ACTION REQUESTED:
Title
Communication from the City Manager and Interim Corporation Counsel with a Request to APPROVE of a SETTLEMENT with the INTERNATIONAL ASSOCIATION OF FIREFIGHTERS, LOCAL 50.
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BACKGROUND
I. Factual Background
a. Budget negotiations
i. In late 2017 the City was faced with an $8 million dollar budget shortfall and was negotiating with the IAFF to reduce Fire Department expenses. On November 17, 2017, the City Manager sent an email to the Mayor and City Council with an update on IAFF negotiations, noting that the proposed adjustments included:
1. Payment of “good incentive day” in lieu of time off
2. Hiring three firefighters in Suppression
3. Eliminating the Battalion Chief of Training
4. Transfer a Fire Inspector to Suppression
5. Transfer a Captain to Suppression
6. Assign three “Bouncing” fire fighters to a machine in suppression
7. Reduce the number of annual physicals
ii. There was also a goal to keep 17 machines in service in 2018, but the email noted “[t]he accountability for managing the Fire Department budget rests with the Fire Chief.”
iii. The City Manager presented the proposed budget at the November. 21, 2017 City Council meeting, which the Council approved. The 2018-2019 budget was formally adopted by the Council on December 5, 2017
b. Memorandum of Understanding and engine brown outs
i. On February 14, 2018 the IAFF met with (former) Fire Chief Ed Olehy to finalize the agreement. IAFF gave Chief Olehy a proposed Memorandum of Understanding (“MOU”) that included a provision requiring a minimum of 17 machines be kept in service. Chief Olehy signed the MOU presented by IAFF, but before returning it to IAFF, forwarded it to the City Legal Department for review. The City legal department rejected the IAFF’s MOU as it was not consistent with the discussions between the City and the union, and drafted a revised MOU that did not include the minimum staffing provision (note that IAFF later declined to sign the City’s MOU).
ii. On April 13, 2018 the City and IAFF held a meeting wherein IAFF argued that they would not have agreed to the budget cuts if there was no minimum staffing/engine provision. Mr. Urich told the IAFF that responsibility for managing the Fire Department budget rested with the Fire Chief, and that the City had not agreed to any minimum staffing/engine provisions, which is consistent with his November. 17, 2017 email.
iii. On May 21, 2018 the City initiated the “brown out” policy:
1. Each machine was staffed by three firefighters
2. If a machine required that three fire fighters be placed on over time in order for the machine to be fully staffed, the machine was decommissioned for that shift
3. If six overtime positions were necessary to keep both machines in operation, then two machines were be browned out
4. From May 21, 2018 through December 31, 2018, one or two engines were browned out on a total of 108 days.
II. IAFF’s Unfair Labor Charge
a. On June 27, 2018 the IAFF filed an unfair labor practice (“ULP”) charge against the City with the ILRB. The ULP alleges the City improperly instituted the brown out policy and that the policy ran afoul of the previous agreement.
III. IAFF’s Complaint
a. On November 28, 2018 the ILRB issued a Complaint for Hearing. For unknown reasons, the complaint appears to have initially been served to a lawfirm where Interim Corporation Counsel previously worked. The ILRB alleges it later sent the complaint to the City but it was not served via return receipt or any trackable method. On February 27, 2019 ALJ Nagy issued a default against the City. On April 2, 2019 the City filed its exceptions and brief to the default. On August 13, 2019 the full ILRB board issued its decision affirming the default.
IV. Appeal
a. On September 5, 2019 the City filed its Petition for Review (Notice of Appeal) to Third District Appellate Court. Various procedural motions were subsequently filed regarding the stay of enforcement pending appeal. Oral arguments on the appeal are set for October 21, 2020
V. Alleged Financial Liability
a. On April 17, 2020, Olivia Campbell (compliance officer for ILRB) issued an order stating that IAFF is entitled to damages in an amount of $448,931.46 for brownouts that occurred through December 31, 2018. (Note: legal counsel for the City cannot determine how Campbell calculated this). Campbell stated that the City decommissioned two machines on January 1, 2019 and that IAFF had not filed a new ULP regarding the permanent decommissioning.
b. IAFF has argued it should receive damages for the “lost potential overtime” in 2019 and 2020. Through March 25, 2020, the IAFF alleges the total amount in damages to date is $4,002,105.73, plus seven percent per annum equals $4,282,253.13.
VI. Pandemic
a. Layoff Notice and Impact Bargaining
i. As Council is aware, in late 2019 COVID-19 became a global pandemic. Due to a decline in revenue plus projections of a budget deficit, City administration began looking at cost savings throughout the City. As to the Fire Department, on April 15, 2020 the City issued Notice to IAFF pursuant to Section 9.7 (Layoff and Recall) of the Collective Bargaining Agreement. The Notice indicated that due to the financial impacts from the pandemic, operational cuts would be needed, but the City had not yet planned a firm layoff date. On April 16, 2020, the Union notified the City of their demand to bargain and to discuss possible alternatives to layoffs. The parties met on May 7, 2020 to discuss the impact of the financial crisis caused by the pandemic and proposals that could avoid layoffs. On May 13, 2020, the Union was given an update on the City’s plan to reduce $10,000,000 from the City’s operating expenses, as well as capital reductions, debt restructuring and short-term borrowing. The Union was notified that a $10,000,000 operating reduction would result in a work force reduction of 94 full-time equivalents. The Union was provided with additional budget information and the current seniority list. The parties met on May 21, 2020 to again discuss the financial impacts of the pandemic, the direction given by the City Council and proposals that could avoid layoffs.
1. Voluntary Separation Incentive
a. On May 22, 2020, the Union formally requested the City explore the idea of a Voluntary Separation Incentive for the Fire Department as an alternative to layoffs. On August 25, 2020 the Council voted to offer a Voluntary Separation Incentive to eligible members of the Fire Department. Some members of the Fire Department elected (and members can continue to elect until October 15, 2020) to accept the Voluntary Separation Incentive. While the Voluntary Separation Incentive will prevent some layoffs, it was not widely accepted enough to prevent all layoffs within the Fire Department.
2. September 1, 2020 Vote
a. On September 1, 2020 the Council voted to decommission two (2) fire engines. On September 2, 2020 the Union notified the City of their immediate demand to bargain over the impacts and effects of the September 1, 2020 City Council vote.
b. The vote to decommission two (2) fire engines is equivalent to reducing 22 positions in the fire department. Considering vacancies and members who have elected to accept the VSI, the number of current firefighters who will lose employment stands at four (4)?
VII. Settlement Negotiations
a. On September 8, 2020 IAFF forwarded a DRAFT Settlement and Memorandum of Understanding to the City Manager with a request that he “Please see the attached document below with regard to settling the current, ongoing unfair labor practice. Please let me know at your earliest convenience by noon tomorrow if this is something you are willing to consider agreeing upon.” The City responded with a counter proposal on September 15, 2020 and the City and IAFF met to discuss on September 16, 2020. Council was informed of the negotiations to date at the meeting on September 22, 2020.
b. The City and IAFF have been working to finalize the settlement.
VIII. Memorandum of Understanding
a. The counter proposal the City made to IAFF on October 2, 2020 can be summarized as follows:
i. IAFF will withdraw its ULP.
ii. Operations from October 1, 2020 through March 31, 2021 will be as follows:
1. Ten (10) Engine Companies each staffed with a minimum of one (1) Captain, one (1) Engineer and one (1) Firefighter.
2. Four (4) Truck Companies each staffed with a minimum of one (1) Captain, one (1) Engineer and one (1) Firefighter. Two (2) Battalion Chiefs.
3. Each shift of the Peoria Fire Department shall consist of forty-four (44) bargaining unit members as delineated above. If at any time during, or before, the daily shift the number of bargaining unit members falls below the forty-four (44) number above, the City shall call for overtime pursuant to the CBA in order to maintain the above minimum daily staffing levels.
iii. The minimum staffing levels are guaranteed through March 31, 2021, only. As of April 1, 2021 the City can close 1 additional engine (for a total of 2) per the September 1, 2020 vote of the council without further bargaining.
FINANCIAL IMPACT: The settlement of this unfair labor practice would keep one additional engine in service through March 31, 2021. This approximates the cost that the ILRB Compliance Officer had determined that the City owed the IAFF. The settlement closes the proceedings.
NEIGHBORHOOD CONCERNS: Concerns have been raised by some about reduced fire protection services. This settlement will keep one additional engine in service through March 31, 2021.
IMPACT IF APPROVED: All litigation will be resolved; staffing levels will be reduced by one engine (rather than 2) through March 31, 2021.
IMPACT IF DENIED: Litigation will continue, additional legal fees will be incurred; 2 engine companies will be decommissioned.
ALTERNATIVES: N/A
EEO CERTIFICATION NUMBER: N/A
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL’S 2017 - 2032 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Financially Sound City
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Have an efficient government.
DEPARTMENT: Legal