04/29/1992 Meeting - Laserfiche WebLink

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e Mr. MacDonald wondered how much the chief executive officer of a $220 million corporation in the private sector would earn. Ms. Norris replied that it would be considerably more. Mr. Gleason said it is difficult to compare senior positions such as that of the Public Works Director to positions in private industry, so it must be compared to the internal structure of the organization. He also noted that the City's organizational structure is compressed, resulting in lower compensation for senior positions. Ms. Norris said the City work force is composed of 1,128 full-time employees in several job categories (skilled labor, trades, crafts, clerical, administrative, police and fire, technical, professional, supervisors, and managers). She noted that some City positions are unique to the public sector. Other positions are found in the private sector, but it is difficult to find them in sufficient numbers locally. Ms. Norris described wages and benefits and where the City stands in the market. Police and Fire employees are the largest in the General Fund groups. They are in market with similar Oregon cities (Gresham, Salem, Corvallis, lane County, and Springfield) and fire districts. In some years, the market is set in the arbitration process. General service employees (clerks, maintenance workers, skilled trades, and labor positions) are the next largest group and found to be in market with the local public and private sector. In collective bargaining negotiation, the City agrees on which market data to use, which is typically public and private sector organizations in the mid-Willamette valley. Outside of negotiations, the City routinely checks the local market to make sure compensation for the ~ group is in line with the private sector. Responding to questions about participants in compensation and benefits surveys, Ms. Norris said many more organizations were invited to participate in the last private sector survey, but many declined. Mr. Gleason added that most organizations simply refuse to release salary information. Mr. Norris said comparisons are difficult with small firms because they do not have formal personnel systems and may compensate employees in other ways, such as bonuses, trips, or profit-sharing. Mr. Gleason emphasized that the City's goal with compensation is to maximize productivity at the market wage at the local level, getting within plus or minus five percent. He said the business question is whether this is the appropriate way to allocate the resource to purchase skill. Mr. Gleason said tenure has much to do with skill capacity and investment in training, something difficult to rebuild. He explained that the relationship between the work performed and the people who have to oversee the work is also an important issue. A productive system requires a pay differential of at least ten percent between supervisors and those they supervise. Ms. Bascom said there is a perception that the public work force has additional benefits and job security, adding to the hostility. e MINUTES--Eugene City Council 11:30 a.m. April 29, 1992 Page 4