An independent fact-finder has found in favor of the city of Reno in its year-long battle over a new labor contract with the police union.
The fact-finder’s decision, however, is not binding, prompting the Reno Police Protective Association’s chief negotiator to promise to take the dispute to binding arbitration.
The RPPA’s labor contract expired a year ago. Since then, the two sides have been unable to agree on a new contract.
The city is seeking to end retirement health benefits for newly hired police officers, to replace longevity pay for newly hired officers with a deferred compensation plan and to require officers to pay half of any future increases in retirement contributions.
The new contract also would reinstate salary concessions the RPPA made during the recession, including reinstating the $600 uniform allowance and the double-time pay for working Hot August Nights.
The RPPA has objected to the changes in benefits for newly hired officers, saying they are important for retention and recruitment. The union also argued that police have “sustained drastic cuts to compensation” since the economic downturn, according to the fact-finder’s report.
But the fact-finder, Thomas Levak, found the city does not have the financial resources to continue the retirement health benefits, longevity pay or increases in retirement contributions. The city faces a $210 million unfunded liability for benefits that current employees have already accrued.
“The fact-finder finds that if the city does not discontinue the post-employment health benefit, its financial integrity will most certainly become compromised,” Levak wrote.
Paying for retirement health benefits as they come due, rather than putting the money into a trust fund to pay for future benefits “will carry the city only further into an irretrievable black hole,” he continued.
The RPPA’s chief negotiator Ron Dreher objected to Levak’s report, describing it as “arbitrary and capricious.”
“The whole thing is skewed,” Dreher said. “We are headed to binding arbitration. That’s a fact.”
Under binding arbitration, the arbitrator is allowed to choose between the “last best offer” from both sides. In this case, the RPPA has asked for a continuation of the existing contract. The city has asked for the three benefit changes. The arbitrator would not be able to pick and choose among the provisions offered by both sides.
Reno’s finance director Robert Chisel said the city is working to end the retirement health benefit for all employees. One of the city’s 10 bargaining groups has already agreed to the change.
“We’re not trying to hurt our current employees, we are trying to set the city up for a better fiscal future,” Chisel said.
http://www.rgj.com/story/news/2014/06/04/reno-prevails-early-arbitration-police-union/9968495/