NEW ORLEANS – Mayor Mitch Landrieu announced that the City of New Orleans has submitted its first upfront payment in a settlement with the Firefighters Union on the decades long firefighters back pay lawsuit and pension lawsuit.
The City wired $15 million to the plaintiffs in advance of the Monday, February 1, 2016, deadline, the first payment required in the $75 million settlement reached last October. The agreement requires an upfront payment of $15 million for the outstanding back pay, with the balance paid over the next 12 years. The City’s potential liability of more than $200 million was satisfied under the terms of the settlement, which also included terms that will require substantial reforms to preserve the Fire Pension system for retired firefighters and save taxpayers an estimated $275 million over the next few decades. Equally important, this settlement ensures that essential city services, such as police, fire, EMS, street repairs and parks and recreation will not be threatened.
In April 2016, the City will go to the voters for a 2.5 mill increase to cover the costs of the remaining obligations.
“Our firefighters do an excellent job for the people of New Orleans,” said Mayor Landrieu. “Just Wednesday, many of the NOFD firefighters risked their lives to contain a major fire on Canal Street and ensure the safety of our residents and visitors.” By settling the decades’ long lawsuit regarding firefighters back pay and resolving the pension lawsuit, we are doing right by them and better positioning our city for the future. This first payment as part of our settlement is proof that we are putting this long-term liability behind us.”
NOFD Superintendent Timothy McConnell said, “As demonstrated once again during the massive fire on Canal Street yesterday, New Orleans' firefighters are dedicated first responders who risk themselves every day to protect the lives and property of our citizens. The global settlement and this first payment toward that agreement demonstrate the City's commitment to firefighters receiving what is owed to them and ensuring that the pension system is on a solid footing for both those who have selflessly served the City and for future generations of firefighters.”
City Council President Jason Rogers Williams said, “It is serendipitous that during the week that we make this payment, the entire city got to witness our Fire Department risk life and limb to contain and defeat a six alarm fire in one of our historic structures, on one of our most grand historic boulevards. Their heroism and importance to our city cannot be overstated. The fire fighters’ commitment to the city is clear. I hope that this first payment makes clear our commitment to them, now and into the future.”
