(Miami, FL.) - The City of Miami reached an agreement with the last two of their four unions by the City Commission ratifying their Solid Waste and Fire Union contracts this week, concluding more than two and one half years of contract negotiations. 

“When I arrived at the city 11 months ago, it was a priority to ensure the union contracts would be completed successfully and I am pleased that goal has been reached,” said City Manager Pete Hernandez. “Each of these agreements not only provides our dedicated employees with fair wages but is also fiscally responsible so that the city can make available to residents the sustainable infrastructure and services they deserve.”

Solid Waste Union

The Solid Waste union (Florida Public Employees Council 79, AFSCME, AFL-CIO, Local 871) contracts cover a three year period retroactive to October 1, 2004, and three years moving forward to September 30, 2010.  The first contract will provide sanitation employees with 2% increases, each year, across the board.  In addition, a new salary structure will be implemented that will provide 2.5% “step” increases for years seven and eight, as well as 2.5% longevity increases for years twenty-one and twenty-two.

In addition to salary increases, solid waste employees who separate from City service will now be paid 100% of unused sick time up to seven hundred fifty hours, an increase from their original 600 hours, and will be paid at a rate of 50% for any accrued sick time above seven hundred fifty hours. They will also have the option of having excess time credited to their vacation leave bank if they decide not to receive a cash payment.

The second contract also provides for across-the-board increases of 3% each of the following years. Moreover, a 2.5% longevity increase was added at year sixteen, as well as an additional 2.5% to year twenty-two.  The Union also agreed to assist the City in curtailing excessive health care costs by sharing increased percentages of premium costs. Regarding pension, the union members will now benefit from a Deferred Retirement Option Plan (DROP) increasing their participation from 36 to 48 months.

International Association of Fire Fighters

On June 12th, 2007, the City Commission ratified two contracts between the City and International Association of Firefighters, AFL-CIO Local 587 (IAFF), the first from October 1, 2004 to September 30, 2007 and the second from October 1, 2007 to September 30, 2010.     The IAFF received a compensation package that includes retroactive, across the board wage increases of 5% effective October 1, 2004, 4% effective October 1, 2005, and 3% effective October 1, 2006.  Additionally, effective October 1, 2006, a new salary schedule goes into effect whereby Firefighters receive a 2.5% pay increase every six months for each “step” commencing with step 2 through step 18. Lieutenants, Captains, & Chief Fire Officers will receive additional step increases totaling 3.5% throughout their career.  Supplemental pay for EMT/Paramedics and other specialty certifications were also increased to remain competitive with other fire departments throughout the tri-county area. 

While retaining Firefighters’ current line of duty benefits, the City will now be able to reduce potential worker’s compensations costs by retaining its right to negotiate fees with a provider.  The Union also agreed to assist the City in curtailing excessive health care costs by sharing increased percentages of premium costs. 

Most importantly for the City, the agreements change Parity and Pension. The City will no longer be hampered in negotiating wages and benefits in future contracts with any union.  Regarding pension, the union has agreed to the creation and implementation of a funding plan for the FIPO retirement system, with the goal of long term stabilization of the City’s general fund contribution to 37% or less of pensionable payroll by September 30, 2008.  If this goal is not met by September 30, 2008, various union concessions will take effect in the area of pension, providing the City relief regarding the City’s contribution to FIPO pension.