City of Richmond and IFPTE Local 21 -
Executive Management Unit
2022 Classification and Compensation Meet and Confer
City Proposal Number 1- Version 4
Date: May 24, 2023 cwlt
Subjects: Classification and Compensation Study Implementation 5-26-77 Proposal
The City proposes to implement the 2021 Segal Classification and Compensation Study for all represented classifications via the below side letter to the Parties' current MOU. The City further proposes to address the Union's interest for an across-the-board minimum increase for employees with four additional compensation enhancements to the Parties' MOU:
(1) Increase the value of the January, 2024 base wage increase from
4.0% to 5.0%;,
2) Increase the value of the January, 2025 base wage increase from
4.0% to 5.0%;
3) Establish a City contribution to a deferred compensation account for each Executive in the amount of 2.0% of each employee's semi- monthly base salary to occur each pay period starting July, 2023 and; 4) Add longevity pay as described in the proposed MOU language below.
MOU Side Letter Language
The City of Richmond (City") and IFPTE Local 21 Executive Management Unit ("Union" (collectively, "the Parties") have met and conferred in good faith pursuant to California law and Article 6.1 of the Parties' 2021 - 2025 Memorandum of Understanding concerning implementation of the 2021 Segal Classification and Compensation Study. The Parties hereby agree as follows:
1. The Parties approve the IFPTE Local 21 Executive Management Unit Salary Adjustments from the Segal Classification and Compensation Study Final Report dated June 2021. (Attachment A.)
2. The Parties approve the IFPTE Local 21 Executive Management Unit Job Description updates from the Segal Classification and Compensation Study Final Report dated June 2021 as amended by the Parties. (Attachment B.)
3. The equity adjustments will be implemented the first full pay period following City Manager (or designee) approval of the job description changes. The City will recommend adoption of this side letter including Attachments A & B to the City Council.
4. The Parties shall conduct bi-weekly video conferences to review the City's progress implementing the Segal Classification and Compensation Study for the Executive Unit until the City has completed the process of adopting the updated job descriptions.
The City will implement the Compensation Study by placing employees in the proposed grade for their job classification as stated in Attachment A.
Job classifications receiving an equity adjustment will be placed in the range reflecting the value of the equity adjustment recommendation by Segal. Job classifications that do not receive an equity adjustment will remain in their current salary range. Individual employees will be placed within their salary range at a point most similar to their current range that does not cause a reduction in base wage. The ranges will be divided into five equal portions to assess where the employee will be placed in the range to comply with the methodology detailed above.
Jwlt
Base Wage Increases, Deferred Compensation and Longevity Pay 5-26-23
The City will increase base wages for all classifications in the Executive Unit, establish a City deferred compensation contribution and establish longevity pay for Executives. These changes are separate from the agreed upon equity adjustments for the Executive Unit.
1. The monthly pay rate increase for January 1, 2024 described in Section 6.1 of the MOU will change from 4.0% to 5.0%.
2 2. The monthly pay rate increase for January 1, 2025 described in Section 6.1 of the MOU will change from 4.0% to 5.0%.
3. Section 7.18 of the MOU will be amended to add the following sentence: "Starting July 1, 2023, the City will contribute an amount equal to 2.0% of each employee's semi-monthly base salary into their deferred compensation account each pay period."
4. Section 6.12 will be added to the MOU and will read as follows:
"Longevity Pay
Effective the first full pay period in July, 2023, eligible employees shall receive longevity pay as follows:
An employee who has completed five years of service at the City will receive longevity pay in the amount of 2.0% of base salary effective the first full pay period following their fifth anniversary date.
An employee who has completed ten years of service at the City will receive an additional longevity pay in the amount of 2.5% of base salary effective the first full pay period following their tenth anniversary date, increasing their total longevity pay to 4.5%.
An employee who has completed twenty years of service at the City will receive an additional longevity pay in the amount of 4.5% of base salary effective the first full pay period following their twentieth anniversary date, increasing their total longevity pay to
9.0%."
TA
dult
5-26-23
3 The Parties will not further amend their current Memorandum of Understanding as a result of this Agreement. This Agreement embodies all items agreed upon by and between the Parties regarding the Study as addressed above.
5-2623
For the IFPTI: Local 21 Executive Management Unit:
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