By Richard Weir
The Boston Herald
BOSTON — Cash-starved Boston City Hall could have to scramble to come up with a fast $35 million this spring if the arbitrator in its fierce contract battle with Hub firefighters sides with their union, the city’s finance chief acknowledged yesterday.
Firefighters Local 718 — working without a raise since its contract expired in 2006 — could reap a windfall of $82 million if the arbitrator grants the union a 20 percent raise over five years.
But Lisa Signori, Boston’s administration and finance director, said the city has set aside only $47 million in a special reserve fund for the union’s 1,200 jakes — meaning the Hub would have to come up with the $35 million difference.
“It will be extremely challenging. These are extremely difficult budget times,” said Signori, noting that the city is facing a sizeable shortfall this year.
If firefighters come out on the losing end, however, they could get as little as $34 million, based on the city’s offer of a 14-percent salary increase over four years.
“It’s going to be a big hit to the city either way,” said Matt Cahill, head of the Boston Finance Commission, a watchdog group. “Even though firefighters deserve some increase, when you drop it as lump sum, it’s going to look terrible for the budget.”
The city grappled with an initial $140 million budget gap last year, prompting Mayor Thomas M. Menino to pressure unions to accept wage freezes to avoid layoffs.
Local 718 is seeking a lump sum payout for retroactive raises dating back to 2006. The city is willing to fund pay hikes only as far back as July 2008. How far back any payouts go is “in the hands of the arbitrator,” explained John Dunlap, the city’s labor relations director.
The arbitrator’s decision, expected in May, is binding to both the administration and union, but the Boston City Council has the authority to either pass or nix the pay hike.
Local 718 president Edward Kelly and vice president Richard Paris made the rounds at City Hall last week hoping to persuade councilors to approve whatever is awarded.
“We would live with the arbitrator’s ruling, and we think the city should, too,” Paris said. “We have to defend it.”
Council president Michael Ross promised a “fair hearing” but said the arbitrator’s decision is like collective bargaining pacts the council routinely approves.
“I’m not saying the council’s hands are tied,’' Ross said. ``But the premise is the same. It’s a contract. The council has funded these contracts in good times and bad.”
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