringe benefits ***Total wage package equates to a 11.00% increase ****Figures are just an approximate amount, since there is no prior history on this section