By Josh Margolis
HAVRE, Mont. (NMB) – An arbitrator has sided with the Havre Police Department and the Montana Federation of Public Employees in a dispute with the City over a Collective Bargaining Agreement.
The previous CBA expired on July 1st, 2020 after the sides failed to reach a new agreement, with the sticking points being wages and medical insurance premiums.
The Union alleged that the City did not fulfill all of its contractual obligations for health insurance premiums for its police officers under the previous collective bargaining agreement.
In the City’s final offer, they proposed a one percent increase in wages for 2021-22 and that they would “contribute fully the amount needed towards each participating single employee’s monthly premium for the employee only. In addition, the City will fully pay employee’s dental insurance premiums (employee only). The City will contribute toward dependent care and family premium at the 2017 fixed rate for all employees hired before July 1st, 2017.”
The Union’s final offer proposed a two percent base pay increase effective July 1st, 2020 and a four percent increase effective July 1st, 2021. When it comes to benefits, the Union proposed that, “For employees hired before July 1st, 2017 who elect insurance coverage for the employee and spouse, the employee and child(ren) or the employee and family, the City will contribute towards insurance premiums, the same amount as it was obligated to pay in FY 2020. For all other employees, the City will cover the entire cost of the insurance premium for employee only coverage and if the employee elects insurance coverage for the employee and spouse, the employee and child(ren) or the employee and family, the employee shall pay the premium cost over and above the amount of premium for the employee only. The City shall pay the cost of dental insurance for the employee only.”
Arbitrator Stephen M. Biersmith said that the difference between the two proposals was about $37,000, which is “about one percent of the amount budgeted for the Police Department in 2021,” although that cost may have been overstated because some of the employees who were eligible for dependent premium assistance no longer work for the Department.
Biersmith said in his ruling that the “Union’s proposal was both affordable and more reflective of other police departments with cities of comparable size. As such, it would be in the best interest of the public to implement the Union’s last offer.”
The contract will run through June 2022, and Biersmith said that, “as this new CBA nears expiration, the parties will have the opportunity to return to the table with new data and if necessary, negotiate adjustments in good faith. ”
In the order, Biersmith said the “Union’s last, best and final offer should be and is, hereby, selected.”
The arbitrator ruled that Havre is in a solid enough state financially that they will be able to afford the increases in the new CBA, saying that previous compensation for Police Officers in Havre was below the levels of law enforcement in similar sized communities.
In the findings of fact in the ruling, Biersmith said that, “the level of wages and amount paid by the City for insurance premiums contributed to turnover in the police department, but it was primarily due to reasons personal in nature.”
The cost of arbitration will be split equally between the parties.
A remote hearing was held on November 3rd, closing briefs were filed by December 9th, and the ruling was submitted on December 29th.
Biersmith said the award “should not be seen as a barometer for bargaining over future agreements given many of the variables relied on by each side are subject to change as time goes on.”
Havre Mayor Doug Kaercher provided the following statement to New Media Broadcasters about the ruling:
The City works very hard to maintain compensation packages which provide a livable wage, retirement and affordable health insurance for all their employees and to do so within its budget. The City also works hard to provide the same level of benefits to all its employees and not treat any employee group more favorably than the other. It is very concerning to the City when Arbitration rulings are made without regard to the level of benefits offered to other City employees and without regard to the future sustainability. The City however will abide with the ruling to increase the Police Unit health insurance and adjust wages.
