The Associated Press

FRANKFORT - The Kentucky Court of Appeals on Friday upheld a lower court's decision in favor of a Newport firefighters' union that claimed the city engaged in unfair labor practices.

A three-judge panel also sided with city officials in ruling the Campbell Circuit Court did not have authority to award the labor union more than $306,000 in lost overtime and more than $14,000 in attorney fees.

"Although the firefighters are not entitled to compensation for overtime opportunities which they lost as a result of the city's conduct, the city still engaged in an unfair labor practice by refusing to bargain collectively ... " Judge William L. Knopf wrote in the court's opinion.

At issue was whether city officials violated the collective bargaining agreement between Newport and the International Association of Firefighters, Local 45, which represented its firefighters.

Union officials claimed Newport City Manager Philip Ciafardini had on-duty firefighters distribute a city newsletter to homes and businesses there. That violated the labor contract, by giving firefighters additional duties not agreed on through collective bargaining, the union argued.

Also, the union contested the city's decision to increase the number of firefighters from 36 to 39, without changing the minimum staffing level. The firefighters claimed that also should have been negotiated because it cut their overtime pay.

A hearing officer in June 2002 partly sided with the city, finding that the newsletter delivery did not break the labor agreement.

Still, the hearing officer ruled that changing the city's number of firefighters was a "material change" to the contract and needed negotiation. The hearing officer recommended the Kentucky State Labor Relations Board issue a cease-and-desist order to force the city and union into negotiations.

The labor board found the city's delivery job was an unfair labor practice. It also found hiring extra firefighters violated the contract, and that firefighters should be reimbursed for lost overtime.

City officials appealed to the circuit court in January 2003, which ruled in the union's favor. The court entered an order, drawn up by the union, in June 2003 which awarded the firefighters lost overtime pay and attorney fees.

With its ruling Friday, the appeals court upheld the circuit court's ruling on unfair labor practices, but reversed the damages and attorney fees to the union.