1. Interest Arbitration: How to Prepare, Present and Calculate
By:
Armando V. Riccio, Esq.
© 2016 Armando V. Riccio, Esq.
All Rights Reserved

2. Interest Arbitration Police and Fire
Different process for other municipal units
Non-binding: mediation, fact-finding
Presently a “friendlier” process for employers
Process starts with filing of an Interest Arbitration Petition by either side
Petition: Economic and non-economic issues
Non-petitioning party has 5 days to file response
Identify non-negotiable items

3. Interest Arbitration Scope Petitions Ninety (90) day process
Must be filed within 5 days of Arbitration Petition
PERC can decide (expedited basis) or defer
14 days to appeal post IA Award
Ninety (90) day process
Starts from appointment of arbitrator
Day after response to petition is filed
Arbitrator fined $1000 per day.
1st meeting is mediation

4. Interest Arbitration 2% “Hard Cap”
“All-in:” steps, longevity, any amount added to base at the end of the last contract
Cap expires after December 31, 2017

5. Arbitration Award Must Address Nine Factors
1) the interest and welfare of the public
2) comparison of wages, salaries, hours and conditions for police officers to others;
3) the value of the bargaining unit’s entire present compensation package;
4) stipulations of the parties;
5) the lawful authority of the employer;

6. Arbitration Award Must Address Nine Factors
6) the financial impact on the governing unit, its residents, legal limitations imposed upon it and its taxpayers;
7) the cost of living;
8) stability and continuity of employment; and
9) statutory restrictions.

7. Preparing for Arbitration Means
Preparing for bargaining
Assessments
Global input
Ability to achieve results
Bargaining leverage/factors of influence

8. Global Input Essential to review globally
Limit to non-union/confidentials
FINANCE!!
CFO
Assessor
Collector
Consultants!
Brokers

9. Global Input CFO Budgets/actual expenditures Projects Projections
Debt service and impact
Cost outs: total compensation package of existing contract, each component AND all proposals
Surplus, tax levy and appropriations caps
What does a “bad” season or year look like? Impact?
Ability to recover? Needs in order to recover?

10. Global Input Tax assessor/collector Key administration Governing body
Assessment/collection histories
Within municipality and surrounding areas
Within the County and the State
Key administration
Each position dealing with contract administration
Chief/HR
Payroll; leaves of absence
Governing body
Whether first or last in the process will depend
NOT a “locomotive” or “caboose” approach

11. Ability to Achieve Results
Knowing the issues (both sides)
Likely success through Scope Petition or Arbitration
Trends in arbitration awards
Trends in comparables:
Communities, units, non-union staff
Comparisons the union used in the past
Internal linkages: other units and overall impact
Identifying issues that you’re not required to negotiate
Preparing an action plan
Scope Petitions
“Storming the Bastille”

12. Ability to Achieve Results
Assess the comparisons made by the union
Past and present
Tax base: rate, ratables and collections
Income of tax payers
Contract terms: favorable/unfavorable

13. Scope Petitions: Sampling of Popular Subjects
Chapter 78 contributions
Opt-out waiver
Sick leave verification policies
Staffing requirements
Minimum staffing, layoffs
Selection of health benefits provider
Seniority shifting bidding without limitations
Civil Service requirements

14. Chapter 78
IF completion of full phase-in is after the recent contract expired
Contributions are NOT negotiable

15. Calculation of Base Year
Not the same as PERC Summary Forms in all respects
Base salary: All items paid as part of base salary in the last year of the contract
Steps
Longevity
Any item added to base pay
Base year, base salary is starting point
Credit for steps and longevity increases paid over course of new contract term.

16. Hot Button Issues December 31, 2017 end date (??)
Chapter 78 contributions
1 year proposals
Eliminate specific plan references (Direct-10)
“Equal or better” language
Cadillac Tax
Elimination of Comp Time
Reduction in steps: number and/or size
Lessen the impact of hidden increases
Ending movement (steps or longevity) upon expiration

17. Hot Button Issues Eliminate or roll-in longevity
Lower starting salaries or create academy and probationary rates
Eliminate or limit full pay provisions
Eliminating retro-pay for individuals no longer employed by the entity
27 pays
Retiree benefits
Tie retiree benefits to current employees
SHBP: Retiree prescription rider only

18. Factors of Influence Workforce composition
Overall vs. within the bargaining unit
Unit
Job title
Union position
Ages
Retirement eligibility
Step/longevity
Salary
Contribution to premium
Hot button issues for larger population wihtin each group

19. External Factors DLGS Best Practices for 2016
22 of 30 questions must be “Yes” or “N/A” for full State aid
Eliminate “full pay” provisions for workers compensation leaves
Require Chapter 78 contributions at full phase-in
Waiver/Opt-Out limitations

20. Waivers/Opt-Out Payment for waivers are NOT required by law
Requirement limited to set “caps” and calculations
Waivers filed before May 21, 2010, and maintained continuously since,
fifty percent (50%) of the amount saved
Waivers filed on or after May 21, 2010
lesser of twenty-five percent (25%) of the amount saved or $5,000
Payment is calculated based on the amount of savings to the entity.

21. TIP
Never miss out on a good opportunity to shut up

22. REVIEW OF PERC PAPERWORK

23. THANK YOU! 609.634.2784 avriccio@gmail.com Armando V. Riccio, LLC
Counselors at Law
Labor/Employment Law
Civil Litigation
© 2016 Armando V. Riccio, Esq.
All Rights Reserved