HomeMy WebLinkAboutFS 2015-11-17 Item 2E - Discussion - 2016 Non-Represented Employee CompensationCity of Tukwila
Jim Haggerton, Mayor
INFORMATIONAL MEMORANDUM
TO: Mayor Haggerton
Finance and Safety Committee
FROM: Stephanie Brown, Human Resources Director
DATE: November 10, 2015
SUBJECT: 2016 Non - Represented Wages and Benefits
Information /Discussion Only
BACKGROUND
In May of 2012, the City Council adopted Resolution No. 1769 which applied different wage
adjustments to specific bands of the Non - Represented salary structure. Over the past few years
this has affected the salary structure line of regression creating compression at bands C43,
D61 -F102. The compression has resulted in employees at lower bands earning more than
employees in higher bands.
DISCUSSION
Upon review of the existing (2015) salary structure it was discovered that the regression line is
out of alignment causing compression to occur at bands C43, D61 -F102. To determine what
caused this misalignment, we looked back at wage adjustments that have been given to non -
represented compensation, since 2012. It appears that when the different percentage
adjustments were applied to the different bands within the salary structure, it created this
misalignment.
Council Resolution No. 1796 states "the goal of the City is to mitigate or avoid salary
compression issues where possible. An example of salary compression would be when a non -
represented supervisor earns less or is projected to earn less than those that he /she supervises
due to contracted wage increases."
With the represented groups expected to receive their contractual wage adjustments in 2016,
we will begin to see internal equity compression with the lower bands of the non - represented
group if we do not provide for a wage adjustment that is comparable. Therefore, the
Administration is recommending a threefold approach to address this issue, and would like to
discuss the recommendation in more detail with the Finance and Safety Committee.
RECOMMENDATION
• A 1 % pay increase for all non - represented employees which will preserve internal equity
as this will be in alignment with what will be received by some of our represented groups;
Changes to the salary structure line of regression, phased in over two years to address the
compression between the lower and upper bands due to previous wage adjustments not
applying to all bands. The data to show how phasing of the line over two years was not
completed in time for this meeting. Administration requests to bring it for review at the next
Finance and Safety Committee meeting on December 8. Alternatively, if the Finance and
Safety committee is comfortable with these recommendations, this proposal could go
directly to the next Council of the Whole meeting on November 23 with the final schedule.
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INFORMATIONAL MEMO
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• A commitment during the 1St quarter of 2016 to review the City Council's compensation
policy related to non - represented wages and benefits, which would include an opportunity
for input from non - represented staff. In addition, this review could include a review of the
application of this policy for represented staff.
The Finance and Safety Committee is being asked to consider the Administration's
recommendation for non - represented employee compensation effective January 1, 2016, and
that Administration return to the Finance and Safety Committee meeting on December 8, or
alternatively directly to the Council of the Whole meeting on November 23, to provide the data
on the phased approach to correct the misalignment.
We look forward to discussing this information with you further. Thank you.
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