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pay more for certain services, a continually higher cost for PERS and other costs employees may not <br />realize. <br />A compensation philosophy could set a standard as to how the city will bargain given how the economy is <br />affecting the city. Employees should realize that the city could capitalize on a good economy by saving <br />for future economical downturns. <br />Market Definition: By establishing a compensation philosophy, the city will set a standard as to how <br />employees will be paid vis-a-vis other agencies. It should be noted that each of the city's bargaining <br />groups may require different markets to survey. Police and Electric will not have the same agencies to <br />compare given the nature of their work. <br />It is difficult to determine which cities to include in a survey. For example, the Water and Wastewater <br />group has such specific job duties that it is necessary to survey larger cities such as Riverside and Corona. <br />Enough agencies are needed in order to provide a fair and equitable salary survey (a minimum of two are <br />needed for an average). If larger agencies are used, eliminating the high and low cities makes it fair to <br />both the city and the bargaining groups (this was negotiated in the yet -to -be ratified contract). <br />The following will provide information regarding various approaches to a compensation philosophy and <br />is only a recommendation to the philosophy or standard the city takes in regard to negotiations. <br />2 <br />