Scranton v. Fire Fighters Local Union No. 60
Decision Date | 29 October 2010 |
Citation | 8 A.3d 930 |
Parties | CITY OF SCRANTON v. FIRE FIGHTERS LOCAL UNION NO. 60, the Pennsylvania Department of Community and Economic Development and the Pennsylvania Economy League Central Pa., LLC, as the Act 47 Coordinator for the City of Scranton Appeal of: The City of Scranton, Pennsylvania and the Pennsylvania Department of Community and Economic Development, and the Pennsylvania Economy League Central Pa., LLC, as the Act 47 Coordinator for the City of Scranton City of Scranton v. Fire Fighters Local Union No. 60 Appeal of: Fire Fighters Local Union No. 60 of the International Association of Fire Fighters, AFL-CIO. |
Court | Pennsylvania Commonwealth Court |
Richard M. Goldberg, Kingston, PA, for Appellant City of Scranton.
Clifford B. Levine, Pittsburgh, for designated appellants, PA Department of Community and Economic Development and the PA Economy League Central PA, LLC, as the Act 47 Coordinator for the City of Scranton.
W. Timothy Barry, Pittsburgh, for designated appellant, PA Economy League Central PA, LLC.
Stephen J. Holroyd, Philadelphia, for appellee, Fire Fighters Local Union No. 60 of the International Association of Fire Fighters, AFL-CIO.
BEFORE: McGINLEY, Judge, and SIMPSON, Judge, and FRIEDMAN, Senior Judge.
OPINION BY Judge SIMPSON.
Table of Contents |
I. | Introduction | 936 |
II. | Background | 937 |
A. | Distressed Status | 937 |
B. | 2002 Recovery Plan | 937 |
C. | Scranton Fire Fighters (2009) | 938 |
1. | Generally | 938 |
2. | Terms of 2006 Award | 939 |
a. | Expiration of Recovery Plan | 939 |
b. | Wages | 939 |
c. | Health Care | 939 |
d. | Staffing and Management | 940 |
e. | Other Provisions of Recovery Plan Not Adopted | 941 |
D. | 2008 Award | 942 |
1. | Generally | 942 |
2. | Wages | 942 |
3. | Health Care | 944 |
4. | Fire Fighter Safety | 945 |
5. | Pension Benefits | 946 |
6. | Other Provisions | 947 |
E. | Current Appeals | 947 |
F. | Appeal Granted in Scranton Fire Fighters (2009) | 948 |
III. | Contentions in Appeals of 2008 Award | 948 |
IV. | Discussion | 949 |
A. | Violation of Plan and Controlling Law | 949 |
B. | IAFF Local 22; Ellwood City | 949 |
C. | Specific Challenges to 2008 Award | 950 |
1. | Wages | 950 |
a. | Contentions | 950 |
b. | Analysis | 951 |
2. | Health Care | 952 |
a. | Contentions | 952 |
b. | Analysis | 953 |
3. | Staffing and Management (" Fire Fighter Safety ") | 954 |
a. | Contentions | 954 |
b. | Analysis | 955 |
i. | Sections (4)(1)-(5) of the 2008 Award | 955 |
ii. | 2007 Staffing Levels | 956 |
iii. | Added Sections 4(a)-(d) of the 2008 Award | 956 |
iv. | Managerial Rights | 957 |
4. | Mandatory Cost Containment Provisions | 957 |
a. | Contentions | 957 |
b. | Analysis | 958 |
5. | Pension Benefits | 958 |
a. | Contentions | 958 |
b. | Analysis | 960 |
i. | Illegality | 960 |
ii. | Act 205-Plan Administrator | 961 |
iii. | Act 205-Cost Estimate | 962 |
6. | Vacation of Entire Award | 962 |
a. | Contentions | 962 |
b. | Analysis | 963 |
7. | Remaining Issues | 963 |
a. | Constitutionality of Act 47 | 963 |
i. | Contentions | 963 |
ii. | Analysis | 964 |
b. | Other Issues | 964 |
VI. | Conclusion | 965 |
In these consolidated appeals originating in a 2008 interest arbitration award (2008 Award) involving the City of Scranton (City) and its fire fighters, we again examine the effect of the Municipalities Financial Recovery Act (Act 47) 1 on collective bargaining rights under the statute known as the Policemen and Firemen Collective Bargaining Act (Act 111).2 The City, its allied intervenors,3 and the Fire Fighters Local Union No. 60 of the International Association of Fire Fighters (Fire Fighters), appeal from an order of the Court of Common Pleas of Lackawanna County (common pleas court) 4 that denied the City's petition to vacate the award, but modified the wage, health insurance benefits and pension provisions of the award. In light of our en banc decisions in City of Scranton v. Fire Fighters Local Union No. 60, of the International Association of Fire Fighters, AFL-CIO, 964 A.2d 464 (Pa.Cmwlth.2009), appeal granted, --- Pa. ----, 995 A.2d 1180 (2010) ( Scranton Fire Fighters (2009)) and City of Scranton v. E.B. Jermyn Lodge No. 2 of the Fraternal Order of Police, 965 A.2d 359 (Pa.Cmwlth.2009), appeal granted, --- Pa. ----, 995 A.2d 1181 (2010) (Scranton FOP (2009)), we affirm the common pleas court's order as modified.
The background in this matter has not changed significantly since our decision in Scranton Fire Fighters (2009). In January, 1992, DCED determined the City to be a "financially distressed municipality" under Act 47 and appointed the Pennsylvania Economy League, LLC, as the City's Act 47 Coordinator (Coordinator), to develop a recovery plan.5 The City is still operating under its third recovery plan, which it adopted in May 2002 (2002 Recovery Plan). The City remains a financially distressed municipality; DCED has not terminated the City's financially distressed status. See Section 253 of Act 47, 53 P.S. § 11701.253 (termination of status); Borough of Wilkinsburg v. Dep't of Cmty. & Econ. Dev., 728 A.2d 389 (Pa.Cmwlth.1999) (it is within sole discretion of the Secretary of DCED to determine whether to terminate a municipality's distressed status).
Chapter II-B of the 2002 Recovery Plan, titled "LABOR RELATIONS, COST CONTAINMENT, AND RELATED PROVISIONS," sets forth specific requirements for the City's employees. It states in part:
Reproduced Record (R.R.) at 480a (emphasis added). Chapter II-B contains mandatory provisions applying to all City employees, departments, bureaus and offices, R.R. at 480a-87a, provisions specifically for the fire department, R.R. at 487a-90a, provisions specifically for the police department, R.R. at 490a-95a, and provisions for other employees. Act 47 prohibits clear, specific recommendations of a recovery plan from being violated, expanded or diminished. City of Farrell v. Fraternal Order of Police, Lodge No. 34, 538 Pa. 75, 645 A.2d 1294 (1994).
Chapter II-C of the 2002 Recovery Plan, titled "GENERAL PLAN PROVISIONS," sets forth the Plan's general provisions for 2002-05 "and beyond." R.R. at 501a-16a. Chapter II-C provides in part (with emphasis added):
Employee Benefits/Pensions. The City will continue to follow the requirements of Act 205[ 6] particularly as they relate to budgeting the entire cost of the Minimum Municipal Obligation. The Recovery Plan provides for $800,000 per year to be made as a contribution to the Pension Plans to amortize the cost of the advance payment made by Provident Mutual in the year 2000 to meet the City's unfunded MMO's as of that date. The City shall review on an annual basis in conjunction with the pension actuarial reports the status of this payment and its required MMO payments. Finally, all pension plan amendments shall be made in accordance with cost containment provisions outlined in Chapter II-B.
R.R. at 502a (footnote added).
Pursuant to Act 111, the City and Fire Fighters operate under a collective bargaining agreement (CBA). Their last CBA expired on December 31, 2002. After negotiations for a 2003-2007 CBA reached an impasse, the parties selected an interest arbitration panel to establish the terms and conditions of employment for fire personnel.
On May 30, 2006, following extensive hearings and deliberations, a divided arbitration panel issued an interest award (2006 Award) covering the period from January 1, 2003 through December 31, 2007. Among other provisions, the 2006 Award directed retroactive wage increases and lump sum bonuses in excess of the 2002 Recovery Plan's mandates.
In response, the City immediately filed a petition to vacate or modify with the common pleas court. Fire Fighters answered and raised new matter. 7 Ultimately, after argument and deliberations, the common pleas court determined the 2006 Awardviolated the 2002 Recovery Plan and directed modification of the award. Fire Fighters appealed to this Court.
In Scranton Fire Fighters (2009), we undertook limited review under a narrow certiorari standard. We rejected the argument that Act 47 is an unconstitutional limitation on Act 111 collective bargaining. See Wilkinsburg Police Officers Ass'n by Harder v. Commonwealth, 129 Pa.Cmwlth. 47, 564 A.2d 1015 (1989), aff'd, 535 Pa. 425, 636 A.2d 134 (1993) ( Wilkinsburg I) ( ); Wilkinsburg Police Officers Ass'n by Harder v. Commonwealth, 535 Pa. 425, 636 A.2d 134 (1993) ( Wilkinsburg II) ( ).
Further, we dismissed Fire Fighters' contention that the arbitration panel could compel the City to amend the 2002 Recovery Plan. Here, the City adopted the Coordinator's Recovery Plan. Because Coordinator developed the 2002 Recovery Plan, only Coordinator may initiate amendments to it. Id.
In Scranton Fire Fighters (2009), we reviewed each component of...
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