4.1. ERMUSR 12-13-2016 - Laserfiche WebLink

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and larger COLA was discussed. Because of the complexity to administer the implementation of the suggested employee choice option,this consideration stalled. The W&BC came to consensus that because this requested benefit would not be equitable for all employees and that it would be a deduction from any COLA that the Committee does not support this benefit addition at this time. Even without Committee support,the Commission has the option to consider the addition of this requested benefit 2017 or table it for future consideration. COLA and Market Adjustments The Consumer Price Index(CPI)for Minneapolis-St. Paul area increase 1.5% in the first half of 2016 over the first half of 2015. The CPI report makes specific note that for the same period CPI increase 2.5% less the food and energy indexes. For the same region and period,the Employment Cost Index(ECI) notes a 2.8% increase in wages and salaries and a 2.9% in total compensation. This is above national ECI. This is likely due to regionally low unemployment general shortage of labor. These indexes are consistent with actual results identified through wage benchmarking. Specifically,this is true for the lineworker pay group. Wage survey results indicate a 2.75% increase trend in lineworker pay for 2017. This is higher for the lineworker group than other benchmarked positions. After much discussion from the Committee, a COLA greater than 2.5% would not be supported. The Committee discussed between 2% and 2.5% COLA. Consensus of the Committee was to recommend for Commission that a market adjustment be awarded to the lineworker group in addition to the COLA to result in a combined increase of 2.75%. So for example, with an across the board 2.5% COLA the lineworker group would be awarded an additional 0.25% market adjustment to bring the total increase to 2.75% for 2017. Salary Compression Due to salary compression from past market adjustments for the lineworker pay group it had been identified last year the lineworker pay group has been compressed with the manager pay group. The Commission had tasked the W&BC to explore options to resolve the salary compression issue and bring back a recommendation. The Committee discussed benefit options for the manager pay group that would help to relieve the salary compression. The Committee came to consensus and are proposing to the Commission that the manager pay group receive an additional 40 hours vacation annually which would be separate from the vacation already earn per the existing policy. If unused by the end of the year it was issued,the balance of this additional 40 hours vacation would be covered at 100% base rate wage and paid out to the employee. ACTION REQUESTED: All of the following action request items shall be consider for approval effective January 1, 2017: 1. Consider 2017 COLA: up to a 2.5% for all four pay groups. 2. Consider 2017 market adjustment: market adjustment in addition to the COLA to bring the lineworker group to a total increase of 2.75%. 3. Consider management group benefit adjustment: additional 40 hours vacation annually with option for annual payout at 100% if unused during calendar year. ATTACHMENTS: • Bureau of Labor Statistics Consumer Price Index, Minneapolis-St. Paul—First Half 2016 • Bureau of Labor Statistics Employment Cost Index, Minneapolis-St. Paul—September 2016 • Lineworker Wage Comparison Table 1 Page2of2 [ iiipi E Reliable Public$ Power provider P O VV E R E O T o SERV E F2