5.2 ERMUSR 12-12-2021 Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
ERMU Commission Theresa Slominski - General Manager
MEETING DATE: AGENDA ITEM NUMBER:
December 14, 2021 5.2
SUBJECT:
Wage & Benefits Committee Update
ACTION REQUESTED:
Approve wage adjustments as outlined below to be effective January 1, 2022.
DISCUSSION:
On November 29, 2021, the Wage & Benefits Committee (WBC) met to discuss wage
adjustments for 2022. The Committee reviewed the metro average for the Lineworker pay
group and the 3%wage adjustment included in the budget. The Committee also discussed the
plans for benchmarking the three other pay groups of Office, Field, and Management in the
future.
The metro average cost of living adjustment used for benchmarking lineworker market pay
compares the base compensation of four metro municipals and three metro cooperatives with
ERMU. The comparison utilities are the City of Anoka, the City of Chaska, the City of North St.
Paul, Shakopee Public Utilities, Connexus Energy, Great River Energy, and Wright-Hennepin
Cooperative Electric Association. This benchmarking system has improved stability in ERMU's
market competitiveness for this pay group. The projected 2022 metro average for base
compensation would result in a 2.8% adjustment for the ERMU Lineworker pay group. The
Committee recommends awarding the metro average increase of 2.8%for the Lineworker pay
group.
The Committee recommends awarding the 3%wage adjustment included in the budget for the
remaining pay groups of Office, Field, and Management.
Future plans for benchmarking the three other pay groups, Office, Field, and Management, as
ERMU continues to make our organization an employer of choice in the community were
outlined. In 2022, Human Resources will be undertaking an organization-wide job description
and compensation review and information will be brought to the Commission for consideration
in 2023. This will incorporate the following:
• Review of all employee job descriptions. Job descriptions are the basis for compensation
decisions. In addition to the need for a thorough review of job descriptions, we realize
there may be employees who have grown their positions by taking on additional
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responsibilities on a regular basis and their job description and compensation should be
evaluated.
• Determine compensation strategy/review for future years. It is important not to lose the
progress we have made in previous years in the offering of competitive wages for all
positions. In order to continue this, we will participate in an all-position wage
benchmarking survey. We will then establish a Compensation Review process that
details the frequency (how often we will survey/review wages) and which entities we
will use in surveying/benchmarking our positions (i.e., other utilities, third party
compensation surveys, etc.).
ACTION REQUESTED:
The Committee recommends the Commission take the following actions to be effective January
1, 2022:
• Approve 2.8%wage adjustment for the Lineworker pay group.
• Approve 3.0%wage adjustment for the Office, Field, and Management pay groups.
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