CAUSE NO. 48-270181-14 FORT WORTH PROFESSIONAL IN THE DISTRICT COURT OF FIREFIGHTERS ASSOCIATION, Plaintiff V. TARRANT COUNTY, TEXAS CITY OF FORT WORTH, TEXAS, Defendant 48 TH JUDICIAL DISTRICT COMES NOW Defendant City f Frt Wrth, Texas ("the City") and files this its Original Answer, and respectfully wuld shw the Curt as fllws: FACTUAL BACKGROUND Frm Nvember 5, 2012 t December 18, 2013, the City negtiated with the Frt Wrth Prfessinal Firefighters Assciatin (the "Assciatin") in an effrt t reach a new cllective bargaining agreement. Over the curse f this 13-mnth perid, the parties held 11 separate negtiating sessins that lasted fr hurs n end. The City carefully cnsidered all prpsals f the Assciatin in gd faith, engaged an actuary and cnsultants t study the viability f the Assciatin's pensin and retiree healthcare prpsals, and ffered numerus cunter-prpsals t its firefighters. But despite these effrts, the City never received an ffer that it cnsidered t be in the best interest f its citizens. One f the key disagreements during these negtiatins cncerning the funding levels f the firefighters' pensin plan led t the filing f this case. This suit is bviusly tactical, as the Assciatin's tw causes f actin are cntradictry. The Texas Lcal Gvernment Cde sets ut a statutry framewrk fr cllective bargaining in Texas, knwn as the Fire and Plice Emplyee Relatins Act. The Assciatin's first cause f actin arises under TEX. LOC. GOV'T. CODE 174.252, which prvides fr the judicial 1592237_3.DOCX PAGE 1 1
determinatin f wages and wrking cnditins fr firefighters in accrdance with TEX. LOC. GOV'T. CODE 174.021. Its secnd cause f actin asserts the City failed t negtiate in gd faith t reach a new cllective bargaining agreement. The cntradictin arises because, befre the Assciatin culd initiate a lawsuit under Sectin 174.252, it had t request arbitratin and implicitly represent that the parties had "made every reasnable effrt, including mediatin, t settle the dispute thrugh gd-faith cllective bargaining." TEX. LOC. GOV'T. CODE 174.153(a)(2) (emphasis added). The City received the Assciatin's request fr arbitratin n January 3, 2014 and presumed it was made in gd faith cmpliance with the statute. [See January 3, 2014 letter, attached as Ex. A]. After cnsidering the request, the City declined t engage in arbitratin, as is its right under law, n January 8, 2014. [See January 8, 2014 letter, attached as Ex. B]. The Assciatin culd nt have asserted its request t have the curt determine its wages and wrking cnditins if it had nt cnceded the City negtiated in gd faith during the cllective bargaining prcess. TEX. LOC. GOV'T. CODE 174.153(a)(2). Fr this reasn and thse set frth belw, the City requests immediate dismissal f the Assciatin's secnd cause f actin regarding the City's gd faith during negtiatins. MOTION TO DISMISS PLAINTIFF'S BAD FAITH BARGAINING CLAIM Pursuant t Texas Rule f Civil Prcedure 91a, this Curt shuld dismiss the Assciatin's secnd cause f actin, brught under TEX. LOC. GOV'T. CODE 174.251, which asserts the City failed t bargain in gd faith as required by TEX. LOC. GOV'T. CODE 174.105(b)(2). Tex. R. Civ. P. 91a.1. This cause f actin has n basis in fact because the Assciatin cnceded the City's gd faith bargaining by requesting arbitratin with the City under TEX. LOC. GOV'T. CODE 174.153. Id. The cause f actin als has n basis in law because the Assciatin's allegatins, taken as true, tgether with inferences reasnably drawn 1592237_3.DOCX PAGE 2 2
frm them, d nt entitle the Assciatin t the relief sught. Id. The Assciatin alleges that (1) the City cuntered its prpsal with nly "a mdest wage increase fr mst emplyees f the Fire Department" and "a 35% increase fr Assistant Chiefs"; (2) the City held firm t its cunterprpsal cncerning pensin cntributins and benefits; and (3) the City declined t participate in bth mediatin and arbitratin after the parties had reached an impasse. [Orig. Pet. at 3-4]. Hwever, Sectin 174.105 des nt require a public emplyer t agree t a prpsal, make a cncessin, r submit t cmpulsry mediatin r arbitratin. TEX. LOC. GOV'T. CODE 174.105(c), 174.151, 174.163. Because the Assciatin's bad faith bargaining claim has n basis in fact r law, this Curt shuld dismiss that claim and award the City all csts and reasnable and necessary attrneys' fees incurred in the filing f this mtin. Tex R. Civ. P. 91a. GENERAL DENIAL Pursuant t Rule 92 f the Texas Rules f Civil Prcedure, the City hereby enters a general denial, denying each and every allegatin, charge, and claim cntained in the Assciatin's Petitin and demanding strict prf theref. SPECIAL DEFENSES TO PLAINTIFF'S JUDICIAL ENFORCEMENT CLAIM As mentined, the Fire and Plice Emplyee Relatins Act is a statutry scheme that regulates cllective bargaining in Texas. The Act addresses all facets f the cllective bargaining prcess, including negtiatin standards and impasse prcedures. One impasse prcedure, set frth in TEX. LOC. GOV'T. CODE 174.252, purprtedly gives a district curt authrity t determine firefighters' wages and wrking cnditins in accrdance with TEX. LOC. 1 GOV'T. CODE 174.021. The City cntends that TEX. LOC. GOV'T. CODE 174.252 is uncnstitutinal. Amng 1 Sectin 174.021 requires that firefighters' wages and wrking cnditins be "substantially equal t cmpensatin and ther cnditins f emplyment that prevail in cmparable emplyment in the private sectr[.]" Tex. Lc. Gv't. Cde 174.021(1). 1592237_3.DOCX PAGE 3 3
ther things, this statute vilates the separatin f pwers dctrine by uncnstitutinally delegating a legislative functin t the judiciary. Tex. Cnst. art. II 1. Essentially, the statute wuld arrest the City's budget and place it in the hands f this curt making it impssible fr the City t manage its business and displacing the rle f public fficials wh were elected by the citizens f Frt Wrth t perfrm this very jb. Furthermre, Sectins 174.252 and 174.021 prvide n guidance t the Curt fr determining what cnstitutes "cmparable emplyment in the private sectr" r hw the City shuld fund "cmpensatin and ther cnditins f emplyment" declared by the Curt if the amunts exceed the City's present budget. Even if the Curt were t cnsider the Assciatin's claim under Sectin 174.252, the facts demnstrate that the firefighters' current cmpensatin exceeds the "cmpensatin and ther cnditins f emplyment that prevail in cmparable emplyment in the private sectr," particularly with regard t pensins. TEX. LOC. GOV'T. CODE 174.021. Defined benefit plans are exceedingly rare in the private sectr, and the Emplyees' Retirement Fund f the City f Frt Wrth is extremely generus. In fact, it is s generus that it imperils the fiscal health f the City. The unfunded liability f the City's pensin plan currently exceeds $1.2 billin. NOTICE TO ATTORNEY GENERAL FOR THE STATE OF TEXAS Cncurrent with the filing f this Answer, Greg Abbtt, Attrney General fr the State f Texas, will be served with ntice f the City's cnstitutinal challenge and a cpy f the City's Original Answer in cmpliance with TEX. LOC. GOV'T. CODE 402.010(a). PRAYER Fr these reasns, the City respectfully requests that the Curt dismiss the Assciatin's bad faith bargaining claim, award the City csts and reasnable and necessary attrneys' fees, declare Sectin 174.252 uncnstitutinal, enter judgment that the Assciatin takes nthing by its suit, and grant all ther relief t which it is justly entitled t receive either at law r in equity. 1592237_3.DOCX PAGE 4 4
Respectfully submitted, /s/ Dee J. Kelly Dee J. Kelly Email: dee.kelly@kellyhart.cm State Bar N. 11217000 Dee Kelly, Jr. Email: dee.kelly.2@kellyhart.cm State Bar N. 11217250 Mary Smith Email: mary.smith@kellyhart.cm State Bar N. 24075093 KELLY HART & HALLMAN LLP 201 Main Street, Suite 2500 Frt Wrth, Texas 76102 Telephne: (817) 332-2500 Telecpier: (817) 878-9280 ATTORNEYS FOR DEFENDANT CERTIFICATE OF SERVICE I hereby certify that a true and crrect cpy f the freging dcument was served n the fllwing cunsel f recrd via electrnic service and email this 18th day f February, 2014: B. Craig Deats Email: cdeats@ddllaw.cm Matt Bachp Email: mbachp@ddllaw.cm DEATS, DURST, OWEN & LEVY P.L.L.C. 1204 San Antni, Suite 203 Austin, Texas 78701 Telephne: (512) 474-6200 Telecpier: (512) 474-7896 /s/ Dee J. Kelly Dee J. Kelly 1592237_3.DOCx PAGE 5 5
' Frt Wrth Prfessinal Firefighters IAFF Lcal 440 i A ^i-c\ Q CLC '7F January 3, 2014 Tm Higgins, City Manager City f Frt Wrth 1000 Thrckmrtn Frt Wrth, TX 76102 Re: City f Frt Wrth and Frt Wrth Prfessinal Firefighters Dear Manager Higgins: Request fr Arbitratin As yu are aware, the City f Frt Wrth and Frt Wrth Prfessinal Firefighters reached impasse in negtiatins fr a new Cllective Bargaining Agreement n December 31, 2013. The purpse f this letter is t request interest arbitratin regarding the disputed bargaining issues pursuant t Texas Lcal Gvernment Cde Chapter 174, Subchapter E. Althugh the parties reached tentative agreement n a number f issues, under the grund rules agreed upn, n tentative agreement becmes final until agreement has been reached regarding all bargained issues. Fr that reasn, the issues remaining in dispute between the parties cnsist f the fllwing: All issues upn which tentative agreement was reached Definitins Maintenance f Standards Overtime Retiree Health Benefits Pensin Disciplinary Prcedures Miscellaneus Battalin Chief Prmtinal Prcess Sick and Family Illness Leave Perfect Attendance Benefit Duratin and Terminatin /z/y 3855 Tulsa Way, Ft. Wrth, Texas 76107 817-831-0406 Fax: (817) 831-7557 Affiliated with; Internatinal Assciatin f Fire Fighters; Texas State Assciatin f Fire Fighters 6
Tm Higgins, City Manager January 3, 2014 Page 2 Under TLGC 174.153, if the City is amenable t interest arbitratin as a methd fr reslving the current bargaining impasse, the parties must enter int a written agreement t arbitrate nt later than the fifth day after the date f this arbitratin request. On behalf f the Assciatin, I urge yu t cnsider this request favrably and agree t enter int interest arbitratin as a means fr reslving the disputes between the parties. Interest arbitratin wuld bviusly be quicker and less cstly fr bth parties than ur nly ther alternative, litigatin. Thank yu fr yur cnsideratin f this request. I lk frward t hearing frm yu with regards t the City's decisin. Sincerely, Jim Tate, President Frt Wrth Prfessinal Firefighters cc: Lwell Dentn, via email Susan Alanis, via email Larry Lckley, via email Mayr Price and Cuncil Members, via email Affiliated with: Internatinal Assciatin f Fire Fighters; Texas State Assciatin f Fire Fighters; Texas State A. F. L. - C. I. O., Tarrant Cunty Central Labr Cuncil. 7
FORT WORTH January 8, 2014 Mr. Jim Tate President, Frt Wrth Firefighters IAFF Lcal 40 3855 Tulsa Way Frt Wrth, Texas 76107-3345 Re: Request fr Arbitratin Dear Mr. Tate: I have received yur letter dated January 3, 2014, requesting, pursuant t Texas Lcal Gvernment Cde 174.153, that the City agree t arbitratin t reslve the issues raised in cllective bargaining that have nt been reslved by the City and the Frt Wrth Prfessinal Firefighters, IAFF Lcal 440. The City respectfully declines t submit thse issues t arbitratin. Sincerely, Tm Higgins City Manager cc: Susan Alanis, Assistant City Manager Lwell Dentn Larry Lckley CITY MANAGER'S OFFICE CITY OF FORT WORTH * 1000 THROCKMORTON STREET * FORT WORTH, TEXAS 76102 817-392-6111 * FAX 817-392-6134 8 Printed n recycled paper