A summary of information surrounding the new CFD contract
A recent blog post on Politics Early & Often, part of the Sun-Times network, highlights how Chicago managed to pay its firefighters more than $20 million in back wages without increasing its already massive pile of debt. According to the article, this was achieved through a five-year contract that avoids union concessions in exchange for potential pension reform.
Chicago firefighters and paramedics are set to receive an 11 percent pay increase over the next five years, with no reduction in staffing levels. Additionally, the city plans to upgrade all 15 of its basic life support (BLS) ambulances to advanced life support (ALS) units. This change is expected to enhance emergency response capabilities and eliminate the current two-tier system criticized by many as inefficient. As a result, the move will free up around 30 firefighter positions, which can now be allocated elsewhere. The city has also committed to hiring additional paramedics, potentially ranging from 50 to 200 new hires.
City officials emphasized that the funds for these payments were drawn from existing "finance general" accounts within the 2014 budget, avoiding any reliance on borrowed money. This development marks a significant achievement for Mayor Rahm Emanuel, who previously secured approval to double the city's commercial paper program to $1 billion, intended to bridge gaps during periods when major bonds couldn't be issued.
Alderman Nick Sposato, a former firefighter himself, mentioned that a six-member committee, comprising three members appointed by the mayor and three selected by the Chicago Firefighters Union Local 2, will evaluate the need for extra ambulances. Their goal is to introduce five more ALS units into service by 2016. Sposato noted that relying solely on BLS units often led to situations where higher-level care was needed mid-response, posing risks to patient safety.
Despite these positive developments, Emanuel faced challenges in negotiating further concessions from the union. Although the contract includes a modest pay raise, it largely refrains from addressing contentious issues like holiday pay, clothing allowances, or premium rates for cross-trained firefighters. The mayor instead focused on fostering collaboration to address larger fiscal concerns, particularly concerning the city's severely underfunded police and fire pensions. Next year, Chicago must contribute $600 million to stabilize these funds, currently covering only 30.5 percent and 25 percent of their liabilities, respectively.
Emanuel hopes the Illinois General Assembly will delay this mandatory payment until 2023, giving him breathing room to pursue broader pension reforms. A knowledgeable insider explained that pushing harder on other fronts—such as staffing adjustments or eliminating certain benefits—would likely lead to arbitration, resulting in further financial obligations elsewhere.
Overall, while the deal represents progress, it leaves many critical pension issues unresolved. Yet, Emanuel remains hopeful that this cooperative approach lays the groundwork for future negotiations aimed at long-term stability.
Thanks, Dan!
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