Expensive arbitration for county

An arbitration ruling that awarded unionized Luzerne County prison employees raises totaling 16 percent over five years will cost the county $1.9 million to $2.1 million over the life of the contract, a county official estimates.

The award gives correctional officers and support staff raises of 4 percent retroactive to July 1, 2009 and 3 percent for each year from 2010 to 2013. It affects 319 workers who are members of the Public Service Employee Union Local 1300.

The ruling means the top rate for a correctional officer (with eight years service) who works in the main facility will increase from the current rate of $48,107 to $56,310 in 2013. What other employees will make depends on their job category.

The county gained something in that employees will, for the first time, have to contribute to health care premiums. But it’s a limited victory, County Chief Clerk/Manager Doug Pape said, as the contribution does not begin until 2013 – the last year of the contract.

Employees will be required to pay $60 per month toward coverage, regardless if it is a single or family plan. Pape said the county had hoped for a contribution of 10 percent of the county’s cost for the coverage, which has been estimated at $10,800 for 2010.

“It certainly was a disappointing arbitration ruling,” Pape said. “The raises across the board were very generous and the health care doesn’t kick in until the last year. Why that’s so far at the end of the contract is beyond me.”

Tony Seiwell, head of Local 1300, did not return a phone message seeking comment.

The award also increases the payment for clothing allowance and the hourly shift differentials. The second shift differential will increase from 25 cents to 40 cents per hour, and third shift from 35 cents to 50 cents per hour. Clothing allowance will increase from $450 to $625.

In addition, employees hired effective in 2013 will reach the top rate sooner. Currently, an employee reaches the top rate after eight years. That will be reduced to seven years.

The award comes just as the county passed a budget with a 15 percent tax hike that included layoffs of numerous employees.

Commissioner Chairwoman Maryanne Petrilla said she expects the contract will elicit anger and resentment from other county employees.

“People are going to look and say, ‘We just got laid off and they’re getting all this?’” Petrilla said. “We went to arbitration. There’s not a lot we can do.”

The prison contract expired at the end of 2008. The county was forced to go to binding arbitration after contract negotiations reached an impasse. Prison employees, as public safety servants, are unable to strike. The key issues in dispute were wages and health care, Petrilla said.

The three-member panel consisted of James Valentine, who was selected by the county, Ira Weinstock, who was selected by the union, and Ralph Colflesh, who was the neutral arbitrator. The panel heard testimony in July and entered the award last week. It was forwarded to the county on Monday.

Petrilla said the county had hoped for a lesser wage increase, or, in the alternative, a higher payment toward health care costs.

The county did score a partial victory regarding health care in that all prison employees will pay higher co-pays for doctor visits and prescription medications as of Jan. 1, 2011.

The co-pay for a doctor’s visit will increase from $5 to $10. Prescription co-pays will increase from $5 to $15 for some drugs and from $15 to $30 for others, dependent upon the pricing tier. New hires will pay the cost difference immediately upon hire, said Max Blaskiewicz, the county’s collective bargaining officer.

The prison also convinced the arbitration panel to keep the number of steps in the salary scale at eight for most employees. The union had sought to reduce the steps to five, which would have allowed workers to reach the top rate three years earlier, Blaskiewicz said.

“We expected something a little more conservative, but it’s an arbitration ruling and we have to live with it,” Petrilla said.

Because the arbitration was binding, the county’s options for appeal are limited. She said officials are reviewing the entire award to see if any portion can be appealed.

Tom Pribula, director of budget and finance, has estimated the contract will cost the county $2.1 million more in salaries over the five years. That cost will be reduced by about $220,000 in 2013 due to the $60 contribution toward health care, for a net cost of $1.9 million, Pribula said.

Prison Warden Joseph Piazza said Wednesday he’s hopeful that cuts he made in other areas of the prison budget will make up for the increases in wages. Piazza did not participate in the contract negotiations.

“It’s not a budget buster, but we’re going to have to really work hard and watch how we spend,” Piazza said.

The overall award was approved by all three arbitrators, with dissents on portions issued by Weinstock and Valentine.

Valentine objected to the wage increases, which he said were “extraordinary and excessive” given the county’s current financial condition.

“The testimony and supporting evidence presented at the hearing … relating to the county’s financial condition should have compelled a much different and much less costly result,” Valentine wrote.

Weinstock opposed having employees contribute any money toward health insurance because they had “indirectly” paid for that benefit previously by foregoing a raise increase in other years. He said he also would have eliminated the second tier of the wage scale, which would have given employees who are receiving 85 percent of the top rate 100 percent of that rate.