News - Local News

POSTED: Tuesday, Sep. 22, 2009

Bellingham library, fire dispatch unions agree to skip cost-of-living increases

BELLINGHAM - Two unions representing the city's fire dispatch staff and librarians have agreed to 2010 contracts without cost of living increases, according to city officials.

City Council members unanimously agreed Monday night, Sept. 21, to the contracts that also won't require city workers to shoulder more of the burden of increasing insurance coverage costs.

The workers, however, are not receiving a total wage freeze and are eligible for step increases, part of the city's tiered pay system where they get raises annually before hitting a ceiling after so many years of employment. Mayor Dan Pike did not know how many employees will get such wage increases in 2010 or how much it will cost to the city budget.

The news comes as city officials work to fill a $3.8 million budget gap in reserves for next year.

Pike thanked employees for the agreements. He said scheduling concessions by fire dispatch workers will reduce overtime pay, and the librarians suspended a perfect attendance bonus, both of which would result in savings.

City staff was working Tuesday to compile information on how much overtime and attendance bonus pay the workers received, but the data wasn't available yet.

The City Council's union contract vote came the same night they unanimously rejected their 3 percent cost of living increase, which saves nearly $5,000 in the budget in recognition of the "sacrifices" that city employees had to make.

Fire dispatch union officials were not at work and unavailable for comment Tuesday. A call to librarian union president Madeline Sheplor was not returned. American Federation of State, County and Municipal Employees staff representative Vinnie O'Connor is in eastern Washington and couldn't be reached for comment.

Pike said the agreements would help the city save staff jobs.

"I appreciated them stepping forward, as did the firefighters," Pike said, referring to a past contract approval with the firefighters union that froze wages for 2010.

Though the city will not change how it pays for employee health insurance, it has saved money in recent years by renegotiating with unions so that staff members pay some of their medical costs. Several years ago the city had one insurance plan and paid all costs for workers, said Human Resources Benefits Manager Andy Rowlson.

City officials estimated in the 2009 budget that they would pay about $19.7 million in benefits for workers, an increase of about 27 percent from 2007.

Benefits account for about 10.4 percent of the general fund budget, according to city budget documents.

The mayor said there was no promise of cost-of-living increases in 2011.

"We don't want to create any false expectations before we have the information in hand," he said of future budgets and negotiations. "Obviously when times are better we'll have a wider range of choices in front of us. At this point we're not seeing the end in sight, so we actually want to wait to have the data in hand."

Councilman Gene Knutson was happy with the contracts he approved.

"I think it was great for the city," Knutson said. "Some of the bargaining units have been very good working with us."