HomeMy WebLinkAbout11 2022 Represented Employee Wage RangesTRUCKEE DONNER
Public Utility District
'400 A
MEETING DATE: January 5, 2022
TO: Board of Directors
AGENDA ITEM # 11
FROM: Michael Salmon, Chief Financial Officer
Jillian Steward, Human Resource Manager
SUBJECT: Consideration for Approval of the 2022 Wage Range
Schedule for Represented Employees
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APPROVED BY
Brian C. Wright, General Manager
RECOMMENDATION:
Approval of the 2022 represented Wage Range Schedule 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 2021 to 2022 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%."
For the represented employee wage range 2022 adjustments, the October 2020 to
October 2021 CPI-W (San Francisco -Oakland -Hayward) was 5.2%; accordingly the
represented wage range increase for 2022 is 5.0%. The 2022 wage range schedule for
represented employees is provided for reference as Attachment 1.
Note, the unrepresented employee wage range 2022 adjustments remain undetermined
at this point in time, due in part to the active compensation study for this group and
pending negotiations with the Board. An item for Board consideration will be presented
at a subsequent board meeting.
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GOALS:
1. Manage for financial stability and resiliency
5. Developing and inclusive culture drives organizational integration and success
FISCAL IMPACT:
The FY22 and FY23 Budget assumed compensation increases of 4.5% in FY22 and 3.0%
in FY23 respectively, for both Represented and Unrepresented employee groups.
The represented 2022 pay increases of 5.0% equate to a $320,000 labor cost impact
(including overtime) and is $35,000 greater than the budgeted amount, excluding capital
charged labor, the variance to operating expense is approximately $25,000.
The above $25,000 variance to budget will decrease operating reserves, however,
personnel vacancies during 2022 are estimated (but cannot be forecasted) to offset the
majority of this variance.
This variance has a compounding effect on 2023 Budget of similar amounts.
All of the above amounts are presented before overhead impacts for simplicity of analysis.
The variance of $25,000 is estimated including overhead impacts to be $41,000.
ATTACHMENTS:
Attachment 1: Schedule A — MOU Wage Range Schedule 2022
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