APPRO-2023-19 : Non-Union salary adjustment for FY23 HRS compensation study

Transcript (~33 min @ 50:53)

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▶ 50:52 Leila Migliorelli: Next up we have appropriation 2023-19 non-union salary adjustment for fy23hrs compensation study. Tonight joining the mayor is Paulina Lata director of HR. Thank you. Good evening, sir.

▶ 51:10 Paul Brodeur: Good evening. Everyone. This is an issue that is familiar in some respects to all of you because the question about employee compensation non-union employee compensation for FY 23 has been before you before albeit with a different funding mechanism as you will call. I think it's an FY 22 and Miss lotto will correct me in any of the facts if we say things that contradict each other. She's the take what she says it's gospel. Not what I say. That is for sure as you all know, we went through we hardened outside consultant to do a first first compensation in classification study in approximately 30 years. They generated a significant Report with all kinds of recommendations one of which was adjustments to our compensation and classification system in particular from this two grid with two different tracks to to one. Implement that in fy23 the year we were currently in takes money that we did not budget for as I think you all know at this point we don't budget for Excuse me for potential. Salary increases that's why you considered this evening the allocation from the contractual stabilization fund to settle up past years of the police peers contract. We did the same for we did the same for patrol. We've done it in a smaller dollar number for other collective bargaining units. We hope to not do that with fire, but we are in the midst of negotiations are not out of contract yet, but that will that will proceed or Pace and obviously we have that plan in place that I heard loud and clear during those initial deliberations that there was a lot of concern that we shouldn't move forward with anything in terms of compensation until the teacher contract is settled. I suspect out of an abundance of caution and concern that we may need to tap contract stabilization in order to make in order to make that contract hole to be able to pay for what we Agreed to that was that was not the case and as never been the case actually in terms of using contract stabilization to fund the teacher's contract. But that having that having been said the facts of the common class study stand the compensation is not there is as you know, no legal other obligation to pay it the positions and quite frankly the staff that holds the positions right now. Deserve the money we Face issues as does every city and town in the Commonwealth that in this case are our competitors. That we need to pay competitively not necessarily Platinum, but we need to be in the marketplace right now. We are not and this this request for transfer this request for an allocation from precash is well within our ability to pay as reflected by what Mr. DeLuca do you regrets? He is not able to be here as a has a health issue, but I think it's memo is quite clear and that is the reason for the ask this evening.

▶ 54:42 Speaker 3: Just left. Yeah, I think that mayor Broadus said it perfectly that our all of our non-union Workforce participated actively in the process and I again want to thank the city council members for having the foresight to give us the funding for the study and all of our non-union Workforce are anticipating to see the results implemented and we have a very good product of a fair and Equitable compensation classification system is May a broader said it's one track simple to implement to adjust and we have been trained to be able to maintain it with the upcoming years and we would appreciate your funding the appropriation for the Retro adjustment. Thank you. questions

▶ 55:37 Maya Jamaleddine: Vice chair. Jamaladin, thank you. Thank you for being here tonight. As I

▶ 55:44 Maya Jamaleddine: am reading the memo in the last one. Therefore when you're putting the request. Therefore. We are requesting and appreciation the amount of 167,310 to fund a one-time salary adjustment for FY. 2023. Is that just for this year? And then what about next year how you're gonna fund it?

▶ 56:07 Speaker 6: through the positive through the operating operating so it's gonna

▶ 56:09 Maya Jamaleddine: be we're gonna have automatically accept the increase

▶ 56:20 Speaker 4: I'm sorry. Did you repeat that? So if we're gonna

▶ 56:24 Maya Jamaleddine: approve today? the money requested next year, it's gonna be sent to us through the budget right that includes the increase, so it's not one time, correct?

▶ 56:38 Paul Brodeur: Just like any of the collective bargaining agreements and

▶ 56:42 Maya Jamaleddine: do you think with our budget we will be able to cover? That increase in addition to all the crises that we are that matter is going through. And if I may ask based on what you strongly believe that we are able to maintain that.

▶ 56:59 Paul Brodeur: Based on the funding choices. I would put forward in the when I release the budget and in a couple of weeks. And the budget is always going to be about choices and this is about employee retention and quite valuing. Valuing all our employees we've done that in the context of collective bargaining these employees don't have the opportunity for that. The only employees that kind of fall outside. Both of these are police chief in the fire chief because they they sign contracts a little bit different and those particularly in the in the case of the police chief. You'll see, you know, significant increase in that because that is what the market demands. Yes really under budget.

▶ 57:51 Maya Jamaleddine: Absolutely and to your point. I am all for the Equal Pay and fair pay for our employees, but I just want to make sure that we are able to maintain that and coming next year. We won't go through another crisis that we are unable to maintain and pay our employees. So, you

▶ 58:09 Paul Brodeur: know what, they'll be no way of proposed in the budget

▶ 58:13 Speaker 3: for sure. Okay. Thank you.

▶ 58:16 Jen Grigoraitis: President Grigoraitis. Thank you madam chair. Thank you both for being here tonight. I had two questions. The first is around obviously. This has been you know, before us in different iterations since about October and we're now about out eight weeks out from this fiscal year wrapping up and I had asked Mr. Delaroso this question a few weeks ago and wanted to ask it again, which is to confirm that there's no breakage in our existing budget where we're you know, we basically expended probably at this point 90% of this year's funds. You don't anticipate having 150,000 within the budget that's been unexpended due to you know, staff departures leave anything that would allow this to be paid for through the budget versus through free cash. That's correct. You

▶ 58:59 Paul Brodeur: don't anticipate having transfer assets to that's what you're referring to to make this work in either way.

▶ 59:05 Jen Grigoraitis: And then I know you know, we're talking about equity and competitive pay all of which I very much agree with. I also want to recognize that for I believe all of these positions. There are current employees in those jobs performing them. So I wanted to just have on record that there are no performance issues with any of the employees that are proposed to be have their compensation increase because from a legal perspective once you give somebody a raise whether it's for an equity issue or because they did a good job. It looks the same.

▶ 59:34 Speaker 3: No, they're no performance issues and I just want to actually share with the city council with currently the mayor and Mr. Mayor and Patrick De La Russo and Margot Fleischman. The chief of staff are actually conducting performance evaluations for all of our department has a managers. So that's happening is we speak which we have been doing for the past three years to ensure that all of our leaders and managers get their performance evaluated. We have self-appraisals and peer reviews included as part of this process.

▶ 1:00:06 Jen Grigoraitis: And how do those evaluations? tie into compensation adjustments in any way

▶ 1:00:12 Speaker 3: they are not tied to the compensation adjustment right now. We have a compensation system that's step based. So the performance evaluation at this point is not tied to the compensation adjustment that employees get

▶ 1:00:28 Jen Grigoraitis: So even with this new salary schedule that you're putting in place, it would still be that at the end of 365 days you move up.

▶ 1:00:38 Speaker 3: This is what we have at this point in time and it's what our external consultant suggests that it's a good base to build on eventually when we want to have compensation tied to Performance evaluations. Is

▶ 1:00:54 Jen Grigoraitis: there a timeline for when you would want to have performance tied to compensation?

▶ 1:00:58 Speaker 3: At this time we haven't discussed the time.

▶ 1:01:02 Speaker 2: Thank you.

▶ 1:01:05 Paul Brodeur: A little bit flip but do you want to remind folks that this is kind of a two-part processor is absolutely I don't want to I was not present and did not speak before the meeting on the prior vote. So one of the reasons why I'm here is to make clear of my fate and confidence and want to be a voice for the current employees because they do do an outstanding job that haven't been said I also want to make sure folks understand that this is about the positions as much as the employees that you know with the view towards retaining those those employees that we have that are outstanding. But also there's always a bit of a churn in this creates opportunities to stay competitive in the marketplace. So it's really two pronged kind of approach to HR and good planning

▶ 1:02:07 Speaker 3: Thank you counselor Stewart.

▶ 1:02:09 Robb Stewart: Thank you. Madam. Chair president bergerite has touched upon what I was going to ask and request because when I want to hear non-union want to hear a competitive environment I think that people that perform and perform well should be rewarded and over rewarded. versus people that underperform

▶ 1:02:30 Speaker 4: we should

▶ 1:02:32 Robb Stewart: look more for coaching and give them an opportunity to improve and find better ways to move them forward not with compensation though. So while I fully support this tonight because I understand the objectives and I think it's the right path. I think we need to really look at accelerating that movement to Performance pay because without that you you end up with stagnated and then all of a sudden they're looking over their shoulder and they're thinking maybe I can do some without performance and everyone suffers including the employee. So I think that's something that should be.

▶ 1:03:10 Paul Brodeur: Seriously considered to move forward. Thank you. You hit the nail on the head in your your comments well taken because the and miss a lot of can speak to this far better than I can we are when I when I talk about competition, I don't suggest a competition with the private sector because we will lose that seven days a week. So you do have to look for a number of ways to Value add and that includes, you know career advancement either through title advancement to a new position or training coaching and that is true of employees that that might not be forming at a level that you that you would want them to that. Certainly that that basis is support and in particular opportunities for training outside. The building is something we're very cognizant of and is very important both from professional development. I quite frankly from a moral point of view. Good. Thank you both. Thank you counselor garapay.

▶ 1:04:10 Mark Garipay: Thank you. Thank you all for being here. I think we all agree that the employees do a great job and

▶ 1:04:19 Speaker 4: let's vote. What? All right great. Let's vote.

▶ 1:04:21 Mark Garipay: I just struggle if it was if it came down in October, we knew this that we approved the study prior 20 back and maybe December or January of 23. I think or we knew this was going to come down. Why didn't we budget a percentage of it? Into the fy23 budget or not started until fy24 because we've

▶ 1:04:51 Paul Brodeur: never done it that way which isn't always the the best answer but modeling it on what we've done with all our collective bargaining contracts and with these with the exception of the teachers where the school committee did budget some amount of money a speculative amount towards raises. We have not we have not done that and the results and that we did it honestly one of the reasons it went it went forward in October because that was when we had the information and could and had the ability to ask and ask with precision.

▶ 1:05:25 Mark Garipay: into president Grigoraitis point within this year's budget every year we end up with a couple million free cash and some of that is Money that's not spent within the budget right along with other things. So we can't find 160 $7,000 to transfer around within this year's budget when we've averaging. You know five to seven million in free cash. No and

▶ 1:05:50 Paul Brodeur: Patrick would be able to speak to this better than I would obviously but most of our Free cash as I understand it comes from unexpected Revenue as opposed to breakage as opposed to not spending something that we anticipated spending.

▶ 1:06:10 Speaker 1: What was the plan?

▶ 1:06:13 Mark Garipay: What was the administration's plan if? there was a promise I guess for for retropay more or less back to to beginning of the year without knowing if this was even going to pass. So if it doesn't pass a second time, what what your plan is was there a plan to fund this somehow or just wait,

▶ 1:06:34 Paul Brodeur: there's a second plane to fund it and if this one goes down,

▶ 1:06:38 Mark Garipay: they won't get the money and it'll be in 2024. They'll get it. Because it's in the budget. Well, it will go to I mean

▶ 1:06:42 Paul Brodeur: it will go to the next phase but they won't see the money that is currently we're

▶ 1:06:47 Mark Garipay: just out for you. We're starting at a year year later than we would have liked or six months later. Then we waited

▶ 1:06:53 Paul Brodeur: they were forego. That's to be clear the employees would forego the money contemplated the they will get the raise subject to appropriation. That's certainly what will be in our budget for next year. But just to be super clear. This doesn't pass they don't get this money if they don't get it later. They will get a later raise, but this money would be gone would not be part of what they get.

▶ 1:07:21 Mark Garipay: Okay, I'm struggling. I'm still struggling with this as we as we stand right now. You got a

▶ 1:07:26 Paul Brodeur: few more minutes.

▶ 1:07:30 Speaker 3: I have counselor Jamal Vice chair. Jamala Dean, but is anyone else for the first time?

▶ 1:07:36 Maya Jamaleddine: Okay, Vice chair Jamaleddine. Thank you. I just wanted to be clear that we are and as Consular garape president regrette has mentioned we are not here to evaluate our Um city workers or even doubt how hard worker they are. We are we all agree that they are really hard workers. Some of the great people and workers are in this room tonight with us, and we appreciate their work. Our intention is to make sure that we are able that this is a sustainable increase and that we are able to maintain a movement forward and we we're not going to lose anyone For next year or you know down the road. Also. I just want to name that I hope that this will not compromise. any new position that we are hoping to create whether increasing the social worker from a part-time to full-time or any other position that we are hoping to have in city of Melrose that will serve our constituents. so I hope that would be a promise that's not going to affect.

▶ 1:08:57 Paul Brodeur: Well, our number one job. Honestly counselor is to maintain is to retain the people we have and then build off that we always have, you know, one of the reasons why these things are hard things like the school contract or the other Collective marketing things are hard is because there is always that balance of any dollar we spend on one thing definitely means we're not spending it on something else and there's a there is a There is a lot of need. Across departments both with both School side and on the city Side. now now in the future particularly in area around my goodness in the health and human services department, you know, we could certainly use and just going off the top of my head more inspection assets to be sure more ability to enforce some of the laws that are on the books that's true in inspectional Services where there is some overlap of that work and you know, there are certainly, you know, could we use more resources in the in the police department both in terms of training and bodies absolutely. Will we get every well my budget show everything that I think would be a good thing for, you know to add to the city Suite of services that I think will pay real depending dividends to our citizens a residence.

▶ 1:10:31 Speaker 3: Any other questions? Counselor McMaster, thank you manager. Just just

▶ 1:10:34 Shawn M. MacMaster: more of a comment. I'm actually less concerned about being able to fund this perspectively. I think the you know, the amount of money is something with you know, strong fiscal planning. That that's sustainable to me. It just feels like it being retroactive pay. Is about it. The Optics of it is that it's a bonus and if performance evaluations haven't been done yet to the point that Council the Grigoraitis raised that that just does give me some some positive how that might be interpreted by individuals who perhaps didn't get the best performance evaluation. So that worries me a little bit, but I just want to be clear I'm less concerned about funding this moving forward because I think I think we can do it and I trust your judgment on on how we can get it done. It's it's it's that balance though of it being about the position and the structure which I completely get that it creates grades and steps and you achieves Equity or that's the goal, you know work towards retention all of those important things, but when you do it retroactively, It it comes off like a bonus. So that's that's what worries me. I'm on the fence there.

▶ 1:11:51 Speaker 4: So I I convinced me,

▶ 1:11:54 Paul Brodeur: you know, I I respectfully disagree. I mean the sometimes I think we worry a little bit too much about about Optics or what it's like this is I don't see this really as a whole lot different than a retro on a Union contract the difference being that the non-union city employees, you know kind of live or die by what we we collectively decide in the moment. They don't have a collective bargaining structure. They don't have the same leverage. Honestly that that Collective folks subject to or you know, they have union membership. can Avail themselves up and I mean to me it's it's just as simple as that.

▶ 1:12:43 Shawn M. MacMaster: Understood how or what is the intent? The intention of the administration and how if this passes tonight? It will be communicated to to employees that this this funding is is what

▶ 1:12:56 Paul Brodeur: We have I'm not sure if we've gotten that far yet. That is a terrific dream. I would defer to to mislata because we certainly have a lot of experience paying Retros and I suspect that we would be there would be essentially they'll

▶ 1:13:11 Speaker 3: be Calculation process they'll be communication. It will send to every Department to department head to share with the non-union employees within that department of what their new salaries step grade will be with the updated job description all of the department heads as well as employees who participated in the study were part of the present the two presentations that the consultant did back in. I think it was last spring. So the employees are familiar they are aware of what it means and the intent is to communicate it transparently of where they're going from what their current step is where they're going to the updated job description. So all of that will be communicated with each department. So the communication will be this is about the

▶ 1:14:00 Speaker 5: positions.

▶ 1:14:02 Speaker 3: the positions exactly and visuals in

▶ 1:14:04 Shawn M. MacMaster: the position because I do think constantly going right is raises some Go raise an important point if there is someone who for whatever reason down the road got a poor evaluation, if we're not looking to retain that person how it's communicated could you know could be used in a way sure makes perfect sense that individual. So I just want to get this close to me. So you're what you're saying to us is that we should look at this as being tantamount to you know, the this money which is available that is being requested of us tonight tantamount to money coming out of a contract stabilization fund to pay retroactive. Retroactive pay for a unit. So okay in that because these employees are not in a union they over time have not been able to receive pay that's commensurate with the role and with other communities based on the role the role that they have what it is that they're what they're doing that essentially. Yeah the phrase

▶ 1:15:10 Paul Brodeur: that popped in when I had is you talking it's it's a market adjustment.

▶ 1:15:15 Speaker 5: Right. Thank you.

▶ 1:15:18 Speaker 3: Next up councilor Eccles and then councilor. Karamcheti

▶ 1:15:23 Jack Eccles: Thank you, man. I'm chair. Just two quick questions here. If in this a small group of people see might be able to just discount this right away. If someone's left since we did the original calculation or the entitled to some sort of prorated retro or they candid sacrifice that

▶ 1:15:45 Speaker 4: I don't know.

▶ 1:15:47 Speaker 3: I I believe that they are but I'll have to check on this one. They

▶ 1:15:50 Jack Eccles: would be entitled to like a prorated adjustment. I'll

▶ 1:15:53 Speaker 3: have to check with the yeah, so don't that is good. Yeah with the very few. Yeah, not

▶ 1:16:00 Paul Brodeur: zero, but it was very small group. Got

▶ 1:16:03 Jack Eccles: it, and we've been we've been waiting to update the job description on this order. Is that what I just heard?

▶ 1:16:13 Speaker 3: The job description have been updated. They just will be shared. We wanted to communicate everything as one package. So they will be shared when the the salaries shared and all employees participated in updating the job descriptions employees and department heads. So it's a lot of it is formatting and some additional language. But yeah, yeah just

▶ 1:16:36 Jack Eccles: it seemed like they didn't need to necessarily be together so they were out. All right. Thank you.

▶ 1:16:44 Speaker 3: councilor crime treaty

▶ 1:16:47 Manjula Karamcheti: thank you for being here and for answering all the questions so far. I minor clarifying questions and I apologize if these were already asked and you answered them, but I find myself still a little confused and counselor Eccles question. I think added to my confusion a little bit so If this request for free cash does not pass. That would mean that. our current employees would not get

▶ 1:17:18 Speaker 2: back pay from time prior to now

▶ 1:17:25 Manjula Karamcheti: either way would these adjustment these adjustments will be in the fy24 budget so they will get increases in the future just not compensated for the past. Is that correct?

▶ 1:17:42 Paul Brodeur: Yes, yes or make sure being super clear because it because it does matter. Yeah, so there it is. Very important the grid changes, right? There's all there's like now would be a single. Well, there is now a single salary good that will apply in fy24.

▶ 1:18:01 Manjula Karamcheti: Regardless, okay, so if you actually based on the calendar the increases would happen. Just not right now and for years before but people will in fy24 regardless of what happens tonight that Equity we will be moving for forward in terms of Equitable salaries and whatnot.

▶ 1:18:21 Paul Brodeur: But I want to make clear that there's not good. It's not. We are not in a situation where we do it now or do it later. That is not exactly accurate. Yes, there will be essentially the Rays will take effect. a year later is probably the way to say like they'll get Compensated at the old rate. There won't be a makeup in 24, correct right now. I understand. That's why it gets a little hairy. Yeah.

▶ 1:18:49 Manjula Karamcheti: It doesn't start soon it starts later. But at some point that will happen. Yes, but when it happens, there's an amount of money that is not incurred because it didn't happen yet. Correct. Yes, correct. And then just to again get clarification on counselor Eccles question for anyone who has left working in the city. They are potentially and we're looking into it entitled to some of this back pay as well. Even if they're no longer employed. We

▶ 1:19:20 Paul Brodeur: think that might be my assumption would have been no, but again I defer to the experts on

▶ 1:19:26 Speaker 3: and we're going to look into it. It's it's a practice we have certainly with Union employees. So that was my first thought when a counselor Ackles ask me the question and I have to see if we have anyone who has left. So we're gonna check with the CEO. Thank

▶ 1:19:40 Speaker 2: you. Yes.

▶ 1:19:43 Speaker 3: And cancer garepe just one question

▶ 1:19:45 Mark Garipay: how many positions fall onto the Fallen within this 160 whatever thousand dollars

▶ 1:19:53 Speaker 3: were appropriate now there there's 65 about 65 positions 657 there

▶ 1:19:58 Mark Garipay: would be getting adjustments the Fallen. Okay. Yes. So

▶ 1:20:01 Speaker 3: some of them when we talk about adjustment is counselor karmchetti said they're moving the transitioning from one system to another so just by transitioning from one system to another there will be they could be a very small adjustment but there will be some adjustments so pretty much all of the positions who have to get into the new system so there will be some adjustment.

▶ 1:20:25 Speaker 4: Okay.

▶ 1:20:29 Jen Grigoraitis: Thank you president Grigoraitis. Thank you madam chair. I just also wanted to follow up on your response to councilor Eccles. Might understanding of Massachusetts employment laws that you're either a union employee you're under a contractor an employee at will which I believe all of your folks would fall into that category since they aren't Union employees. I don't believe there are subject to back pay. I would very much like a written response to that question just because if we're going to be putting free cash toward paying employees who are no longer with the city. I think that feels counter to some of the arguments around wanting to give, you know, have there be equity and market rate salaries. So I would appreciate a written response to that. Thank you.

▶ 1:21:08 Speaker 3: counselor Stewart

▶ 1:21:10 Robb Stewart: Thank you. Madam, chair and Madam chair for me speak through the chair. I think that this Is very important? For the city the I think about a couple things the cost of replacing people. It's not just monetary it impacts morale. It impacts performance impacts a whole lot of things and I completely trust that Mr. Della Russo has put this forward that will work for us. I think that the language and the effort that they put into this is important for the city and which is why will support it, but I think that's really important to understand that this isn't just An Optics or financial consideration? It's it's in consideration for our city in and making sure our city is going to be run well, so please consider that when you're choosing your voice. Thank you manager. Thank you.

▶ 1:22:20 Speaker 2: Make a motion to recommend second.

▶ 1:22:22 Speaker 3: most recommend made by President greigis second advice counselor Eccles on discussion

▶ 1:22:31 Leila Migliorelli: I'll just take this opportunity and discussions to ask my question or just to Echo I think is good counselor Stewart said earlier making the change from to Thai compensation to Performance. Basically, that should be done soon. And I agree that that's just as important for the employees to feel like they're doing a good job and getting motivated through compensation. But also that ties to our performance review process. So hopefully that's something that could be implemented in fy24 and at the very latest and some something and writing I just want to Echo that too. It seems it I would feel sort of remiss in voting supporting this which I do but it would seem incorrect or not not right to be paying employees who no longer work here, so

▶ 1:23:20 Speaker 3: with that Mr. Clark

▶ 1:23:23 Speaker 1: Vice chair Jamal Dean. Yes. but councilor McMaster Yes. Counselor sonella. Yes.

▶ 1:23:34 Speaker 8: Councilor Eccles. Yes.

▶ 1:23:36 Speaker 1: counsel gerepe Yes. Counselor Stewart. Yes Council Carm Shetty. Yes. Councilor bremski. Yes. President regardless, yes and chair. Migrieli. Yes, that's 10. Yes unanimous.