City of Scranton v. Fire Fighters Local Union No. 60
8 A.3d 930
Pa. Commw. Ct.2010Background
- City of Scranton remains financially distressed under Act 47 and operates under the 2002 Recovery Plan.
- Chapter II-B of the 2002 Recovery Plan imposes mandatory cost containment provisions for all City employees, including fire and police, with some provisions having duration and some being potentially amended with Coordinator approval.
- 2006 Award (May 30, 2006) granted retroactive wage increases and bonuses contrary to the Recovery Plan, leading to petitions to vacate/modify and a subsequent appellate remand to Scranton Fire Fighters (2009).
- 2008 Award awarded wage increases over seven years and included health care, pension, and safety provisions, some of which were challenged for noncompliance with the Recovery Plan.
- Common pleas court modified the 2008 Award to conform with Act 47 and the Recovery Plan, prompting consolidated appeals and eventual Supreme Court review.
- This court, applying narrow certiorari review and subsequent case law (including IAFF Local 22 and Ellwood City guidance), affirms the common pleas court as modified to bring the 2008 Award in compliance.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does the 2008 Award violate the 2002 Recovery Plan and Act 47? | City argues 2008 Award breaches Plan and statutes and requires vacatur. | Fire Fighters contend plan lacks binding pre-2005 limits; award is prospective and within spirit of recovery. | Yes, modified to conform; certain provisions voided or revised to comply. |
| Does Section 252 of Act 47 apply to Act 111 awards and permit recovery-plan consistency? | City claims Act 47 limits must guide awards and require Plan consistency. | Union asserts awards may override Plan only to the extent permitted by Act 111 and applicable law. | Section 252 applies; awards must be consistent with recovery plan and governing law. |
| Do health care provisions exceed the plan cap or extend retiree benefits contrary to the Plan? | City contends health-cost increases and retiree protections violate the cap and cessation timing. | Union argues increases are within cap and retiree provisions align with prior rulings; Court should not vacate for lack of proof. | Health-care cost increases not proven to exceed cap; retiree benefits curtailed consistent with decisions; some retiree provisions remain voided. |
| Do Fire Fighter Safety/Staffing provisions unduly interfere with managerial prerogatives? | Provisions impose staffing mandates contrary to Elimination of Minimum Manning and Management Rights. | Safety provisions are bargained topics and align with collective bargaining; some portions are permissible. | Sections 4(4)-(5) largely voided; 4(a) and 4(c)-(d) upheld; 4(b) found to unduly interfere and deleted. |
| Are pension-benefit modifications illegal under Act 205 and the 50% cap for Scranton? | Modifications to 70% (and inclusion of longevity/overtime) exceed 50% cap and lack Act 205-compliant cost estimates. | Union asserts Act 205 cost estimates were provided and cap is not violated. | Pension modifications vacated for lack of Act 205-compliant cost estimates and 50% cap violation; 70% option rejected. |
Key Cases Cited
- Scranton Fire Fighters (2009), 964 A.2d 464 (Pa.Cmwlth. 2009) (modified 2006 Award to comply with Act 47 Recovery Plan)
- Scranton FOP (2009), 965 A.2d 359 (Pa.Cmwlth. 2009) (limited review orders and plan-consistency considerations)
- Wilkinsburg I, 129 Pa.Cmwlth. 47, 564 A.2d 1015 (Pa.Cmwlth. 1989) (Act 47 constitutional framework upheld)
- Wilkinsburg II, 535 Pa. 425, 636 A.2d 134 (Pa. 1993) (plurality on delegation of fiscal authority and Act 47 limits)
- City of Farrell v. Fraternal Order of Police, Lodge No. 34, 538 Pa. 75, 645 A.2d 1294 (Pa. 1994) (Act 47 recovery plan boundaries and bargaining constraints)
- Ellwood City v. Ellwood City Police Dep't Wage & Policy Unit, 573 Pa. 353, 825 A.2d 617 (Pa. 2003) (managerial prerogatives and bargaining scope)
- IAFF Local 22; Ellwood City, 998 A.2d 589 (Pa. 2010) (supreme court guiding review of managerial prerogatives vs bargaining)
- Shippensburg Police Ass'n v. Borough of Shippensburg, 968 A.2d 246 (Pa.Cmwlth. 2009) (Act 205 cost estimates required for pension modifications)
- 53 P.S. § 30495, not applicable (N/A) (statutory cap on pension benefits (Act 2nd class A) cited)