City of Cranston v. International Brotherhood of Police Officers2/11/2005
to retiring firefighters.
On November 25, 1996, the City Council enacted Ordinance 96-54, which amended the benefits contained in the prior fire pension ordinance. In addition to incorporating the provisions of the previous pension ordinance, the new ordinance provided that all firefighters who retired from the department between July 1, 1995 and June 30, 1996 were entitled to receive a severance payment of $500.00 per year of service upon their retirement. Moreover, Ordinance 96-54 also included a new provision, which provided that, in years in which active firefighters received a salary increase of less than 3%, retirees would receive a minimum automatic increase in their annual pension payment of 3%.
Traficante testified at the arbitration hearing that, after the passage of Ordinance 96-54 by the City Council, he immediately moved, with the assistance of City Solicitor Thomas DiSegna, to incorporate the terms of the ordinance into the 1994-1997 collective bargaining agreement then in effect between the City and Local 1363. According to Traficante, this action was necessary because the contract had to be rewritten to incorporate the negotiations over the terms of the pension plan that were included in Ordinance 96-54.
Paul Reed ("Reed"), a former president of Local 1363, testified that the pension terms added to the second version of the 1994-1997 collective bargaining agreement (with only minor revisions) were then included within all subsequent contracts between the City and Local 1363, all of which were duly ratified by the City Council. Moreover, Reed acknowledged that throughout the time that Ordinance 96-54 remained in effect, the City properly paid all retirees, regardless of the date of their retirement, the pension benefits contained in the ordinance, including the 3% annual increase.
On June 2, 2003, the new City Council enacted Ordinance 03-33, which repealed Ordinance 96-54 and provided for revised benefits and other terms of retirement. Significantly, Ordinance 03-33 did not provide for the generous pension benefits contained in Ordinance 96-54. On June 5, 2003, Ordinance 03-33 became effective and Ordinance 94-54 was officially repealed.
At the close of the fiscal year on June 30, 2003, former firefighters who had retired pursuant to the terms contained in Ordinance 96-54 and/or the CBA received an automatic pension increase of 3%. In addition, former firefighters who had retired prior to January 1, 1995 and/or the enactment of Ordinance 96-54 received the pension benefits contained in Ordinance 96-54 through June 5, 2003. The City paid all pre-1/1/95 retirees the automatic 3% pension increase through June 5, 2003, and sent correspondence, dated June 24, 2003 to all former firefighters who had retired prior to January 1, 1995, explaining the resulting change in their pension payment.
On July 28, 2003, the Union filed a grievance with the City, alleging that "the City's June 24, 2003 letter to retirees . . . violated the and past practices of the parties." As a result, Local 1363 filed a demand for arbitration of the dispute on September 14, 2003.
An arbitration hearing to decide the Grievance was heard before Arbitrator Parker Denaco ("Denaco") on January 15, 2004. On March 16, 2004, Denaco issued his award. In his award, Arbitrator Denaco ruled as an initial matter that " he City's objection(s) to these proceedings, based on issues of substantive arbitrability are denied." In addition, Denaco ruled that the grievance "is [substantively] arbitrable[,] as the grievance alleges a violation of a specific provision of the parties' Agreement." Denaco also found that " he Union had standing to bring, process and pu
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