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CR 06-014 Approve Increase in Non-Union Wages January 17, 2006 ~ Council Report 2006-014 APPROVE INCREASE IN NON-UNION WAGES Proposed Action Staff recommends that the Council approve the following motion: Move aoproval of a 2.5% increase in the current non-union and firefighter wage schedule retroactive to January 1. 2006. a I % increase effective June 25. 2006 and a 2.5% increase effective January 1. 2007 with a 1% increase effective Julv 1. 2007. Overview The proposed salary adjustment calls for a 2.5% wage increase effective January 1, 2006 and a 1 % wage increase effective June 25, 2006. It also calls for a 2.5% increase effective January 1, 2007 and a 1% wage increase effective July 1, 2007. Historically, the firefighters have received the same percentage increase as the non-union employees. There is no increase proposed for insurance benefits in 2006. The total insurance benefits for non-union employees are now approximately the same as those of the Sergeants. An adjustment similar to that of the unions is proposed for the non-union employees for 2007. Primarv Issues to Consider . How does this agreement fit in with the 2006/07 budget? The City budgeted 3% for wage increases in 2006. The total cost of the proposed settlement is within the budget. The City Council has not approved a budget for 2007. The proposed increase in wages, however, is approximately what the finance department has been using for planning purposes. . How does this agreement compare to other contract settlements for 2006/07 in terms of wage and benefit increases? 2006 settlements for other cities have generally been in the range of 3%. There are not enough 2007 settlements to determine a trend. i1}jck{~ ;; City Manager Financial Impact: $ $54,000 in 2006 Budgeted: Y/N Yes Related Documents (ClP, ERP, etc.): Notes: Source: Various City Funds