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Memorandum To: AFSCME Employee From: Salary Survey Committee- See Below Date: June 22, 2014 Subject: Salary Plan This memorandum is to introduce the organization to the process that was used to develop the salary plan that is being proposed by the committee made up of Doug Russell, Terry Mitton, Susie Turner, Brady Pelc, Mike Nicholson, Josh Brinton, Chad Wambach, and Scott Lyders. The goal of this committee was to establish a salary plan that reflected an appropriate market rate for each position and offers a fiscally responsible approach to compensate employees from the minimum to the maximum of the respective pay range. Additionally, this plan has to be able to be easily defended in the organization and to the public. Our intent is that should anyone review the process and the information compiled, they would be led to the same conclusions. While the survey plan itself is being recommended based upon the process, any implementation for the organization will be dependent upon the outcome of the collective bargaining process. Step 1- Define the market from which data is collected The committee collected and reviewed information from 10 comparison cities. 5 of these cities had populations above the population of Kalispell, and 5 had populations below the City of Kalispell. All information used in this process has been made available for review for those that feel they can document that the process did not produce the appropriate outcome for their respective position. Step 2- Identifying Minimums, Maximums, and Midpoints for the respective positions The next step in the process was to review positions with the City of Kalispell and identify minimum and maximum values for each of the 10 comparison cities for our positions. In some cases, there were easily comparable positions. In other cases, we had to place a value within the municipality's organization structure and pay range to estimate where that position would be if it existed in that municipality. We tried to place a value for every municipality so that the data was not artificially skewed low or high, but represented a true basis for comparison across the municipalities. We then averaged the minimums, maximums, and midpoints for each position. ---PAGE BREAK--- Example demonstrating Steps 1 and 2 Position of comparison grade minimum maximum Kafispell Streets Operator 33800 38542 44781 Billings Equip Operator 161 31429 42099 Missoula Class II Operators 42869 42869 Great Falls Maintenance Worker I- Street 36157 39574 Baseman Streets Operator 49 32795 40123 Helena Streets operator Ill (I and II) don't exisi 139 41080 49920 Havre Eqt, Operators 3 37980 43326 Miles City Laborer 35214 37014 Belgrade PW Laborer 33508 36094 Livingston Maintenance II Public Works 32800 43712 Laurel Main. Worker 13 46051 48571 Average 36988.3 42330 Midpoint 39659.25 Step 3- Establishing the grade 3.a To establish a master grade list we started at grade 10 being equal to a beginning midpoint of a $31,883. We then multiplied each successive grade by 2.5%. 3.b To place a respective position into an appropriate salary grade, we placed the midpoint that was derived for that respective position through the salary survey in between the two grades that were directly below and above it. For example, if the new midpoint from the survey was $39,659 we placed it between grade 18- $38,847 and grade 19- $39,818. We then rounded the new survey midpoint to the closest range. Thus, in this example the new midpoint for this position was closest to grade 19-$39,818, and it was placed in that grade. Differnce Differnce Closest NEW New Survey Midpoint of Midpoint of Midpoint and Midpoint and Grade Grade Midpoint Grade Below (18) Grade Above (19) Grade Below Grade Above Midpoint 39659 38847 39818 812 159 39.18j 19 ---PAGE BREAK--- 3.c. To develop the 20 step pay range for each grade, we started at the midpoint (Step 10) and multiplied each successive step by 1.013%. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 $35,394 $35,851 $36,333 $35,811 $37,296 $37,787 $38,285 $38,789 $39,300 $39,818 $40,336 $40,860 $41,391 $41,929 $42,474 $43,027 $43,586 $44,152 $44,726 $45,308 Step 4. Placing employees on the new matrix and future movement To effectively place employees onto the new matrix, their current base salary (including longevity and certifications) was compared to the steps in their respective pay grade. More than likely, the current base salary falls between two steps on the matrix, in the proposed contract, the first year, beginning July 1, 2014, the implementation would put the employee at the next highest step on the matrix, provided they are not already at the highest step. Also, for July 1, 2014, there would be an approximate 2.2% base adjustment to the entire matrix (every step would increase by In successive years, the idea is that there would be a step increase for those not at the highest step on the matrix, and a base adjustment to the matrix (these are subject to the collective bargaining process). Step 5- Concerns expressed during negotiations During the negotiation process over the last year, we have discussed numerous concerns and sought ways to address them with the new pay matrix and contract. Below, are some of the prominent concerns, and ways that they are addressed in the proposed contract: 1) The current system does not provide an equitable increase in compensation increases across the AFSCME unit. This concern is what started the process of developing a new pay system. This provides two compensation components a) annual step increase, up to 20 steps, and b) an annual base adjustment that will be applied across the new pay matrix (both pending collective bargaining outcomes) 2) Will previous certification pay go away? Certification pay that has been previously acquired has been accounted for in the employees' base pay amount as employees are placed on the matrix. ---PAGE BREAK--- 3) Will longevity go away? Previously earned longevity will be factored into the base salary as employees are placed on the matrix. Additionally, as is the case with the current AFSCME contract, there is an Experience Premium Supplement of $0.10 an hour for each full year of employment after the employee reaches the top step in their respective pay grade. 4) Will premium pay activities go away? Applicable provisions of previous contracts will remain: Lcad Pa,,on Pay $075 Record, Cleak/Ceine AnIyt Shift Diffeccotrd 1700-2100 $0.25 Treanec Preaneum Pay $050 Records Clerk/Crime Analyst Shut Diercotia1 2100-0700 $0.50 Sweeper Operdor Premium Pay $025 Records Clerk/Crime Analyst Werkaid Duty Pay (Pri 1700- hIm 0700) 00.25 Snow/Weather Ovum Octwem 12:00 hldai0ht & $5.00 Se.,onal Scow on-call Premium Pay $025 5) If! receive a disciplinary action, will my pay be frozen? Under the terms of the current contract, any disciplinary action in a preceding 12 month period prevents advancements in the current matrix. Under the proposed contract, compensation increases are broken into two pieces, 1) step increase, and 2) base adjustment. For the step increase component, the absence of a disciplinary action is needed to advance on a yearly basis (however, it must be a written or greater action; oral warnings would no longer be considered as a measure of satisfactory performance in respect to the step pay increase.) Additionally, the base adjustment component is applied to the entire pay matrix. Disciplinary action would not have an impact on this adjustment. 6) How do we keep a performance based component in the new contract? In addition to the disciplinary component addressed above, each employee will have to acquire 12 hours of additional training outside of the safety training. As is the case currently, there should be appropriate communication between the employee, supervisor, and Director regarding what trainings the employee is wishing to attain. ---PAGE BREAK--- Brady Peic Chad Wambach SS u s i e T ~um Mike Nichoson josh Brinton Lyders Doug Russell Titton Step 6- Present to the or2anization With the significant change in the structure of the pay matrix, the committee felt that informational meetings would aid in the presentation of the information, which has brought us to this point. We felt it was good to get the market data into the organization early in the process for review, and now present how the information has been incorporated into a proposed agreement that is anticipated to be presented for adoption. To reiterate, the committee conducting this effort attempted to engage in an objective process that could be defended to anyone choosing to review the data. With that in mind, please review all information carefully and consider the common goals shared throughout the organization. Respectfully,