Fiscal Note
This modification to the labor agreement is being proposed in order to reduce costs in accordance with the funding provided in the 2014 Fire Department operating budget. Other labor units have agreed to a reduction of 0.9% (from 3% to 2.1%) in the negotiated wage increase for 2014. The Fire Department 2014 adopted budget includes funding for a 2.1% raise, or about $285,000 less than is necessary for a 3% increase. In lieu of reducing the wage increase from 3% to 2.1%, this modification reduces by one-half the City’s Post Employment Health Plan (PEHP) contribution in both 2014 and 2015, which is budgeted in fringe benefits. In addition, this modification caps tuition reimbursements at $100,000 (a savings of $40,000). The Fire Department has separately agreed to reduce medical services-physical exams and other expenditure items in order to meet budget. Funds from the applicable accounts may need to be transferred to salaries as part of the year-end appropriation resolution.
Although the City will provide only one-half of the current PEHP contributions for two years, the base amount of the contribution will continue to increase by the percentage of the wage increase each year. Beginning in 2016, the contribution amount will be increased by an additional $15 per employee per month, which will provide sufficient funds to recover the loss of contributions in 2014 and 2015 over about a six-year period.
Title
Adopting and confirming the modification to the Labor Agreement between the City of Madison and the International Association of Firefighters Local 311 for the period January 1, 2012 through December 31, 2015.
Body
DRAFTER’S ANALYSIS: This ordinance adopts and confirms modifications to the Labor Agreement between the City of Madison and the International Association of Firefighters Local 311 for the period January 1, 2012 through December 31, 2015.
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The Com...
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