Fiscal Note
This alternate resolution establishes a wage increase equity schedule for all General Municipal Employees. General Municipal Employees total approximately 1,400 permanent positions and include employees that are not in Police, Fire and Teamsters bargaining units. While Police and Fire commissioned staff and Teamsters employees can continue to collectively bargain and have various mediation/arbitration options for resolving impasses during contract negotiations, General Municipal Employees lost most of those bargaining rights when state laws were changed in 2011 Wisconsin Act 10.
General Municipal Employees are 6% behind protective service employees (Police and Fire commissioned staff) when comparing the total percentage of wage increases over the past several years. The intent of the schedule in the alternate resolution is to bring the wage increases for General Municipal Employees to parity with protective service employees by January 2024, assuming no increase for protective service employees during that period of time.
The wage increase schedule proposed in this alternate resolution for General Municipal Employees varies from the original resolution by including a 3% wage increase in January 2024 rather than a 1% increase in January 2024 and a 2% increase in July 2024, under the original resolution. The associated estimated annual cost increase over the prior year of the alternate resolution is shown below:
January 1, 2022 -- 1%
General and Library funds -- $828,074
All Funds -- $1,388,256
January 1, 2023 -- 1% and July 1, 2023 -- 1%
General and Library Funds -- $1,258,714
All Funds -- $2,110,219
January 1, 2024 -- 3% (original resolution -- January 1, 2024 -- 1%; July 1, 2024 -- 2%)
General and Library Funds -- $2,549,386 (original resolution -- $2,124,488)
All Funds -- $4,274,012 (original resolution -- $3,561,677)
July 1, 2024 -- 0% (original resolution -- 2025 Fiscal Effect to Fully Fund July 1, 2024 Increase)
General and Library Funds -- $0 (original resolution -- $853,187)
All Funds -- $0 (original resolution -- $1,430,357)
The cost of the proposed wage increase equity schedule in the alternate resolution will need to be addressed through appropriation increases in each annual budget from 2022 through 2024.
The alternate resolution also requires that wage increases for General Municipal Employees be increased above the amounts in the alternate resolution if Police and Fire commissioned staff receive a larger percentage increase through collective bargaining than the percentage increases for General Municipal Employees listed above. Under the original resolution, parity with those types of increases would be addressed through the Meet and Confer process. As proposed in the alternate resolution, this provision could increase the fiscal effect of the alternate resolution beyond the amounts listed above.
Title
AMENDED ALTERNATE: A resolution to provide a plan for wage increase parity to general municipal employees.
Body
WHEREAS, The City is committed to maintaining wage increase parity among all City employees,
WHEREAS, the City’s general municipal employees are 6% percent behind the City’s protective service employees, having last received a 3.25% pay increase in December 2019; and
WHEREAS, due to contracts bargained in 2018 by the prior administration, the City’s protected services employee groups are receiving a 3.75% wage increase in January 2021, and
WHEREAS, the decision not to provide an increase for the general employees in 2021 was made due to the severe economic impacts from the COVID-19 pandemic combined with state-mandated limits on the city’s budget, and
WHEREAS, the City’s operating budget will continue to be very constrained by limitations from the state level, and furloughs and/or layoffs are a possibility in future years;
WHEREAS, if any other employee groups receive wage increases that are greater than the increases set forth below over the same period, this will widen the wage parity gap between those employee groups who are already 6% ahead and the General Municipal employees. It is further recognized that even if identical increases are granted to the General Municipal Employees, this will not close the wage parity gap completely;
NOW, THEREFORE, BE IT RESOLVED that the Mayor and Common Council of the City of Madison approve the following wage increase equity schedule for all General Municipal Employees (compensation groups 15, 16, 17, 18, 19, 20, 23, 31, 32, 33, 43, 44, 71 and 83):
• January 1*, 2022: 1% wage increase
• January 1*, 2023: 1% wage increase
• July 1*, 2023: 1% wage increase
• January 1*, 2024: 1% 3% wage increase
• July 1*, 2024: 2% wage increase
*The increase will become effective the start of the pay period that includes January 1 or July 1, accordingly.
NOW, THEREFORE, BE IT FURTHER RESOLVED that if bargaining results in a wage increase that increases the wage parity gap between general municipal employees and any other bargaining unit prior to 2025, or if the City of Madison financial situation improves, additional wage increase steps will be explored via the meet and confer process; and
BE IT FURTHER RESOLVED that if any other a protective service employee group (compensation groups 11, 12, 13 or 14) receives a wage increase in any year prior to 2025 that is greater than above-scheduled increase for the general municipal employees for that year, then the General Municipal Employees in the compensation groups listed above will be granted an identical wage increase that year; and
BE IT FINALLY RESOLVED that additional wage increases or an acceleration of the above schedule will be explored through the meet and confer process if the City of Madison’s financial situation improves.
NOW, THEREFORE, BE IT FINALLY RESOLVED, that these wage increases will be contingent upon the absence of a need for layoffs or furloughs during these years.