A judge Wednesday gave Firefighters Local 2434 a first-round win over Turlock City Hall in a fight over health care contributions.
The firefighters union sued the city for $249,500.55 plus interest, claiming the city's payments to the health care fund for retired firefighters haven't been calculated properly for years.
Stanislaus County Superior Court Judge David G. VanderWall sided with the union and compelled the city to abide by the contract that was signed in September. The union says the contract includes a health care fund contribution of 4 percent of members' base salary and benefits. City officials argue that payments are calculated on base salary alone.
Union attorney Timothy Talbot said Wednesday's decision requires City Hall to pay any shortages dating back to September. Both parties will be back in court next month to decide whether a jury trial will be held or a settlement can be reached for the rest of the claim, dating back to June 2003, Talbot said.
"The firefighters believe that they're right and today is a big step in vindicating their rights," he said. "I feel we're well on our way to winning the full amount."
City Attorney Dick Burton said the City Council likely will discuss the case at its next closed meeting.
"We're disappointed, and one of our options would be to file an appeal," Burton said.
The issue arose when city management asked the union to change the word "payroll" to "salary" in the last round of negotiations. Firefighters refused and City Hall settled a two-year contract with the group, but not without other controversy.
City Hall pays 4 percent of base payroll into the health funding, according to the contract. The city always has taken that to mean salary rather than salary plus benefits. The police union has the same agreement, said Assistant City Manager John French, with the wording "4 percent of base salary." The city always has paid both groups based on salary alone, he said.
Union negotiator Jim Watson said the evidence, including audio recordings of negotiations, was hard to argue against. Watson said he was disappointed the city chose to fight the firefighters union in court.
"You would like to think that the folks that are in charge of the taxpayers' money aren't in a hurry to waste it," Watson said. "Talking is always much better."
The new fire union contract has been surrounded with controversy. Three councilmen said what they voted to approve was not what they agreed to in private negotiations. At least one councilman, Ted Howze, claimed city management hoodwinked elected officials to get a better deal for themselves and their staff. Other council members and Mayor John Lazar have dismissed that idea.
Bee staff writer Merrill Balassone can be reached at mbalassone@modbee.com or 578-2337.