In re Arbitration between Buffalo Professional Firefighters Ass'n & Masiello

50 A.D.3d 106, 850 N.Y.S.2d 744
CourtAppellate Division of the Supreme Court of the State of New York
DecidedFebruary 1, 2008
StatusPublished
Cited by1 cases

This text of 50 A.D.3d 106 (In re Arbitration between Buffalo Professional Firefighters Ass'n & Masiello) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Arbitration between Buffalo Professional Firefighters Ass'n & Masiello, 50 A.D.3d 106, 850 N.Y.S.2d 744 (N.Y. Ct. App. 2008).

Opinions

OPINION OF THE COURT

Lunn, J.

In this appeal we are asked to decide whether Supreme Court properly vacated a compulsory public interest arbitration award on the ground that the arbitration panel, in making its award, exceeded its authority by failing to set forth the basis for its findings with the requisite specificity.

The collective bargaining agreement between petitioner, the union representing City of Buffalo firefighters, and the City of Buffalo (respondent) expired on June 30, 2002. Despite the efforts of the parties to negotiate a new collective bargaining agreement, several issues remained unresolved, resulting in the filing of a joint declaration of impasse on September 30, 2003. Mediation did not result in a new collective bargaining agreement, however, and petitioner thus sought compulsory public interest arbitration pursuant to Civil Service Law § 209 (4) (c), resulting in the selection of a three-member arbitration panel pursuant to that statute.

Hearings were held over a six-day period in November 2004 and January 2005, during which both petitioner and respondent called witnesses and made presentations in support of their respective positions. Additionally, the Buffalo Fiscal Stability Authority (BFSA), which had been established pursuant to the New York Public Authorities Law to oversee respondent’s fiscal activities and to balance respondent’s budget, also presented evidence during the course of the arbitration hearings. The most contentious issue concerned wage increases. Petitioner sought [108]*108wage increases of 3.4% for each of the two years that were the subject of the compulsory arbitration as well as a retroactive increase of $5,000 in base wages or salaries, effective July 1, 2002. Respondent, supported by the BFSA, proposed no increase to base wages or salaries for the two years that were the subject of the compulsory arbitration.

On July 18, 2005, the arbitration panel issued its award. The award was signed by the chairperson and the arbitrator representing respondent, who also issued a concurring opinion. The arbitrator representing petitioner issued a dissenting opinion. The award granted petitioner’s members a general wage increase of 2.1% in the first year and 3.4% in the second year, but did not award the retroactive $5,000 increase in base wages or salaries. In arriving at its award, the panel majority noted that the evidence presented by the parties

“was considered against the criteria set forth in [section 209 (4)] of the Civil Service Law, including, but not limited to a comparison of wages, hours and conditions of employment, of other employees performing similar services or requiring similar skills under similar working conditions; the interest and welfare of the public and the financial ability of the public employer to pay; the peculiarities in regard to other professions such as hazards, educational qualifications, training and skills; and the terms of collective agreements negotiated between the parties in the past providing for compensation and fringe benefits” (see § 209 [4] [c] [v] [a]-[d]).

With respect to petitioner’s wage increase proposal, the panel majority found three of the statutory factors, namely, parity with the police, respondent’s ability to pay, and the nature of the duties undertaken by firefighters, to be “key components” of its analysis. Specifically, with respect to parity and ability to pay, the panel majority determined that, in light of respondent’s fiscal condition, “an essential question in this proceeding is whether there should be a deviation from the long historical practice of parity.” The panel majority detailed the record evidence before it, which resulted in the structural imbalance between respondent’s revenues and expenditures and created an “unprecedented” fiscal crisis that in turn led to the State Legislature’s passage of the Buffalo Fiscal Stability Authority Act. Citing the “genuine limitation” of respondent with respect to its ability to pay that was not in existence when the previous [109]*109interest arbitration awards were issued, the panel majority was “constrained to break the pattern of parity to some extent.” In arriving at its conclusion, the panel, majority noted “the professionalism required of members of the Union and the extremely dangerous work they face each day,” and the panel majority further noted that “[t]he public depends as much on the Union members as it does on their counterparts in the [Police Benevolent Association] for protection of life, limb and property.” Finally, the panel majority also determined that “strict parity cannot be followed” here because the wage increases achieved by the police union occurred as a result of that union’s other substantial concessions to respondent, which concessions were not offered by petitioner.

The only other award relevant to this appeal concerns health insurance. The panel majority prefaced its health insurance award with the observation that respondent “agreed to withdraw its health insurance proposal (City Proposal #3) based on its understanding that it had reached an agreement with [petitioner] on June 6, 2004, regarding health insurance.” On that date, respondent and petitioner’s president signed a memorandum of agreement allowing respondent to move to a single health insurance carrier whose premiums were based on an experience-rated plan for all of its employees, with the exception of members of the police union. The panel majority noted, however, that petitioner subsequently challenged the validity of the memorandum of agreement on the ground that it was not ratified by its membership. Further, the panel majority recognized that three grievances had been filed by petitioner over changes to the health insurance plans and that both parties had filed charges with the New York State Public Employment Relations Board that were still pending at the time of the award. Despite the ongoing dispute over the validity of the health insurance agreement, the panel majority believed “it appropriate to put the health insurance issue to rest for the parties.” The panel majority therefore determined that health insurance would be provided by respondent to petitioner’s members under the terms of the June 6, 2004 memorandum of agreement, citing “the cost savings realized by [respondent] in a movement to a single carrier,” as well as evidence that petitioner’s membership would receive the same level of health insurance benefits that was in place before the agreement was executed.

On October 5, 2005, petitioner commenced this proceeding pursuant to CPLR 7511 seeking to vacate the arbitration award [110]*110on the grounds that the panel majority failed to provide a specific basis for its findings and thereby exceeded its authority. The court granted the petition and vacated the award. Resolution of the issue of remittal to an appropriate arbitration panel was to be considered by the court at a future date. In vacating the award, the court found that the arbitration panel did not follow the requirements of Civil Service Law § 209 (4) (c) (v) because it focused on only three “considerations,” gave “scant discussion” to certain statutory factors, and failed to address the statutory factors in their entirety. We conclude that the court erred in vacating the arbitration panel’s award with respect to wage increases and that the order therefore should be modified accordingly.

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Related

In re the Arbitration between Buffalo Professional Firefighters Ass'n, Local 282 & Masiello
49 A.D.3d 1169 (Appellate Division of the Supreme Court of New York, 2008)

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50 A.D.3d 106, 850 N.Y.S.2d 744, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-arbitration-between-buffalo-professional-firefighters-assn-nyappdiv-2008.