Salem Police Superior Officers Association Wins Important Victory For Retiring Members

In an arbitration case, the Arbitrator found that the City of Salem violated the contract and past practice when Mayor Driscoll refused to pay a Captain, retiring after 30 years of service to the City’s Police Department, for the various benefits and stipends which all other retirees had received for over 25 years.  The Mayor claimed that there was not explicit contract language requiring payment for the various benefits and stipends upon retirement and therefore, even though every retiree had received the benefits and stipends when he/she retired, the Mayor refused to pay the benefits and stipends to this Captain.

In his Decision, the Arbitrator explained that it is clear that the City officials including the Mayor, Personnel, Finance, Treasury officials and Police Chiefs were aware of the payments and that the City Council funded the payments when it voted appropriations to fund the contracts and Department budgets.  The Arbitrator found further that the evidence discloses that the benefit/stipend payment practices up to the grievant’s retirement “were unequivocal, clearly enunciated and acted upon for a considerable period of time, easily discernible over a long period of time as a fixed and established practice accepted by both parties.”  In addition, the Arbitrator found that the “past practice” concerning unpaid benefits and stipends “had become an implied-in-fact contract term.”  “As a binding past practice is an enforceable, implied-in-fact contract term, it may only be altered by the collective bargaining process.”  Therefore, the retired Captain was entitled to be paid fully for the unpaid benefits and stipends as the other retirees before him received and the City of Salem must continue to comply with the pertinent contract provisions and the parties’ past practices unless and until the parties properly negotiate to amend or alter the parties past practices.  The Union was represented by Sandulli Grace Attorney, Susan Horwitz.

It should also be noted that the Salem Police Superior Officers Association has recently affiliated with the Massachusetts Coalition of Police, AFL-CIO.

 

SJC Rules Quinn Bill Statute Only Requires Municipality To Pay One Half Of Benefit

In a disappointing decision, the Supreme Judicial Court today ruled that the Quinn Bill Statute, M.G.L. c. 41, §108L, only requires a municipality that adopts it pay one half of the benefits enumerated in the statute, and that the other half is contingent on state funding.

The Court ruled that the phrase “shall be granted” education benefits actually only means “shall be granted” half of the benefits when read in conjunction with the “shall be reimbursed” language later in the decision.  You can read the decision in Adams v. Boston by linking from the SJC website, http://www.massreports.com/slipops/default.aspx .

The decision just issued, and we are still digesting it fully.  We will post a thorough analysis of the Court’s decision soon.

No Decision Yet In Quinn Bill Case – Sign Up To Get Notified ASAP When Decision Issues

Today, the Massachusetts Supreme Judicial Court did NOT issue a decision in Adams v. Boston, the case considering whether municipalities may cut Quinn Bill benefits to officers.  Obviously, no news is not news, but I write because I am asked about a decision at least 5 times a day.  If you are a union steward, or a member of the BPPA House of Representatives, I’ll bet you wish you only got asked 5 times a day.

But there are ways that you can know about the decision AS SOON AS IT IS ISSUED.  Easiest would be to subscribe to Sandulli Grace’s e-mail notification process.  Rest assured that I’m checking for a decision each day, and will post a notice of the decision as soon as I get it.  Just go to http://sandulligraceonline.com and add your e-mail address in the box at the upper left of the page.  By signing up, you will get notice of the decision, and will get periodic notices of other issues of import and interest to the union community.

The Supreme Judicial Court also issues a daily e-mail notification of all cases issued.  You can also sign up for that at the Court’s website, http://www.massreports.com/ .

Finally, please note that there is no deadline for the Court’s consideration of the case.  According to the Court’s website, “most opinions are released within 130 days of oral argument,” but some decisions can take longer.  I had the opportunity to hear one of the justices speak last year on the inner workings of the SJC.  I have to admit that I was humbled at the amount of work that each and every one of the seven justices puts into the many cases the court hears each year.  The Court’s Justices (and their able staffs) are not sitting idly around.  Rather, they are digesting thousands of pages of briefs, listening to hours and hours of arguments, and writing hundreds of pages of decisions each month.  So, while we’d all like to have the decision, please know that the SJC isn’t sitting on the case, it is being carefully considered along with all of the other cases before our state’s highest court.

Quinn Bill Eligibility of Rehired or Transferred Police Officers

Once a police officer qualifies for Quinn Bill benefits, the benefits cannot be terminated if the officer is rehired or transferred after the Quinn Bill cut-off date of July 1, 2009.

Under the recent Quinn Bill amendments police officers hired after July 1, 2009 are no longer eligible to participate in the Quinn Bill benefits.  Municipal employers have contended that officers eligible for the Quinn Bill who are rehired or transferred after that date lose their Quinn Bill eligibility.  This issue has arisen in the following ways for officers hired before July 1, 2009 who qualified for Quinn Bill: 1) The officer resigns from the police service, but is then rehired by the same municipality after July 1, 2009; 2) The officer transfers to another department after July 1, 2009; 3) The officer is laid off and is recalled into another department after July 1, 2009.

The Massachusetts Department of Higher Education, which administers the Quinn Bill, has now definitively answered that all of these rehired and transferred police officers remain eligible for Quinn Bill Benefits.   In a recent communication with our office the Department has stated that it is their policy “that an approved PCIPP (Police Career Incentive Payment Policy) eligibility status is never revoked.  Thus, if an approved PCIPP officer leaves employment and returns at a later date, or transfers from one department to another, the officer retains his or her PCIPP eligibility.”    

Massachusetts Public Employee Benefit Changes Under Pension Reform

On November 18, 2011 Governor Deval Patrick signed Chapter 176 of the Acts of 2011, “An Act Providing for Pension Reform and Benefit Modernization.” This is the third pension reform measure passed in the last three years, and significantly changes the benefit structure for all newly hired Massachusetts public employees. In addition, the law increases benefits for certain retired members and survivors.  The law also changes certain rules affecting current employees. Below is a summary of the significant modifications under the new law.

Changes Affecting Current Active Public Employees

  • Anti-Salary Spiking: The new law limits the annual increase in pensionable earnings Individuals who retire on or after 4/2/2012.  Increases of more than 10% in salary will not be included in calculating the average pensionable earnings over the previous two year prior to retirement. This provision does not apply to bona fide job changes, payments for additional services that are otherwise eligible for inclusion, and other exempted payments.
  • Buyback Increase: Interest charged on buybacks and certain other service purchases increases if the employee does not make the payment within the first year of membership or within one year from 4/2/2012.

Changes Affecting Current Retirees:

  • Cost of Living Increases: Future COLA increases for retirees will be based on the first $13,000 instead of $12,000.
  • Minimum Pension Benefit: Effective 4/2/2012, the minimum pension for members who retired with at least 25 years of creditable service is increased from $10,000/year to $15,000/year.
  • Surviving Spouse: Effective 4/2/2012, the minimum benefit paid to the surviving spouse of a member who dies while in service increases from $250/month to $500/month.
  • Post-Retirement Earnings: Effective 4/2/2012, members retired for at least one year may earn an additional $15,000/year in post-retirement earnings.

Changes Affecting New Public Employees Hired on or after April 2, 2012:[i]

  • Minimum Retirement Age: The minimum retirement age is raised from 55 to 60 for Groups 1 and 2
  • Group 4 Retirement Age: The minimum retirement is raised from 45 to 50 for Group 4
  • Age Factors: The new law reduces the age factors in the retirement formula.
  • Average Salary for Calculation of Pension Benefit: The salary average period used in the retirement benefit calculation formula is lengthened from 3 years to 5 years.
  • Contribution Rate: Reduces the contribution rate by 3% (e.g., from 11% to 8%) once a member has 30 years of creditable service.

 


[i] These changes also affect employees who re-enroll in the retirement system (after taking a refund)  after April 2, 2012

NLRB Withdraws Lawsuit Against Boeing

The National Labor Relations Board (“NLRB”; “the Board”) dropped its retaliation lawsuit against Boeing at the urging of the International Association of Machinists and Aerospace Workers (“Machinists”) after it signed a contract with Boeing on Dec. 9, 2011.  The NLRB brought the case in April 2011, after Boeing moved a production line from Washington state to a non-union shop in South Carolina in retaliation against workers for staging a strike in 2008.

The NLRB decision to file a complaint drew controversy from the outset.  The NLRB found that Boeing’s motives were retaliatory after Boeing executives admitted that the Machinists’s history of striking (workers in Washington state have staged five strikes since 1977) was an “overriding factor” in deciding to open the South Carolina plant. The National Labor Relations Act (“the Act”) forbids employers from retaliating against and intimidating unions from protected activities such as engaging in strikes.  However, the Act also allows employers to make decisions on hiring and building new facilities so long as the decision is not unlawful.  Since the NLRB issued the complaint, the House, in response, passed the Protecting Jobs from Government Interference Act, which would strip the Board of its authority to order a shutdown of corporate operations, even if an employer violates labor law.  The bill is now awaiting a Senate vote.  Additionally, Congressional Republicans have threatened to block President Obama’s nominations to the Board.  The five-member board currently has two openings, and another seat will open later this month.

In the end, NLRB v. Boeing is a victory for unions and serves as a testament to the effectiveness of collective bargaining.  Workers successfully sought to enforce their rights through available legal means.  The NLRB complaint armed the Machinists with a huge bargaining chip at the negotiation table, and as a result, the parties were able to mutually agree to a contract and settle the case.  The parties achieved all this without the need for a strike, litigation, or third-party intervention, which is the ultimate goal of collective bargaining.

What is the Heart Bill?

The Heart Law presumption, commonly called the “Heart Bill” presumes that a police officer’s heart ailment is work-related for purposes of accidental disability retirement, unless there is sufficient evidence to rebut it.  In other words, if you have a heart ailment (e.g., you have a heart attack), you are entitled to accidental disability retirement benefits unless the entity opposing the presumption can provide “competent evidence” proving that it was not work related.  Even if there is absolutely no evidence that the impairment is work-related, the presumption stands.  Attempts to overcome the presumption by pointing out numerous risk factors such as high cholesterol, obesity, or smoking arte typically unsuccessful because the mere existence of risk factors does not in and of itself rebut the presumption.  The impact of the risk factors must include substantial evidence of how the risk factors affected the individual.

Even in the event that a heart ailment could not be said to have arisen in the line of duty, Massachusetts law provides that if a pre-existing condition is accelerated as a result of a hazard on the job, causation for the injury is established, even if the pre-existing condition is not work-related.  For example, court cases have ruled that a police officer’s hypertension was exacerbated by normal police duties and thus work-related and that a fire fighter’s degenerative disc disease was exacerbated by working on a fire truck and thus work-related.

Furthermore, if you have a collective bargaining agreement that applies the Heart Law presumption to “injured-on-duty” leave, you may be entitled to 111F leave if you have a heart ailment and decide to go back to work.  For example, if you have a heart attack and take 4 weeks to recover, you may be entitled to receive 111F pay for that time period instead of being forced to use your sick days.  You should contact your union representative if you believe this may affect you.

Civil Service Knocks Out Quincy Mayor’s Choice for Fire Chief and a Judge Agrees

Based on many recent Civil Service decisions and, even more poignantly, the courts’ reaction to those decisions, many of us concluded that challenging a bypass promotional case was about as promising as hitting a trifecta at your local race track. [1] That perception, however, may no longer be accurate.  A 60 page decision by Commissioner Paul Stein in September in the case of Smyth v. City of Quincy, not only upheld a bypass appeal for the position of Quincy Fire Chief, but also removed the appointee from the permanent position and, in very specific terms, ordered the city how to go about properly selecting the next chief from the three highest scores on the certification.  When the city appealed to Superior Court to enjoin the Commission’s decision from taking effect, the judge, in a decision issued on November 21, refused to intervene on the grounds that the city was likely to lose its appeal.

By way of background, civil service law, all contained in Mass. General Laws Chapter 31, compels that promotions be made from among the three highest scoring applicants on a certification (a list of candidates with passing scores ranked numerically by the state Human Resources Division [HRD]).  If the appointing authority, in the case of Quincy Fire, the mayor, selects a candidate other than one with the highest score, s/he must supply the reasons for doing so.  The higher scoring candidates may then lodge bypass appeals with the Civil Service Commission.

The Civil Service decision concluded that Quincy’s mayor was predisposed to appointing a politically well-placed candidate and that his proffered rationale was a smokescreen to obfuscate his predisposition.  The case contains an excellent primer, with abundant citations, on what an appellant needs to show in order to prevail in a bypass appeal.

The remedy is particularly noteworthy.  Ordering that the permanent appointment be rescinded is rare but not unique.  Prescribing how the city must make the next appointment in order to remove any bias and instill the process with integrity is virtually unprecedented.  Commissioner Stein has set out a blueprint for what appointing authorities must do to insulate themselves from bypass challenges, and a road map for future appellants to follow in asserting such challenges.  The specific requirements (quoted directly from the decision) are:

(a) candidate interviews must be conducted by a panel to be selected and arranged by an independent outside individual or firm that has experience in the review and selection of public safety and/or senior public sector personnel in Massachusetts;

(b) neither the outside individual or firm, nor any member of the interview panel shall have any present or prior contractual, employment or familial relationship to the Mayor of Quincy or to any of the candidates;

(c) the candidates will be provided, also reasonably in advance of the interview, a description of the criteria by which their credentials and their interview performance will be evaluated;

(d) the evaluation criteria shall be established by the independent individual or firm selected to arrange the interviews, and shall contain such procedures and criteria that the outside individual or firm deems appropriate in consideration of a candidate for Fire Chief, provided that Quincy may contribute its input to the independent individual or firm as to any aspect of the interview process, including evaluation criteria, as it deems appropriate, and further provided that any communications between Quincy and the independent individual or firm shall be disclosed to each of the candidates;

(e) the interview panel shall render a written report of the interviews which shall be made available to each of the candidates and to the public; and

(f) the written report shall include a specific rating of each candidate?s performance in each component or question during the interview, an overall ranking of the candidates, and a description of any unique positive and/or negative qualities or experience noted about any of the candidates.

Attorney Betsy Ehrenberg is to be highly commended for her excellent work in not only attaining this favorable precedent but also in successfully defending it, at least through this initial phase, in the courts.

It is also hoped that the specificity of the remedy will send a message to the public safety community: the days of perverting what is supposed to be a merit-based promotional system based on who someone is rather than what the person knows and has done are over.

 

[1] In the interest of full disclosure, I did hit one on my first visit to Saratoga, however, subsequent visits have confirmed it was beginner’s, or dumb, luck.

Evergreen “Fix” Signed into Law

On November 22nd, Governor Patrick signed the Evergreen “Fix” bill into law.  The bill was passed as an emergency act so it immediately goes into effect.  Accordingly, municipal employers are bound to the terms of collective bargaining agreements with an evergreen clause until a new contract is negotiated.  This is now the law, even if an evergreen clause extends a collective bargaining agreement beyond three years.

“Evergreen” Problem Fixed by Legislature

Last fall, the state Supreme Judicial Court overturned 30 years of history and held that “evergreen clauses” – clauses that extend collective bargaining agreements until a new contract is negotiated – were unlawful and unenforceable if the clause operated to extend a collective bargaining agreement beyond three years. This wreeked havoc in some communities because employers took advantage of the ruling by refusing to arbitrate grievances after a three- year contract expired. In addition, some employers took the position that they were not bound by any of the terms of the contract after three years, despite the fact that the employer had agreed to an evergreen provision.

This problem was corrected by the legislature on November 17thin House 3789-11. As a result of diligent efforts, persistence and lobbying by a broad coalition of public sector unions over the past year, the legislature enacted a bill that reverses the SJC ruling — reaffirming that evergreen clauses are enforceable even if they operate to extend the contract beyond three years. In addition, and again due to the extraordinary efforts of the labor coalition, the legislation contains a retroactivity provision. Section 2 of the new law restores evergreen clauses to any collective bargaining agreement that contained an evergreen provision and had expired after three years under the SJC decision. Evergreen clauses in such agreements are resurrected and enforceable going forward – even as to matters that arose prior to this legislation. So, if you are under a three year contract with an evergreen clause that had expired under the SJC ruling, the contract has been restored and is enforceable until a new contract is negotiated.

There is a narrow exception the retroactivity provision. The law does not apply are “specific matters” that “were pending or adjudicated in a court of competent jurisdiction” at the time that law was passed. There will undoubtedly be litigation about which cases fall under that exception. But the vast majority of matters are back under the umbrella of evergreen clauses. This bill is now awaiting the Governor’s signature.

Read The Bill…