6c Memo
PORT OF SEATTLE MEMORANDUM COMMISSION AGENDA Item No. 6c Date of Meeting November 23, 2010 DATE: November 15, 2010 TO: Tay Yoshitani, Chief Executive Officer FROM: Tammy Woodard, Sr. Manager, Total Compensation SUBJECT: Resolution No. 3647, Second Reading and Final Passage As Amended. 2011 Salary and Benefit Resolution ACTION REQUESTED: Approval of Resolution No. 3647, Second Reading and Final Passage As Amended, 2011 Salary and Benefit Resolution BACKGROUND: The Salary and Benefit Resolution delegates authority from the Commission to the Chief Executive Officer to direct the administration of compensation and benefits for non-represented employees. The purpose of these programs is to ensure that the Port's pay and benefit programs are competitive with the labor market and support retention and attraction of capable staff committed to achieving the Port's mission. PROPOSED CHANGES: There are very few substantive changes from the 2010 resolution. Most changes are made to clarify sections of the resolution that have generated questions throughout the year or that must be updated to reflect current practices. Noteworthy revisions to the resolution include: III.A. Salary Ranges We recommend a 2.0% increase to salary ranges for 2011. Each year, the compensation staff reviews and analyzes data from various published salary surveys to determine how our pay ranges compare to average market pay rates. This analysis is the basis for adjustments to the Port's salary ranges. Adjustments are designed to keep ranges comparable to market levels so that they will support retention and attraction of high performing employees needed to support the Port's mission. This is different than the CPI change approach most public employers use. This year, our analysis of the labor market indicates the Port's salary ranges are an average of 1% below market. In addition, pay is expected to increase nearly 3% in 2011. Increasing ranges by 2% will keep ranges close to market and help support retention of high performing staff and recruiting of top candidates for open positions in 2011. Maintaining the current range structure through 2011 could hinder retention and hiring, particularly if hiring activities in the local labor COMMISSION AGENDA Tay Yoshitani, Chief Executive Officer November 15, 2010 Page 2 of 3 market increase substantially before the end of 2011 as increases in hiring activities are often accompanied by an upward pressure on actual pay levels. Salaries of the Port's non-represented employees fall within a graded salary range structure. These ranges do not tie an employee's pay to a specific step or rate as many other public employers' structures and some of the Port's represented structures do. Rather, the ranges provide the framework for non-represented employees' salaries. Most public employers increase salary ranges based on changes in the Consumer Price Index (CPI) and their employees receive a Cost of Living (COLA) pay increase equal to the range increase. In addition to the COLA increase some public employers also provide automatic annual step increases. Non-represented employees at the Port earn performance-based pay increases and rarely receive automatic increases. Increasing the non-represented range structure will result in approximately 8 employees whose pay is less than the minimum of their salary range. The cost to increase pay for these employees to the new minimum of the range is approximately $9,950. VIII. Administration of Benefit Programs Changes in this section include updating the Port holidays for 2011 and reducing the Paid Time Off (PTO) balance limit to 800 hours in accordance with the plan put in place when the PTO program was implemented. Updates have also been made to the Medical Insurance for Employees and Commissioners and Medical Insurance for Dependents of Employees and Commissioners sections. These updates remove redundancies and align these sections with current administrative practices. Updates in this section also include adjustments to more completely align other benefit sections with eligibility guidelines. Exhibit A Exhibit A is attached to the Salary and Benefit Resolution and is a schedule of authorized nonrepresented job titles. Although Salary Ranges require the approval of Commission or the Chief Executive Officer, amendments to Exhibit A do not require this level of approval. Exhibit A is amended and published periodically throughout the year by Human Resources and Development to reflect the outcomes of on-going job evaluation work. CHANGES SINCE FIRST READING: XI. Effective Date The third paragraph is updated to reflect this year's resolution superseding last year's Resolution 3633 rather than this year's resolution number, 3647. FINANCIAL IMPLICATIONS: The estimated cost of changes included in the 2011 Salary and Benefit Resolution is $9950 to adjust pay rates for approximately eight employees whose pay will be less than the new COMMISSION AGENDA Tay Yoshitani, Chief Executive Officer November 15, 2010 Page 3 of 3 minimum of their salary range. The only adjustments for these employees will be to increase their pay rates to their new range minimum. PREVIOUS COMMISSION ACTIONS OR BRIEFINGS: November 2, 2010 2011 Salary and Benefit Resolution Briefing November 9, 2010 2011 Salary and Benefit Resolution First Reading OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST: Resolution No. 3647, Salary and Benefit Resolution Resolution No. 3647, Red-Line Version Exhibit A Schedule of Authorized Non-Represented Position Titles and Salary Ranges Effective January 1, 2011
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