The Town Council approved two contracts with fire department employees after an hour-long debate where the majority of residents questioned whether taxpayers could afford the deal in the current economic climate.

The public hearing was the first on a union contract to come before the Town Council, spurred by what many councilors and residents have labeled as a lavish deal when it comes to benefits and vacation time.

"I don't see how you can approve a multi-year contract on today's situation," said resident Joseph Dichiaro.

Fire Chief George Klauber and Human Resources Director Larry Budreau, the town's negotiators in the deal, defended the proposal, saying it fell under the parameters set by the council in 2006.
Gary Williams, president of the two fire unions, said he was relieved to have the debate come to an end after months of negotiations and one failed contract that the council denied in February.
"I'm pleased they stood behind their negotiating team," Williams said.

Councilors Kevin Coyle and Janet Fairbanks voted against both contracts with Councilor Brent Carney voting against only the contract with the fire officers.

Carney said the firefighters contract is more in line with town employees in other departments than the officers contract, which he classified as the most expensive contract to Derry residents. He said he would never vote for a contract that protected an entire union from layoffs.
"We need to have more flexibility in our budgets and that can only happen when personnel becomes a smaller percentage of budget, Carney said.

Budreau, the town's lead negotiator, said he received directives from the Town Council in 2006 prior to negotiations that included limiting cost increases to 3.5 percent. The current contract met those goals, according to Budreau.

"Though not every town councilor will be happy with every phrase of these contracts, I believe they meet the goals of the entire Town Council," Budreau said.
The two councilors who voted against the contracts disagreed, saying Klauber and Budreau didn't accomplish all of the goals.

Coyle said other parameters were discussed and not met, such as decreasing the insurance buyback and offering similar benefits as town employees in other departments.
He criticized the contracts for not allowing the town to subcontract services without union approval, offering employees too much earned time and proficiency pay.
Fairbanks said she had tried to become a part of the negotiating team and was discouraged from participating.

Many residents criticized the proposal for including an insurance buyback, but Williams said that only 12 employees accept the deal and it saves the town $12,000.

Barry Philips, a retired firefighter who spent 17 years with the East Derry Fire Department, said a contested agreement that gives employees hired prior to July 1, 2005, the guarantee that they can't be laid off is left over from the consolidation of the two departments.

Only one person is still employed with the town who was hired under the now defunct East Derry Fire Department.

"That was a major component in the consolidation," said Philips, who emphasized that the agreement doesn't cost taxpayers a dime.

Chairman Rick Metts, who supported both contracts, said he understands that times are tough for people, but the town has a responsibility to bargain in good faith by the parameters agreed upon by the 2006 council. Metts, who said he can't even afford health insurance for himself, said the deal contained items he was unhappy with, but that he would support the contract because it was the right thing to do.

Councilor Neil Wetherbee cautioned that if the council didn't approve this contract, the next deal could be even worse.

"At some point, you have to go back to June 30, 2007 and renegotiate a new deal," he said.