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an additional 1%market adjustment for the lineworker group which will bring the journeyman <br /> lineworker wage to the metro average. Due to the upcoming work associated with the electric <br /> service territory acquisitions over the next five years and due to projected retirements, retention <br /> of lineworkers is critical; critical for the labor to perform the obligation of work associated with <br /> the acquisition and critical for the succession of leadership. ERMU lost two lineworkers again <br /> this year and are now dangerously thin on experience. <br /> Another factor of the total compensation is the compensation from ERMU's Performance <br /> Metrics Incentive Policy. This policy was developed after ERMU lost six lineworkers to Xcel in <br /> a two year window. The W&BC and Commission looked at the Xcel lineworker wage and felt <br /> that as a municipal we were not able to match the base hourly rate. This policy was developed as <br /> a solution to close that hourly rate gap with strings attached; the company had to meet <br /> performance metrics established by the Commission for this additional compensation to be paid <br /> out. For example, if the Utilities were under performing financially, the Commission could hold <br /> back this incentive compensation. This policy was broadened in scope to span across the whole <br /> company to encourage above average performance from all segments of the company. Even with <br /> the recommended COLA,market adjustment, and the anticipated Performance Metrics Incentive, <br /> the journeyman lineworker wage will be still lower than Xcel in 2016. This also doesn't take into <br /> consideration the significant amount of overtime the Xcel lineworkers normally get. However <br /> this has still been a valued tool to narrow the gap. That said,this is part of the total compensation <br /> and the Committee recommends the Commission discuss this along with COLA and market <br /> adjustments. The Commission needs to consider total compensation when positioning the <br /> Utilities for employee retention, rates, and value. <br /> An additional challenge that has arisen from market adjustments for the lineworker group is that <br /> members of this group will make more than managers who supervise them. This situation will <br /> make it nearly impossible to develop future leadership from within and proactively succession <br /> plan for retirements and growth. The W&BC recommends a few options for addressing this <br /> issue: additional performance metrics incentive for the manager group or standalone incentive <br /> plan. The Committee looks for discussion and direction from the Commission. The ERPD <br /> developed a wage incentive program in 1993. This may provide valuable information and lessons <br /> for consideration in addressing ERMU's issues. <br /> Organizational Structure and Personnel Projections <br /> The Committee reviewed the organizational chart to discuss succession planning for growth and <br /> potential retirements. All positions are important for ERMU to successfully provide valued <br /> services to our community. However, due to special circumstances there are always areas of <br /> immediate and/or long term concern that become critical for planning. As already stated, it is <br /> identified that the lineworker position has elevated concern as a critical position for employee <br /> retention. Also critical is the development and retention of leadership and management. The <br /> Committee is developing an annual practice to review, identify, and develop options for <br /> solutions for areas of staffing concern. This information will be presented as needed to the <br /> Commission for consideration. <br /> PyOWERED DI <br /> Page 3 of 4 NATURE <br /> Reliable Public <br /> Power Provider P ERED D T o SERV E <br /> 135 <br />