2C, Non-Union Wage Adjustment - Laserfiche WebLink

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EN HILLS MEMORANDUM DATE: March 21, 2011 TO: Mayor& City Councilmembers FROM: Patrick Klacrs, City Administrat o SUBJECT: Non-Union Wage Adjustment Background During 2011 budget discussions, the Council generally agreed that it would include money in the Contingency Fund for employee wage adjustments and that the Council would discuss the details of "how much" after the Union contract was settled. We now are at that point in time, as last Monday the Council approved the Union contract proposal. Discussion Attached is a memo from the Director of Finance and Administrative Services, Sue Iverson, regarding the impact to the General Fund for various wage adjustment options for the regular non-union City employees. Also attached is a section of the August 16, 2010, Council Work Session meeting minutes when wages were discussed. Please note that the 2011 Contingency Fund is budgeted at$20,211. As you know, the Union (8 employees in Public Works) settled for a zero Cost of Living Adjustment (COLA) increase for 2011 and for a 1% COLA increase in 2012. Part of the rationale for the zero increase in 2011 was because in 2010, when they were in the 3rd year of a 3-year contract, they received a 3% COLA increase. (This contract was completed in late 2007 when there was no recession in sight.) In 2010, when the Union received their 3% COLA increase, all the non-union employees (15 employees) did not get any increase for COLA. In conversations with Councilmembers, this 2010 union/non-union wage adjustment discrepancy is what the Council wants to try to "correct" in 2011. This possibility was discussed during the Union contract negotiations so that there would be no surprises after a settlement was reached. Recommendation After evaluating our internal relationships and hearing about COLA adjustments in a few of our neighboring communities, I am recommending that the Council approve a 1% COLA increase effective January 1 st and a 1% COLA increase effective July 1 st for all regular non-union City employees.