4.2. ERMUSR 12-13-2011 - Laserfiche WebLink

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metro municipal in the survey. This, however, ignores the local labor competition that borders E1tMLI. The numbers indicate that during the last three years of economic downturn, the ERMU Journeyman Lineworker position wage rate has fallen behind the local labor competition to the bottom. For the Utilities to get into a better position for retention and development of future leaders, the Utilities would need to do three things. First, the Utilities would need to cease falling fixrther behind by at minimum keeping pace with the labor wage trend. Second and in addition minimum of keeping pace with the labor wage trend, the Utilities would need to work towards eliminating the wage disparity by chipping away at the difference. Third, the Utilities would need to communicate the intent of the company's direction to the employees to rebuild trust and build.loyalty and commitment. Last yeaz staff proposed similar concept with a plan to work towazds re-obtaining the metro-average. With the current wage dispazity and assuming a constant trend in labor wage change as indicated this yeaz, the ERMU Journeyman Lineworker position could reach the metro-average in 2 years by awarding a 5% wage increase each of those 2 yeazs. It would take 3 yeazs with an annual increase of 4%, 7 years with an annual increase of 3%, and 25 years with an annual increase of 2.5%. Once behind, it becomes difficult to catch up. The further behind the wage gets, the more drastic the measures needed to eliminate the disparity. Benefits Of course wages are only one component to the compensation package. Insurance, vacation, holidays, and other benefits also are part of the complete compensation package. It was discussed in the Committee meeting that ERMU has an excellent health insurance plan with a generous employer contribution. One of the other similar municipal utilities in the survey does have the exact same health insurance plan with a similaz employer contribution; the others have HSAs or high deductible insurance plans. In 2010, staff conducted an extensive analysis of the metro-average survey utilities' of their benefits which including health insurance. At that time this information had been presented to the Commission. This analysis was also reviewed by the Committee in October. For 2012, E12MU's health insurance plan renewal will recognize a 9.5% decrease in rates, or an approximate overall savings of $49,746. Based onthe-current 80/20 health insurance cost sharing, the employer shaze of this savings is $39,796.80. The Dental, Long Term Disability (LTD), and Life Insurance were also discussed by the Committee because ERMiJ received notice of the substantial increase in the renewal rates which would result in an overall increase of $9,819.72. Based on the current 75/25 dental insurance cost shazing and the current 100% employer coverage for LTD and life insurance, the employer share of these components' increase in cost from the prior yeaz is $8,195.28. An effort in negotiating these increases downwazd by our insurance broker was unsuccessful so we went out for bids on these insurance items. The low alternate bid for the LTD and Life through Sunlife would decrease the employer cost from the prior yeaz by $2,719.68. The low alternate bid for the Dental through Metlife would decrease the employer cost from the prior yeaz by $400.28. Further analysis into the Metlife network found that less than 20% of the employees' current dentists would be covered as "in-network". The cost to the employer to renew our current dental based on the 75/25 cost sharing is an increase from the prior year of $4,873.32.