HomeMy WebLinkAboutCOD-033-10CIc'IL1Dgt0Il REPORT
CORPORATE SERVICES DEPARTMENT
Meeting: GENERAL PURPOSE AND ADMINISTRATION
Date: June 21, 2010 Resolution#: SPA-3~Y-i0 By-law#: N/A
Repolt#: COD-033-10 File#: N/A
Subject: 20071200812009 ARBITRATION AWARD FOR THE COLLECTIVE
AGREEMENT BETWEEN THE CORPORATION OF THE MUNICIPALITY
OF CLARINGTON AND CLARINGTON PROFESSIONAL FIRE FIGHTERS
ASSOCIATION
RECOMMENDATIONS:
It is respectfully recommended that the General Purpose and Administration Committee
recommend to Council the following:
THAT Report COD-033-10 be received;
2. THAT the Arbitration Award (Attachment #1) issued by Arbitrator Kevin Burkett
be implemented as directed and be incorporated as appropriate into the
2007/2008/2009 Collective Agreement between the Municipality of Clarington
and the Clarington Professional Fire Fighters Association, Local 3139;
3. THAT the Award amendments are to be applied effective, as soon as reasonably
possible, or the first of the month following Council approval of the report
adopting the Award, unless otherwise specified in the Award under Attachment
#1: and
4. THAT the appr late by-law be forwarded to Council for approval.
Submitted by: ~ Reviewed by: ~-' ~"~'"`~
Marie Marano, H.B.Sc., C.M.O., Franklin Wu
Director of Corporate Services/ Chief Administrative Officer
Human Resources
On Behalf of the Municipality of Clarington Negotiation Team:
Marie Marano (Chair) Lisa Wheller
Franklin Wu
Gord Weir
Mark Berney
Bill Hesson
MM/gj
CORPORATION OF THE MUNICIPALITY OF CLARINGTON
40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1C 3A6 T (905)623-3379 F (905)623-0830
REPORT NO.: COD-033-10
PAGE 2
BACKGROUND AND COMMENT
1.0 The Award Report
The Arbitration award report is presented in open forum following legal advice that
all documents are public thereby restricting ability to maintain the results
confidential in a closed meeting.
2.0 History 1989 to 2006
2.1 The Clarington Professional Fire Fighters Association, Local 3139 is a relatively
young Local having their first collective agreement in 1989. The collective
bargaining relationship between the Clarington Professional Fire Fighters
Association and the Municipality of Clarington has historically (since 1992) been
that the Association has proceeded to interest arbitration, except for the years 1993
to 1995 when the Social Contract Act intervened and the subsequent year 1996
when a rollover agreement was accepted. The award of Arbitrator Mitchnick for
2000-2003 maintained a gap in comparator compensation end rates in order to
encourage true negotiations; as he noted in the award that he was hopeful his
award would help the parties "break the cycle and conclude the next round of
bargaining on their own". Efforts between both parties resulted in a freely
negotiated settlement of a collective agreement for the term of 2004, 2005 and
2006.
3.0 Fire Negotiations 2007, 2008 & 2009 -Chronology
3.1 The current Fire Fighters' Association collective agreement expired on December
31, 2006. Negotiation meetings began shortly thereafter in March and April 2007.
Following a breakdown of negotiations due in large part to the Association's refusal
to discuss any change to the sick leave options for future employees only, while
maintaining existing employee plans unchanged, in exchange for 3/6/9 and
significant wage increases, the Association referred the matter to the interest
arbitration process. The recognition pay for payment based on years of service: 3%
for 8 years, 6% for 17 years and 9% for 23 years, was part of the Municipality's
original offers in essentially the same phased format awarded by the Arbitrator,
because recognition pay has become the norm in the industry.
3.2 While waiting for the mediation/arbitration dates, in an attempt to foster positive
negotiations, staff met with the Association again in January and November 2008.
In January 2008 the wage offer on the table was 3.5% for each of January 1, 2007,
January 1, 2008, and January 1, 2009, in addition to 3/6/9. 2010 was also offered
at 3.0%. These offers were declined by the Association.
REPORT NO.: COD-033-10 PAGE 3
3.3 Mediation, required by the legislated process, took place on March 11, 2009 with
Mr. Kevin Burkett. The Mediator suggested that if there was some modification to
the sick leave proposal there was a possibility that Association might participate in
the resolution of the mediation. Through the Municipality's legal counsel Hicks
Morley, the modified sick leave proposal which provided a graduated payout for
unused days was presented, along with 3/6/9 and the 3.5% for each of the contract
years, however the offer was once again declined.
3.4 In an earnest effort to avoid the cost of arbitration, the Municipality entirely deleted
the sick leave article from the offer on the table, and this was also declined with the
Association's response outlining wage requests of 4.7%, 3.% and 3% in addition
to 3/6/9 and benefits. There was also reference to a "me too" clause to match the
percentage increase for Durham Regional Police. The Arbitration issue list was
also complicated by their inclusion of an outstanding grievance dealing with an
infringement into management rights by dictating the responsibilities attached to a
maintenance/training position. With their refusal, the process then moved to formal
Arbitration.
3.5 The Arbitration date was set for April 7, 2009. Staff with Hicks Morley and the
Municipal nominee Ms Brenda Glover attended at the Arbitration location; however
the Arbitrator advised late in the day, that he was unable to attend due to an
ongoing arbitration which carried over into the Clarington scheduled date.
4.0 Interim Award
4.1 Notwithstanding there had been no formal meeting for presentation of the issues,
the Arbitrator issued an interim award on April 30t" 2009 to start the wage increase
at 3% for each of 2007 and 2008. Report COD-36-09 authorized implementation of
the interim Award issued by Mr. Burkett, within the imposed 30 day compliance
time frame.
5.0 Meeting Following the Interim Award
5.1 The delay in the Arbitration process, through no fault of either party, seemed to be
ongoing, therefore in a further effort to resolve negotiations and avoid Arbitration ,
staff again met with the Association on September 10, 2009. This offer maintained
the 2007 and 2008 rates at 3.5% and kept the sick amendment off the table, but
reduced the 2009 wage to 2.5% end rate to reflect the economic climate and the
particular budget shortfall experienced by Clarington.
6.0 Council Updated
REPORT NO.: COD-033-10
6.1 Council has been updated on a regular basis regarding the status of the
negotiations as they have proceeded to date.
7.0 Arbitration Hearing and Award
PAGE 4
7.1 The arbitration hearing took place on January 27th 2010, and the resulting Interest
Arbitration decision by Mr. Burkett was issued June 4, 2010 awarding the following:
7.2 To the Association:
a. Wages
The award dictates the rate for a First Class Firefighter as it ties to the other
positions on the grid. The following table shows the award wages with the
represented percentage increase. It also shows the percentage recommended
by the Municipality to the Arbitrator at the hearing in January 2010, and the
request from the Association to the Arbitrator. The Captain position is paid at
115% of a First Class Firefighter; both wage rates are identified below, as they
reflect the highest paid Association positions. All rates are presented without
consideration of any overtime, which would be in addition to the amounts
identified in the table. The retroactive payment for all compensation must be
paid out within 60 days of the date of the award.
POSR-ON IMPACT
First Class Fire Fi hter Without Overtime CAPTAIN
Year
AWARD
rows
Proposed
Fire Request 115% o/ Firsi
Gass
2006 Base 70,392 % ~a~'2070 % Amount 80,951
2007, Januar 1 72,924 3.60% 3.5 4.7 73,712 83,863
2008, Janua 1 75,549 3.60% 3.5 3.2 76,037 86,881
2009, January 1 78 298 _ _ _
_
3.64% ~ 7.0 ~ 3.0 78,334 90,043
[MUnicipalProposedSplit-July l,December3l, ~ ~
2009 at Arbitration lan.2010j ~ 1.5 ~
End Rate Increase (2009/2006) 11.23% 9.5 11.28 11.23%
b. Recognition Pay 3 % 16% 19% at 8 / 17 / 23 Years:
Recognition pay is awarded by the Arbitrator on a phased in basis for 2007 and
2008, with full implementation for January 1, 2009. The payment is made to
employees based on years of Fire service. It is important to note that the
Municipality requested certain criteria for eligibility to recognition pay, including
REPORT NO.: COD-033-10
PAGE 5
medical testing to ensure ability to perform the job, however it was awarded
without any restrictions, and payment will be implemented at 3 % for 8 years of
service, 6% for 17 years of service, and 9% for 23 years of service. The
recognition pay is applied to the base rate such that it is not compounded (ie at
17 years, the 6 % is applied to the base salary, not on top of the 3% payment
being received from 8 to 17 years of service). The First Class Fire rate is the
base for all positions, and that amount is given to all positions equally, consistent
with the recognition application in the Durham Area Municipalities. Recognition
pay is required to be calculated and included with the hourly rate which results in
recognition pay increases applied on top of premium overtime rates.
The following chart outlines the impact of 3% 6% 9% recognition pay on the First
Class and Captain positions. Both receive the same amount as the pay is in
recognition of years of service, and is not attached to the position rate.
3/6/9 IMPACT on POSITIONS For 2009
2009 End Rafe
POSITION 2009 RATE 3 % at 8 b% at 17 9 % at 23 After 9~
Years Years Years
2009/2006
First Class =Base All
$ 2,349
$ 4,698
$ 7,047
Positions
First Class $ 78 298 $ 80,647 $ 82,996 $ 85,345 21.24%
]2006 $70,392]
Captain $ 90,043 $ 92,392 $ 94,741 $ 97,090 19.94
]2ooe $eo,9s~]
Note: Rates are Base Woges without consideration of any Overtime. OVERTIME IS PAID OUT AT THE HOURLY
RATE INCLUSIVE OF THE 3/6 or 9~, AND THEN THE PREMIUM RATE OF 1.S 71MES HOURLY RATE IS APPLIED,
THEREBY INCREASING THE OVERALL RATE.
Overtime rates on the above positions including 3/6/9 will translate to the
following:
OVERTIME RATES Inclusive of 3/6/9
Hourly Base Hourly Plus Hourly Plus Hourly Plus OVerfime at
Base Salary 2184 Hrs/Yr 3% 6% 9% 9%
Captain $ 90,043 $ 41.23 $ 42.30 $ a3.38 $ 44.45 $ 66.68
First $ 78 298 ~ $ 35.85 $ 36.93 $ 38.00 $ 39.08
Class $ 58.62
REPORT NO.: COD-033-10
PAGE 6
c. Benefits
The Arbitration Award increased some of the current benefits, the cost of which
will be reflected in premiums paid by the Municipality. The benefit provider has
been requested to implement the changes effective June 4cn
BENEFIT CHANGES
Awarded Benefit Current Limits
Spousal Life Insurance $ 25,000 $ 20,000
Child Life Insurance $ 6,000 $ 4,000
Paramedical (Physiotherapy, Massage
Therapy, Speech, Chiropractor etc)
$
350
$
300
Vision - Rx lasses er 24 Months $ 400 $ 300
Laser e e sur er -one time -50% to max ~ 1,000 n/a
Vacation 5 weeks/ 18 Years 5 weeks/ 19 Yrs
8.0 To the Municipality:
8.1 The Municipality submitted approximately 16 items to the Arbitrator for
consideration. There were a few requests for increased efficiency, such as use
of the Volunteers on a temporary basis to eliminate overtime for long periods of
absence of Full Time Fire Fighters on maternity or sick leave, and amending the
hours of work in the Prevention division. Requests also included medical
references and establishing amaintenance/training position as noted above, the
removal of wording that is not applicable (ie CPP reference). Since the sick
leave pay out option was removed from the table at the recommendation of the
Arbitrator in mediation, there were very few proposals that offered any offset to
the extreme costs of the 3/6/9 implementation and the prevailing economic
conditions, other than the requested split in the 2009 wages. Of the 16 requests
from the Municipality the Arbitrator awarded as follows:
1. Dispatch Service -Future Contracting Out.
The Municipality is permitted to contract out dispatch operations in
future provided no firefighter is laid off and employees are absorbed
into full time fire service. The Municipal proposal was to reserve the
right for future contracting out, with a commitment to retaining the
existing employees, therefore this is not considered a material
concession or award, particularly considering there would be
considerable cost attached to payment for contracting out dispatch
services..
REPORT NO.: COD-033-10
PAGE 7
2. Implementation of 3/6/9
The Municipal proposal set full implementation of 3/6/9 by July 1, 2008
in keeping with the timeframes of the area municipalities. The
Arbitrator implemented full 3/6/9 six months later, at January 1, 2009,
the savings being relatively insignificant in light of the total
compensation impact.
8.2 The Municipal nominee's dissenting opinion is attached at the end of the award.
It accurately notes the award as providing increases up to 21.2 percent to 23
year employees, with essentially no benefit in cost reduction or increase in
efficiency to the Municipality.
9.0 Financiallmplication:
9.1 The Municipality has been including estimates in each of the annual budgets
covering the contract years, totaling approximately $800,000 to account for the
impact related to the Fire Collective agreement. The impact of the award and
associated costs including legal, are covered within the budget provision.
10.0 2010 Collective Agreement
10.1 The Arbitration Award covers the collective agreement years up to 2009. The
Municipality offered to include 2010 into consideration during the recent
negotiations, however it was not agreed by the Association. The 2010
negotiations will begin when dates can be scheduled in the fall.
Attachments:
Attachment 1 -Award of Arbitrator Kevin Burkett for 2007, 2008, 2009
ATTACHMENT #1
IN THE MATTER OF AN ARBITRATION
BETWEEN:
THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
AND:
("the Employer")
THE CLARINGTON FIRE FIGHTERS' ASSOCIATION, L~1FF LOCAL 3139
("the Association")
IN THE MATTER OF:
RENEWAL, COLLECTIVE; AGREEMENT
BOARD OF ARBITRATION:
Kevin M. Burkett -Chair
Brenda Glover -Employer Nominee
Sean McManus -Association Nominee
APPEARANCES FOR EMPLOYEK:
Michael Kennedy
David Ross
Franklin Wu
Marie Marano
Lisa Wheller
Gordon Weir
Bill Hesson
Mark Berney
- Counsel
- Counsel
- Chief Administrative Officer
-Director Corporate Services
- Human Resources Supervisor
-Fire Chief
- Deputy Fire Chief
- Deputy Fire Chief
APPEARANCES FOR ASSOCIATION:
Ed Dickson
Bob McCutcheon
Gary Dusseldorp
Ron Klosinski
Rick Vanderkooi
Marc Ladouceur
- IAFF Advocate
- Loca13139 Negotiation Committee Chairman
- Local 3139 President
- Loca13139 Negotiation Committee Member
- Local 3139 Negotiation Committee Member
- Local 3139 Negotiation Committee Secretary
We have been appointed under the Fire Protection and Prevention Act to
adjudicate upon the issues that remain in dispute between the parties in respect of the
negotiation of a renewal collective agreement to the collective agreement between
them that expired December 31, ?006. There is no dispute with respect to our
authority in this regard.
The Municipality of Clarington has a population of approximately 80,000 and
is in the Regional Municipality of Durham, which is located immediately east of the
Municipality of Metropolitan Toronto. The Regional Municipality of Durham also
includes the City of Pickering, the Town of Ajax, the Town of Whitby and the City of
Oshawa. Each of these municipal entities has its own fire service. The Municipality of
Clarington has a composite fire department with five stations that employ 54
professional fire fighters and 125 volunteer fire fighters.
The issues that are referred to this Board, following direct two-party
negotiations and mediation, are as follows:
• Wage increase
• Recognition pay for suppression, prevention and dispatch employees
• Dispatch wage rate
• Increase in benefits: vision, spouse and child life insurance, paramedical
services
• Eliminating per diem and vehicle km reimbursement for attendance at
Fire College
1
• Creation of maintenance/training position
• Use of volunteers for temporary vacancies
• Contracting out dispatch services
• Amending hours of work for fire prevention
• Sick leave plan for employees hired after January 1, ?009
• Extending elimination period for non-municipal LTD
• Requiring fire fighters to pass annual age appropriate fitness and medical
tests
• Ability of fire chief to modify hours of work
• Loss of seniority for licence violations
• Prohibition of lateral transfers
• Deletion of Promotions -New Rank clause
• Changing employee ability to choose to return within a promotional trial
period
• Limiting vacation in prime time
• Deletion of reference to Canada Pension Plan
• Vacation entitlement
• Payment for lieu days
• Minimum staffing and captains on each vehicle
• Grievance language
• Paid duties
2
• Promotions policy
Under section 50.5 of the Fire Protection and Prevention Act, the Board is
obligated and has taken the following criteria into consideration:
i) the Employer's ability to pay in light of its fiscal situation;
ii) the extent to which services may have to be reduced, in light of the
decision, if current funding and taxation levels are not increased;
iii) the economic situation in Ontario and in the municipality;
iv) a comparison, as between the fire fighters and other comparable
employees in the public and private sectors, of the terms and conditions
of employment and the nature of the work performed;
v) the Employer's ability to attract and retain qualified fire fighters.
In assessing the merits of the various issues, we have applied the long accepted
interest arbitration principles of demonstrated need, total compensation and
comparability/replication. The demonstrated need principle applies primarily to non-
3
monetary issues. This principle directs an interest arbitrator to give effect to those
suggested amendments that address real problems in the relationship or in the
administration of the collective agreement. Conversely, the principle inhibits an
interest arbitrator from amending the agreement where the demand is not reflective of
areal issue that exists between the parties. In this case, there are a number of non-
monetary demands filed by the Employer that are not addressed in our award because
they are not supported by the required demonstrated need.
The economic issues have been determined in large part on a consideration of
comparability/replication and total compensation. It should come as no surprise that
under the comparability/replication principle, we have addressed the economic issues
by looking to the Durham Regional Police (because of the long acceptance of
essential parity between police and fire fighter rates) and to the prevailing terms and
conditions under comparable fire service agreements, especially those in the other
Durham Region fire services, i.e. Pickering, Ajax, Whitby and Oshawa. Indeed, the
parties accepted this relationship in 2004 when, in negotiating the predecessor
collective agreement, they agreed to increase the fire salaries by 2.5% before applying
across-the-board increases extending to December 31, 2006 in order to bring the
Clarington salaries to the average of the other four Durham Region fire services as of
the commencement date of the predecessor agreement.
4
The Clarington fire service settled before any of the regional comparators for
the 2004-2006 term. Because the across-the-board increases subsequently applied at
the regional comparators for this term exceeded those at Clarington, the Clarington
fire fighters found themselves $1,088/year behind the average of these regional
comparators as of December 31, 2006. In awarding for 2007, 2008 and 2009, we have
the benefit of settled regional comparator rates for this period. The replication
principle dictates that we restore the essence of the relationship with the regional
comparators voluntarily established. by the parties themselves. We have done so
effective January 1, 2009 keeping in mind however, that for 2009 three of the four
regional comparators, (after the application of "me-too" clauses) as well as the
Durham Regional Police, had maximum rates of $78,298, $35 per year less than the
pure four-comparator average relied upon by the parties in 2004. Because this rate
effectively re-establishes the four-comparator average and because the Clarington rate
should not exceed that of three of the four regional comparators as well as the Durham
Regional Police, it is this rate that we have awarded for 2009.
The awarding of recognition pay (a benefit that is now commonplace within
police and fire service collective agreements and enjoyed by the fire fighters
employed by the other four Durham Region fire services, but nevertheless a very
expensive improvement) results in a more cautious approach to the remainder of the
economic package, as would be the case in any two-party negotiation. It is for this
reason that a number of the Association's economic demands have been left to another
5
day. As well, the awarding of recognition pay presents the Employer with an
opportunity to pursue meritorious demands of its own, as would also be the case in
any two-party negotiation. The Employer demand for the right to contract out its
dispatch operation (as awarded by arbitrator Swan in Pickering) is such a demand.
Clarington is the only regional service that uses fire fighters to perform the dispatch
function.
It is to be noted that the parties agreed that there would be no changes to sick
leave. LTD is part of the sick leave plan. Accordingly, the Employer demand to
extend the elimination period for the entitlement to LTD has not been awarded.
Finally, we note that the issue in respect of the creation of a
maintenance/training position is the subject matter of a grievance.
Having regard to all of the foregoing, we hereby award as follows.
AWARD
The parties are directed to enter into a renewal collective agreement for the
term January 1, 2007 to December 51, ?009 that contains all the terms and conditions
of the predecessor collective agreement save and except that it is amended to
incorporate the following:
6
1. All matters agreed between the parties prior to the date hereof.
2. Increase the salary of the first class fire fighter as follows:
Effective January 1, 2007 - to $72,924
Effective January 1, 2008 - to $75,549
Effective January 1, 3009 - to $78,398
Adjust all other salaries accordingly.
3. Provide for recognition pay on the same basis as the other Durham Region fire
'~
services as follows: -f~' `'~' ~~r
Effective January 1, 2007 2-3-5
Effective January I, 2008 3-5-7
Effective January 1, 3009 3-6-9
4(a). Increase dispatch rate to 75% of the first class fire fighter rate after 24 months.
4(b). Add the following language to article 12.05:
7
Notwithstanding the foregoing, the Corporation shall be permitted
to contract out all work related to dispatch operations to another
municipality provided that the fire fighters performing this work
are maintained within the fire service with no loss of salary,
seniority or benefits and that no other fire fighter is laid off or
suffers loss of salary, seniority or benefits as a result of such
contracting out.
5. Improve benefit provisions as follows:
Effective as soon as reasonably practicable following the date
hereof:
• Spousal Life Insurance increased to $25,000; Dependent
Child Life Insurance increased to $6000.
• coverage for paramedical services increased to a maximum
of $350 a year per person per specialty;
• prescription glasses increased to a maximum of $400 per
person every two (Z) policy years; laser surgery one time
50% to a maximum of $1,000/eye;
• improve dental major restorative to $1,250.
8
6. Provide for a joint committee (one from each side) to consider revisions to the
contract language re promotions to reflect the current practice. Such committee
shall commence meeting within forty-five (45) days of the date hereof.
7. Effective with the commencement of the 2010 vacation year, nnprove to five
(5) weeks after eighteen (18) years.
8. Provide for a training officer rate at 115% of first class fire tighter rate.
9. Retroactivity -Salary and recognition pay retroactivity is to be based on all
paid hours since January 1, 2007. Interim salary increases are to be deducted
from the amount of retroactivity otherwise payable. Payment is to be made
within 60 days of the date hereof. Any bargaining unit employee who has ]eft
the employ of the Employer since January 1, 2007 is to be notified in writing at
his/her address on file within 30 days of the date hereof. Payment shall be made
within 30 days of the date of reply.
We remain seized until such time as the parties enter into a collective
agreement.
9
Dated on this 4~' day of June 2010 in the City of Taronto.
Kevin Burkett
Kevin Burkett (Chair)
(Partial Dissent attached)
(Dissent Attached)
"Sean McManus"
Sean McManus (Association Nominee)
"Brenda Glover'
Brenda Glover (Employer Nominee)
10
DISSENT OF THE EMPLOYER NOMINEE
The award has failed, in my opinion, to adequately address the economic situation in Ontario.
and more particularly in the Municipality of Clarington. In doing so, I believe that it has not
given appropriate weight to three of the five factors that an arbitration board must take into
consideration under section 50.5 of the Fire Protection and Prevention Act, 1997:
(i) The employer's ability to pay in light of its fiscal situation;
(ii) The extent to which services may have to be reduced, in light of the decision, if current
funding and taxation levels are not increased; and
(iiiJ The economic situation in Ontario and the municipality.
Prior, persuasive arbitration decisions have held that the employer's ability to pay should be
assessed in terms of what a majority of fair-minded, well-informed taxpayers would consider to
be a fair and reasonable award. In considering what is fair and reasonable, the fair-minded,
well-informed taxpayer would assess what is happening in the economy and in the labour market
as a whole (including both the public and private sectors). Moreover, in declining economic or
labour market circumstances, the taxpayer would expect that increases in compensation resulting
from the arbitration decision should be offset by reductions in other costs.
Ontario, like the rest of Canada, entered into a recession in 2008 which continued into 2009. The
unemployment rate in some areas of the Durham Region was higher than in most other Ontario
municipalities. Marry taxpayers in the Region lost their employment, were laid off from
employment, had wages or benefits cut, or experienced a reduction in hours of work as a
consequence of the severe economic downturn. In addition, wage increases in the public and
private sector were appreciably less than those awarded in prior years, reflecting a climate of
moderation and restraint throughout Ontario.
The Municipality of Clarington was considerably impacted by the recession, experiencing a drop
in tax revenue, a decrease in interest revenues, and lower building permit activity. As a result, it
projected that it would incur a deficit of over $2 million in 2009. Since municipalities are
precluded by the law from running a deficit, the Municipality had to reduce public programs,
reduce hours of work, exercise rigid expenditure and hiring controls, defer capital projects, and
tap into its reserve funds. In the context of negotiation with its firefighters for a new collective
agreement, the Municipality anticipated that it would have to increase taxes or implement new
11
user fees if the wage and benefit increases demanded by the firefighters were accepted by the
Municipality or awarded by an arbitration board.
This award reflects a wage increase of $7,906, or 11.23%~, for afirst-class firefighter over the
term of this collective agreement (2007 - 2009). V/ith the introduction of recognition pay, a
first-class firefighter will reap the benefit of an increase in compensation of 14.6% (at 8 years of
service), 17.9% (at 17 years of service) and 21.2% (at 23 years of service). Moreover, the
increases in benefits, vacation entitlement, and wage rates for training officers and dispatch
personnel conferred by the award will add additional pressure to total compensation expenditures
by the Municipality.
More significantly, the award does not reflect any benefit to the employer in terms of reduction
in costs or increases in efficiencies. That is, there are no fair trade-offs for the wages and benefit
increases, as would be expected in negotiating a fair "bargain". The sole potential cost reduction
is achieved only if the Municipality decides to contract out its dispatch operations. Even if it
does so, current firefighters will not incur any job loss or reduction in benefits under the
collective agreement.
I recognize that the principle of comparability/replication is customarily respected in arbitration
awards, although I note that the Municipality disputed that it would maintain its prior stance with
respect to comparability when negotiating with its firefighters in future rounds of bargaining
beyond 2004. Nevertheless, the comparator parties were negotiating collective agreements in a
very different economic climate and the employers in those instances achieved (or were awarded
through arbitration) reductions in costs or increases in efficiency in exchange for the wage or
benefit increases. That is not the case in this arbitration decision.
My dissent reflects my professional view that, like the fair-minded, well-informed taxpayer, I
would not consider this to be a fair and reasonable award in the context of the economic situation
of the Municipality of Clarington, and especially in circumstances where the Municipality has
received no economic or efficiency trade-offs for the substantial compensation increases that
have been awarded.
Brenda Glover
Employer Nominee
May 10, 20t0
12
PARTIAL DISSENT OF ASSOCIATION NOMINEE
Having had the opportunity to review the award, I agree with the Chair°s decision to maintain the
wage relationship between the Clarington local and its fn~e fighter and police comparables (both
on wage increases and recognition pay). While the Corporation raised economic issues and the
timing of the comparable awards and settlements, it is interesting to note that the Durham
Regional Police interest arbitration took place in February and April, 2009. which is the precise
time when the Corporation asserted that the economic situation had reached its most difficult
phase in the area. All of the comparables had settled their contracts by the time of this hearing.
While the Chair has correctly maintained the comparable wage relationship for the Clarington
fire fighters, I must respectfully dissent from the amount of both the wage increases in each of
years 2007 and 2008 and with the stepped in approach to recognition pay. To be specific, I
would have provided for the average of the comparable annual salaries on January 1, 2007 and
January 1, 2008 instead of waiting until the final yeaz of the contract to achieve the average. I
would also have provided for recognition pay (3-6-9) at an earlier date than January I, 2009.
I also dissent from that part of the awazd dealing with language which provides for the
contracting out of dispatch operations. While it is indeed the case that the language means that
no fire fighters will lose their position or be laid off as a result of contracting out, it is my view
that the Corporation provided no evidence of a demonstrated need as to why the integrity of the
no contracting out article should be modified. The Corporation relied on the Pickering fire
fighter award (May 27, 2008, Ken Swan) as justification for its position. In the Pickering award,
the Swan Board awarded a similar modification to the no contracting out article as it related to
dispatch services. However, we were provided no context as to what led to the Board's decision
in that case. A simple request without the requisite demonstrated need should not be sufficient to
alter existing collective agreement Language.
,~ A
~~~~~~~
Sean McManus
Association Nominee
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ADDENDUM
The dissent of the Employer Nominee, based in large part on the state of the economy in
2008 and 2009, would have some persuasive merit if this was a pattern setting award that had the
potential to influence the economic terms applying to firefighters in the Durham Region for this
period. However, this is anything but a pattern setting award. The economic terms applying to
all of the other Durham Region firefighters (i.e. Pickering, Ajax, Whitby and Oshawa) for the
2008-2009 period had already been determined by the time this dispute was adjudicated.
Further, these parties had voluntarily agreed in the last round to peg the Clarington Rates to the
average of the other four Durham Region services. This award simply re-establishes that
relationship.
This is not to say, as the dissent of the Employer Nominee assert, that the economic
situation was not taken. into account. This award delayed the reestablishment of the relationship
with the other four Durham fire services until the last year of the agreement, thereby saving the
Municipality in excess of $ 65,000 in retroactive payments. As proposed by the Municipality this
award delayed the implementation of the full 3/6/9 recognition pay by six months relative to all
of the other Durham Region fire services, thereby further saving to the Municipality retroactivity
pa}anents. Further, and again at a considerable saving to the Municipality, this award rejected a
number of the Association's economic requests on the basis that given the awazding of
recognition pay this was not the time. The only benefit improvement awarded, in addition to the
benefit improvements offered by the Municipality, was an increase in dental major restorative
from $ 1000 to $ 1,250. The dissent of the Nominee of the '_Vlunicipality makes no mention of
the foregoing. Indeed, in light of the foregoing, it is difficult to understand the basis upon which
the dissent of the Employer Nominee takes issue with the clear assertion at page 3 of the award
that all of the statutory criteria were considered.
As for the awarding of efficiencies to offset the granting of recognition pay, these
efficiencies must nevertheless be meritorious in that they address areal problem in the
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relationship or put the Municipality on an equal footing with the comparator services. Apart
from the ability to contract out dispatch services, which was awarded, none of the other demands
of the Municipality that might be characterized as efficiencies met the threshold test.
The dissent of the Nominee for the Employer does not represent a fair critique of the
award. On any objective assessment her notional '`fair-minded and well informed tax payer"
would surely accept that the Clarington Fire Fighters should be paid commensurate with their
Durham Region counterparts and with the Durham Region Police and, given the remainder of the
content and the manner of implementation would consider this to be a fair and reasonable awazd
in all the relevant circumstances.
Kevin Burkett -Chair
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