ERMUSR 11-12-2025 - Laserfiche WebLink

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______________________________________________________________________________ Page 2 of 2 The Committee clarified ERMU's approach to wage adjustments going forward: while the Committee will continue to track metro average lineworker wages annually (which includes all adjustments made by comparison utilities), ERMU's metro average wage adjustment calculation will only factor in annual cost of living adjustments. Market adjustments will not be included in the metro average wage adjustment calculation. If ERMU lineworker or other employee wages appear to fall below an acceptable range compared to the market, a separate market wage adjustment will be studied and brought to the Committee for review. As of the October 27 meeting, the average cost of living adjustment for the seven metro average utilities was calculated as 3.41%. Two of the seven utilities required estimated adjustments based on available information. Staff informed the Committee they anticipate a wage adjustment range of 3.34% to 3.48% depending on where the final two utilities land. The Committee supported bringing forward the anticipated range for Commission consideration. Since the October WBC meeting, however, one of the two previously estimated utilities have confirmed their 2026 adjustment, lowering the anticipated range to 3.34% to 3.41% As in past years, the metro average is presented as a data point to inform the Commission's decision-making. The Commission retains full discretion to set the annual wage adjustment at any amount it deems appropriate. Ideas and Things to Consider (informational only): Staff also presented three items for the Committee's future consideration. The Committee discussed these matters but took no action. • Paid Sick Leave & Health Care Savings Plan (HCSP) Conversion: Staff requested consideration for updating the Paid Sick Leave conversion plan to help retiring employees pay for privatized health insurance and medical expenses. The current plan converts accrued sick leave to the HCSP at 100% only after an employee reaches 32+ years of service. Staff noted this is a very hard employment goal to achieve, so it hurts employees who come to ERMU later in their careers. • Increasing on-call compensation from 14 hours per week to 16 hours per: Staff noted that utilities with lower overtime hours, such as ERMU, tend to have higher on-call standby compensation. • Compensatory Time: Staff raised the topic of comp-time policies, specifically the concept of rolling hours or increased annual utilization limits. Staff acknowledged that not all employees share the same perspective on this issue, but noted it remains an area where some employees feel improvement could be beneficial. REQUESTED ACTION: Staff request commission approval of a wage adjustment range of 3.34% to 3.41%. If the metro average falls outside this range after the remaining utility confirms its adjustment, staff will bring the wage adjustment recommendation back to the Commission for approval. ATTACHMENTS: • Staff’s Asks and Consideration Ideas for 2026 Wage & Benefit Committee Conversation 106