In the matter of the fact-finding between the Town of LaGrange, employer, and the Civil Service Employees Association, Inc., union. PERB case no. M2010-241. Before: Richard M. Gaba, Esq., Fact Finder

Gaba, Richard M, Esq.

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In the matter of the fact-finding between the Town of LaGrange, employer, and the Civil Service Employees Association, Inc., union. PERB case no. M2010-241. Before: Richard M. Gaba, Esq., Fact Finder.m2010_241.pdf: 101 downloads, before Oct. 1, 2020

Gaba, Richard M.

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Fact Finding Reports - NYS PERB New York State Public Employment Relations Board (PERB) 
11-7-2011 
LaGrange, Town of and Civil Service Employees Association, Inc. 
Richard M. Gaba Esq. 
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LaGrange, Town of and Civil Service Employees Association, Inc. 
Abstract 
In the matter of the fact-finding between the Town of LaGrange, employer, and the Civil Service Employees 
Association, Inc., union. PERB case no. M2010-241. Before: Richard M. Gaba, Esq., Fact Finder. 
Keywords 
New York State, PERB, fact finding 
This article is available at DigitalCommons@ILR: https://digitalcommons.ilr.cornell.edu/perbfact/75 
STATE  OF NEW YORK 
PUBLIC EMPLOYMENT RELATIONS BOARD 
---------------------------------------------------------------X 
In the Matter of Fact-Finding     Report of 
                                 
        Fact Finder 
                       -between- 
PERB Case No. M2010-241 
Town of LaGrange 
 
                          -and- 
 
Civil Service Employees Association, Inc. 
---------------------------------------------------------------X 
Appearances: 
Town of LaGrange 
Michael A. Richardson, Consultant 
100 Kinderhook Street 
Chatham, NY  12037-1222 
 
Also present 
Jon Wagner, Town Supervisor 
Michael Kelly, Highway Superintendent 
Peter Huff, Recreation and Parks 
Christine Toussaint, Town Comptroller 
 
CSEA 
Bob O’Connor, Jr., LRS 
568 State Route 52 
Beacon, NY 12508 
 
Also present 
Brian Aldrich, Unit President 
Joe Tighe, Unit VP 
Douglas Russell, Unit Sec/Treas. 
 
Richard M. Gaba, Esq., Fact Finder 
 
Hearing Date: July 28, 2011 
 
BACKGROUND 
 CSEA and the Town of LaGrange (Town) have had a bargaining relationship for 
a number of years prior to 2006.  The Collective Bargaining Agreement for the period 
January 1, 2006 to December 31, 2008 describes the bargaining unit as “all of the Town’s 
full-time employees employed in the Town’s Highway Department, and all full-time non-
management employees of the Town’s Recreation Department”. The 2006-2008 
agreement provided for a health reimbursement account which was an offset to employee 
out of pocket medical costs, where the Town would pay up to $850 for family, $545 for 
two in the family and $275 for a single person.  This was agreed to in exchange for the 
employees agreeing to a percentage increase contribution to insurance premiums instead 
of the previous flat dollar amount.  This agreement included a $700 snow plowing 
incentive, a vacation leave 40 hour buy out and wage increases of 4 % on January 1st of 
each year of the three year agreement. 
  The negotiations for a 2009  agreement resulted in the employees receiving 1 % 
wage increases effective respectively on July 1st and December 1, 2009.  The health 
reimbursement account was deleted effective December 31, 2009 and the vacation buy 
out was suspended as of  July 15, 2009 through December 31, 2010.  Efforts to reach a 
2010 agreement were unsuccessful and in that case there was a legislated imposition of 
an agreement.   
 The current agreement is the one that was imposed by the Town for the one year 
period from  January 1, 2010 to December 31, 2010.  During negotiations for an 
agreement to commence January 1, 2011, the parties reached a tentative agreement that 
was rejected by the members of the bargaining unit.  Following this rejection by the 
membership, the Town declared an impasse and requested PERB to appoint a mediator.  
A mediator was appointed on December 20, 2010.  A mediation session was held on 
April 18, 2011, but the parties were unable to resolve their differences.  The Town made 
 2
a further request to PERB for the appointment of a fact finder, and on May 20, 2011, I 
was appointed as fact finder in this matter.   
 A fact-finding hearing was held at the Town Hall on July 28, 2011.  After 
representatives of the parties made opening remarks, it was suggested that I engage the 
parties in further discussions in an effort to reach an agreement.  Considerable time and 
energy was expended by both sides but no agreement was reached. No evidence was 
taken at the hearing and the parties agreed to submit written memorandums in support of 
their respective positions on the issues stated below.  The submissions were voluminous 
and helpful in sorting out the huge divide between the Town and the CSEA. 
 
THE TOWN’S PROPOSALS 
FOR 2011 
WAGES: The Town offered a zero increase for 2011, stating that it was necessary in 
order to avoid a reduction in forces.  In the 2006-2008 agreement the employees received 
three annual increases of 4% on January 1 of each year and an additional 2 % in 2009 in 
two steps. 
MEDICAL INSURANCE: The Town wanted to substitute a different insurance plan 
and requested that CSEA drop a pending grievance. 
SNOW PLOW INCENTIVE: The Town wants to eliminate an existing incentive for 
snow plowing attendance.  This provision in the 2006-2008 agreement provided for a 
$700 bonus for responding to 90% of the full crew call-ins for snow removal for the 
period November 1 through April 15.  
 3
PERSONAL LEAVE: The Town offered to add one additional personal leave day, not 
to be accumulated. 
THE CSEA PROPOSALS 
FOR 2011 
 During the unsuccessful mediation efforts that took place as part of the fact-
finding exercise, the CSEA made a proposal consisting of the following: 
WAGES: Reduce starting pay for new employees by $2.00 per hour based on the current 
wage schedule.  Grant all employees a $1,000 bonus in 2011, and a 2% across the board 
increase for 2012. 
MEDICAL INSURANCE: Keep the employee contribution at 12 % of the premium. 
TERM OF AGREEMENT: Two years. (2011 and 2012) 
JOB SECURITY: No layoffs for 2 ½ years 
LONGEVITY: Increase the longevity payment by $1 per hour. 
The Town took the position that it is strapped for funds, and while it submitted no 
evidence of the income shortfalls it stated in its memorandum: 
Mortgage tax revenue remains below  what the Town  received in 2008 - 
$535,070.  2009 - $465,634.  2010 – $492,215, and tracking below YTD in 2010. 
Sales tax revenue remains below what the Town received in 2008 - $803,760. 
2009 - $740,277.  2010 - $749,767, and tracking below YTD in 2010. 
Between 2009 and 2011 the Town has experienced substantial increases in the 
cost of total compensation equal to several thousand dollars per employee due to 
increases in pension costs and increases in medical insurance premiums.   
 4
The pension rate increased from 6.3% in April 2009 to 16.3% in April 2011, and 
will be further increased in April 2012 to 18.9%.  Based on an annual payroll expense per 
employee of $55,000, including overtime, the increase in the pension rate of contribution 
has caused an additional cost going into 2012 of $6,930 per employee compared with 
2009. 
The Town’s share of medical insurance premiums for family coverage increased 
from $9,359 in 2010, to $10,738 in 2011.  This cost is projected to be $12,886 for 2012, 
an increase of $3,527 going into 2012. 
The Town claims that wages in this bargaining unit rank second or third 
compared to similar towns in Dutchess County, and that the current contribution rate of 
12% is below the norm for comparable towns in Dutchess County. 
The Town requests that the fact finder not recommend any wage increase or one 
time cash payment for 2011, since this would only encourage the members of the 
bargaining unit to continue rejecting agreements that have been negotiated by the Town 
in good faith. 
DISCUSSION 
 The Town’s basic position is that it simply cannot afford the increases requested 
by CSEA.  Considering a 2 % increase in property taxes, the $7.4 million budget will be 
under funded by some  $60,000.  The Town stated during the meeting that its sales tax 
revenues are likely to exceed estimations by some $100,000 and concedes that it may be 
able to levy property tax increases in excess of 2% with the agreement of 60% of the 
Town Board (3 out of 5).  The CSEA submitted statements analyzing the Town’s 
 5
 6
finances which indicated that the Town was on a sound financial footing and that its 
bonds were highly rated. 
 The last wage increases received by the unit members were 4% in each year of a 
three year agreement (2006 – 2008) and two 1 % increases split during the 2009 
agreement.  During negotiations for 2009, 2010 and 2011, the Town has sought 
substantial give backs in the area of increased contributions to medical insurance 
premiums, furloughs,  and cutting out the $700 snow plow bonus.  It seems very  unlikely 
that any recommendation by the fact finder that calls for a wage increase without 
substantial give backs would be acceptable to the Town.  Similarly, it is not likely that a 
recommendation that carries a wage increase funded by give backs would satisfy the unit 
members or their union. 
 Recognizing the still dire state of the local economy, and recognizing the 
constantly increasing costs to the Town that continue to mount even without a change in 
the agreement, I recommend that the terms of the 2009 agreement as continued in 2010, 
be continued for 2011 with the following changes: that the salary schedule for employees 
hired on or after December 31, 2011 be reduced by $2 per hour and that all present 
employees in the bargaining unit receive a wage increase of 1 % effective January 1, 
2011, an increase of 1% effective July 1, 2011 and an additional increase  of 1 % 
effective December 31, 2011, and that the Town’s proposals be denied. 
Respectfully submitted: 
 
_________________________ 
Richard M. Gaba, Esq. 
Fact Finder 
November 7, 2011 


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