City of Cincinnati~

January 22, 2015

FOR YOUR INFORMATION
To:

Mayor and Members of City pouncil

From:

Harry Black, City Manage~_4

Subject:

Pay Increase Structure and Update

1S

This memo is to provide information on the various forms of pay increases across the Citys
structure as outlined within the Citys Human Resources Policies and Procedures and as
approved by Council through the budget approval process. It also provides an overview of how
the job performance of department directors will be assessed.
Types of Pay Increases
Working within the confines of all applicable collective bargaining agreements and budget
considerations, the City strives to be fair and consistent across the structure in ensuring pay
fairness and equity at all levels of the organization. Pay increases within the Citys structure
may include:

Salary Step-ups (steps) For represented employees, there are typically 6-11 steps
per job classification. As long as a represented employee receives at least a Meets
Expectations on his/her annual performance review, he/she gets to step up in salary.
Generally, each step is a 3-4 percent increase in salary over the persons previous
salary. These steps are mandatory per the collective bargaining agreement, meaning
the amount is not determined as part of the annual budget process. At the top step, the
employee stops receiving an increase, regardless of performance.

Merit Increases (merits) For non-represented employees, the increase is dependent

upon whatever is ultimately approved as part of the budget process. There are no steps.
There is no collective bargaining agreement governing increases for non-union
employees.

Cost of Living Adjustments or General Wage Increases (COLAs) Are an acrossthe-board increase and change the salary range; for represented employees, COLAs
are part of the collective bargaining agreement.

Promotional Increases Occurs when an employee who is permanently promoted

receives a certain percentage increase in accordance with policy or the applicable labor
agreement.

Special Assignment Pay

May occur when an employee is required to perform
specific and clearly defined duties outside of and above those normally required of that
classification. Special Assignment Pay is not applied to all employee groups.

Please note that this list is not all inclusive. There are other supplemental pay categories
associated with the labor management agreements that pertain to uniform allowance, shift
differential, and working out of class.
Types of Employees
There are two (2) broad employee groups across the Citys structure: non-represented
employees and represented employees. The represented employees consist of unionized
workers within the Citys structure, and the non-represented group includes members in the
unclassified service group and confidential areas. Currently, there are approximately 4,531
represented employees across the Citys structure and 1,407 non-represented employees.
The non-represented number includes seasonal and full-time employees. Generally speaking
and consistent with approved budgets, COLA and salary step-ups are given to eligible
represented employees and merit increases are given to eligible non-represented employees.
Non-represented employees may receive a COLA as well, but it must be approved by Council
through the budget process.
2014 Pay Increase Status
Over the past year, the City has negotiated several COLAs for multiple represented
employees. In addition, many represented employees received salary step-up increases on
their anniversary date based upon the various negotiated agreements. These range from 3 to
4 percent and depending upon the associated union contract are capped at 6 to 11 years.
In addition to step-ups and supplemental pay as outlined above, represented employees have
received COLAs as indicated in the table below.
Cost of Living Adjustment (COLA)
Sum mary
EMPLOYEE UNIT
AFSCME
AFSCME MW Unit
FOP
FOP Supervisors
IAFF
IAFF Assistant Chiefs
Cincinnati Building Trades Commission
Teamsters
CODE
Non-represented

2013
1.5%
1.5%
0%
0%
0%
0%
0%
1 .5%

2014
1.5%
TBDV
1.5%
1 .5%
1.5%
1.5%
0.0%
1 5%vii~

2015
1%
TBDVI
0%
0%
0%
0%

1.5%x

1.5%x1

l%Xu

0%

0%

0%

TBDVII

1 %IX

Consistent with the approved budget, non-represented employees are eligible for a 3% 2014
merit increase if they are not at the top of their pay range and receive a Meets Expectations
or better on their performance evaluation. This employee group did not receive any COLA.
Evaluation of Department Directors
As you are aware, one of my top priorities is to make our City government as efficient and
effective as possible, using data as the foundational basis for how we operate and drive
performance and results across the Citys administrative structure. One of the primary tools for
achieving this objective is the implementation of performance management agreements with
each department director.

I have learned that in the past there have been inconsistencies in the completion of
performance evaluations for department directors resulting in a significant backlog.
Performance evaluations are based on one year of job performance. Therefore, I have not
been City Manager long enough to fairly evaluate the job performance of each department
director. Such an exercise at this point in time would not be fair to those receiving the
evaluation, nor would it advance our performance objectives.
As a result, 2014 department director performance evaluations have been suspended pending
the creation of performance management agreements, which are scheduled to be in place with
all directors in March. Going forward, I am confident this tool will provide me the opportunity to
fairly assess the performance of the senior leadership team.
This also means department directors will not be receiving merit increases during this
evaluation process changeover period. Certainly, the work and dedication of our senior leaders
is appreciated and valued. This is a transition measure until I have the opportunity to
implement the new performance management agreement process and the time necessary to
fairly assess job performance and compensation.
This is an information item only and no action is required at this time.
Increase was directed in the 2015 Budget and approved by Council while the City and AFSCME remained active
in the grievance process. Wage increases were part of an MOU related to monies expected from the defunct
Parking Lease Agreement. Members received payment in September 2014, retroactive to August 2013.
Increase based on a settlement agreement. Members to receive payment in January 2015, retroactive to May
2014.
Per current contract language.
IV Members received payment in 2014, retroactive to March 2013 as a result of a wage reopener.
V Pending completion of 2014 Wage Reopener.
VI Contract negotiations to begin March 2015.
VII Contract negotiations expected in May 2015.
Members will receive payment in January 2015, retroactive to October 2014.
X

Current contract language provides an .5% increase in April 2016.

Increase was directed in the 2015 Budget and approved by Council while the City and CODE remained active in

the grievance process. Wage increases were part of an MOU specifically related to a Wage Re-Opener and the
receipt of monies expected from the defunct Parking Lease Agreement. Members received payment in
September 2014, retroactive to July 2013.
XI Increase based on a settlement agreement. Members to receive payment in January 2015, retroactive to May
2014.
Per current contract language.

XV