Minneapolis negotiators reject police union's proposal for one-year contract as not 'fiscally responsible'

Minneapolis negotiators rejected a proposal Friday from the police union that would have raised officer wages by 13.25% and added other financial incentives for hiring and retention through a one-year "bridge" contract designed to replenish the department's depleted ranks.

In opening remarks of the third session of public negotiations, Rasheda Q. Deloney, director of labor relations for the city, said the Police Officers Federation of Minneapolis' offer "isn't fiscally responsible" and fails to account for how policing is changing in Minneapolis. The contract proposed by the union included a 5.25% base raise plus an 8% market adjustment increase and did not add police accountability measures. Deloney said it would cost the city $11 million in one year, noting the Police Department is already over budget.

"That's excessive," said Deloney. "I can only assume that you know the city can't pay that in one year."

Deloney said a three-year contract would offer more flexibility for higher compensation, including hiring and retention bonuses for officers who meet certain requirements. The city proposed a counteroffer that would include a higher overtime pay rate "under specific circumstances" and a new agreement on bidding for vacation and transfers.

Attorney Greg Wiley, negotiating on behalf of the city, warned that as negotiations continue, its previous offer of $15,000 to $18,000 in recruiting and retention bonuses for select officers "might go away," as it's tied to a one-time grant from the state.

After a two-hour recess, federation attorney Jim Michels said the union's previous offer was meant as an immediate measure to address wages and stave off the loss of officers to higher-paying departments. "In fact, that's exactly what happened," he said. "We lost four officers last week."

The union also believes there is "plenty of money in the budget," which is calculated based on funding for a much larger police department, Michels said. "Whether the city wants to spend it on competitive wage increases I guess is up to the city."

He agreed to some of the smaller changes, including extending a temporary cap on vacation accruals at 400 hours. But Michels pushed back on the city's timeline for paying retention and hiring incentives, which he said "won't pay the first nickel" until November 2024. He proposed spreading out the payments into three disbursements for qualifying officers over the next 14 months, starting with $8,000 at the end of this year.

The city's current police labor agreement was adopted in March 2022 in an 8-5 City Council vote and expired Dec. 31. That contract included raises and $7,000 retention bonuses for officers, but lacked many of the disciplinary changes activists demanded to rein in misconduct on the force. As of this fall, the Police Department counted 585 sworn officers, just above that of the St. Paul Police Department, an agency that serves about 120,000 fewer residents.

At the last bargaining session in September, union negotiators contended that officers' wages have failed to keep pace with many suburban law enforcement agencies, which are competing for the same pool of candidates.

The city and police union plan to meet for another bargaining session on Nov. 8.

Star Tribune staff writer Liz Sawyer contributed to this story.