Workers to get 9% in pay hikes

John Howell
Posted 6/11/15

Police, firefighters and municipal employees who all went without a pay increase in the last three years would receive pay increases amounting to 9 percent over the next three years under agreements …

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Workers to get 9% in pay hikes

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Police, firefighters and municipal employees who all went without a pay increase in the last three years would receive pay increases amounting to 9 percent over the next three years under agreements reached by the city administration and the unions.

The City Council is scheduled to vote on the contracts next Monday, assuring a packed Council Chambers and what promises to be some in-depth questioning.

In correspondence to council members, Mayor Scott Avedisian provided copies of the agreements and a letter saying with approval the agreements “allow the city to continue its tradition of providing excellent public services to the residents, businesses and visitors of our community in a responsible manner.”

Asked Tuesday what he sees as a major gain for the city, Avedisian pointed to the change in health care coverage for municipal retirees. As of July 1, all new hires will receive individual health care packages on retirement as compared to the family plans they are eligible to receive. The reduction in health care benefits was one of several recommendations of the city’s consultant and will reduce the liability of OPEB (other post-employment benefits).

Ward 5 Councilman Ed Ladouceur was not prepared to endorse the contracts until he has had the opportunity to review the agreements and speak with union representatives.

“I want to look at the whole contract from the perspective of the taxpayer as well as what happened in the last three or four years,” he said.

Ladouceur acknowledged the string of no pay increases helped the city through tough economic times. But he added from his own business experience, “You can only ask people to go along without a raise for so long.”

William Lloyd, president of Local 2748, International Association of Fire Fighters, said his membership “overwhelmingly approved the agreement.” The union agreed to two sets of pay increases this year of 1.5 percent each.

“The pay increases are modest and it lowers the fiscal impact,” he said.

Detective Sergeant Eric Falcofsky, president of the Warwick FOP, had no comment. Scott Small, president of the Warwick Municipal Employees, couldn’t be reached for comment.

Ward 9 Councilman Steve Merolla called the contracts a nice effort of the part of the administration that includes some concessions from the unions. But he is troubled by the budget, which he said is unbalanced as a result of the council’s vote to enter a contract with Rhode Island Interlocal Risk Management Trust to administer the Blue Cross health plan at $19.1 million, $465,000 more than had it picked the West Bay Community Health self-insured plan. The added $465,000 is not in the budget. Additionally, he pointed out, the budget uses $3.1 million in city reserves.

Referring to the unfunded liability of other post-employment benefits of retirees, which is largely lifetime health care, Merolla said, “It’s great to say to people I’m giving you a raise and in the same breath take away health insurance. It’s disingenuous.”

“Either this administration is going to be forced to recognize, unless major concessions are made, we’re going to be facing a situation where we can’t pay benefits,” he said.

Merolla didn’t say how he intends to vote, although he assumes the contracts will be ratified. He questioned, “How can I promise benefits and I know I can’t pay?”

Ward 4 Councilman Joseph Solomon said yesterday he hadn’t made up his mind on a vote. He said he is going though hundreds of pages to the contracts. He observed the role of the council is limited to ratifying the contracts or returning them to the administration.

“We can’t say we would like to see this and this,” he said.

Since benefit increases of police and fire retirees in Police/Fire Plan I are tied to the pay of current employees, going without raises for the last three years shaved about $30 million from unfunded pension liabilities. The action eliminated what actuaries projected would have been a “spike” in city contributions in the immediate future.

Solomon questioned the impact of the raises on the unfunded liability of the police and fire pension plans, as those increases in pension payments are linked to the salaries of active employees.

In his letter, Avedisian says the change in retiree health care would impact municipal expenses significantly. Looking to the issue of raises, he said, “It’s time to re-invest in one of the city’s prime assets, its employees. During blizzards, hurricanes, fires, medical emergencies and public safety threats, this city’s employees are always there, do their jobs thanklessly and fade into the canvas of everyday life. They also do their routine work each and every day, keeping the quality of life in our city enjoyable, safe and pleasant.”

A fiscal note accompanied the contracts.

The impact in the upcoming fiscal year is an additional $1.4 million in the salary line item. Avedisian included that amount in his budget and the council approved it, although Merolla criticized him for not outlining the contracts at the time of the budget vote.

According to the fiscal note accompanying the contracts, the second year of the contract is an additional $1.2 million and the third year $1.34 million for a total cost of about $4 million.

Avedisian explained the overall financial impact of the agreements amount to 3 percent increases annually for the next three years, although it don’t necessarily mean everyone will get a full 3 percent increase. The contracts also revise some pay scales for municipal employees as well as adjustments in holiday pay.

At Monday’s meeting the mayor and members of the city’s negotiating team will make a brief presentation and the council will have the opportunity to ask questions. The council meeting starts at 7 p.m. at City Hall.

Ward 3 Councilwoman Camille Vella-Wilkinson said she planned to spend Friday going over the contracts and had reached an opinion yet.

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  • Notbornyesterday

    Fire is not getting 9 percent. They are getting 7.5 percent over three years. Maybe now the captain will stop going on the radio and saying we are getting 9.25 (more lies Rob).

    Thursday, June 11, 2015 Report this

  • mra139

    the people in plan 1, do not get health benefits. they got Medicare got at age 65,the same as every one else in this country.

    Friday, June 12, 2015 Report this