2C, Non-Union Wage Adjustment - Laserfiche WebLink

Home Browse Search

EN HILLS MEMORANDUM DATE: March 17, 2011 TO: Patrick Klaers, City Administrator FROM: Sue Iverson, Director of Finance and Administrative Services SUBJECT: COLA Analysis for 2011 In the 2011 Budget process we put$20,211 in the General Fund Contingency for salary increases as we did not have the union contract settled. Since we have now settled the union contract for the years 2011 —2012, we now know that the increase for union employees will be 0% for 2011. You have asked me what the impact on the budget would be for a 1% increase retro to January 1, 2011 followed by a 1% increase on July 1, 2011 for the non-union employees. You have also asked what the impact on the budget would be for a 1.5% increase retro to January 1, 2011 for the non-union employees. The effect of a 1% increase on January 1 s and July 1"would be as follows: General Fund 1%Jan 1 $ 6,108 1%Jul 1 3,548 Total Increase $ 9,656 The effect of a 1.5% increase on January 1st would be: General Fund Jan 1 $ 9,502 Total $ 9,502 In effect, either way it amounts to a 1.5% increase for the year, but the advantages of the first option (1% on January 15t and 1% on July lst) would be that it adjusts the pay scales for non- union employees to "catch-up" for what happened last year when the union employee got a 3% increase and the non-union employees got 0%. This would result in the non-union employees' pay scales only 1%behind the union's at the end of the year.