Newport, Police Union Agree on New Contract

The union representing Newport police officers, The Fraternal Order of Police, Lodge No. 8, and the city’s administration have agreed on a new four-year collective bargaining agreement that would give officers 2.5 percent raises each year in exchange for more than $1 million in union concessions.

The Newport City Council Wednesday night postponed a vote on the contract at the bequest of Acting City Manager Joseph J. Nicholson, who said the council should “review the fundamentals” in executive session before a public discussion and vote.

That closed-door meeting will likely be sometime next week in advance of the City Council’s next meeting in January.

According to a fiscal impact statement submitted to the council, the total cost increase to the city through 2017 would be just $85,291.

The raises would result in an increase of $1.2 million in personnel costs, but the union agreed to a host of changes that offset the increase including officers giving up birthdays being treated as holidays, losing eight hours of sick time, new hires’ vacation accruals capped at 300 hours and sick leave payouts capped at $25,000.

That last change is estimated to save $450,000 alone over the four years in “future savings” with a “minimum” annual future savings estimated at $150,000.

Another $175,000 is estimated to be saved with changes to officers’ health plans. The city will offer a health savings account plan with high deductibles and new retirees will pay a 5 percent premium cost share and a $1,000 co-pay cap on prescription drugs.

Younger officers without children might be interested in the high-deductible plans as they offer much smaller paycheck deductions.

For pensions, all new hires will be entering the state Municipal Employee Retiree System and the assumption is a retirement after 25 years. This will save the city $20,000 to $26,000 per year per new employee, according to the fiscal impact statement.

Employees who retire with between 20 and 25 years of service won’t see cost of living increases until “what would have been 25 years has is reached.”

Members who retire with less than 20 years of service will not receive a COLA.

The report does not provide an estimate for the projected COLA savings.

The collective bargaining agreement is in the form of two contracts. The first is retroactive to June 1, of 2013 to July 1 of this year.

If approved, the new contract would expire on June 30, 2017.