05-14-2002 ERMU MIN - Laserfiche WebLink

Home Browse Search

Page 3 Regular meeting of the Elk River Municipal Utilities Commission May 14, 2002 5.5 Review and Consider Employee Compensation Bryan explained the request by the operational employees of the ERMU for annual compensation increases, an increase in re-connect pay, and a matching employee, employer 457 Deferred Compensation Plan. Four Options were presented. John Dietz asked if the operational employees, and the administrative employees have always been dealt with at the same time. Glenn Sundeen replied that prior to 1996, the operational employees were reviewed on June 1, and the administrative employees on January 1. He added that the second negotiation was merely a continuation of the settlement set forth on June 1. James Tralle asked if the three requests should be discussed separately. George Zabee moved to raise the re-connect pay from $35.00 to $50.00. John Dietz seconded the motion. Motion carried 3-0. Discussion resumed, with comments from Staff, Commission, and employees. John Dietz does not like breaking down the increases between the cost of living, and market adjustment, as stated on the Options. George Zabee voiced his opposition to the extra retirement benefit, and further feels that true labor costs are not being scrutinized, such as PERA, and FICA. Bryan Adams explains why he is in favor of the additional retirement plan. Surveys of other Utilities show that the plan is being instituted by the majority. John Dietz indicated that he would prefer Option 3, George Zabee indicates his indecision, and James Tralle is leaning toward the Option 2. James Tralle moved to adopt Option 2 for the ERMU 2002-2003 salary increases, with the additional retirement plan. Motion died for lack of a second. Richard Wagner spoke on behalf of non-administrative, and non-linemen employees, questioning the difference in percentage increases, and stating that he feels the practice is unfair. He expressed his view that since the employee share of health coverage was raised, he had not received a pay increase to make up for the increase. George Zabee responded again that he feels compensation is fair, adequate, and reasonable. James Tralle wondered about the cost of a four year training of an apprentice, and feels that if ERMU does not offer the 457 option, that ERMU could become a training ground for other Utilities. George Zabee disagreed, saying that he feels ERMU salaries are very good, and sufficient, and that PERA is an excellent retirement plan. Michael Thiry added that he feels the employees requests have always been fair, and that they only want to be treated with increases to meet the metro average. James Tralle moved to approve the request for the additional 457 Deferred Compensation Plan in the amount of$1,000.00 matching employer-employee contribution. Motion died for lack of second.