The setup
According to a news release March 14, the settlement terms include all current firefighters, retired firefighters and families of firefighters who have died since 2017. Those groups will receive lump sum payments for the wages owed back in 2017.
In addition to the back pay, the agreement also:
- Makes permanent the temporary 18% pay increases given to firefighters in 2021
- Mandates additional raises of 10% starting July 1
- Ensures a five-year contract moving forward
- Includes provisions to facilitate the transfer of firefighters from other area departments
- Allows firefighters to retain all existing benefits while gaining access to new incentives, assignment bonuses, holiday pay and increased uniform allowance
“I told the voters I would honor their decision to put public safety first and treat our brave paramedics and firefighters in the fair and equitable manner they deserve," Whitmire said. "I am proud to deliver on that promise. An agreement of this nature is absolutely necessary to recruit and retain firefighters in the quality and numbers needed to serve the largest city in Texas."
Cost to the city
According to the release, the $650 million, issued by the city of Houston, will be paid through judgment bonds.
A judgment bond—according to the Patrick Thomas Agency, a surety and commercial insurance agency—is a type of surety bond that allows the winning party of a case to begin collecting a judgment. They are often used when the party that has been deemed responsible has ignored the judgment the court has made against them and allows the winning party to begin collecting their judgment.
Whitmire said the move helps avoid further unnecessary litigation costs and the uncertainty of multiple decisions by a court or an arbitration panel. It also allows the city and Houston Professional Fire Fighters Association to move forward together, Whitmire said.
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HPFFA President Patrick Lancton said the agreement is unlike any other that the city or association has seen before.
"It shows the impact of Mayor John Whitmire’s leadership and cooperation," he said. "The victory belongs to every Houston firefighter who has sacrificed for the last eight years. Let us remember the challenges we've overcome and the unity that has brought us to this resolution. Today, we stand on the brink of a new chapter that honors our hard work and dedication, and ensures a brighter future for all of our brothers and sisters and their families."
Next steps
On March 18, lawyers for the city and HPFFA will outline a proposed settlement and judgment for the judge overseeing the legal dispute.
A joint news conference with Whitmire and Lancton is planned following the court's action. The time and location of the conference has not yet been announced.
