2003-02-26 CC Packet - Laserfiche WebLink

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Overview of Pay Equity Plan 1. Positions are evaluated and ranked according to the criteria developed in the original study. Each position is given a "point value." A copy ofthe original benchmark ranking system is attached. 2. A pay equity schedule was developed with the original study. Point ranges are separated into bands called "grades." The salary range for each grade is spread out over ten "steps," with step one being the beginning point for each grade, step five the mid- point, and step ten the maximum salary for that grade. 3. Each year, the pay equity schedule is increased by the cost-of-living adjustment (C.O.L.A.) granted by the council. Typically, employees would receive the C.O.L.A. and the step increase each year until they have reached maximum salary for their respective grade. Thereafter, employees would receive annual C.O.L.A. only. Current Pay Equity Issues 1. There is a health insurance contribution disparity between the union (male-dominated class) and non-union employees in the amount of $46.32/month per employee. 2. Union employees have not been receiving annual step increases according to the pay equity schedule. Reportedly this is due to contract negotiations favoring increased health benefits over pay increases, but this has not been substantiated. This situation will not affect the Department of Employee Relations (DOER) compliance testing, but creates a disparity between employees. 3. Job rankings have not been reviewed since the original study in 1997. Some ofthe positions that were ranked were part-time at that time. Some positions have changed significantly in scope and responsibility since 1997. Some positions have never been ranked at all, but rather, "plugged" into various grades. Subsequent informal rankings were done in order to submit the pay equity compliance report to DOER. 4. The original pay equity schedules were developed with ten steps. This was done in order to allow local governments a period of ten years in which to bring salaries for female-dominated classes in line with those of male-dominated classes, thereby lessening financial impact to financially strained jurisdictions. Only two employees involved in the original study are still on the city payroll and are nearing the top of their scale. Many newer employees started at step one of their assigned grade, resulting in a ten-year process to reach the top of the grade. Once all original employees have been assimilated into the system, many jurisdictions have returned to a three- or five-step system, which provides for employees to reach their maximum salary in a shorter, more reasonable, period oftime. This can also be accomplished by starting employees at the mid-point. Many current employees have not yet reached the mid-point. 5. The C.O.L.A. granted for 2003 may not be in keeping with the actual inflation rate.