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HomeMy WebLinkAbout9 Unrepresented Employee Wage Adjustmentenda Item # To: Board of Directors From: Kim Harris Date. December 07, 2016 Subject: Consideration of Unrepresented Employee Wage Scale Adjustment 1. WHY THIS MATTER IS BEFORE THE BOARD The Board must approve salary ranges for District employees. 2. HISTORY The District has unrepresented and bargaining unit (union) employees. The union employees' wage ranges for 2016 through 2019 were approved December 15, 2015 with the Memorandum of Understanding with IBEW Local 1245. The bargaining unit employees negotiated a 5% general wage increase on January 1, 2016 and 3% for years 2017, 2018 and 2019. The unrepresented employees (management and technical positions) have generally followed the same wage adjustments as union employees. At the December 2015 Board meeting, the Board approved a general wage increase for the unrepresented employees of 5% on January 1, 2016 and a general wage increase based on October CPI-W with a floor of 0% for years 2017, 2018 and 2019. 3. NEW INFORMATION Based on the October CPI-W, the wage increase for unrepresented employees for 2017 is scheduled to be 1.45%. This is 1.55% below the 3% wage increase bargaining unit employees will receive. There is an approximate 3% projected increase from industry wide surveys for 2017. This includes information from Society for Human Resource- Management for 2017 (3% projected) and the Northwest Utilities Salary & Wage Survey (3.2% for Exempt Salaries for PUDs). The District also surveyed several public agencies in the area and found that wage increases range from 1 % to 3% are expected during the year. The District recruits and competes with local and out -of -area employers to retain our current managers and technical staff. As the cost of housing and living in Truckee continues to increase, it is important to retain our current employees and be competitive for future positions that will be recruited in the next few years. The District has always been a forerunner in wage determination in the Truckee Tahoe area. We have been an "employer of choice", rather than an "employer of last resort" for individuals seeking employment. The District has taken into consideration the high cost of living in this area and realistically determined that wages shall be commensurate with those expenses. Staff recommends a 3% wage increase for unrepresented employees to align with industry standard. The General Manager's salary is not affected by this action. 4. FISCAL IMPACT A 3% wage adjustment was projected in FY17 budget District wide. 5. REC®MMENDATI®N Approve the 2017 unrepresented employees' 3% wage scale adjustment. Kim Harris Human Resource / Risk Manager Michael D. Holley General Manager