In the matter of the fact-finding between the Town of Charlotte, employer, and the  International Brotherhood of Teamsters, Local 264, union. PERB case no. M2009-118. Before: Donna R. Beal, fact finder

Beal, Donna R

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In the matter of the fact-finding between the Town of Charlotte, employer, and the  International Brotherhood of Teamsters, Local 264, union. PERB case no. M2009-118. Before: Donna R. Beal, fact finder.m2009_118.pdf: 103 downloads, before Oct. 1, 2020

Beal, Donna R.

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Town of Charlotte and International Brotherhood of Teamsters Local 264

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Fact Finding Reports - NYS PERB New York State Public Employment Relations Board (PERB) 
1-31-2012 
Town of Charlotte and International Brotherhood of Teamsters 
Local 264 
Donna R. Beal 
Fact Finder 
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Town of Charlotte and International Brotherhood of Teamsters Local 264 
Abstract 
In the matter of the fact-finding between the Town of Charlotte, employer, and the International 
Brotherhood of Teamsters, Local 264, union. PERB case no. M2009-118. Before: Donna R. Beal, fact 
finder. 
Keywords 
New York State, PERB, fact finding 
This article is available at DigitalCommons@ILR: https://digitalcommons.ilr.cornell.edu/perbfact/80 
STATE OF NEW YORK 
                               PUBLIC EMPLOYMENT RELATIONS BOARD 
  
In the Matter of Fact-Finding 
       
  Between    Case No. M2009-118  
 
Town of Charlotte 
 & 
Teamsters Local 264 
 
Appearances: 
 
Town of Charlotte 
 William Duncanson, Jr. – Town Attorney 
 Kenneth Bochmann – Supervisor 
 Kenneth Smith – Councilman 
 
Teamsters Local 264 
 William Baron – Business Agent 
 Timothy Cobb, Jr. 
 
Fact Finder – Donna R. Beal 
 
Hearing Date – December 21, 2011 
 
BACKGROUND 
 
The Town of Charlotte and the Teamsters Local 264 (herein called the “Union”) have had 
a three (3) year Collective Bargaining Agreement which expired on December 31, 2008.  
The parties met approximately six (6) times with a previous Business Agent and impasse 
was declared on March 25, 2009. PERB appointed Thomas Cervola as Mediator and 
three (3) sessions were conducted but nothing was settled during those sessions. 
 
I was appointed Fact Finder on September 21, 2010 but before a meeting could be 
arranged, a new Business Agent¸ William Baron, was elected.  The former Business 
Agent felt it would not be proper to move to fact-finding, therefore the parties (with the 
new Business Agent) again met three (3) times.  With no progress being made, I received 
a telephone call followed by a letter dated November 10, 2011 from Mr. Baron requesting 
my assistance.  
 
The Union presented its original proposals dated August 12, 2008 which listed seven (7) 
items.  The Town did not present any proposals but dealt with those presented by the 
Union.  
 
 
 1
 
As of the date of Fact-Finding, nothing had been initialed.  At that meeting, the parties 
agreed and initialed four (4) items as follows: 
 
  Hours 
  Overtime 
  Holidays 
  Vacations 
   
 
 
The only remaining issues were Wages and Health Insurance.  
 
The parties agreed to submit briefs on the open issues postmarked no later than January 
18, 2012 with rebuttals postmarked no later than January 25, 2012. 
 
HISTORY  
 
The Town of Charlotte is located in Chautauqua County, located in the most western part 
of the State.  It is mostly a residential community and has experienced very limited 
increases in total real property assessed valuation.  With the economic recession and the 
lack of construction in the area¸ the Town’s overall assessed valuation of real property 
has remained flat.  The only source of revenue is to raise taxes.   
 
The Town presented the tax increases that they have incurred from 2007 through 2011.  
For the sake of this report, the Fact Finder is using the increases incurred from 2009 
through 2011 since those are the years in question. 
 
 County – 5.59% 
 Town – 5.32% 
 Village – 5.72% 
 
POSITION OF THE PARTIES 
 
 
 
TOWN OF CHARLOTTE – 
 
The Town has offered a 2 % wage increase for each of the years of 2009, 2010 and 2011 
but has not offered an increase beyond the year 2011.  It has agreed to increase the hourly 
shift premium from the present $ .50 to $ .75 per hour and states that it equates to a $ .10 
per hour increase based on an average of 800 hours of overtime per year. 
 
Additionally, the Town has agreed to an additional personal day which they equate to a $ 
.07 per hour cost based on 2080 hours per year. 
 
 2
With the mandated increased costs of their current employee insurances, the Town feels it 
cannot offer additional wage increases beyond the year 2011 and the 2% offer is tied to 
obtaining an employee contribution increase retroactive to 2009, 2010 and 2011.   The 
insurance costs have increased 42.7% for the Teamsters Select Plan over those three 
years and increased 48.6% for the New York State Retirement System for the same years.  
They have requested the contributions increase from the current 8% to 10% in 2009, 12% 
in 2010 and 15% in 2011, retroactive to those years.  The employees have had an 8% 
contribution rate continue although they have not had a collective bargaining agreement 
in place since 2008. 
 
The Town presented information in its brief on the wages and the percentage of 
contribution for each of the surrounding towns showing that the average contribution is 
approximately 11%.  One Town has an 8% employee contribution rate while three (3) of 
the six (6) listed towns are at 10% with one Town now at that figure for new hires. (Older 
employees are at 0% contribution.)  One (1) is at 13% while the County of Chautauqua 
Department of Public Works increased its rate from 12.4% to 15% + a 10% of any 
increase in its yearly premium effective January 1, 2010.  It was noted that the 
Department of Public Works is the largest highway department in Chautauqua County. 
 
The Town feels that it is only reasonable with the increases it has had to incur that the 
employees increase their contribution in proportion. 
 
TEAMSTERS – 
 
During previous negotiations, they presented a proposal to go from the current Teamsters 
Select Insurance Plan to the Teamsters Classic Insurance Plan with a $1,500.00 flex card 
with any unused money to stay with the Town, a 10% co-pay cap on all insurance 
premiums to include retroactive back to 2009, 2010 and 2011 with a 2% wage increase 
from 2009 through 2011.  The proposal included a 3-year extension to 2014 with a 2% 
increase in pay and a 10% cap on employee contributions for those years.   
 
It was emphasized that the Teamsters Classic Plan was less costly than either their current 
Select Plan or the Independent Health Flex Fit Select Active/Family Plan that had been 
offered by the Town during one of their negotiation sessions.  Further, the Union argued 
that it would be advantageous for the Town to have the Classic Plan for they would know 
three (3) years in advance what the costs would be whereas the plan that the Town had 
presented would only be for twelve (12) months. 
 
RECOMMENDATION 
 
 
While the parties are not in dispute regarding the 2% wage increase for the year 2009 and 
the Union going from their current 8% health insurance contribution for that year, the 
only difference between them for the years in question is the rate of employee 
contribution for the years 2010 and 2011.  The Town contends that it cannot propose any 
 3
 4
increase in wages beyond the 2011 before they receive more of a concession regarding 
the employee contribution to health insurance.  
 
While many recent settlements are at 1%, 1.5% and not more than 2% in employee 
wages, most pay increases are tied to increases in employee contributions.  With the 
economic climate that exists, it is hard to support the position that contributions remain 
low while communities are being hit so hard with increased costs of employee insurance. 
 
It is my recommendation that retroactive to 2009, 2% wage increase be given with the 
contribution increasing from their current 8% to 10%.  For 2010, 2% wage increase with 
the contribution increasing from 10% to 11%.  For 2011, 2% wage increase with the 
contribution increasing to 12%. 
 
Since only the Union made a proposal for any year beyond 2011, it is my 
recommendation that as soon as possible, the parties go to the Teamsters Classic Health 
Insurance Plan as it will save the Town money as compared to the Select Plan that they 
now have.  Further that the wage increase be 2% with employee contribution increasing 
to 15% for 2012 since they are now in that year and it would give the parties a resting 
period before having to begin negotiations again. 
 
It must be realized that a 15% employee contribution is not out of line in today’s 
economy.  A recent study by the Kaiser Family Foundation stated that the annual 
premiums for employer sponsored family health care increased 9% in 2011 and the 
average employee’s share of the premium costs was 27.3%. 
 
The Union had also proposed a vision plan and indicated that they would be willing to 
pay for that plan themselves.  It is my recommendation that the Town offer such a plan 
with the employees paying for that cost. 
 
CONCLUSION 
 
It is hoped that these recommendations will assist the parties in reaching an agreement 
and that their protracted negotiations come to a successful conclusion. 
 
 
______________________ 
Donna R. Beal, Fact Finder 
 
Dated:  January 31, 2012  
 
 
 


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