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SEPTEMBER 2021 E-NEWSLETTER

THE LABOR LANDSCAPE 

The new City administration began it work in January, tackling a wide range of issues left unresolved by the previous administration. They have adopted a much-needed increase in the Occupancy Tax on hotels, motels and vacation rentals in residential properties. Plans have been drawn and reasonable bids have been received for a much-needed modern firehouse. And perhaps most important, a sense of transparency and decorum are being restored to the business of public policy.

Much more work remains. In particular, the need to resolve the many issues of collective bargaining left ignored or unresolved by the previous administration.

According to Cape May Budget data there are 114 city employees. There are seven unions among employees of the city, ranging is size from 3 to 26 members. Another 22 employees are not unionized.

For 2020 the Total Employee Cost is $14,000,000 and represents 67% of the Cape May Operating Budget of $21,000,000.

Chart
Chart 1

HISTORY

THE HOT ISSUE

Chief among these unresolved fiscal decisions is the current negotiations with the Firefighters Union. This process has been ongoing, and progress is slow. There’s a growing amount of heat without a lot of light.

Collective bargaining, especially in the public sector, is always prone to theatrics and strategies to bolster the positions of each side. Cape May is no exception.

Aside from actually bargaining with each other, the players employ time honored tactics to secure their demands. Public workers tend to enlist the public, taxpayers or parents whichever the union, in their perceived struggle to secure a living wage. Management typically either pleads the larger fiscal concern over austerity and fairness, deflects discussion of specific issues or remains silent while hiring professionals to counter the professionals sent by the union.

Taxpayers meanwhile sit on the sidelines and await the outcome, often unable to distinguish between bargaining rhetoric and fiscal reality.

Here’s what we know about the game we watching:

  • There are 25 municipal fire companies in Cape May County.
     
  • Twenty-one of these have volunteer companies staffed by some 650 volunteers.
     
  • Four of these municipalities maintain a full-time, unionized staff - Cape May, Ocean City, Wildwood, and North Wildwood.
     
  • Cape May participates in Mutual Aid agreements with surrounding municipal volunteer fire companies to provide fire and EMS services. The cost of these services is borne by the Cape May Municipal Budget. Cape May neither reimburses nor receives reimbursement from these municipalities for the cost of these Mutual Aid services.
     
  • Two municipalities, Cape May and North Wildwood, maintain both a paid and a volunteer fire service.
     
  • Two municipal fire service employee groups, Cape May and Ocean City, are represented by the same union, the International Association of Firefighters (IAFF).
     
  • According to the Federal Bureau of Labor Statistics for 2020, the average salary for a firefighter in:
     
    o Philadelphia/Camden Metropolitan Area is $67,120,
    o Atlantic County Metropolitan Area is $84,140
    o Cumberland County Metropolitan Area is $66,800
    o Cape May County Metropolitan Area is $52,230.
     
  • The average salary of a firefighter in Cape May is $62,758.
     
  • The average statutory and contractual cost of a firefighter in Cape May is $113,162.

Firefighter
Chart 2

  • As a unionized employee, in addition to a base salary Cape May firefighters receive a benefit package valued at 80.3% of their base salary. This includes pension contributions and negotiated contractual benefits.
     
  • In addition to salary, the current contract with the IAFF includes:

    o 15-18 paid vacation days
    o Overtime pay at time and a half the hourly rate
    o Reimbursement for non-required training
    o 14 paid Holidays (time and a half if required to work)
    o 3 paid personal days
    o 15 paid sick days
    o Individual and Family Health Insurance
    o Clothing Maintenance allowance
    o Annual reimbursement for the cost of tuition, books, and travel (gasoline) for up to 22 college credits toward a Fire Safety Degree
     
  • 2020 Base Salary - Current Cape May all fire personnel

Chart
Chart 3

  • According to the Cape May Budget Office data for 2021, under the terms of the current Firefighter Contract, an entry level firefighter making $36,000 in 2020 would project to make $40,000 in 2021, an 11% increase.

HISTORY

THE END GAME

The five year collective bargaining agreement between the firefighters and the city expired on December 31, 2020. Prior to its expiration, the previous city administration resisted and delayed opening negotiations with the firefighters over the terms of a renewed agreement. Justifiably, this delay caused a degree of animosity and concern among both the employees and the general public.

Negotiations finally commenced earlier this year amid that air of animosity and concern. Little accurate information is available about what is actually on the table at these closed sessions.

To form opinions about both the value and the cost of a paid fire/EMS Service, the public is left with little else but lawn signs and press releases from the union and silence from the administration.

At some point, hopefully soon, the posturing will give way to compromise as it always does.

When it does, Taxpayers will judge the appropriate balance between public safety and public dollars, and whether or not the new negotiated agreement strikes that balance.

Stay tuned. 

The Labor Landscape - Part 2
 
As the fate of the next Firefighter Contract is negotiated behind the closed door of the Collective Bargaining Process, compromise will eventually prevail. 
 
When it does, Taxpayers will judge the appropriate balance between public safety and public dollars, and whether or not the new negotiated agreement strikes that balance.
 
The TPA continues to examine both the value and the cost of this essential public service in order for the judgement of each taxpayer is based or as much information as possible.

The Career Fire Service in Cape May
The traditional model of the Volunteer Fire Brigade is becoming less and less viable across the State.  A recent article in the Cape May Herald chronicles this trend.

https://www.capemaycountyherald.com/news/government/article_b6321d1a-e3ff-11eb-995b-736f53238ad2.html

While many towns across the county continue to use the volunteer model, five Cape May County communities, facing increasingly complex service demands and declining volunteer availability, have adopted a career paid fire service.  Just recently, Stone Harbor has joined this list by creating a paid fire company in its 2021 budget.

Given its unique and potentially flammable nature as both a tourist destination and a residential community, Cape May and its Fire Department provide an impressive range of services to its resident and visitors:
  • Extinguish Fires
  • Structural Collapse Response
  • Emergency Medical Services and Transport Ambulance
  • Ocean Rescue
  • Vehicle Extraction
  • Ice Rescue
  • High Angle, Confined Space Rope and Rescue
  • Educational Programs
  • Community Involvement and Support
  • Emergency Response involving hazardous or toxic materials
Mutual Aid Agreements:

The U.S. Coast Guard Fire Department Station 59 supplies an engine and West Cape May VFC supplies a truck company on all first alarm assignments with Cape May Fire.
Second alarm assignments to the City of Cape May bring firefighters from West Cape May VFC, Townbank VFC, Erma VFC and Villas VFC
CMFD also provides the first due engine company for parts of the island that include the Harbor/Marinas and other sections of Lower Township.
CMFD is the Rapid Intervention Crew for Station 61 Townbank VFC, Station 62 Erma VFC in Lower Township.

CMFD also provides emergency medical services for Cape May, West Cape May and Cape May Point. In 2021, the City will receive between $330,000 and $350,000 in revenue as reimbursement from West Cape May, Cape May Point and individual insurance carriers for these services.
All members of the Cape May fire service are certified as both Firefighters and EMS providers and, in addition, several CMFD staff are certified fire instructors and are trained in fire cause and investigation.
In some paid career departments, fire prevention and property inspections are a subset of the fire department.  Cape May maintains a separate Fire Prevention Bureau apart from the CMFD to perform this task.

A Career Firefighter
The position of Career Firefighter has evolved into providing a wide variety of services to a community.  This occupation requires comprehensive technical training and a rigorous qualification process governed by the New Jersey Civil Service Commission. 

The hiring process is controlled by both written and physical tests, and eligibility lists based on test scores, veteran status, volunteer points, and residency. These eligible lists may last between two and four years. Once qualified and listed, candidates receive and evaluate offers of employment.

The duties of a Career firefighter are described here:  https://info.csc.state.nj.us/jobspec/01839.htm

The NJ Civil Service Commission offers the Intergovernmental Transfer Program (ITP) which provides any Civil Service employee the opportunity to transfer from one jurisdiction to another, while maintaining permanent civil service status. This program allows a fully trained and qualified career firefight for personal or professional reasons, to apply to any municipality which advertises a Civil Service vacancy in its Fire Service. In recent years two Cape May firefighters have opted to apply and have taken an ITP.  Two others have left for positions in other states.  There is currently one vacancy in the CMFD.
The availability of qualified, eligible, and interested firefighters is a limited labor pool. Cape May competes in that market with paid fire companies in and beyond Cape May County. The core of that competition rests squarely on salary and advancement opportunities.

The Status Quo

The current contract with the Cape May Firefighter Union was negotiated in 2015 and expired in December of 2020.  That contract includes the following salary schedule based on years of employment. Salaries are annual as are raises based on years of experience.

For example, a firefighter hired in 2016 at $36,000 annually would receive a salary of $44,800 in 2019.

 A firefighter at Step 10 making $56,700 in 2016 would make $66,720 in 2019.

Under the present Salary Schedule, a firefighter would reach the maximum salary after 18 years of service.

CMFD operates on a 56-hour work week, with 24-hour shifts followed by 48 hours off.

Is Cape May Competitive?

Given that Cape May operates in what has become a very competitive market among a relatively small number of communities, TPA has examined the collective bargaining agreements of the four other municipalities which operate a paid career fire service.

Benefits such as pensions, overtime and health benefits are calculated upon salary.  Other incidental benefits vary across the contracts.

This chart displays the salary schedule for the final year of Cape May’s contract against the contractual schedule for 2021 in each of the other paid career departments in the county.

Work Week:

Stone Harbor, Ocean and Cape May operate on a 56-hour work week

Wildwood and North Wildwood operate on a 48-hour work week.

Since contracts are based on an annual salary and not hourly wages, the amount of a salary and the length of the work week determine a projected hourly wage, and this varies for each contract.

 For example, a salary of $50,000 in a 48-hr. workweek translate to $20/hr.; for a 56-hr. workweek it would be $17/hr.
 
A New Variable in an already Competitive Market

Stone Harbor created its paid service in 2021 and opted to use its existing Police Salary Schedule for its Fire Service.  Given that a paid fire department within the county has now altered the model, the balance within the competitive marketplace for qualified firefighters may well have further shifted.

In Stone Harbor, firefighters are not Civil Service employees and positions in this newly created Career Service are being filled by an internal city test and screening process

And So…...

While all of this raw data draws attention back the two central issues on the minds of taxpayers, – the value of the Fire Service and the cost of that service, -- it also raises a third issue.

The Value of maintaining a qualified, trained, and dedicated career fire service in and for Cape May is obvious, even imperative.

The Cost of that Service is real and significant, as discussed in the previous TPA Newsletter.

The new reality is how well Cape May understands and responds to the increasingly competitive market for professional firefighters.

This new contract is the critical crossroad. 

It must do three things:
  • It must Preserve and protect the value of our Fire Service It must Control the fiscal weight of a Paid Fire Service on our budget; and
  • It must Improve our ability to compete for and retain professional firefighters.
  • If it doesn’t do all three equally it will be a failure. This no small task. To succeed, each side must accept their full responsibility to meet these three goals.
As taxpayers we’re all anxious to see how well they do.

 

 
Communication is the key to reaching our goal.

We need to hear your thoughts, comments, suggestions, complaints and concerns as we seek to evaluate the decisions affecting the interests of Cape May's Taxpayers.

Please reach out to us at:

2020CMTPA@gmail.com

Hope to hear from you soon!

Taxpayers Association of Cape May
PO Box 46
Cape May, NJ 08204

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