HomeMy WebLinkAbout8. Union Negotiations ��..� • .. .. . . . .. . . . .. .. � . � � : . �. .�� . . .. .. . . �
CITY OF ROSEMOUNT
EXECIITIVE SIIl�sARY FOR ACTION
CITY COUNCIL MEETING DATE: JANUARY 5, 1993
AGENDA ITEM: CLOSED SESSION - AGENDA SECTION:
UNION NEGOTIAT20N, LELS CLOSED SESSION
PREPARED BY: STEPHAN JILK, CITY ADMINISTRATOR AGENDA N�e� � . �
L
ATTACffi�NTS: NONE AP ROVE B .
�/
This is a request to have a closed session to discuss the union
negotiations with the Police Department (LELS} .
Sue Walsh and I have met with representatives of that Union and would like
your consideration of the latest offer.
RECOMMENDED ACTION:
Motion to go to executive session to discuss the LELS negotiations on
the 1993-1994 contract.
COIINCIL ACTION:
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CONTRACT PROPOSAL
BETWEEN
CITY UF ROSEMOUNT
AND
LELS
LAW ENFORCEMENT LABOR SERVICES
l. Proposed: Two year contract .
City Response: OK with two year contract
2. Proposed: Increase in salaries by 5%
City Response: Increase salaries 2% in 1993
Increase salaries 3% in 1994
3. Proposed: Increase clothing allowance to $500/year
Ciry Response: Increase clothing allowance to $450/year in 1993
Increase clothing allowance to $470/year in 1994
4. Proposed: Add dental insurance plan and city pays cost of
ernployee
City Response: Will not pay cost
5. Proposed: City pays cost of current employee, when retiring,
the employees cost of single health coverage and
a11ow family coverage participation
City Response: City will not participate
6. Proposed: Add "employees and spouses parents and
grandparents" to Article 13.32 which allows the
employee to use sick leave to assist these relatives
City Response: OK
7. Proposed: Increase sergeants pay to:
$200/month in 1993
$225/month in 1994
City Response: OK
� J+' ti
8. Proposed: Procedure to have union involved in negotiating
outside work
City Response: City will maintain all authority in negotiating
contracts between City and outside parties. Contract
should be amended to reflect ability for employee to
work outside but not using City uniform or
equipment supplied by City.
9. Proposed: Clear enforcement of court, callback and overtime
provisions
City response: Contract provisions should be enforced.
Management will work with union.
10. City proposed: Eliminate longevity pay for new hires after 1-1-93
and increase starting pay by 3%
11. City proposed: Sick leave payment at time of severance. Eliminate
payment of extra vacation pay but add provision of
payment for unused sick leave at same rate as
buyout provisian
15% - 30% - 45% - 60%
12. City proposed: Retirement pay - sick leave payment
Increase from 25 to 60
to 50 to 60
13. City proposed: Health insurance payment - leave provision for city
payment of 100% of single and 65% dependent but
limit this to a maximum City payment to what will
be paid in 1993
These responses, on behalf of the City, are meant to be considered in their entirety.
If any }�rovision is amended, others must be reconsidered unless mutually agreed
upon by the City and Union representative.
i�� o osemoun�
PHONE (812}423-4411 2875-145th Street West,Rosemount,Minnesota MAYOR
FAX (612)4235203 Mailing Address: Edward B.McMenomy
P.O.Box 510,Rosemount,Minnesota 5506&0510 COUNCILMEMBERS
. Sheila Klassen
James(Re�Staats
Harry Wiilcox
Dennis Wippertnann
ADMINISTRATOR
Stephan Ji&
T0: Mayor McMenomy
Council Member�: Klassen, Staats, Willcox, Wippermann
FROM: Stephan Ji1k, City Administrator
DATE: December 31, 1992 -
RE: Police Union Salary and Benefits Negotiations
Sue Walsh and I met with Police Union representatives on
December 21st. At that session I made proposals for
consideration for the 1993-1994 Contract. A copy of that
proposal is attached for your consideration.
At that session the items 10-13 were presented for the first
time. The idea of implementing a incentive pay program in lieu
of longevity was discussed at length.
Pursuant to that discussion Sue contacted Cy Smythe to gather
additional information on such a program, how it works and how to
implement such a program. One of the key issues is that if we
are moving ahead to implement such a program for one set of
employees, i.e. Public Works Union, we should attempt to do so
for all . This will not only be consistent but help us in our
compliance with Pay Equity.
In that regard Cy provided the attached information on such a
plan implemented in Minnetonka, Shal�opee and Winona. Sue has
also copied the article on these programs from a League of
Minnesota Cities bulletin.
I would like to discuss this matter with you to get further
direction on the matter in order to continue the negotiations .
�vert���i�.gs �omtng �(Jt,� C`J1.osemoun���
�
� � � �„!recvuea oarx. . � . � . �
INCENTIVE PAY PROGE2AM ,
(Personal Growth and Performancej
During this year's contract negotiations, the City has proposed
a unique incentive pay program for the police officers. This
program was designed to off�r additional compensation for
personal growth and performance which will also have direct
benefits to the citizens of Minnetonka. As outlined, the
pr�gram eventually would provide opportunities for officers to
earn as much as $270 a month or $3,240 per year for ongoing
education or training, performance, community service, skill
assessment, and wellness/fitness.
Because of the high cost of this program, we believed it would
take three to four years to fully implement. Further, if the
program was implemented, we also felt that it would be necessary
to modify the present salary structure and step system so they
are more cbnsistent with other Stanton Group V communities. The
City strongly believes that the Personal Growth and Performance
Program presents a unique way of providing additional
compensation for police officers. The program was developed for
the following reasons:
1. To resnond to the State' s Comparable Worth Legislation In
the City of Minnetonka ' s 1990 pay equity corridor the
patrol officer position is significantly overcompensated.
The patrol afficer position is valued at 72 points and
their 1989 annual base salary is $35,256. The value of the
patrol officer position on our all-employees line is
$29, 639 and the 110% corridor is $32, 603 . Therefore, the
patrol officer's 1989 base salary is more than $2,500 above
the City�s 1990 pay equity corridor.
Since the patrol officer position is overcompensated by
such a large amount, the City proposed the Personal Growth
and Performance Incentive Pay Program which would allow
officers to earn additional money above their base salary.
This was offered in conjunction with lower base salary
�increases that would begin moving the patrol officer
position closer to the City's pay equity corridor.
2. To compensate officers for their performance and skill
level rather than length of time in a position It has
always been the City of Minnetonka ' s position that
employees should be compensated for their performance
rather than length of time in a position. The City does
not have a longevity system for any represented or
� non-represented employee groups: - During the past few
- years, the City has strongly supported implementation of
performance pay systems . Al1 of our Operation and
Maintenance employees (public works) are now working in a
performance pay system.
�
Incentive Pay Program
Page Two
3. To urovide addit�onal traininct and personal growth
opportunities for officers. By compensating employees for_. .
such things as knowledge of theiz work (skill assessment) ,
ongoing education and training, and community service, the
City strongly believes that patrol officers will have
significant opportunities for self improvement. The skill
� assessment and cingoing education/trainir�g �would improve .
their knowledge of the job, while the community involvement
would hopefully broaden their environment outside of the
law enforcement area. We believe this program will result
in improved job performance, greater job satisfaction, and
better service to residents of the community.
The City would be open to the implementation of certain elements
of this program if the police receive a lower base salary
increase than the City�s other employee groups. A lower base
salary increase will bring Minnetonka's top patrol rate closer
to the average of Stanton Group V communities. The element of
this program that we believe should be implemented first is the
-.� education component. As proposed, this component of the program
� would provide for immediate eligibility of several officers with
four year degrees to receive an additional $50/month in
compensation. Further, it would establish the additional
education/training standards which could be undertaken to earn
another $50/month.
We would also suggest that the existing education incentive
program be phased out as other elements of this incentive pay
program are phased in. This could be accomplished by providing
officers who are currently receive education incentive pay a
choice between that pay and this new incentive pay program. It
would be the City' s intent to incorporate additional components
of this incentive pay program as part of future years' labor
agreements. '
TS/bn
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� PERSONAL GROWTH AND PERFORMANCE PROGRAM
,'
Education/Training ($100/month or $120D yr)
Two Components
1. Education ($50/month) - employees with a Bachelor's or
° � Master's degree in a job related field would be eligible
to receive this additional compensation.
- Immediate eligibility
2. On-Going education/training ($50/month) - annual
requirement
(a) academic - 2 courses (min 6 credits) , or
(b) training - 24 P.O.S.T. credits
- Academic courses must be from an accredited
institution of higher learning and be approved by
the Chief of Police prior to enrolling. The City
would reimburse employees for college courses
consistent with the City's tuition reimbursement -
policy.
- Training sessions must be approved by the Chief of
Police prior to attending. The City would pay for
the training sessions.
- �
, } - The training requirements are �above and beyond the
normal P.O.S.T. licensing requirements.
- The courses/training sessions must be attended on
of f-duty time.
- Eligibility after 3 years of service.
Performance ($50/month or $600/year)
- Employees who perform at an above average level
will be eligible to receive merit pay.
- " Merit pay wil.l be based solely on the employee' s
annual performance evaluation.
� - The City will not place restrictions on the number
of employees that will be eligible to receive merit
PaY•
- Employees that have received merit pay may lose it
if theiX performance does not continue at an
above-average level.
�
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Performance (continued)
-� � - Since the merit pay is based on annual performance
evaluations, �t may be grieved to the Police Chief
and 'City Manager but is not arbitrable.
- Eligibility after 2 years of service.
Community Service ($50/month or $600/year)
- Employees who are actively involved in some outside
community service (scouting activities, service
clubs, youth athletics, church groups, etc. ) would
be eligible to receive additional compensation.
- Community service does not have to occur in
Minnetonka.
- Community service activities are an excellent means
of personal growth and development, and should
result in the employee having substantial input
into the community.
- Community service activities need to occur on an
annual basis.
- � - Community service activities must be pre-approved
� by the Chief of Police and emplayees must show
evidence of participation in the group/activity.
- Eligibility after 4 years of service.
Wellness/Fitness ($30/month or $360/year)
- Employees would need to make substantial progress
on personalized wellness/fitness goals and
. objectives to qualify for additional' compensation.
- Employees would receive a personalized
' wellness / fitness profile with certain
goals/objectives. Employees would be required to
_ make substantial progress toward meeting the
various goals/objectives or to maintain a sound
wellness/fitness profile.
- Employees would be evaluated for compliance every
two years or more frequently if factors warrant.
- Eligibility after 2 years of service.
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, ' Page 3
Skill Assessment ($40/month or $480/year)
- Employees must pass an annual written assessment
that would be developed by the staff and
administered by the Chief of Police to qualify for
additional compensation.
- The assessment will be based on information fram
the Department's Policy & Procedures Manual,
criminal code, City ordinances, traffic laws, and
IACP training keys. .
- � The evaluation will be 50 questions and a score of
75% or above is considered passing.
- Eligibility after 7 year of service.
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F�.REL�AT10EN`� :
�a::.:.>..n�Y2,a`r�`.� -i:xn�:eiv+r.�Z'�,:a:i .�i�.».u'xsx�u.�"'�ss,'t.,�-�_>. . . . .
�Te O� • k. Passage in 1984 of the state locai negodate perfarmance-based pay
1�1 � � government pay equity act(LGPEA); systems and an increasing number of
�e�OrmC�,iCe and arbitrators haue agreed to make awards
� State fiscal difficulties resulting in which have established,at least in part,
��Sea pay S�Stems cutbacks of state aid to cities. pay for performance.
L� The pay equity act forced cities to Ciues have negotiated performance
examine their employee compensation based pay systems with AFSCME,
�,S�� systems and determine whether the Teamsters,and Operadng Engineers
salary levels of their job classifications unions and have successfully argued for
were justified by their�alues. Many the institution of such systems in
�-���, cides,concluded that interest arbitrauon with some police
�'�-���.�=,�..:, uring the late 1980s and ::-The salary structure which had � units and firefighters.
-: early 1990s cities saw an e�olved over the years did not The development of negouated
} �� F' increase in the number of equitably relate salary to job value; performance pay in the TKzn Cities
C �- :,� ��. f,
; ;, negodated contracu that =. The existing salary structure was not metropolitan area began in 1988 when
�'_� included provisioris for pay consistendy in"cornpliance"with the a number of suburbs made the decision
f '�-` � - increases for individual standards of the pay equity act as to significand}'reduce the number of
employee performance. Two factors expressed by the Minnesota Depart- separate job classifications in their
have lead to the increases: ment of Employee Reladons public works deparunents. 1�4any cities
(DOER);and had 10 or more separate job classifica-
� The costs of changes in the exisvng tions such as Street�1'orker I,II,III;
salary suucture to achieve"compli- Park Worker I,II,III;and Udlity
ance"��ere occurring at a ame when tii'orker I,II,III,etc.
cutbacks in state aid were decreasing The employees worked in separate
many cides'ability to bear increased deparunents or divisions for different
�ryberger,Buchanan, salary costs. supen�sors and often K�ere under-
Smith and�ederfck�p�. �a result a number of cides began udlized during times when the employ-
��� to seek�+�ays to midgate the financial ees in the other divisions were working
A Regional Law Firm Based in Duluth impact of lost aid cutbacks.Some o��erume. �4'hen they were shifted
302 West Superior Street strategies involved reducing the totai benveen departmenu,often o��er the
Duluth,Minnesota 55802 number of separate job ciassifications, objections of their supenzsors/di�zsion
1•800-223-2774 EXT 168 decreasing the number of employees heads,they frequendy were not skilled
through attriuon and layoff,and at the assigned tasks because of inexpe-
Harold A. Robert E. deve]oping pay nnges for all jobs rience . _
� Frederick Toftey through which individual employees t Employees began in the lowes�
� 25 years 15 years could progress only on the basis of : posiuo�n�i'n a d;�s�on4a`rid gen�1�.LL�
; Municipal Law Municipal Finance evaluated performance. �coul�not be promotedunnl turno„�ve�'z'
1� Experience Experience For non-represented employees (non '�through Feurem�nts,resignauo�n�.
union),the city could develop a �`deaths provided.an openmg Such ack�.
Serving communities in �- � - " p
performance-based pay system relating `of oppo�`.fu�nit�_for promouon c.'''`reaY,tec�-a-
Central,WeSt2t'fl 1t1d Pay increases within a range for the job conunuing demand for longeyity"pay�_�
Northern Minnesota to increased knowledge,skills,and �,p�grams and othei means of providing
in �he areas of: performance. However,for repre- "'inore income:Each of the jobs had a
sented employees,implementing a separate job value under the pay equity
• Munici a) Financin *
p g performance-based pay system needs to act.
• T1X �IlCC21'Tt@tlt be negotiated or gained through A number of suburbs made changes
• Special Assessments interest arbitration. to eliminate the mulvple separate
• Condemnation Unions in Minnesota and elsewhere public works job classificadons and
• Municipal Construction have historically not been supporters of place all of the employees into a new
performance-based pay systems. In fact single job classificauon,Public Service
Liti ation
g their opposiuon to performance/merit Worker (a city decision which did not
pay has been continuing and firm over require union agreement since a public
*listed in the Bond Buyer's the years. Yet,a number of Minnesota employer's organizational structure is
Directory unions have agreed in recent years to not a mandatory subject of bargaining
-� . ' _ . , ->,.
under the state's collective bargaining tute,at least for new employees,a for the city'ss�olice offcers rather than_�
law,the public employees labor performanm-b�a ees�efu ed to cons der In Sha opee�arbiitrators awarapa at he
relauons act). essential e p y " `"
T'he new single job classification such a proposal,the issue has sometimes �city's request,the Minnetonka perfor�
mance pay system for new police n�nit`
contained all of the job duties,responsi- gone to an arb►trator. �,.:r�z�.�;;�, ''
'.Tnc,"`�""`�reasm 1 airbit'ra[ors have been-�' �.���o���an;�,������� .
bilities,and requirements of all of the �,.�..,�;,,�..�,�,,g.Y�.,��;..-�---�-�-- �_ �'
otd'ob classifications and carried the wilhng�award some form of pe�rfo� e7t►�ig t�g�ne�l edic�ao s about
job value of the hi hest of the old �mance papb..In Winona,arbitrato� Y g p
g ��awa�rded a ci re uested sausfactory��H the fu[ure of performance-based pay
classifications. All employees were . _ .. _ LY q stems in the Minnesota public sector
eligible to earn the top rate of the new }a���Ione�e�a ad for oine and��r ould be premature,the number of
job upon demonstration that the g g �'p y P ';x. cives and unions which have adopted _
employee performed competendy all of �firefighter units In Mmnetonka,an
the duues and responsibiliues of the job arbi_ tor awarded�aacity-requested"'-� such systems is causing greater interest
and met all of the standards of the job �m laple-part peiformance pay syst m- among emplo}'ees,cities,and unions.w
(possession of required licenses, �
certificates,or education).
For the first dme all of the pubtic '
service employees could reach the top .
rate. They did not have to w�ait until a
redrement,resignadon,or death ,`��en Quality Counts, -
created a promouonal opportunity. � ringsted•
employees attained the i:nowledge and �0�� O� ��
skills necessary to meet all of the �
requiremencs of the job and sausfacto-
rily performed the job,they progressed
within the negodated pay range for the
job toward the top rate. To pro��de that To hundre�s of governmenta� sitttatiot�that requires Petso�ta��
a personality conflict between an �i��rougliout the country, professional2ttention.
employee and supervisor could not
result in a con[inued unsa�isfactory the name Springsted is
performance radng,performance Synonymous with independent As a result,our clients receive
ntings�vere grievable under the service ttlat oes beyond what
contracG However to avoid the prospect �n�advisory services of g
of an arbitration each time an employee unparalleled excellence in the they might expect to receive.
ry S��ring and issuance of We don't hesitate to take those
challenged an unsadsfacto evaluadon, ��g
such grievances were non-arbitrable. �n�or other debt extta steps,beCause 2�
Potenuaily,under the new system,a ��,�ents for capital project less than the best just isn't
city's payroll costs for the same number gppd enough foi us ot out
of pubiic works emplo}�ees could �`inancings.
increase over the old system. However, c.�ients.
the costs of this new system appear to be ���y�t��y,s SOlutions
less even though most individual Fpr pver 3S yeazs, oui
employees have higher wages because: do not always work for today's r utation for excellence has
Efficiency is higher when all of the problems, Springsted Tefuses t0 eP
employees can be assigned to do ait �n gurPassed by only one
of the required tasks;
regard any transaction as
Cities can more effectively use routine.Every client �g•
employees because they are not �gggement is viewed as a new
� sepanted by tasks,classifications,and and�enging Our performance.
ditizsions;and _ .
The incentives result in higher
individual employee productivity
allowing a ciry to operate�+nth fewer $pR(NGSTED Incorporated
emptoyees.
The performance-based pay approach Public Finance Advisors
has not been limited to public works 85 �ast Seventli Place, Suite 1�
employees. Since the Legisiature's S�it�t paul�Mu,r,esota 55101-2143 ' s+, .,,,�,
passage of the pay equityact in 1984,a (612)223-3000 = �
number of cides have been attempdng ••
to phase out historic]ongevity pay Saint Paul• Minneapotis �°��. „,.�:•
programs which apply only to their , ""'°"'�
Milwaukee• Kansas Ciry
�essential employee groups and substi-