The City of Albuquerque, New Mexico, has reached an agreement with the International Association of Firefighters (IAFF), Local 244, which represents the city’s firefighters for a one-time $8 million payment to settle an almost decade long pay dispute.
In 2008, the city and firefighters entered into a three-year collective bargaining agreement (CBA) in which the city promised to provide a total of 16% in pay raises over the term of the agreement. The city paid the required raises for the first two years of the CBA, but it did not pay the final 6% that was due in July of 2010. The city cited the poor economy and a budget shortfall as reasons why the CBA could not be honored.
The firefighters eventually filed suit in state court seeking to compel the city comply with the agreement. Initially the city was successful in getting the firefighters’ lawsuit dismissed, but the court of appeals reversed the lower court and the case continued.
Now, fast forward to 2018. The settlement was announced as a “no-fault, no admission” one-time payment of $8 million. The exact terms of the settlement have yet to be released, but it will be interesting to see how the $8 million will be distributed. It will also be very interesting to see what the FLSA implications from this settlement will be…
Will the $8 million need to be included in the firefighters’ regular rate? Stay tuned!
Here is more on the story from KRQE NEWS 13