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��i <br />Elk River <br />Municipal Utilities UTILITIES COMMISSION MEETING <br />TO: <br />FROM: <br />ERMU Commission <br />Mark Hanson - General Manager <br />MEETING DATE: <br />AGENDA ITEM NUMBER: <br />January 10, 2023 <br />5.3 <br />SUBJECT: <br />Wage & Benefits Committee Update <br />ACTION REQUESTED: <br />Approve wage adjustment as outlined below, effective January 1, 2023. <br />BACKGROUND: <br />The metro average wage adjustment data used for benchmarking lineworker market pay <br />compares the base compensation of four metro municipals and three metro cooperatives with <br />ERMU. This benchmarking system has improved stability in ERMU's market competitiveness for <br />this pay group. The Wage & Benefits Committee agreed to apply the Lineworkers pay group <br />wage adjustment to all other staff pay groups. <br />Prior to the December commission meeting, staff received confirmed wage adjustments from <br />six of the seven metro average participants, which resulted in a 3.21% adjustment. The last data <br />point had been proposed but was not confirmed prior to the meeting. The commission <br />approved up to a 3.25% wage adjustment if the final data point from a metro municipal utility <br />could be confirmed prior to December 31, 2022. <br />DISCUSSION: <br />Since the December commission meeting, a metro cooperative utility confirmed an additional <br />1% increase in their wage adjustment for 2023. The remaining metro municipal utility has <br />confirmed a 3.25% wage adjustment for non-Lineworkers. Assuming the municipal's Lineworkers <br />settle for at least a 3.25% increase, ERMU's total revised wage adjustment would be 3.40% for <br />2023. <br />If the Lineworkers were to settle for a wage increase above 3.25%, the difference would be <br />added to ERMU's 2024 wage adjustment. <br />ACTION REQUESTED: <br />The Committee recommends the Commission take the following action: <br />• Approve 3.40% wage adjustment for all staff, backdated to January 1, 2023. <br />Page 1 of 1 <br />99 <br />