AFA Active Member Dues Assessment Announcement – Online Vote January 18th

December 17, 2021 – AFA Active Member Dues Assessment Announcement – Online Vote Begins January 18th –

Motion for Contingency Binding Arbitration Dues Assessment (see Motion Language Below)

Summary:
Request for an AFA membership dues assessment needed to cover unanticipated expenses above and beyond what has been estimated for binding arbitration. IF approved, this assessment would:

  • The AFA surveyed the AFA membership to determine which method of assessment was most desirable. See survey results by clicking here.
  • Deduct $10.90 additionally for up to 10 pay periods, starting February 18th.
  • This assessment would only be spent IF the cost of binding arbitration exceeds the AFA estimate of the cost for binding arbitration. It is unlikely that we would exceed our estimate, BUT it is important that we have a contingency plan in place in case we experience significant cost overruns.
  • The dollar amounts the AFA has budgeted for negotiations & binding arbitration is a strategic number and therefore confidential.
  • The elected AFA trustees will be made aware of the confidential binding arbitration budgeted number and the AFA Trustees will review the binding arbitration expenditures, determine if the cost of binding arbitration exceeds the AFA estimate of the cost for binding arbitration and then report this to the membership.
  • If binding arbitration costs stay within the budgeted amount, the additional dues assessment monies collected would be returned to the membership by reducing your future AFA dues deduction to zero or a factional amount until the assessment is reimbursed.
  • This additional dues assessment would only apply to Active, not Retired AFA members and only Active AFA members will be allowed to vote on the additional dues assessment motion.

Background:

  • If a fair deal is not reached at the bargaining table between labor and management, impasse will be declared, and the remaining issues can be resolved through the process of binding arbitration.
  • Binding arbitration is a very expensive prospect which will require a large amount of money to cover the needed expert reports, expert witnesses, negotiators, arbitrators, and other legal counsel sequestered in Austin during the binding arbitration proceedings.
  • In the Fall of 2022, at least half of the current Austin City Council Members will be “termed out”, including the Mayor. It will be a high priority to seat new City Council members who are favorable to firefighter issues. Again, a very expensive prospect.
  • The AFA spent over $425,000 on the 2021 Spring binding arbitration campaign. Spending this amount was achieved within budget and without asking for an assessment from the membership BUT it did lower SPAC and Legal Defense savings accounts. Binding arbitration is funded out of the Legal Defense fund.
  • The AFA has included into the AFA FY22 proposed budget, the amount estimated to accomplish the funding of both the binding arbitration and Austin City Council Campaign expenses, WITHOUT an assessment from the membership. The AFA Board feels that there is a high likelihood that the AFA can fund both endeavors with funding already identified within the proposed AFA FY22 budget.
  • So the proposed assessment would be an insurance policy of sorts, only to be used if binding arbitration costs exceed the budget AFA is proposing to cover binding arbitration expenses.
  • As per our AFA Constitution and Bylaws,

“Assessments for Active Members may be made in the following manner. Each Active Member in good standing shall be notified in writing at least thirty (30) days in advance of the date on which the vote for an assessment is to occur. The proposed assessment shall become effective upon a majority vote of the Active Members participating in the vote…”

The “30 day in advanced” requirement necessitates that we seek approval from the membership in advance of the need. Remember, binding arbitration will normally start 30 days after bargaining impasse is declared and the arbitration process will usually last only 10 days. Given this compressed timeframe, it is essential to seek advanced approval for an assessment.

Motion:

Do you approve a dues assessment with the following requirements?

  • The dues assessment amount of S10.90 additional per pay period for up to 10 pay periods, likely starting on February 18th, 2022.
  • The additional dues assessment will be collected by the AFA, but only spent if binding arbitration costs exceed estimated costs present in the AFA FY22 budget.
  • The dollar amounts the AFA has budgeted for negotiations & binding arbitration is a strategic number and therefore confidential.
  • The elected AFA trustees will be made aware of the confidential binding arbitration budgeted number and the AFA Trustees will review the binding arbitration expenditures, determine if the cost of binding arbitration exceeds the AFA estimate of the cost for binding arbitration, and then report this to the membership.
  • After the conclusion of negotiations and binding arbitration, all expenditures will be released to the membership.
  • All additional dues assessment amounts not spent, will be returned to the AFA membership by way of reduced AFA dues assessment in the future, as soon as possible and within 2022.

Please respond to this email if you have any questions.

Bob  Nicks
President, Austin Firefighters Association
(512) 217-3474