After nearly five months of labor negotiations, the Carlsbad City Council and the Carlsbad Firefighters' Association have come to an impasse. As a result, the City Council voted to impose its last, best and final offer during a recent hearing. The imposed terms and conditions will be effective through Dec. 31, 2010. At the end of the year the negotiation process will start again.
“I wish we could have come to an agreement, but at this time the City Council must take the action we feel is in the best interest of the city and the community,” said Claude A. “Bud” Lewis, mayor of Carlsbad. “This year's difficult contract negotiations are a reflection of the tough times we are in and do not in any way diminish the appreciation and respect we have for the work of our employees.”
The city's last, best and final single-year offer provides no salary increase and includes changes to what Carlsbad Firefighters' Association members pay for their retirement benefits. As of May 31, members of the Carlsbad Firefighters' Association will pay nine percent of their salary toward their retirement benefits. They currently pay one percent, and the city pays eight percent.
The imposed terms and conditions also include the creation of a second tier retirement plan. The benefits in the retirement plan for current employees cannot be changed, but the city can create a different plan, often referred to as a second tier plan, for new employees. This new plan or “second tier” provides a “two percent at 50” retirement benefit, instead of the existing “three percent at 50” benefit for employees starting on or after Oct. 4, 2010.
Under the second tier plan, employees retiring at age 50 will receive two percent of their salary for every year of employment. The benefit increases for employees working longer, to a maximum of 2.7 percent at age 55. The retirement benefit will be calculated using an average of the employee's salary for the highest consecutive 36 months of employment at the city. Employees under the second tier plan will also pay the full nine-percent contribution toward their retirement plan.
The imposed terms and conditions also allow the city to put a charter amendment on the November 2010 ballot prohibiting future increases in the “two percent at 50” retirement benefit without voter approval. The ballot measure requires a simple majority to pass.
The city and the Carlsbad Firefighters' Association representatives began labor negotiations late last year. After meeting and exchanging proposals over the course of several months, they were not able to reach an agreement. In March, when city representatives determined that all possibilities of an agreement had been exhausted, they started an impasse procedure.
An impasse meeting with the city manager was held in April to review both positions and try to reach an agreement. At the end of the meeting, the city manager concluded that significant differences still existed between the parties and that the process had reached a point where future negotiations would be futile.
According to the rules that govern the city's employer-employee relations, the City Council may resolve an impasse in labor negotiations by holding a hearing where both sides can present the merits of their positions, followed by public comment. The City Council may then ask questions, deliberate and either send the parties back for further negotiations or impose its last, best and final offer.
“I wish we could have come to an agreement, but at this time the City Council must take the action we feel is in the best interest of the city and the community,” said Claude A. “Bud” Lewis, mayor of Carlsbad. “This year's difficult contract negotiations are a reflection of the tough times we are in and do not in any way diminish the appreciation and respect we have for the work of our employees.”
The city's last, best and final single-year offer provides no salary increase and includes changes to what Carlsbad Firefighters' Association members pay for their retirement benefits. As of May 31, members of the Carlsbad Firefighters' Association will pay nine percent of their salary toward their retirement benefits. They currently pay one percent, and the city pays eight percent.
The imposed terms and conditions also include the creation of a second tier retirement plan. The benefits in the retirement plan for current employees cannot be changed, but the city can create a different plan, often referred to as a second tier plan, for new employees. This new plan or “second tier” provides a “two percent at 50” retirement benefit, instead of the existing “three percent at 50” benefit for employees starting on or after Oct. 4, 2010.
Under the second tier plan, employees retiring at age 50 will receive two percent of their salary for every year of employment. The benefit increases for employees working longer, to a maximum of 2.7 percent at age 55. The retirement benefit will be calculated using an average of the employee's salary for the highest consecutive 36 months of employment at the city. Employees under the second tier plan will also pay the full nine-percent contribution toward their retirement plan.
The imposed terms and conditions also allow the city to put a charter amendment on the November 2010 ballot prohibiting future increases in the “two percent at 50” retirement benefit without voter approval. The ballot measure requires a simple majority to pass.
The city and the Carlsbad Firefighters' Association representatives began labor negotiations late last year. After meeting and exchanging proposals over the course of several months, they were not able to reach an agreement. In March, when city representatives determined that all possibilities of an agreement had been exhausted, they started an impasse procedure.
An impasse meeting with the city manager was held in April to review both positions and try to reach an agreement. At the end of the meeting, the city manager concluded that significant differences still existed between the parties and that the process had reached a point where future negotiations would be futile.
According to the rules that govern the city's employer-employee relations, the City Council may resolve an impasse in labor negotiations by holding a hearing where both sides can present the merits of their positions, followed by public comment. The City Council may then ask questions, deliberate and either send the parties back for further negotiations or impose its last, best and final offer.