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HomeMy WebLinkAboutCOD-025-16Corporate Services Report If this formation is required in an alternate accessible format, please contact the Municipal Clerk at 905-623-3379 ext. 2102. Report To: Council Date of Meeting: December 12, 2016 Report Number: COD-025-16 Resolution: File Number: N/A By-law Number: Report Subject: Fire Arbitration Award (2015-2017) – Including Introduction of 24 Hour Shift Trial in 2017 Recommendations: 1.That Report COD-025-16 be received for information. 2.That the presentation by Michael Kennedy of Hicks Morley be received with thanks; and 3.That this report be shared with the Durham riding M.P.P., the Minister of Labour, the Minister of Community Safety and Corrections, the Minister of Finance, the Premier, and the Emergency Services Steering Committee of AMO with a letter from the Mayor indicating: the significant risk to effective management of an essential public service that has been introduced with this arbitration award; encouraging urgency of action to legislatively address the significant weaknesses with the labour relations policy for the fire services sector in Ontario. Municipality of Clarington Report COD-025-16 Page 2 Report Overview To advise Council on the Fire Arbitration award for the years covering 2015 to 2017 inclusive, and to note the introduction of the 24 Hour Shift trial as set out in the award. 1. Background The Municipality received the Notice of Intent to Bargain from the Clarington Fire Fighters Association on November 27, 2014 to initiate the negotiations for the 2015 and future negotiations. Mutually agreeable dates were set and negotiations began in March 2015 and continued through May 28th 2015, at which time the Association advised that they would seek conciliation through the Ministry of Labour asking for the MOL to direct the Municipality to adopt their request to have language that permitted working beyond 24 hours on a shift. The conciliation meeting was held on June 24, 2015, with the Conciliation Officer issuing a “No Board Report” as he was not able to effect an agreement on the main issue of agreeing to exceed 24 hours. The Municipality as the employer being ultimately responsible for the health & safety of employees, could not agree to include language that potentially contravened the Fire Protection and Prevention Act which states as follows: 43. (1) Hours of Work a) ...the hours of work which shall be, i) for each platoon 24 consecutive hours on duty followed by 24 consecutive hours off duty, or… (c) any other system of platoons or hours of work under which the maximum hours of work or hours on duty on average in any work week are not more than 48 hours. The No Board Report noted that the matters in dispute were to be decided by arbitration. 2. Process and Time-lines In an effort to avoid arbitration, on March 15, 2016 the Municipality sent a suggested Memorandum of Agreement to the Association on the 24 Hour Trial criteria. The Association acknowledged receipt of the MOA, however there was no further response. The mediation session was established for March 24, 2016. Through the Municipality’s lawyer, it was confirmed that the Association was not prepared to discuss the 24 hour MOA on that date, instead they indicated that they were only interested in discussing an interim award on Union Substitution Days, a topic which had not been on the agenda. Unfortunately that date did not result in the efforts of negotiations being furthered. On April 11, 2016 Council was updated in a “closed meeting” on the status of the negotiations. Municipality of Clarington Report COD-025-16 Page 3 The parties met again on April 20th by mutual agreement, to review the proposals that might affect the introduction of a 24 Hour Trial through a Memorandum of Agreement MOA. The MOA could not be settled due to the difference of approach to hours of work; the Association’s language included extending work hours to 36 consecutive hours, while the Municipality was not prepared to write into an MOA, hours of work that had the potential to violate the FPPA, and put at risk the health and safety concerns of the employees. 3. Arbitration Arbitration with Brian Etherington was set for May 10th 2016, for both sides to submit and explain their proposals. The Arbitrator received the submissions and provided an extension for rebuttal statements and supplementary briefs to mid-July. The Association asked for an expedited decision on the 24 HR Trial conditions. 4. Interim Award An Interim Award was received on November 16th, to initiate the 24 Hour Trial beginning on January 1, 2017. The Interim Award was circulated to Council when it was received. The Municipality had requested an extension of 6 months to allow working through the operational concerns and issues, however that was not entertained by the Arbitrator. 5. Final Award – Details & Impact The Final Award was received on December 1st (Attachment #1). The Dissenting Statement by the Municipal Nominee (page 36 – unnumbered), which was echoed by the Municipality’s Legal Representative, notes that the 35 page award is the longest Award they ever experienced, and states that the award was so one-sided that it “completely destroys the incentive to bargain”. The expected and normal protocol would be to allow free collective bargaining to change or improve conditions, on both sides, over time. The award essentially granted all or part of all Association requests, while dismissing the Municipality’s two major concerns: 1) on limiting the hours of work to a 24 hour period, the award provides for working up to 30 hours in unforeseen circumstances, while also adding an opportunity to work an extra four hours before and after the 24-on-24-off “back- to-back” shifts, and 2) the concern with the Association paying for union substitution days potentially violating the Income Tax Act, WSIB, OMERS etc was noted (page 14) and ignored with the following statement: It appears that, despite the fact these union substitution clauses providing for the union to pay for the substitute fire fighter to replace a member on leave of absence on union business are very prevalent in Ontario, the legality of such clauses has not been questioned by any board of arbitration in Ontario. The Arbitrator ordered the Union Substitutions regardless of the noted legal question. The Municipal Nominee noted the concern with the language and the fact that it is not, in Municipality of Clarington Report COD-025-16 Page 4 his experience, a common provision. These are only a few of the many concerns, on top of the impact to the Municipality. Of note, in the Interim Award the Association’s request for the division of 24 hour shifts into increments of 12 hours for the purposes of sick leave, lieu days, vacation, bereavement and other types of leaves, was ordered. The Etherington award for 2015 to 2017 has a significant impact both operationally and financially. The total impact of approximately $614,000 for the 3 year period is outlined on the attached Impact Analysis and Cost Estimate (Attachment #2), using conservative numbers particularly where overtime or projected utilization is uncertain. Significant changes to the Collective Agreement through the Award are summarized as follows: Wages – January 2015 over January 2017 6.8 % Benefits: o Pregnancy and Parental Top-up to 75% normal wages for 15 & 10 weeks o Paramedical increase 28.6% from $350 to $450 o Massage Therapy $400 from $300 ( requested $1,000) o Unlimited Physiotherapy – for Employee and Dependent o Survivor Health benefits introduced for 12 months o The Health Spending Account request from age 65 to 75 of $3,000 was not awarded and the arbitrator noted the Municipality’s costing of $1.6 million, however he noted that Police have this benefit, and more information is required) Bereavement entitlement can be deferred to an alternate date Fire Association Days – paid days increased from 6 to 24 paid days Union Substitution Days – impact potential from overtime, not able to estimate until scheduled. 4 Platoon Chiefs ordered at 125% of First Class wages, these positions replace the Headquarters Duty Captains. Unlike comparator fire departments with Platoon Chiefs, these positions in Clarington will be required to be on a truck and perform regular duties of a Captain, confirming that the award of this is premature. 6. Concurrence Nancy Taylor, Director of Finance has reviewed the report. The Director of Finance has provided some contingency for the wage impact for the 2015 and 2016 period, and will need to review the implications and impact of the total award on 2017 and future budgets. The Award will be forwarded to the Municipality’s actuaries to determine the impact on the post-employment liability for financial reporting purposes in 2016 and onward. Municipality of Clarington Report COD-025-16 Page 5 7. Conclusion It is respectfully recommended that Council receive the report and the Award for information. The Award will, as directed by Mr. Brian Etherington the arbitrator be implemented. 8. Strategic Plan Application Not applicable. Submitted by: Reviewed by: Marie Marano, H.B. Sc., C.M.O. Curry Clifford, MPA, CMO Director of Corporate Services Interim Chief Administrative Officer Gord Weir, Director of Emergency & Fire Services Staff Contact: Lisa Wheller, Human Resources Manager, 905-623-3379 ext. 2205 or lwheller@clarington.net Attachments: Attachment 1 – 2015-2017 Arbitration Award Attachment 2 – Impact Analysis and Estimate of Cost MM/LW /gj Attachment #1 to Report COD-025-16 Report COD-025-16 Attachment 2 Impact Analysis and Estimate of Costs – Fire Arbitration 2015 - 2017 Issue Current Award Difference Increase in Overtime (OT) Potential Association leave from 6 – 24 days $2,955 $14,455 $11,500 Yes - significantly Training Officer 5 to 4 day work week – impact Volunteer Training Monday night training was provided as flex time off Union Sub Days – unknown potential liability Any increase in additional time off increases potential for OT Bereavement Leave – separate for future event Yes – potential to be used as additional time off Pregnancy & Parental Leave Note 1 $15,530 $15,530 Yes – no opportunity to backfill with temp – min. staffing & OT Parental Leave Note 2 $10,350 $10,350 Yes – no opportunity to backfill with temp – min. staffing & OT Health & Welfare Benefits – increased paramedical and physiotherapy Note 3 $45,000 $45,000 Survivor Extended Health – 12 months Note 4 HDC to Platoon Chief – 4 incumbents $473,975 $527,930 $53,955 Wage difference increase Sr. Fire Prevention Officer $122,348 $130,000 $7,652 Wage difference increase Sr. Training Officer $129,087 $132,000 $2,913 Wage Increase (2015 – 2017) $5,897,000 $6,364,100 $467,100 Estimated Total Impact – 3 years $614,000 Comment: Note 1 - Per occurrence for 25 weeks Maternity & Parental Leave/Employment Insurance is $537 per week; 75% of average weekly salary less $537 Note 2 - Per occurrence of 10 parental leave weeks Note 3 - Unlimited physio, increase in other paramedicals Note 4 - Family premium for 12 additional months - Actuarial Impact on Accrued Benefit Costing Effective Date Dec 31/14 Jan 1/15 Jul 1/15 Jan 1/16 Jan 1/17 Increase 1.22% 1.55% 1.90% 1.90% Position $90,218 $91,318 $92,733 $94,541 $96,337 1st Class Firefighter Recognition Pay 3% $2,707 $2,740 $2,782 $2,836 $2,890 6% $5,414 $5,479 $5,564 $5,672 $5,780 9% $8,120 $8,219 $8,346 $8,509 $8,670 1st Class including Recognition Pay 3% $92,925 $94,058 $95,515 $97,377 $99,227 6% $95,631 $96,797 $98,297 $100,213 $102,117 Report COD-025-16 Attachment 2 Impact Analysis and Estimate of Costs – Fire Arbitration 2015 - 2017 9% $98,338 $99,537 $101,079 $103,050 $105,007