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City of Cranston v. International Brotherhood of Police Officers2/11/2005
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In citing Webster for support, the City overlooks an important distinguishing factor that sets Webster apart from the case at hand -- that being the collective bargaining agreement between the parties. Like the parties in Webster, the parties in the present case were under no obligation to bargain over retiree benefits. However, once the parties in the instant case decided to bargain on this matter and make it a part of their contractual agreement, the City incurred an obligation that was not present in Webster. In his award, Arbitrator Altman observed:
"The contention, as now argued by the City, that providing the benefits of the escalation clause to officers who retired before November 1996, was a gratuitous action by the City that could later be unilaterally rescinded, is wrong. A review of the transcript and the statements of Mayor Traficante and his Director of Administration made to the Cranston City Council in August of 1995, demonstrate that the effort to change the existing pension program was a process of mutual negotiations between the police and fire unions. Moreover, the transcript shows the City's intent as to why it agreed to provide the escalation benefits to those officers already retired." (Altman Award at 15).
In retrospect, this action by a previous Mayor and City administration was arguably ill-conceived and detrimental to the long-term fiscal health of the City. However, on the facts before the Court, a promise is a promise -- notwithstanding the adverse and unforeseen consequences associated with it. Consequently, this Court is constrained to find that the arbitrators' decisions -- both of which declare the City's repeal of retirees' benefits violative of the respective collective bargaining agreements -- are rational and draw their essence from the agreements between the parties. Accordingly, any modification of retirees' benefits must be accomplished through collective bargaining.
Conclusion
For the foregoing reasons, this Court denies the City's motions to vacate the arbitration awards in this matter.
Council shall prepare a judgment for entry in conformity with this decision.
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