Bad Links?
Other glitches?
Notify Webmaster

Union City looks at employee pay

By BEN NELMS
bnelms@TheCitizen.com

Council members at Union City’s Oct. 10 work session agreed to place options for addressing the city’s employee pay plan on the Oct. 18 agenda. The issue at hand involves employees who have topped out at their pay grade.

Addressing the council Oct. 10, Human Resources Director Ski Saxby said Union City’s current salary plan includes a pay grade and step system in which employees progress up through the steps for their pay grade over time unless promoted to a higher grade. Each pay grade contains 17 steps. When employees reach step 17 in their pay grade they have “topped out,” he said, and do not receive subsequent merit increases. They do receive across-the-board cost of living increases. The current system addresses those employees that are motivated to compete for promotions, said Saxby.

“But not everybody wants that and that’s fine,” he said. “But they have to realize that sooner or later they will top out.”

Noting the need for fair treatment, including for some long-term employees earning lower wages, Saxby proposed three options for consideration. The first option involved keeping the current system as it is. This option, he said, could cause some employees’ production to decrease as they may realize that no matter how well they perform there will be no yearly raise.

The second option involved providing “topped out” employees with a three-percent annual raise.

“Should this option be chosen there would be no incentive for employees to better themselves and compete for promotions,” Saxby said. “Additionally, there would be no real need to have a pay and classification plan and we run the risk of overpaying employees.”

The third option would provide compensation to “topped out” employees based on their number of years of service. Saxby gave the example of a $50 per year additional compensation. A 20-year employee would receive $1,000 in additional compensation, he said. That compensation would be based on merit and would be accompanied by a good performance evaluation.

“I would recommend that the mayor and council strongly consider Option 3,” Saxby said. “This seems to be the fairest of the options for our employees and it ensures that we do not have employees that are overpaid. Additionally, all employees will be treated equally and it is not based on what the employee currently earns, but on length of service.”

Union City’s current pay plan was developed by Atlanta Regional commission and adopted by the city in 1996.