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Remedy for Police Department Supervisor/Manager Wage CompressionCity of Dubuque City Council Meeting Action Items # 011. Copyrighted June 17, 2024 ITEM TITLE: Remedy for Police Department Supervisor/Manager Wage Compression SUMMARY: City Manager recommending City Council approve salary percentage increases and longevity adjustment, effective July 1, 2024, in order to remedy the wage/salary compression that would exist for the ranks of Police Lieutenant, Police Captain, Assistant Police Chief, and Police Chief related to the percentage wage increases provided to union police ranks per the CBAeffective on July 1, 2024. SUGGESTED Suggested Disposition: Receive and File; Approve DISPOSITION: ATTACHMENTS: Description Type MVM Memo City Manager Memo Request for Salary Increase for Police Mgmt Staff Memo THE CITY OF Dubuque DUB TEE1. All -America City Masterpiece on the Mississippi � pp zoo�•*o 13 zoi720zoi9 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Remedy for Police Department Supervisor/Manager Wage Compression DATE: June 13, 2024 Chief Human Resources Officer Shelley Stickfort is recommending City Council approve salary percentage increases and longevity adjustment, effective July 1, 2024, in order to remedy the wage/salary compression that would exist for the ranks of Police Lieutenant, Police Captain, Assistant Police Chief, and Police Chief related to the percentage wage increases provided to union police ranks per the CBA effective on July 1, 2024. To begin to address the identified issue of wage compression occurring between Police Department supervisor/management ranks and union positions, for which there was a mere $74 per pay period pay difference between the highest union position step and the lowest step of the supervisory/non-union position, effective in January 2024 the City Council approved a 5% wage increase for non -collective bargaining sworn personnel in the positions of Lieutenant, Captain, and Assistant Chief. The Police Chief position received a 6% increase. In the late fall of 2023 and early months of 2024, information was received from the Compensation and Classification vendor Carlson Dettman Consulting (CDC) that indicated gaps in wages for Police personnel along with recommendations for percentage increases in order for the City to remain competitive for recruiting new, qualified talent and retain existing talent. This information was used for bargaining with the Dubuque Police Protective Association's (DPPA) new collectively bargained for contract that would become effective July 1, 2024. As a result, three significant changes were bargained for and are included in the ratified DPPA contract that goes into effect on July 1, 2025. The first was an increased number of steps for the wage plan that includes the Patrol Officer and Police Corporal positions represented by the DPPA, the second provided for targeted increases versus across-the-board increases to address identified gaps in competitiveness of wages at certain intervals/steps for each of the two position levels on the DPPA Wage Plan, and third was an increase in longevity pay from 3% after 15 years of service to 3.5% and from 4% after 20 years of service to 5%. These actions over the course of the three-year (FY 25, FY26, and FY27) DPPA wage plan increases permit the City to close the identified competitive wage gaps per the CDC Classification and Compensation review and conclusions. The bargained for increases address the concerns about competitive wages for the recruitment and retention of represented police personnel. However, the base pay difference between the top step Corporal (union) and bottom step Lieutenant (supervisor/manager) and all the other manager levels would now experience compression again when the DPPA wage plan goes into effect on July 1, 2024. To remedy the resulting compression police supervisory/management positions would need to receive the same percentage wage increase as is reflected at the top step of the DPPA wage plan for the highest union position in the July 1, 2024 DPPA CBA Wage Plan for each fiscal year. Specifically: 1. Fiscal Year 2025 — 10.25% 2. Fiscal Year 2026 — 7.25%, and 3. Fiscal Year 2027 — 5.6% In addition, the supervisory longevity schedule should be revised to follow the longevity schedule as bargained for in the CBA. The ranks of Police Lieutenant, Police Captain, Assistant Police Chief and Police Chief would receive 3.5 % longevity after 15 years of service instead of the current 3% and 5% longevity after 20 years of service instead of 4% The recommended changes to remedy compression that would occur on July 1, 2024would cost approximately $268,125.02. Jenny Larson, Chief Financial Officer, has reviewed the data/information and concurs with the likely cost increase. Funding for these increases in FY 2025 would come from savings created by staff vacancies In future budgets the cost would be built in through the annual budget process. I concur with the recommendation and respectfully request Mayor and City Council approval. v Mic ael C. Van Milligen MCVM:sv Attachment CC' Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Shelley Stickfort, Chief Human Resources Officer Jeremy Jensen, Chief of Police Jenny Larson, Chief Financial Officer Connie Palm, Compensation and Classification Manager Dubuque THE CITY OF DUB Et AII•Ameft City Masterpiece on the Mississippi � pp z°°�.z°iZxz° 13 2017*2019 TO: Mike Van Milligen, City Manager FROM: Shelley M. Stickfort, Human Resources Director DATE: June 11, 2024 RE: Remedy for Police Department Supervisor/Manager Wage Compression INTRODUCTION The purpose of this memo is to recommend salary percentage increases and longevity adjustment, effective July 1, 2024, in order to remedy the wage/salary compression that would exist for the ranks of Police Lieutenant, Police Captain, Assistant Police Chief and Police Chief related to the percentage wage increases provided to union police ranks per the CBA effective on July 1, 2024. BACKGROUND To begin to address the identified issue of wage compression occurring between Police Department supervisor/management ranks and union positions, for which there was a mere $74 per pay period pay difference between the highest union position step and the lowest step of the supervisory/non-union position, effective in January 2024 the City Council approved a 5% wage increase for non -collective bargaining sworn personnel (supervisors/managers) in the positions of Lieutenant, Captain, and Assistant Chief. The Police Chief position received a 6% increase'. In the late fall of 2023 and early months of 2024, information was received from the Compensation and Classification vendor Carlson Dettman Consulting (CDC) that indicated gaps in wages for Police personnel along with recommendations for percentage increases in order for the City to remain competitive for recruiting new, qualified talent and retain existing talent. This information was used for bargaining with the Dubuque Police Protective Association's (DPPA) new collectively bargained for contract that would become effective July 1, 20242. As a result, three significant changes were bargained for and are included in the ratified DPPA contract that goes into effect on July 1, 2025. The first was an increased number of steps for the wage The July 1, 2023 wage increase for all sworn personnel, except the Police Chief, was a 6% increase. The Police Chief received 5%. The additional 1 % (6% instead of 5%) provided to the Chief in January 2024 corrects the resulting disparity from the lesser percentage increase provided for on July 1, 2023. 2 The DPPA/City of Dubuque CBA effective July 1, 2024 has a duration of five years or until June 30, 2029, but provides for wage increases for only three years (FY25, FY26, and FY27) with a reopener of the contract only as to wages for FY28 and FY29. plan that includes the Patrol Officer and Police Corporal positions represented by the DPPA, the second provided for targeted increases versus across-the-board increases to address identified gaps in competitiveness of wages at certain intervals/steps for each of the two position levels on the DPPA Wage Plan, and third was an increase in longevity pay from 3% after 15 years of service to 3.5% and from 4% after 20 years of service to 5%. These actions over the course of the three-year (FY 25, FY26, and FY27) DPPA wage plan increases permit the City to close the identified competitive wage gaps per the CDC Classification and Compensation review and conclusions. The bargained for increases address the concerns about competitive wages for the recruitment and retention of represented police personnel. However, the base pay difference between the top step Corporal (union) and bottom step Lieutenant (supervisor/manager) and all the other manager levels would now experience compression again when the DPPA wage plan goes into effect on July 1, 2024. DISCUSSION To remedy the resulting compression police supervisory/management positions would need to receive the same percentage wage increase as is reflected at the top step of the DPPA wage plan for the highest union position in the July 1, 2024 DPPA CBA Wage Plan for each fiscal year. Specifically: 1. Fiscal Year 2025 — 10.25% 2. Fiscal Year 2026 — 7.25%, and 3. Fiscal Year 2027 — 5.6% In addition, the supervisory longevity schedule should be revised to follow the longevity schedule as bargained for in the CBA. The ranks of Police Lieutenant, Police Captain, Assistant Police Chief and Police Chief would receive 3.5 % longevity after 15 years of service instead of the current 3% and 5% longevity after 20 years of service instead of 4% BUDGETIMPACT The recommended changes to remedy compression that would occur on July 1, 2024 would cost approximately $268,125.02. Jenny Larson, Chief Financial Officer, has reviewed the data/information and concurs with the likely cost increase. Funding for these increases to remedy wage compression would come from savings created by staff vacancies RECOMMENDATION I respectfully request your support for the percentage wage increases and longevity percentage changes identified above to proactively address wage compression from occurring on July 1, 2024 within the City of Dubuque Police Department. cc: Police Chief Jeremy Jensen Chief Financial Officer Jenny Larson Compensation and Classification Manager Connie Palm