Toronto’s 3,100 firefighters have been awarded a 14.26 per cent wage increase over a five-year contract.

The arbitration award, which covers the period from Jan. 1, 2010, to Dec. 31, 2014, means a first-class firefighter will earn $87,923 as of Jan. 1 this year.

The new contract starts out at $80,316 on Jan. 1, 2010, and moves in steps to $90,623 on Jan. 1, 2014.

The package will cost the city an extra $45.7 million over the five years, which had been budgeted. The city has 90 days to issue retroactive pay back to 2010.

The package is too rich, said Deputy Mayor Doug Holyday, who noted municipalities want the province to tell arbitrators they need to pay more attention to the employers’ ability to pay.

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“These people (firefighters) have grabbed the brass ring, and it’s got to stop,” Holyday told reporters at city hall on Thursday. “They’ve got to be brought back to reality.”

The city said in a statement that it had submitted detailed financial, budget and economic information. However, arbitrator Kevin Burkett “rejected the city’s argument that his primary consideration should be its ability to pay.”

Holyday said he hopes the provincial government will “give some instructions to those arbitrators that these settlements aren’t acceptable any longer.”

The Toronto Fire Fighters’ Association Local 3888 said Toronto’s ability to pay was fully aired. The package mirrors the deal Toronto police received and continues a 60-year history of wage parity between the two groups.

The police deal was negotiated and agreed to by the city without going to arbitration. Holyday said that was only because management believed an arbitrator would award a similar amount.

By signing a deal, the city saved the cost of fighting it out with police in arbitration hearings for little or no benefit, he said.

“We were told that going to arbitration (with police) would be a waste of money and sending good money after bad. We saved the cost of arbitration and just agreed to it.”

The city saved some money on firefighter benefits. For example, firefighters had slightly better sick-pay gratuity benefits, which were brought in line with police in this contract at a savings of about $9.4 million.

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“We’re glad to finally have our contract settled, and we believe this is a good deal for us and for taxpayers,” association president Ed Kennedy said. “The arbitration system worked as it should.”