Our three word assessment of today’s just-released
finding from the police arbitration board: This is big.
It’s big for the cops: Because
it will change the way their health plan is administered, and will now
require them to contribute more to both health and pensions, but also
gives them raises – 3% for the next two years (with a
contract reopener in the third year to determine what the salaries will
be). It mandates that the police union administer its own
self-insurance program, which means that all doctors and dentists bills
are paid directly by the union instead of an outside health insurance
plan; the city will get an accounting each year of how much money was
actually spent.
The pension plan has also changed, so new hires will have a choice between contributing more of their pay into a defined benefit plan or less into a hybrid plan. It does allow the city to furlough them (up to 30 days a year) but it also allows police with five or more years of service to live outside the city.
It’s big for the city: While there are up-front expenses that the city will have to contend with – primarily related to the raises awarded to police over a two-year period – the city gains big time in the recasting of the health care and pension benefits. While the numbers are still being crunched, it’s clear that the switch from the current health plan to self-insurance, and the switch to a hybrid pension plan will save the city money in the long run and help it gain control over the problem of out of control pensions and health care benefits.
It’s big for the city’s other unions: The police arbitration awards are considered the “ceiling” for other contract awards; in other words, no one is going to do better than the police. This award could, for the municipal unions, provide an early glimpse what their contracts might start looking like. Of course, there’s no arbitration for city unions, so the “discussion” over these details could be longer and louder than this one has been.
It’s big for cities around the country. States and cities both are struggling to cope with pension and benefit costs that keep spiraling upwards. The default mode has been to push off grappling with structural changes for as long as possible. For example, only the District of Columbia has a defined contribution pension plan for non-uniformed workers and San Diego has a hybrid plan. This award will make Philadelphia a trailblazer in restructuring pensions and health care.
More police arbitration coverage: Figuring out the FOP furloughs; Other city unions respond to FOP contractReview city services on our sister site, City Howl.
You say the arbitration is "a ceiling for other contract awards" and "no one is going to do better than the police". Wrong on both counts! Negotiated contracts are not "awarded". They are settled when BOTH sides agree. The City may want to pattern their contract demands based on this arbitration but DC 33 and 47 are not required to agree and roll over. In fact, Pete Matthews of DC 33 just yesterday said he was making no concessions. Second, DC 33 is already doing better than this arbitration award just by staying where they are. If they don't agree to City's demands then they will stay ahead. Pete Matthews won't give anything up and the City can't force him.— union guy- I dare DC 33 & 47 to strike, nothing would make me happier. The city should impose a discounted version of the police arbitration award on those unions as a "take it or leave it" proposition. If they won't accept, the city should immediately terminate all of the striking union hacks, and hire people that will accept this very generous award who would likely be better, smarter and friendlier representatives of the city.— lance71
Comment removed.- lance 71: do you understand that the City simply can't impose a contract on DC 33 and DC 47? Do you understand that collective bargaining for public employee unions in PA is based on law and not your ill-informed opinion? I'm guessing that you also don't know that what you would like to believe, that an employer like the City can "immediately terminate" employees, won't happen either. Take your "opinion" and go away. You don't know anything about the reality of public sector contract bargaining.— union guy
- Here's my assessment: you are clueless. They have a 'hybrid' plan now? All you have to do is pay 6% of salary instead of 5% to stay in exactly the same plan. You're so naive. And you barely mention the residency requirement because you don't know anything about the northeast or Roxborough.— anodyne
- Comment removed.
- I think for active guys this is a great contract. When I was active I, too, wanted to leave the city. This is a great win. As far as turning the medical back over to the police that it so total BS, for years the Police & Fire had PFMA for all police , fire & retirees until Rendell bankrupted it, & now you wish to go back to it, without the retirees of course right.— DNC
- This is disastrous. They already walk around talking down to people as if they are better than them. Now with a bigger paycheck to boot, it's just gonna get even worse! Soon the ranks before their names will be "sire" all the way to "lord" and the uniform will slowly begin to change to something more haut monde.— rjp516
- Comment removed.
- Big cusy, there is hardly "plenty of money for social programs." The library isn't even open when I try to return books. If you think programs that help the poor are rolling in it, you are delusional. And cops don't typically stop muggings.— phillypapers
- I am not against the Police contract, nor the similar contract the the firefighters will likely get when the result of their arbitration is announced. What I am against is the city of Philadelphia having more employees, vehicles, city council people, libraries, pools, rec centers and job classifications per capita than ANY OTHER CITY IN AMERICA!!! It is not 1950 anymore, things have to change. With the police and likely the firefighters moving out of the city we are going to end up with a gigantic social program consuming gheto that will be 100% reliant on businesses and the residents of Center City, Chestnut hill and Mt. Airy. You can't raise taxes enough to make the city work then.— lance71
- No, Big Cushy is right -- the city spends an enormous amount on social programs -- from offering primary health care and behavioral health care for free to all residents no matter how recent or if they pay taxes here, to housing for life for multiple generations, to welfare subsidy for life with no time limit. The city has half a dozen agencies with the word "housing" or "community" in the title that get at least some city money. The libraries are the step-child in this social system that city taxpayers can no longer afford.— CleanupPhilly
- And Philly papers, of course the police stop muggings. Their mere presence is a deterrent, it is well established. If you are with the "Philly papers" then we need some more moderates in the Philly papers who have some basic familiarity with the tenets of police efficacy.— CleanupPhilly
- We have to be honest, whether on the right or the left, when we examine the question, "is social spending in Philly achieving the goals of basic self-sufficiency?" Housing for life is by definition not doing that for those who are not disabled or seniors. Welfare with no clear time limit is no achieving work skills or education. PA is way behind the rest of the country in funding by results, budgeting by proven, evidence-based programs. We can't just expect to throw money at problems and get anywhere, as the recent LIHEAP scandal just illustrated. Throwing money at problems without examining how the money is spent means that little money will go to those for whom the money was allocated in a way that truly helps.— CleanupPhilly
- There should be a residency requirement for journalists, though, because they have no idea what goes on here in the row house neighborhoods.— CleanupPhilly
PHILADELPHIA HORROR STORY
PILE OF BOTTLES FILLED WITH URINE
WILL CITY COVER $41 MILLION IN STATE CUTS?
Tips? Comments? Questions?
Contact:
Doron
Taussig:
215-854-5307
doron.taussig@gmail.com
@dorontaussig
Holly
Otterbein:
215-854-5809
hm.otterbein@gmail.com
@hollyotterbein
Juliana
Reyes:
215-854-5855
juliana.f.reyes@gmail.com
@juliana_f_reyes
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