TO: Mayor and City Council
THROUGH: Keith Stahley, City Manager
FROM: Krishna Namburi, Deputy City Manager/Enterprise Services Director
Michele Bennett, Human Resources Assistant Director
SUBJECT:
title
Compensation adjustments for represented and non-represented classifications, and creation of new classifications and pay grades.
Ward(s): All Wards
Councilor(s): All Councilors
Neighborhood(s): All Neighborhoods
Result Area(s): Good Governance
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SUMMARY:
summary
Human Resources completed compensation reviews for represented and non-represented job classifications following the guidance of the City’s Compensation Philosophy, and compression pay analysis in conclusion of recent collective bargaining. There are represented classifications that are behind the market for competitive wages. The two unions that have recently settled on new contracts with the City has resulted in pay compression issues between some represented and non-represented job classifications. Other compensation and benefit changes are recommended to ensure equitable compensation between employee groups and to retain talent within the City, as well as improve morale and productivity. New classifications and pay grades are recommended now that the City will be providing emergency medical services.
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ISSUE:
Shall City Council approve the compensation adjustments for the select represented and non-represented job classifications retroactive to effective July 1, 2024?
RECOMMENDATION:
recommendation
Approve the compensation adjustments for the select represented and non-represented job classifications retroactive to July 1, 2024.
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FACTS AND FINDINGS:
As part of the 5-year classification review cycle following the City’s process for AFSCME represented and non-represented jobs, classifications are reviewed annually to identify potential compensation changes needed and make pay recommendations for implementation as of July 1st of the new fiscal year. The review assesses the current market rate in relation to the City’s comparators and its local competitors, and analysis of pay compression issues due to changes in compensation between represented and supervisory classifications.
As of July 1, 2024, the City was still in negotiations with two unions, the American Federation of State, City, Municipal Employees (AFSCME), and the Salem Police Employees Union-Sergeants (SPEU-S). Now that both contracts have been successfully negotiated, the following classifications are recommended for pay and benefit adjustments.
AFSCME represented job classifications: The findings of the review identified nine represented classifications that are behind market more than 5% based on minimum hourly pay and/or experiencing significant recruitment challenges:
1. Clerk-Messenger - pay grade change from A08 to A12
2. Code Enforcement 1 - pay grade change from A15 to A17
3. Custodial Worker 1 - pay grade change from A09 to A08
4. Laborer - pay grade change from A09 to A12
5. PW Maintenance Operator 1 - pay grade change from A14 to A15
6. PW Maintenance Operator 2 - pay grade change from A16 to A17
7. PW Signs & Marking Worker - pay grade change from A16 to A17
8. Security Officer - pay grade change from A09 to A12
9. WTP Operator 3 - pay grade change from A25 to A26
These pay grade changes will improve the market competitiveness of these classifications and brings the compensation to be within 5% of market to our comparators. If this recommendation is approved, Human Resources will initiate a memorandum of understanding (MOU) with AFSCME for the above listed classifications to change to pay grades retroactive to July 1, 2024.
Police Management - The current accepted pay compression tolerance level between Police Sergeants (formerly part of Police Management but now represented by SPEU-S) and Police Lieutenant is 22% spread between top steps in pay. The compression tolerance level between Police Lieutenant and Deputy Police Chief classifications is 15%. This compression level, approved by City Council in 2021, was determined after comprehensive analysis of pay and benefits between all ranks of police classifications found severe compression existed. Severe compression existed were caused due to Sergeants are overtime eligible, as well as they also receive other multiple forms of additional pay incentives that increase their earnings above other police management ranks who do not receive overtime or other pay incentives.
The new SPEU-Sergeant contract includes additional compensation and benefits that are more than the cost-of-living adjustment that Police Management received (3% as of July 1, 2024). The additional compensation and benefits of SPEU-S reduces the compression level between Sergeants and Lieutenants to 17% (base wage only), and further reduces when factoring in overtime, incentive pays, and other retirement/clothing allowance benefits.
To maintain the accepted compression level between the ranks, the following pay and benefit adjustments, as similarly provided to SPEU-S, are recommended for the Police Management ranks to maintain internal equity, encourage promotional opportunities within the department, and further improve employee morale:
1. Four percent (4%) market adjustment to Police Lieutenant and Deputy Police Chief classifications.
2. $125 per month employer contribution to the PORAC retirement medical trust for Lieutenant, Deputy Police Chief, and the Police Chief classifications.
3. $28.00 per pay period ($2.00 increase) in clothing allowance.
4. Five percent (5%) special team pay incentive for Lieutenants selected as SWAT/EOGC Commander and MRT Commander (two positions).
5. Two and one-half percent (2.5%) special team pay incentive for Lieutenants selected as back-up SWAT/EOGC Commander and MRT Commander (two positions).
Selection process description for assignment to the Special Weapons and Tactics (SWAT), Emergency Operations Group Commander (EOGC), and Mobile response Team (MRT) Commander ancillary assignments which qualify for special team pay incentives:
• When a vacancy occurs, new assignments to the positions of commander and backup commander for SWAT/EOGC and MRT shall be based upon qualifications as assessed by the police executive leadership team (or Chief and Deputy Chiefs) after proactively soliciting interest from all lieutenants. Considerations will include but not be limited to:
o Career status lieutenant (completed probationary period)
o Demonstrated ability to manage active tactical incidents in the field
o Willingness and ability to respond to emergency call-outs
o Demonstrated ability to effectively manage complex specialized programs
o Prior experience as a member or supervisor of the involved specialized team
Fire Emergency Medical Services - For the Fire Department’s new emergency medical services (EMS), Human Resources worked with the department to develop new job classifications and pay grades that are new to the City and will be represented by the International Association of Fire Fighters (IAFF) union. The new job classifications and pay grades require City Council approval to incorporate them into the City’s classification and compensation system. Two of the classifications (Single Role EMT-Basic and Single Role Paramedic) are temporary/seasonal classifications that will be used for initial hiring/training up until June 30, 2025, at such time they convert to full-time career classifications. The new classifications and compensation pay grades recommended for approval are:
1. Singe Role EMT-Basic (temporary/seasonal) - flat rate based on schedule:
a. 42-Hour/Week (D Shift 24-Hr Schedule) is $22.38/hour
b. 40-Hour/Week (Surge Car Schedule) is $25.07/hour
2. Single Role Paramedic (temporary/seasonal) - flat rate based on schedule:
a. 42-Hour/Week (D Shift 24-Hr Schedule) is $30.75/hour
b. 40-Hour/Week (Surge Car Schedule) is $34.44/hour
3. Single Role EMT-Basic (full-time/career) - new pay range based on schedule:
a. 42-Hour/Week (D Shift 24-Hr Schedule) is $22.38 - $27.21/hour
b. 40-Hour/Week (Surge Car Schedule) is $25.07 - $30.47/hour
4. Single Role Paramedic full-time/career)
a. 42-Hour/Week (D Shift 24-Hr Schedule) is $30.75 - $37.37/hour
b. 40-Hour Shift (Surge Car Schedule) is $34.44 - $41.86/hour.
5. EMS Trainer (full-time/career) is $39.36 - $50.24/hour.
If this recommendation is approved, Human Resources will initiate a memorandum of understanding (MOU) with IAFF for the above listed classifications and pay grades. The classifications and compensation will be used for new hires starting in 2025.
Fiscal Impact
Police management adjustments - the estimated impact for FY 2025 (current year) is $210,300.
AFCSME pay grade adjustments - the estimated impact for FY 2025 (current year) is $325,000 across all funds.
The fiscal impact for these recommended compensation adjustments are expected to be absorbed in the FY 2025 budget and will be included in the FY 2026 budget.
BACKGROUND:
Attachments:
1. None.