HomeMy WebLinkAbout14 2021 Unrepresented Employee Wage Schedule
AGENDA ITEM # 14
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MEETING DATE: February 3, 2021
TO: Board of Directors
FROM: Michael Salmon, Chief Financial Officer
Jillian Steward, Human Resource Manager
SUBJECT: Consideration for Approval of the 2021 Wage Range
Schedule for Unrepresented Employees
APPROVED BY______________________________
Brian C. Wright, Interim General Manager/
Water Utility Director
RECOMMENDATION:
Approval of the 2021 Wage Range Schedule and adjustment for unrepresented
employees, as presented.
BACKGROUND:
In March 2020, the District approved 2020 Wage Ranges for both unrepresented and
represented employees. For represented employees, the Board also approved the
Memorandum of Understanding (MOU) between the District and the International
Brotherhood of Electrical Workers (IBEW) Local 1245. The MOU specifically stipulates
the Wage Range change from 2020 to 2021 methodology per Title 20.4: “2021 through
2023 – Effective January 1, of each year, a GWI of CPI-W (San Francisco-Oakland-
Hayward) based on the October to October change as calculated by the Bureau of Labor
Statistics with a cap of 5% and a minimum of 2%.”
In 2020, the District negotiated with unrepresented employees a two (2) year
compensation and benefits agreement, which included a 2.5% salary schedule
compaction adjustment, and a 5% general wage increase for FY2020, and a general
wage increase for 2021 based upon October 2019 to October 2020 CPI-W (San
Francisco-Oakland-Hayward) as calculated by the Bureau of Labor Statistics with a cap
of 5% and a minimum of 2%.
For both the represented and unrepresented employee wage range 2021 adjustments,
the October 2019 to October 2020 CPI-W was 0.9%; accordingly the represented and
unrepresented wage range increase for 2021 is 2.0%. The 2021 wage range schedule
for unrepresented and represented employees is provided for reference as Attachments
1 and 2 respectively.
A compensation and classification study for the unrepresented employment
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classifications is planned and budgeted in 2021 to guide FY2022 unrepresented wage
range adjustments, in advance of the FY22&FY23 budget cycle this fall.
It should be noted that the General Manager (GM) salary is determined by an employment
contract negotiated by the Board of Directors at the time of recruitment. The GM salary
currently reflected in the wage range schedule is based upon the current Interim General
Manager salary.
This item is in support of the following objectives and goals identified by the District.
1.05.020 Objectives:
1 Responsibly serve the public.
3. Provide reliable and high quality water supply and distribution system to meet current
and future needs
4. Provide reliable and high quality electric supply and distribution system to meet current
and future needs
6. Manage the District in an effective, efficient, and fiscally responsible manner.
1.05.030 Goals:
1.1 Conduct the District’s business in a legal, ethical, open and transparent manner.
3.4. Conduct effective and efficient operations, maintenance, and replacement programs.
4.5. Provide effective and efficient maintenance and replacement programs.
4.6. Provide effective, efficient, and safe operations program.
6.2. Employ a qualified and productive workforce.
FISCAL IMPACT:
The FY20 and FY21 Budget assumed compensation increases of 3% each year.
In March of 2020, the following wage increases were approved by the Board for 2020:
Represented Unrepresented
Salary Schedule Adjustment 0.0% 2.5%
General Wage Increase 5.0% 5.0%
Total Change 5.0% 7.5%
The 2020 pay increases amounted to a $257,000 labor cost impact over 2020 Budget.
For 2021, a 2% increase for both employee groups as opposed to 3.0% in Budget,
equates to $39,000 favorable impact. Accordingly, 2021 pay rates equate to a $218,000
unfavorable to budget impact, before factoring the impacts of current staffing vacancies.
This $218,000 equates to 0.6% of Total Operating Expenses.
Factoring all of the above, the base calculated 2021 wage schedule (represented and
unrepresented) overage of $218,000 and other personnel changes in 2021, are estimated
to be more than fully offset by the estimated $268,000+ savings to budget from position
vacancies in 2021.
All of the above amounts are presented before overhead impacts for simplicity of analysis.
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ATTACHMENTS:
Attachment 1: 2021 Wage Range Schedule for Unrepresented Employees
Attachment 2: 2021 Wage Range Schedule for Represented Employees