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Deerfield holds up fire union contract: Enhanced pension costs under scrutiny(South Florida Sun-Sentinel (KRT) Via Thomson Dialog NewsEdge) Dec. 9--DEERFIELD BEACH -- City commissioners have delayed approving a fire union contract until at least Dec. 19, giving them time to find out what it will cost the city to increase pension benefits. Commissioner Steve Gonot, clashing at times with the city's labor attorney during a November meeting, expressed concern that the city may have to pay $23 million over the life of the pension plan. "It's like buying a car without looking at the sticker," Gonot said. "We need to know the costs, and we don't ... This is a very big-ticket item we weren't prepared to accept." Commissioners are expected to review the issue again Dec. 19. At the same meeting, they also plan to discuss having a special referendum election in March about a possible merger of the fire department with the Broward Sheriff's Office. Labor attorney James Baker warned commissioners they may face a stalemate and possibly lose firefighters to other agencies if they don't ratify the proposed three-year contract. Firefighters, who currently contribute 9 percent of their salaries toward their pension, are working under a contract that expired Sept. 30. Baker, who was paid $29,520 by the city to handle the negotiations, said the increase in pension benefits would cost the city about $2.1 million a year. "I can't see [the union] moving off that issue," Baker added. "Then you'd be at an impasse. Then a special magistrate would look at the issue." Retired firefighters now receive a cost-of-living increase only if the pension plan performs well. In the past 20 years, the cost-of-living increase has averaged 1.9 percent a year. The proposed contract guarantees a 3 percent increase regardless of how the plan performs. The increase would benefit all employees of the fire department when they retire, both administrators and members of the rank and file. Mayor Al Capellini agreed that the city needed to proceed cautiously and look at long-term costs. But at least one commissioner sided with the city's 140 firefighters. "I am going to vote for what the union wants," Commissioner Sylvia Poitier said, as more than 50 firefighters watched. Baker told commissioners that the fire union gave up other demands to get the 3 percent increase in pension benefits. The union made concessions on sick time and health insurance, said Rob Weech, one of five firefighters on the union's negotiating team. "We hardly got anything we asked for," Weech said in a phone interview. During the November meeting, Gonot said the commission deserved to know the financial value of items the union conceded during bargaining negotiations. "Mr. Baker, you wanted us to ratify [this contract] -- you should have given us that information," Gonot told the labor attorney. Baker shot back, "You want to hang it around my neck." "Yes, I do," Gonot replied. Copyright (c) 2006, South Florida Sun-Sentinel Distributed by McClatchy-Tribune Business News. For reprints, email [email protected], call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA. |