EMERGENCY MANAGER CITY OF FLINT GENESEE COUNTY MICHIGAN. ORDER No.16

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1 EMERGENCY MANAGER CITY OF FLINT GENESEE COUNTY MICHIGAN ORDER N.16 APPROVAL OF COLLECTIVE BARGAIN AGREEMENT WITH FLINT I.A.F.F. - FLINT FIREFIGHTERS UNION BY THE POWER AND AUTHORITY VESTED IN THE EMERGENCY MANAGER ( EMERGENCY MANAGER ) FOR THE CITY OF FLINT, MICHIGAN ( CITY ) PURSUANT TO MICHIGAN S PUBLIC ACT 4 OF 2011, THE LOCAL GOVERNMENT AND SCHOOL DISTRICT FISCAL ACCOUNTABILITY ACT, ( PA 4 ); MICHAEL BROWN, THE EMERGENCY MANAGER, ISSUES THE FOLLOWING ORDER: On March 16, 2011, the Lcal Gvernment and Schl District Fiscal Accuntability Act, Public Act 4 f 2011, ( Public Act 4 ) was enacted t safeguard and assure the fiscal accuntability f units f lcal gvernment; t preserve the capacity f units f lcal gvernment t prvide r cause t be prvided necessary services essential t the public health, safety and welfare f citizens; and Pursuant t Public Act 4, the Emergency Manager has brad pwers in receivership t rectify the financial emergency and t assure the fiscal accuntability f the City f Flint and its capacity t prvide r cause t be prvided necessary services essential t the public health, safety and welfare; and Pursuant t Public Act 4, the Emergency Manager acts in place f lcal fficials, specifically the Mayr and City Cuncil, unless the Emergency Manager delegates specific authrity; and Public Act 4 empwers the Emergency Manager t issue the rders the Manager cnsiders necessary t accmplish the purpses f the Act and any such rders are binding n the lcal fficials r emplyees t whm they are issued. Sectin 19(1) prvides that an Emergency Manager may take n ne r mre additinal actins with respect t a lcal gvernment in receivership: (g) Make, apprve r disapprve any apprpriatin, cntract, expenditure (1) Act as sle agent f the lcal gvernment in cllective bargaining with emplyees r representatives and apprve any cntract r agreement; (cc) Take any ther actin r exercise any pwer r authrity f

2 any fficer, emplyee, department, bard, cmmissin, r ther similar entity f the lcal gvernment, whether elected r appinted, relating t the peratin f the lcal gvernment. The pwer f the emergency manager shall be superir t and supersede the pwer f any f the freging fficers r entities...; and 19(2)..the authrity f the chief administrative fficer and gverning bdy t exercise pwer fr and n behalf f the lcal gvernment under law, charter, and rdinance shall be suspended and vested in the Emergency Manager. The City and the I.A.F.F. - Flint Firefighters Unin engaged in gd faith cllective bargaining, with a tentative agreement executed n April 2, The tentative agreement was ratified by the I.A.F.F. - Flint Firefighters Unin n April 14, It is hereby rdered: The terms and cnditins f the parties tentative agreement, attached heret, are hereby accepted and adpted. The Human Resurces Directr shall immediately implement the cntract changes set frth in the tentative agreement and incrprate thse int the cllective bargaining agreement between the City f Flint and the I.A.F.F. - Flint Firefighters Unin. This Order may be amended, mdified, repealed r terminated by any subsequent rder issued by the Emergency Manager. Dated: April 16, 2012 By: t.4 Michael K. Brwn Emergency Manager City f Flint xc: State f Michigan Department f Treasury Mayr Dayne Walling Flint City Cuncil Inez Brwn, City Clerk 5:\P. Bade EM2O II Orders Order N I 6.Fire.FightersCBA DOC

3 TENTATIVE AGREEMENT BETWEEN THE CITY OF FLINT AND THEFLINT FIRE FIGHTERS UNION LOCAL 352 INTERNATIONAL ASSOCIATION OF FIRE FIGHTERS (AFL-CIO) March 31, 2012 WHEREAS, the parties agree t thistentative agreement in regards t a new cllective bargaining agreement, the term f which shall run thrugh June 30, 2014,under thecnditins as set frth belw; NOW THEREFORE, in cnsideratin f the mutual cvenants, prmises, and bligatins cntained in this Tentative Agreement, the parties agree as fllws: ARTICLE 12 SALARIES AND WAGES Sectin 4.Reclassificatjn and Reallcatin CAD Supervisr frm $63, t $50, Quartermaster frm $60, t $56, Cmm. Specialist Trainee frm $33, t $27, ARTICLE 14 FOOD ALLOWANCE Eliminate fr all emplyees. ARTICLE 17 NIGHT BONUS Eliminate fr all emplyees. Eliminate fr all emplyees. ARTICLE 19 STANDBY q-z-ri 6f~Yi) ~- ~r cfr ~f~.qz)t~

4 ARTICLE 23 HOLIDAYS Eliminate ne (1) paid hliday:easter. ARTICLE 24 ANNUAL LEAVE Sectin 1. ACCRUAL OF ANNUAL LEAVE Reduce by ne (1) hur per pay perid fr 50.4 hur emplyees and 40 hur emplyees. ARTICLE 25 SICK LEAVE Sectin 3. Sectin 3. SICK LEAVE BONUS Eliminate fr all emplyees. SICK LEAVE BUYBACK Eliminate fr all emplyees. ARTICLE 46 HOSPITALIZATION INSURANCE The parties agree that the City may change the current medical plans fr all active emplyees t the plans presented by the Emplyer at City Hall n March 29, 2012, and are attached as Exhibit 1. Retiree Health Cverage NEW HIRES Emplyees hired n r after the effective date f this Agreement ( new hire Emplyee ) are ineligible fr Emplyer-paid retiree health care cverage. Instead, the Emplyer shall establish a Retiree Medical Savings Accunt (RMSA) r ther IRS-qualifying savings plan fr each new hire Emplyee. TheEmplyer will cntribute $1, per year t this accuntthrugh installments f $57.70 per pay perid t be reflected n each new hire emplyee s pay stub. New hire Emplyees shall make a pre-tax emplyee,.~,.,~ 9~t1~ withhlding f $ per year t the Emplyee s RMSAthrught 2 ra~f mic8

5 installments f $23.08 per pay perid. Emplyees shall be ne hundred percent (100%) vested at all times n their wn emplyee cntributins and investment earnings. Emplyees shall be vested n Emplyer cntributins and investment earnings accrding t the fllwing schedule: Annual Emplyer and Emplyee cntributins t a new hire Emplyee s RMSA shall cease at the earlier f the Emplyee s separatin frm City emplyment (including retirement) r upn becming eligible fr Medicare. The Emplyee may use the RIVISA fr any purpse cnsistent with federal law and regulatins. Emplyee Pensin Cntributin ARTICLE 49 RETIREMENT Sectin 1. The emplyee annual cntributin shall be increased t 9.5% f all earnings. Multiplier and FAC Calculatin All current emplyees shall have the prtin f their pensin earned fr credited service time prir t April 15, 2012, calculated in accrdance with the prvisins f the cllective bargaining agreement which expired n June 30, Effective April 15, 2012,the multiplier fr all emplyeesshall be reduced t 2.25 fr all credited service time after that dateand there shall be a cap f a ttal f 240 hurs f vertime ver base pay included as part f FAC. Hwever, this revised frmula shall nt apply t current emplyees wh have already accrued mre than 240 hurs f vertime in a perid which culd be included in FAC.Emplyees in thse circumstances must retire using the currently accrued vertime and whatever additinal accruals fvertime are earned prir t retirement, r be subject t therevised frmula as set frth abve. G7/01t1t# ~P mi~13

6 MISCELLANEOUS The parties agree t incrpraterelevant currently existing Letters f Understanding and/rmemrandums f Understanding int thenew cllective bargaining agreement. Unless specifically mdified herein, all ther prvisins f the cllective bargaining agreement which expired n June 30, 2009 shall remain unchanged in the new cllective bargaining agreement. The parties understand, acknwledge and agree that the terms f thistentative agreement, the 2003 Act 312 Award (Bush Schneider) and the tentative agreement dated August 30, 2007 must still be cnverted int final cntract language that bth parties will have t review and apprve.afler all f the language has been apprved by the parties, it shall be integrated int a single dcument which shall be executed by the parties and serve as the new cllective bargaining agreement. This Tentative Agreement is nt enfrceable until frilly ratified by the Flint Fire Fighters, Lcal 352. FLINT FIRE FIGHTERS, LOCAL 352 CITY OF FLINT ~ ~. MICHAEL BROWN Emergency Manager 4

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