LBA Pact: 8% Hikes and $3G 'Savings' Boost; Longevity Raise And Restored Days Off Other Key Gains

LBA Pact: 8% Hikes and $3G 'Savings' Boost;
Longevity Raise And Restored Days Off Other Key Gains


The Lieutenants' Benevolent Association Aug. 7 reached a tentative 26-month contract that will provide members with 8.16 percent in compounded raises and other benefits, including the restoration of two chart days and a $3,000-per-member payment to the union's retirement enhancement plan.

JAMES F. HANLEY: 'Cheap way to save money.' The agreement, which still must be ratified by the LBA's 1,600 members, would run from Sept. 1 through Oct. 31, 2009. At the end of the contract, Lieutenants' basic maximum salary, reached after three years in the rank, would be $100,779, up from the current $93,177. With longevity, holiday pay, night-shift differential, and other benefits, the total salary would exceed $109,500, city officials said.

'Shaped Our Own Destiny'

"The unique provisions of this contract ... clearly demonstrate the value of crafting one's destiny at the bargaining table and not relying on an independent arbitrator who knows nothing about the needs of our members," LBA President Anthony Garvey told reporters in City Hall's Blue Room.

The Chief-Leader/Pat Arnow 'THEY CAN WORK WITH US': Mayor Bloomberg, talking to reporters about his contract deal with Lieutenants Benevolent Association President Tony Garvey (right), parried a question about whether it placed added pressure on the Patrolmen's Benevolent Association by citing several other recent agreements with uniformed union leaders. 'I think you're seeing here a whole bunch of unions that believe they can work with the city,' the Mayor said. His remarks were a thinly veiled swipe at the Patrolmen's Benevolent Association, whose contract expired Aug. 1, 2004. The PBA, which is headed for arbitration, is the only police union without an up-to-date agreement, Mayor Bloomberg pointed out after announcing the LBA pact.

The PBA's approximately 23,000 members have also seen five of the city's uniformed unions negotiate new contracts over the past month. "They've got to be feeling the squeeze," a labor insider said.

The PBA, however, has stood firm in its approach to bargaining with the city. After nearly a year of legal wrangling, the PBA arbitration process has finally moved forward with the selection of a panel chair, Susan T. Mackenzie. The hearings, however, will likely not be scheduled for several months. The process is expected to drag on until next summer, barring a breakthrough in negotiations.

Similar to UFA Deal

Under the LBA's tentative agreement, all Lieutenants would receive 4-percent hikes effective Sept. 1 this year and on Sept. 1, 2008. The contract is a slightly longer version of the 24-month pact negotiated by the Uniformed Firefighters Association in March.

The LBA used a two-month extension at the end of the deal to help fund added longevity increases, annuity boosts, welfare-fund raises, and extra city contributions to the union's retirement savings enhancement plan.

The previously negotiated contract did not reduce starting pay for newly promoted Lieutenants, as practically all the other uniformed union pacts did during that round of bargaining.

But the raises in that deal were partly financed by requiring newly promoted Lieutenants to work 13 additional tours each year for their first seven years on the job. Also, all Lieutenants were required to work an additional 10 minutes each tour, meaning 8 hours and 45 minutes.

Recoup 2 Days Off

The tentative agreement restores two of the lost chart days for new promotees. Effective Oct. 1, 2008, those Lieutenants would receive one chart day when they reach their third anniversary on the job and another chart day would be restored when they hit their fourth year.

"I will continue to chip away, in future contracts, for the restoration of the lost chart days," Mr. Garvey stated in a letter to his members detailing the agreement. "Keep in mind that when a Lieutenant reaches his/her third anniversary, they reach top pay."

Effective Oct. 1, 2008, there would also be a $1,000 increase for each of the steps in the longevity schedule. At the end of the contract, there would be an additional $500 longevity boost on the steps, city officials said.

The LBA's 26-month agreement does not include the added two years of 4-percent raises that several of the city's other uniformed unions have already agreed upon.

"We can always go back in and lock in the next two years," Mr. Garvey said. "But it was my suggestion to the negotiating committee that we wait to see what happens with District Council 37's contract that will be negotiated later this year."

Other benefits in the new agreement include a $100-per-member increase in the city's annual contribution to the welfare fund on a recurring annual basis for active members and retirees effective Oct. 31, 2009.

On that date, there would also be a one-time $1,000 lump-sum payment made to the annuity fund. Lieutenants must be on the payroll as of Oct. 31, 2009 to receive that contribution, according to the LBA.

$3,000 'Savings' Payment

In addition, effective at the end of the contract there would be a $3,000 one-time lump-sum payment into the Savings Incentive Plan for each active member who invests at least 1 percent of his or her salary per year in the 457 plan.

A major advantage of the 457 plan as opposed to the pre-existing 401(a) plan is that there is no early withdrawal fee for officers under 59-1/2 years old. In addition, unlike a longevity bonus, the money is tax-deferred until employees begin to receive the benefit at retirement. Investment earnings on the accumulations in the annuity account are also tax-deferred.

"We are trying to create such a disincentive for somebody not to put their money into there," Mr. Garvey said. "And down the line someone is going to say, 'You know something, this is a good idea.'''

Labor Commissioner James F. Hanley said that other unions are "focusing" on creating similar plans. "Frankly, it's a super home run," he asserted. "It's a cheap way of saving money. It's a smart thing to do."

More Elite Positions

The proposed LBA agreement also doubles the number of budgeted positions for Lieutenants detailed or assigned to Special Assignment or Commanders of Detective Squads from approximately 5 percent, or 86 Lieutenants, to 10 percent of the membership. Based on the deal, the top pay for those Lieutenants, including longevity raises, would be $119,606.

The new contract, however, did not include expanding the pilot voluntary 12-hour tour for platoon commanders in eight specified precincts. That program is set to begin in "a matter of weeks," Mr. Hanley said. The delay in launching it was in part due to complications in setting up Harvard Medical School's role in analyzing officer-fatigue data, city and union officials said.

"It is being done," Mr. Hanley said. "The operations order has been disseminated into the field and the various commanders have been briefed."

The longer tours are expected to enable Lieutenants to make more than 60 fewer appearances each year. The LBA had been seeking to establish extended tours for years but could not agree with the city on the ground rules of the program until last summer. Under the current plan, after six months, factors such as fatigue, use of leave, effect on overtime costs, and supervision will be evaluated by the NYPD and a labor-management committee.

Tour Length At Issue

The program has been jeopardized by a recent ruling by an Administrative Law Judge that extending officers' tours beyond eight hours is a prohibited subject of collective bargaining and violates state law, a decision that could require cops to work more tours.

The PBA has appealed the decision, arguing that ALJ Philip L. Maier's ruling directly contradicts prior case law on the issue. The PBA's appeal also pointed out that the city itself wasn't seeking to have the issue declared a prohibited subject of collective bargaining.

The LBA and several other unions have filed amicus briefs in support of the PBA's appeal. Mr. Garvey, who has clashed on bargaining strategy in the past with PBA President Patrick J. Lynch, has continued to question his decision to seek the arbitration process that ultimately produced the ruling.

In a surprising move, the city has also appealed Mr. Maier's ruling, arguing that it should be allowed to negotiate tour schedules. Mr. Garvey, who initially said the ruling would delay his contract negotiations, has cited the city's appeal in explaining his decision to move forward.

PERB Meeting Aug. 29

The Public Employment Relations Board is scheduled to review Mr. Maier's scope decision at its Aug. 29 meeting, said PERB Chairman Jerome Lefkowitz during a phone interview.

Mr. Garvey last week once again stressed his belief in negotiating contracts at the bargaining table, as opposed to seeking arbitration. "The construct of this agreement would not be possible if we took the path of arbitration," he said.

Asked to discuss the PBA's contract stalemate in light of the LBA agreement, Mayor Bloomberg also stressed that he was against relying on arbitrators to settle contracts. "I've always believed that we should sit down face-to-face and negotiate," he told reporters. "There's no ways that an independent arbitrator, no matter how smart they are, can really understand the needs of either the city or the union members."

He added, "I think you are seeing here a whole bunch of unions that believe that they can work with the city."

A PBA spokesman declined to comment. "We don't discuss other unions' deals," he said.