A summary of information surrounding the new CFD contract
A recent post on Politics Early & Often, part of the Sun-Times network, discusses how Chicago managed to cover nearly $20 million in back pay for its firefighters without resorting to new borrowing. The article highlights a five-year deal that avoids union concessions in exchange for potential pension reform.
According to the piece, earlier this year, Mayor Rahm Emanuel successfully lobbied the City Council to double its "commercial paper" borrowing program, expanding it from $500 million to $1 billion. CFO Lois Scott explained at the time that this initiative aimed to provide the city with financial flexibility to address unexpected expenses like retroactive salary payments and legal judgments. However, City Hall later clarified that the funds required for the firefighter back pay were already allocated within the general finance accounts of the 2014 budget, ensuring no reliance on borrowed funds.
This agreement grants firefighters and paramedics an 11% pay increase over five years while maintaining current staffing levels. Additionally, it enhances ambulance services by upgrading all 15 basic-life-support (BLS) units to advanced-life-support (ALS) standards. By phasing out a two-tier system that paramedics viewed as ineffective, the city plans to deploy 75 fully capable ALS ambulances. This change will also free up around 30 firefighter positions, as each BLS ambulance requires two firefighter-EMTs. The city has committed to hiring additional paramedics, with estimates ranging from 50 to 200 new hires.
The deal also establishes a six-member committee—comprising three mayoral appointees and three representatives from the Chicago Firefighters Union Local 2—to explore the need for increased ambulance deployment. Alderman Nick Sposato noted that the committee aims to introduce five new ambulances into service by 2016. He emphasized the inefficiency of the previous BLS model, citing over 4,000 instances last year where these units had to be upgraded to ALS during critical situations. Sposato stated, "Sending an ALS unit when in doubt is always safer."
A senior mayoral advisor confirmed that the committee will consider scaling up the fleet to a total of 80 ambulances, reflecting a shared priority between the commissioner and the union. Despite these gains, the agreement includes minimal concessions from the union. For instance, firefighters and paramedics retiring between ages 55 and 59 will contribute 2% toward their healthcare benefits, which were previously fully subsidized. This adjustment aligns with similar terms accepted by police sergeants and lieutenants. However, Emanuel failed to secure significant reductions in other union perks, such as holiday pay, clothing allowances, premium rates, and cross-training premiums.
Mayor Emanuel expressed hope that this collaborative approach would pave the way for broader pension reforms. Next year, Chicago faces a $600 million obligation under state law to stabilize its severely underfunded police and fire pension systems, which currently cover only 30.5% and 25% of their liabilities, respectively. The mayor seeks legislative relief to delay this "balloon payment" until 2023, buying time to negotiate pension adjustments with unions.
One source close to the negotiations remarked, "If we had pursued more aggressive changes—like altering manning requirements or eliminating certain fringe benefits—we risked ending up in arbitration, where an arbitrator might offset our demands with compensatory increases elsewhere." This cautious strategy underscores the delicate balance Emanuel sought to strike between fiscal responsibility and labor relations.
Thanks for sharing, Dan!
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