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is also a typical level of applicable experience required for those seeking a job for an industry <br /> competitor. Based on the issues that ERMU is considering addressing with this benefit, starting <br /> the benefit at 5 years of service is the targeted demographic. There are a number of key <br /> positions that will become open through retirements over the next decade. There has been a <br /> depletion of employees with 5 through 15 years of service. It is becoming increasingly critical to <br /> incentivize employees to grow and develop within the company and be positioned to be <br /> promoted and fill positions as they become open. Attached for reference is a graph depicting the <br /> number of ERMU employees compared to years of service. This does not reflect experience <br /> brought into the company when hiring from the outside. <br /> Based on the survey data the average longevity pay benefits are added to the base wage at <br /> approximately 1% at 10 years of service, 2% at 20 years of service, and 3% at 30 years of <br /> service. To modify this to meet our targeted 5 years of service demographics while staying <br /> consistent with the industry standards, smaller increments could be used. This could be <br /> accomplished by starting at 0.5% at 5 years of service and increasing by 0.5%every additional 5 <br /> years of service. This is reflected in the attached table. For reference,the table also reflects the <br /> impact to a journeyman lineworker. <br /> As with the Performance Metrics Incentive Compensation Policy adopted by the Utilities <br /> Commission last month, it is recommended that an employee of the Utilities would be eligible <br /> for the longevity pay benefit only if the employee is in good standing with the Utilities. An <br /> employee would not be eligible while on disciplinary probation or a performance improvement <br /> action plan. <br /> FINANCIAL IMPACT: <br /> If approved and implemented January 1, 2013,the financial impact to the Utilities would be <br /> approximately $23,000 in expense for 2014. This is the equivalent of approximately a 1% <br /> COLA evenly applied to all employees. <br /> ACTION REQUESTED: <br /> Staff recommends the Commission adopt the longevity pay benefit for implementation retro- <br /> active to January 1, 2013. <br /> ATTACHMENTS: <br /> • ERMU Employees Years of Service Graph—January 8, 2013 <br /> • Proposed ERMU Longevity Pay Table—January 8, 2013 <br />• <br /> Page 2 of t 1PUIEAE1 <br /> BI <br /> NATURE <br /> Reliable Public <br /> Power Power Provitler P O W E R E D T o S E R V E <br />