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5.3 ERMUSR 01-10-2023��i Elk River Municipal Utilities UTILITIES COMMISSION MEETING TO: FROM: ERMU Commission Mark Hanson - General Manager MEETING DATE: AGENDA ITEM NUMBER: January 10, 2023 5.3 SUBJECT: Wage & Benefits Committee Update ACTION REQUESTED: Approve wage adjustment as outlined below, effective January 1, 2023. BACKGROUND: The metro average wage adjustment data used for benchmarking lineworker market pay compares the base compensation of four metro municipals and three metro cooperatives with ERMU. This benchmarking system has improved stability in ERMU's market competitiveness for this pay group. The Wage & Benefits Committee agreed to apply the Lineworkers pay group wage adjustment to all other staff pay groups. Prior to the December commission meeting, staff received confirmed wage adjustments from six of the seven metro average participants, which resulted in a 3.21% adjustment. The last data point had been proposed but was not confirmed prior to the meeting. The commission approved up to a 3.25% wage adjustment if the final data point from a metro municipal utility could be confirmed prior to December 31, 2022. DISCUSSION: Since the December commission meeting, a metro cooperative utility confirmed an additional 1% increase in their wage adjustment for 2023. The remaining metro municipal utility has confirmed a 3.25% wage adjustment for non-Lineworkers. Assuming the municipal's Lineworkers settle for at least a 3.25% increase, ERMU's total revised wage adjustment would be 3.40% for 2023. If the Lineworkers were to settle for a wage increase above 3.25%, the difference would be added to ERMU's 2024 wage adjustment. ACTION REQUESTED: The Committee recommends the Commission take the following action: • Approve 3.40% wage adjustment for all staff, backdated to January 1, 2023. Page 1 of 1 99