Firefighters' pact will save city money

Three firefighters are retiring and two will not be replaced.
By LAURE CIOFFI
VINDICATOR PENNSYLVANIA BUREAU
NEW CASTLE, Pa. -- An early-bird contract with city firefighters is expected to save New Castle thousands of dollars.
City council approved the seven-year contract at a special meeting Wednesday morning.
Councilwoman Christine Sands said the firefighters were extremely cooperative and respectful of council when negotiating the new deal.
The city's previous contract with International Association of Firefighters Local 160 wasn't due to end until 2008, but firefighters approached the city about contract changes about eight months ago after hearing about the city's financial woes, said Rich Johnson, Local 160 president.
City officials are considering declaring New Castle financially distressed through Pennsylvania's Municipalities Financial Recovery Act, which is called Act 47.
Deficits
The city has a 1.5 million general fund deficit and a 1.3 million deficit for its minimum municipal obligation for its pension fund.
Changes in the firefighters contract will save about 300,000 in the first year and will affect both deficits, Johnson said.
Among the greatest savings from the city firefighters are the retirements of three people, two of whom will not be replaced.
Mayor Wayne Alexander said there will be a 100,000 yearly savings from the two eliminated positions.
And the third position, which will be filled, will cost the city less because firefighters have agreed to increase the number of pay steps from six to eight to reach the top pay scale of about 50,000 a year.
The remaining firefighters have agreed to a one-year pay freeze in 2007, agreed to pay 5 percent of their health-care costs, add an additional 2 percent from their own pay to the pension and reduce, by about one-third, the amount they receive in bonuses for things such as unused sick days and holiday pay.
Firefighters will receive 2 percent pay raises in 2008 and beyond but have agreed to a cost-of-living pay raise in the past two years that will not exceed 4 percent.
Restored later
Johnson said most of the items reduced in the first four years of the contract, like bonuses, will be restored in the latter part of the contract. He noted that they will pay the health-care costs for the life of the contract.
"In the first four years we are looking at about 500,000 in savings," he said. Johnson noted that new hires also will be under a different pension formula, also expected to save the city money.
Alexander said the city will be negotiating with the unions representing code enforcement and clerical workers next week. He said they also have extended the offer to renegotiate to the police and public works unions too.
Johnson said one reason firefighters were eager to sign an early-bird contract is that if the city is declared financially distressed, existing labor contracts cannot be changed.
There are 26 firefighters working for the city.
cioffi@vindy.com