Little info on Buffalo freeze

[doughnut]

BUFFALO, NY - The state's highest court, the Court Of Appeals on Tuesday denied Buffalo firefighters, police officers and teachers back pay from a period during which Buffalo's Control Board had imposed a wage freeze on all city workers.

The wage freeze ran from 2004-2007.

Tuesday's decision is the latest in a three year legal battle between the city and its unions over the disputed money, which revolves around automatic increases in pay called longevity steps.

Two earlier court rulings sided with the unions, saying the employees should be awarded longevity pay for the period of the city's wage freeze, but Tuesday's ruling reverses those lower court decisions.

The City of Buffalo says this ruling will save it up to $14 millon in back pay.

Buffalo Teachers Federation President Phil Rumore tells 2 On Your Side the union is already planning an appeal to Federal Court.

"We agree that once our wages were frozen we don't get back pay during that time. But don't tell us that once the wage freeze was lifted, that those years were erased, and the teachers don't go to the step they belong on," said Rumore.

The Buffalo School System had set aside $74 million in the event it lost the court case.

Schools Superintendent Dr. James Williams says the ruling could jump start negotiations with the BTF.

Williams adds though that because the system has a recurring problem paying for employees health and pension benefits, the court ruling does not mean it's suddenly flush with cash.

"We've said we have contracts that have not been negotiated since 2004 that is a priority, we still have structural deficit issues, we had a $43 million deficit as of last night that still has to be balanced," said the system's Chief Financial Officer, Barbara Smith.

The yearly steps that the union members will not receive could cost them tens of thousands of dollars over the course of their careers.

"This is just another example of the hard working men and women of the Buffalo Fire Department again being tossed to the side except when the bell rings they want you there in a hurry," said firefighters' union President Dan Cunningham.

Cunningham adds that only 17 firefighters will be impacted by the ruling, costing them close to $20,000 each.

Scott Brown: "What do you say to the police and firefighters who put their lives on the line for the city who were expecting this money?"

Mayor Byron Brown: "We certainly honor the work and service of our police officers and firefighters, but the city has upheld the law, the city has followed the law and the fact that the city has followed the law was upheld by the highest court in the state of New York."

[doughnut]

“Temporary wage freezes are lawful under New York and Federal law provided they are supported with appropriate legislative findings and tailored in a reasonable manner to protect the public,” concludes the opinion written by Terry O’Neil and Howard Miller, partners at the law firm of Bond, Schoeneck & King, PLLC.

O’Neil and Miller cite federal and state court decisions upholding wage freezes in New York City, Yonkers and Buffalo, all imposed with legislative authorizations by state- created financial control boards. In another case, a federal court upheld a furlough in Baltimore, Md.

“In short, a court reviewing a statutory wage freeze will likely defer to legislative findings of a fiscal emergency,” they write. “If it can be shown that other less intrusive interventions were tried without success to protect the public, the Legislation will be upheld.”

The opinion notes that the state has already sought unsuccessfully to deal with its financial problems by increasing taxes, cutting aid to school districts and municipalities, delaying income tax refunds, postponing payments to school districts and temporarily halting highway construction funds as the construction season began.

[OTJrook]

How long was the buffalo wage freeze in total? I thought it was more than 3 years?

[overthecap]

From 2011


Buffalo prevails in wage-freeze dispute
By Denise M. Champagne
New York Daily Record Posted: 4:22 pm Thu, March 31, 2011 4:22 pm Thu, March 31, 2011

The City of Buffalo does not have to compensate union members for salary increases lost during a pay freeze.

The New York State Court of Appeals Wednesday reversed two lower court decisions that gave employees three additional salary steps missed during the freeze.

“It was important to the city of Buffalo and the school district, of course, because it saved over $100 million and will prevent the closing of schools and massive layoffs,” said A. Vincent Buzard, a Rochester attorney who represents the Buffalo Fiscal Stability Authority, one of the appellants. “I, naturally, as a lawyer, feel good about preventing people from losing their jobs and also preventing damage to the school district.”

Buzard, chair of Harris Beach PLLC’s Appellate Practice Group, said the decision is significant because it enunciates a principal that the powers of the authority should be broadly construed to give purpose to a statute like the one that called for creation of the authority. He said the unions were arguing for a more narrow interpretation.

The Buffalo Fiscal Stability Authority, a public benefit corporation, was established by the state under legislation proposed by the state comptroller following a 2003 audit.

The comptroller concluded the city had been operating with a deficit for many years and was only able to fund its operations because of increasing state aid and using its reserves.

In 2004, the BFSA imposed a wage freeze that included increased payments for salary adjustments according to “plan and step-ups or increments.”

The freeze, according to court documents, was lifted in July 2007 when the BFSA indicated city employees would immediately be entitled to a step-one pay increase. The unions objected, however, contending that the employees were entitled to advance the four salary steps that they would have received had the freeze not been imposed.

They challenged that in Article 78 and declaratory judgment proceedings. The supreme court found that Public Authorities Law applies only to wages lost during the freeze and not to longevity and promotional steps provided in the various contracts between the city and its unions. It further ruled the petitioners were “entitled to previously negotiated wage increase benefits going forward immediately.”

The city appealed. The Appellate Division, Fourth Department, affirmed so the BFSA sought leave to appeal to the state’s highest court, which was granted.

The city argued that under the law, contractual salary increases, step increases and other pay adjustments were suspended and did not accrue during the freeze and that union members were only entitled to a one-step increase when the freeze was lifted.

The unions acknowledged the law prohibits the accrual of retroactive pay, but argued that their members accrued service credit in the step-salary plan and should have received the salary steps when the freeze ended.

“Both parties argue that the plain language of the statute supports their position,” Judge Eugene F. Pigott Jr. wrote in the unanimous decision. “In our view, neither interpretation is unreasonable. Ultimately, however, the interpretation proffered by the city most comports with the meaning and purpose of the statute.”

The Court of Appeals noted the intent of the act also needed to be considered and that the entire purpose of the statute creating the BFSA was to place the city on long-term sound financial ground.

“BFSA was empowered to freeze wages and salary increments until the city’s growth and stability were renewed,” Judge Pigott wrote. “The intent of the statute supports the city’s position.”

Buzard said it is very satisfying for a lawyer to get to argue before the Court of Appeals and that he was pleased no justices dissented.

“When we walked out of the argument, it was hard to tell and it didn’t seem like it was going to be unanimous,” he said. “I’m very glad that it was. It shows there was no doubt about the decision. I think it brings closure to the issue. The fact that we lost twice and then got it reversed is satisfying.”



Read more: nydailyrecord.com/blog/2011/03/31/buffalo-prevails-in-wage-freeze-dispute/#ixzz2k0f6IP60

[doughnut]

No worries guys stuck in steps, after we lose in state court 2 years from now and when Nifa lifts the wage freeze in 2017 or 2018 you will get your one step. Make sure you save those sick days. After all if you have 500 saved you get paid for 250 and are taxed on those, so you only get paid for 2/3 of the 250, so in reality you get paid for about 165 days.

[regrets]

Doughnut, you are giving NIFA too much credit. There are no guarantees that NIFA lifts the freeze in 2017 or 18. Budget needs to be balanced & w county in the red for billions & mangano not raising taxes & actually wanting NIFA here, we can be frozen for much longer than that.

[tornado]

The teet in Nassau has long gone dry, and the same in Suffolk is close at hand......

[ncpdretired]

NCPDHOPEFUL,
I don't know how much more information you need to make up your mind about what to do.

Just saying………..

[overthecap]

It appears to be a dlilemma for all that has no end in site and no happy ending. I empathise with your predicament.

Nifa has no reason to lift the freeze. They need no ones permission.
Your only hope is that the court rules that its imposition was unlawful.
The Buffalo article IMO doesn't support that.

IMO, what is of the utmost importance is for the salary steps to resume. The freeze on the 1% raise and the top pay salary increases may continue, but the steps must be re-instated.

It is most important for the PBA, as well as the county in order to encourage new hires.

This I think will be the main topic of discussion going forward.

It stinks!

Hoping for the best for you all.

You are the best, and a great bunch who deserve better.

[zzzz]

There's a couple of points I'd like to make...... First, it seems that in Buffalo the city tried everything to avoid the freeze and that included RAISING taxes. My question is do you think our attorneys can bring this up in State Court or is the State Court just gonna rule on the technicality of the authority being expired? Second, after we get shot down in State Court 2 years from now and it gets bounced back to Wexler can we make an argument that how can a "FREEZE" be indefinitely? Logically that sounds unlawful. 3,4,5,6 years of wage freezes all while county adds payroll with hires. We should urge legislation on this issue to limit a freeze to whatever amount of years a city or county can impose without raising taxes. At the end of that period taxes should be forced to increase!! Also while in a freeze period new payroll should not be allowed to be added until the freeze is lifted. It's all live and learn I guess but to me there seems to be some logical laws that can and should be passed to protect employees.... In my opinion our attorney's don't seem smart enough to think of these issues and if they did I guess we need to pay them more money!!! All a shvt show

[tunnelsdark]

There is something in the Buffalo decision that talks about "the temporary and prospective quality of the wage freeze" in regards to why the court felt that even though they agree it was an impairment of a contract it was still deemed reasonable in respect to the Constitutional Contracts Clause due to The City's financial state.
So I seriously hope that at some point a indefinite freeze would not be seen as temporary. Though these days who knows.
Maybe Top pay by retirement....

[countymounty]

I guess Jimmy does not speak with the Buffalo PBA!


Search

Buffalo Police Benevolent Association, Inc
 

Back PayUpdated On: Oct 18, 2013

Mr. Kennedy,
 

Because each record must be checked individually, the check are being  staggered by each fiscal year.  We assume some people would rather have  their checks sooner than waiting till we are able to receive one individual  check. 
 

The schedule for retro pay for the Police from the arbitration award for  2008-09 and 2009-10 follows;
 

Retro on wages paid in fiscal year 2008-09 will be paid on Friday, October  18th

Retro on wages paid in fiscal year 2009-10 will be paid on Friday, October  25th

Retro on wages paid in fiscal year 2010-11 will be paid on Friday, November  1st

Retro on wages paid in fiscal year 2011-12 will be paid on Friday, November  8th

Retro on wages paid in fiscal year 2012-13 will be paid on Friday, November  15th

Retro on wages paid in fiscal year 2013-14 through September 15 th will be  paid on Friday, November 22nd
 

October 11th pay checks for police reflected the raises. 
 

Whitney B. Kemp

Secretary to the Comptroller

Mark J. F. Schroeder, Comptroller

Department of Audit and Control

65 Niagara Square, Room 1225

Buffalo, NY 14202

Mr. Siegel,

I appreciate the fact that your invoice for services rendered for the  Interest Arbitration between the PBA and the City of Buffalo was sent to the  PBA for payment three months ago.

If you recall, your award on back pay and longevity was to be paid to  members of this union by September 14, 2013 (60 days from the issuance of  your award).  I notified you that the City was not going to pay our members  in that time line and asked for you to intercede and hold the elimination of  the Cosmetic Rider in abeyance until the City of Buffalo honored the back  pay issue.

You informed me that you were not going to "clarify your award" at that  time.  This failure to enforce your own award has cost our members dearly.

Now I am informed that the full satisfaction of this award will not be  complete until November 22, 2013, ( the notification is attached to this  email).  This is the third delay in payment/honoring "your award".

While my members wait on their money, you want me to process your invoice?

The longer my members have to wait for their money, the longer you will have  to wait for yours!

I wonder if the City of Buffalo has paid their portion of the cost of this  Interest Arbitration case.

I am not inclined to pay your invoice until the full effect of the back pay  issue is resolved and verified.

This is not just a matter of principle for me but, also a matter of  financial responsibility.  This union can ill afford to pay your bill until  we receive the dues that will be withheld from these back pay checks.   Because you have allowed the City of Buffalo to delay these payment and, now  they plan on paying them out in separate checks; it will take my staff some  time to tabulate, verify and, then process any invoice relating to this  Interest Arbitration case.

Kevin M. Kennedy

PBA President


  


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[overthecap]

Nov 8, 2013 20:34:41 GMT -5 countymounty said:

I guess Jimmy does not speak with the Buffalo PBA!


Search

Buffalo Police Benevolent Association, Inc
 

Back PayUpdated On: Oct 18, 2013

Mr. Kennedy,
 

Because each record must be checked individually, the check are being  staggered by each fiscal year.  We assume some people would rather have  their checks sooner than waiting till we are able to receive one individual  check. 
 

The schedule for retro pay for the Police from the arbitration award for  2008-09 and 2009-10 follows;
 

Retro on wages paid in fiscal year 2008-09 will be paid on Friday, October  18th

Retro on wages paid in fiscal year 2009-10 will be paid on Friday, October  25th

Retro on wages paid in fiscal year 2010-11 will be paid on Friday, November  1st

Retro on wages paid in fiscal year 2011-12 will be paid on Friday, November  8th

Retro on wages paid in fiscal year 2012-13 will be paid on Friday, November  15th

Retro on wages paid in fiscal year 2013-14 through September 15 th will be  paid on Friday, November 22nd
 

October 11th pay checks for police reflected the raises. 
 

Whitney B. Kemp

Secretary to the Comptroller

Mark J. F. Schroeder, Comptroller

Department of Audit and Control

65 Niagara Square, Room 1225

Buffalo, NY 14202

Mr. Siegel,

I appreciate the fact that your invoice for services rendered for the  Interest Arbitration between the PBA and the City of Buffalo was sent to the  PBA for payment three months ago.

If you recall, your award on back pay and longevity was to be paid to  members of this union by September 14, 2013 (60 days from the issuance of  your award).  I notified you that the City was not going to pay our members  in that time line and asked for you to intercede and hold the elimination of  the Cosmetic Rider in abeyance until the City of Buffalo honored the back  pay issue.

You informed me that you were not going to "clarify your award" at that  time.  This failure to enforce your own award has cost our members dearly.

Now I am informed that the full satisfaction of this award will not be  complete until November 22, 2013, ( the notification is attached to this  email).  This is the third delay in payment/honoring "your award".

While my members wait on their money, you want me to process your invoice?

The longer my members have to wait for their money, the longer you will have  to wait for yours!

I wonder if the City of Buffalo has paid their portion of the cost of this  Interest Arbitration case.

I am not inclined to pay your invoice until the full effect of the back pay  issue is resolved and verified.

This is not just a matter of principle for me but, also a matter of  financial responsibility.  This union can ill afford to pay your bill until  we receive the dues that will be withheld from these back pay checks.   Because you have allowed the City of Buffalo to delay these payment and, now  they plan on paying them out in separate checks; it will take my staff some  time to tabulate, verify and, then process any invoice relating to this  Interest Arbitration case.

Kevin M. Kennedy

PBA President


  


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Buffalo police union president resigns amid scandal
Decision avoids ouster vote as federal officials probe how PBA funds were handled by leaders

By Lou Michel | News Staff Reporter on March 13, 2013 - 8:47 PM

March 14, 2013[/b] at 8:41 AM

Pressured police union treasurer resigns

Draft audit questions Buffalo PBA spending practices

The fallout from the audit of the Buffalo Police Benevolent Association continued Wednesday on two fronts with word that the current union president resigned and confirmation that a federal investigation is under way into the handling of union funds.

Lt. James Panus, the last of the union officers to work under the old administration of former PBA President Lt. Robert P. Meegan Jr., submitted his resignation Tuesday rather than face a vote that sought his removal.

PBA members had introduced the resolution last week but tabled it for 30 days. At that same meeting, Inspector William Misztal resigned before union members voted on a resolution to remove him as treasurer.

Kevin M. Kennedy, who automatically moved into the PBA presidency from the office of first vice president, said he and his staff are working with the U.S. Attorney’s Office to comply with its subpoena seeking the union’s records dating back to 2008.

The subpoena must be complied with by next Wednesday, and it will include the forwarding of financial records, bylaws and minutes of meetings, Kennedy said.

A recently released audit, requested by union members, uncovered a lack of financial controls on spending of union dues, citing expensive lunches, out-of-town trips to union conferences that permitted union officers to bring guests at the PBA’s expense and questions regarding Meegan’s use of a PBA credit card.

Kennedy, during his first full day as head of the union on Wednesday, said that a series of amended bylaws are now in place that create a system of “checks and balances” for the handling of all union funds.

Attempts to reach Panus and Misztal to comment have been unsuccessful, though Panus told The Buffalo News last week his focus was on obtaining an arbitration award for the unsettled 2007-09 contract that would represent an equitable settlement for police officers.

In addition to cooperating with federal authorities, Kennedy said he plans to make the union more open.

“We’re going to try and be more inclusive and get more members to be involved in the process,” he said. “We have 741 active members and 2,000 retirees that are affiliated with the union.”

Kennedy also thanked Panus and Misztal for their years of service.

“I think Jim realized the only way this union was going to survive was if the membership saw new direction. I think he put the union before himself,” Kennedy said of Panus. “A lot of people realize he was a hardworking person and people should be appreciative.”

Kennedy was not the only one to express gratitude to Panus, who served as recording secretary since 2008 and then in 2011 was elected to a two-year term as president.

“Jim was an extremely dedicated union steward, and his heart was and always will remain in helping the membership obtain the best working conditions possible,” a longtime union member said. “He really did the right thing by not forcing us to have another month with all this turmoil. I think this is a positive change because it allows the new president to concentrate on union business, minus any distractions.”

In requesting anonymity but describing himself as a spokesman for a number of union members, the officer also said that many believe Panus and Meegan, who had served 24 years as president before retiring from the police force 15 months ago, “always had the best interest of the membership to the very best of their abilities.”

Kennedy, meanwhile, says he plans to run for PBA president during the union’s regular elections in November. A special election, he said, will be held within 45 days to fill the positions of treasurer and second vice president.

Detective William Gambino, who held the post of second vice president, has moved up to first vice president.

Kennedy is an accident investigator in the Traffic Division, but under provisions of the police contract will work full time as union president.


www.buffalonews.com/20130313/buffalo_police_union_president_resigns_amid_scandal.html

[overthecap]

They were frozen 2004-2007.

Below was the award starting 2008

Buffalo police officers will no longer enjoy cosmetic surgery benefits in their contract with the city following a decision from an arbitrator.

A compulsory arbitration award, reviewed by the Common Council on Tuesday, took away cosmetic surgery benefits, effective Sunday, and also awards retroactive raises and increases in longevity pay. The estimated cost to the city is $23 million over nine years.

Members of the Buffalo Police Benevolent Association will see their wages increase by 1 percent retroactively as of June 30, 2008, and then again by 2 percent as of June 30, 2009.

Officers’ pay will now range from $50,372 to $66,031. Other ranks will see their salaries increase. Detectives will be paid $68,230, and at the top, the commissioner will be paid $120,522, according to a salary schedule approved by the Council on Tuesday.

Officers also will receive an increase in longevity pay, which multiplies with each year of service. Yearly awards increased by $30, to $155. This sum is paid to each officer for each year of service, up to 25 years, meaning an officer with 25 years in the department is paid an additional $3,875 every year.

The award was issued July 16 by Jay M. Siegel, compulsory interest arbitration panel chairman.

The police union did not agree with the award, which takes away cosmetic surgery benefits as a point for future negotiations with the city, but does not plan to fight it.

“We would just like to put it behind us and move forward,” said John Evans, PBA second vice president.

The union, which represents approximately 741 members, has concerns that the city will be able to pay them in time, as the award must be paid out within 60 days, Evans said.

Comptroller Mark J.F. Schroeder’s office, which is waiting on information from the administration before payments can be made, confirmed that the retroactive pay cannot be paid in time for the Sept. 14 deadline, and that payment won’t likely be made until Oct. 12 to Nov. 1.

The city’s total retroactive cost of the award, including retroactive raises, longevity pay, payroll taxes and additional pension contributions, is $12.5 million from 2009 through 2103, according to an analysis from the Buffalo Fiscal Stability Authority. The estimated costs over four years beginning in 2014, less the savings from the elimination of cosmetic surgery, is $10.7 million, the authority found.

The city appears to have the funds to pay for the award, according to the authority.

The award also allows the city to adjust manpower levels twice a year, instead of once a year.