Mayor Announces FD Savings

From Mayor Finch:

City Firefighters Ratify Contract

$1.3 million in savings for current year’s budget

Bridgeport Firefighters Union Local 834 has ratified the tentative agreement between its membership and the City, which will result in $1.3 million in savings for the current year’s budget. The current year’s savings will result from two years of zero-percent pay increases, overtime cost avoidance, a hiring freeze, and a change in health care cost share payments from the current 12 percent to 25 percent by April 2011, effectively doubling the amount employees contribute to the cost of their health care coverage. The City anticipates that savings from the change in health care cost share payments over the life of the contract would total in excess of $1 million.

In exchange for these concessions, through the contract period ending June 2014, the City agrees to increase wages and shift differential in accordance with a previously determined schedule, and will move all current union members into the Connecticut Municipal Employees Retirement System (CMERS). This change will take effect when all local approvals are complete and the state completes the membership acceptance and enrollment process (anticipated to be January 2012). The change from an individual defined benefit plan to this statewide defined pension benefit system will yield significant savings to the City over the contract life.

“This agreement will provide the city with the savings it needs the through the life of the contract, while preserving public safety, and allowing firefighters to preserve pension benefits under the state-run system,” said Mayor Bill Finch. “I want to thank the firefighters for their willingness to help the City during these difficult financial times.”

“This has been a give and take process,” said Robert Whitbred, president of Local 834, adding, “Our membership understands the need to help the City meet its obligations; in the end, we were also able to receive something in return for our efforts.”

The approved contract will now go before the City Council’s Contracts Committee, and then will be referred to the full City Council for a vote later in March.

With the addition of the Firefighters union increasing their health care cost share payments to 25 percent, Bridgeport is now leading the state in health care cost sharing by municipal employees. As of January 1, 2011, unaffiliated City employees followed the Mayor’s lead and increased their health care cost share for health benefits to 25 percent. All other City bargaining unions have agreed in concession bargaining to move to the 25 percent health care cost share as well. The exception is the three unions that are currently in binding arbitration: AFSCME Bridgeport Police Unions Local 1159, Local 1522 and NAGE Local RI-200.

Firefighter Union Pact by the Numbers:

· City will achieve savings of approximately $800,000 for the union taking 2 years of zero pay increases.

· City will avoid approximately $94,000 in overtime costs for union taking straight pay on overtime from April 1 through June 30, 2011.

· City will save $135,000 when union members change their Premium Cost Share from 12% to 25% on or about April 1, 2011 through June 30, 2011.

· City will save approximately $303,000 by freezing vacant firefighter positions through June 30, 2011.