ST. CATHARINES, Ont. -- The city of St. Catharines has lost its case against its firefighters and has been ordered to pay more than $6 million in retroactive raises and recognition pay awards.

Many of the city's 158 firefighters will be eligible for lump-sum payments of between $40,000 and $50,000 each.

About $23,000 of the lump-sum payment will cover the 15 per cent wage increase awarded retroactively by arbitrator Howard Brown.

The remainder will cover the retroactive recognition or seniority pay that Brown awarded.

Contract negotiations between the city and its firefighters broke down in 2005 and an arbitrator was appointed to resolve the dispute in 2007.

In his ruling, Brown rejected the city's argument that it could not afford to pay.

The city's lawyer had argued in February 2007 that the city couldn't afford it because the average salary of a St. Catharines resident is $31,000, and no one else in the city was getting such large raises.

St. Catharines Mayor Brian McMullan said Tuesday the city is disappointed, but not surprised because similar raises and seniority awards were being handed out in Ontario.

Of the $24 property tax increase the average homeowner is facing this year, about $10 will go to cover this year's recognition pay, McMullan said.

Firefighter association president Terry Colburn said the award is what firefighters deserve.

"We believe the decision is fair," Colburn said. "We have only ever wished to be paid at a comparable salary rate with other fire and police services in Ontario."

(St. Catharines Standard - Distributed by the Associated Press)