Herkimer officials weigh FD raises against less benefits for new hires

By David Robinson
Posted May 25, 2010 @ 10:12 PM
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After arbitration resulted in higher raises in the most recent police department contract, the village board decided earlier this month to offer similar raises to its fire department.
The Herkimer Fire Department union recently accepted the village board’s offer of 3.25 percent retroactive raises for each of the 2007-08 and 2008-09 fiscal years, according to Amanda Viscomi, village clerk and treasurer. The contract also includes 3 percent raises for 2009-10 and 2010-11.
All the positions are full-time and overtime is based on the hourly wage plus 50 percent.
The chief position, with a salary of $59,384, is negotiated separately, Viscomi said. She was unable Tuesday to provide comparative figures for the position.    
Village officials were unable to give the raises overall cost to their budget.
But using hourly wages provided by Viscomi extended over a 40-hour week, the 3.25 percent raises alone translate into an over $40,000 total cost to the village. This accounts for 12 grade-one firefighters and four deputy chiefs. And the impact of the increase to the overtime wage is not included.
The contract negotiations lasted for close to a year, according to Mayor Mark Ainsworth. The village’s labor attorney ultimately advised the village board that arbitration would likely not lower the raises much further, he said.
“We were told they’re not going to get lower than 3 percent,” Ainsworth said. The arbitration board — which is an option available to police and fire department unions — bases its rulings on general trends throughout departments statewide, he added.
The decision on the level of raises was also based on the most recent police department contract, according to Ainsworth.
After unsuccessful negotiations following the May 2007 expiration, the police department contract went to arbitration. The ruling awarded 3.5 percent raises in each of the 2007-08 and 2008-09 fiscal years, according to village officials, and was lower than the union’s request but higher than the village board’s offer.
The fire department raises are somewhat of an average based on that ruling, Ainsworth said. Reaching an agreement also allowed the village to avoid arbitration, which costs close to $10,000 for legal representation, he added.
Viscomi was unable to provide police department salaries Tuesday, but did say the payroll for 21 full-time and seven part-time officers is over $1 million.
Both the police and fire departments contracts involved more than just salaries, however.
The contracts increase the duration new firefighters have to pay a higher portion of health insurance costs. Instead of the previous five years of paying 20 percent, which then drops to 15 percent, the department now pays 20 percent for eight years before the same decrease.
Another payment tier for recruits before they advance to grade one was also instituted by the contract. And new hires no longer receive a stipend to maintain their Emergency Medical Service certification. 
Ainsworth was unable to provide an estimate of potential savings, but he emphasized the importance of cutting the cost of benefits for new hires.
But benefit packages negotiated in much early contracts came when insurance and other benefits were less expensive than salaries, according to Ainsworth. Now benefits are almost as costly to the village as salaries, he added.
“You do what you can to balance things out,” Ainsworth said, referring to savings through reduced benefits for new hires.
The village board is now planning to address contracts for the Civil Service Employees Association and police department unions.


The fire department raises in hourly wage over four years, including retroactively, from 2007-08 fiscal year to 2010-11, as provided by village officials:
• 12 grade-one firefighters went from a $17.91 hourly wage to $19.09 based on two 3.25 percent. Two more 3 percent raises bring the hourly rate to over $20.
• Four deputy fire chiefs went from a $19.67 hourly wage to $20.97 after two 3.25 percent raises. Two more 3 percent raises bring the hourly rate to over $22.

After arbitration resulted in higher raises in the most recent police department contract, the village board decided earlier this month to offer similar raises to its fire department.
The Herkimer Fire Department union recently accepted the village board’s offer of 3.25 percent retroactive raises for each of the 2007-08 and 2008-09 fiscal years, according to Amanda Viscomi, village clerk and treasurer. The contract also includes 3 percent raises for 2009-10 and 2010-11.
All the positions are full-time and overtime is based on the hourly wage plus 50 percent.
The chief position, with a salary of $59,384, is negotiated separately, Viscomi said. She was unable Tuesday to provide comparative figures for the position.    
Village officials were unable to give the raises overall cost to their budget.
But using hourly wages provided by Viscomi extended over a 40-hour week, the 3.25 percent raises alone translate into an over $40,000 total cost to the village. This accounts for 12 grade-one firefighters and four deputy chiefs. And the impact of the increase to the overtime wage is not included.
The contract negotiations lasted for close to a year, according to Mayor Mark Ainsworth. The village’s labor attorney ultimately advised the village board that arbitration would likely not lower the raises much further, he said.
“We were told they’re not going to get lower than 3 percent,” Ainsworth said. The arbitration board — which is an option available to police and fire department unions — bases its rulings on general trends throughout departments statewide, he added.
The decision on the level of raises was also based on the most recent police department contract, according to Ainsworth.
After unsuccessful negotiations following the May 2007 expiration, the police department contract went to arbitration. The ruling awarded 3.5 percent raises in each of the 2007-08 and 2008-09 fiscal years, according to village officials, and was lower than the union’s request but higher than the village board’s offer.
The fire department raises are somewhat of an average based on that ruling, Ainsworth said. Reaching an agreement also allowed the village to avoid arbitration, which costs close to $10,000 for legal representation, he added.
Viscomi was unable to provide police department salaries Tuesday, but did say the payroll for 21 full-time and seven part-time officers is over $1 million.
Both the police and fire departments contracts involved more than just salaries, however.
The contracts increase the duration new firefighters have to pay a higher portion of health insurance costs. Instead of the previous five years of paying 20 percent, which then drops to 15 percent, the department now pays 20 percent for eight years before the same decrease.
Another payment tier for recruits before they advance to grade one was also instituted by the contract. And new hires no longer receive a stipend to maintain their Emergency Medical Service certification. 
Ainsworth was unable to provide an estimate of potential savings, but he emphasized the importance of cutting the cost of benefits for new hires.
But benefit packages negotiated in much early contracts came when insurance and other benefits were less expensive than salaries, according to Ainsworth. Now benefits are almost as costly to the village as salaries, he added.
“You do what you can to balance things out,” Ainsworth said, referring to savings through reduced benefits for new hires.
The village board is now planning to address contracts for the Civil Service Employees Association and police department unions.


The fire department raises in hourly wage over four years, including retroactively, from 2007-08 fiscal year to 2010-11, as provided by village officials:
• 12 grade-one firefighters went from a $17.91 hourly wage to $19.09 based on two 3.25 percent. Two more 3 percent raises bring the hourly rate to over $20.
• Four deputy fire chiefs went from a $19.67 hourly wage to $20.97 after two 3.25 percent raises. Two more 3 percent raises bring the hourly rate to over $22.

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