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What THEY
Don't
want you to know
about the Vallejo Police Salary Survey
or
How what goes up can never go down (at least in Vallejo)
By Robert Schussel, Ph.D
1/11/12
Purpose
To provide an analysis of the City of Vallejo seven city salary comparison that determines the size of the raise VPOA members (Vallejo Police Officers Organization) receive.
Background
As part of negotiation while the City was in bankruptcy in 2009, seven cities out of an initial comparison group of fourteen were selected for a salary comparison survey. To determine the percent raise the City of Vallejo Human Resources Department contacted the seven cities and obtained the top step salary for the rank of police officer. If the City pays some or all employees' contribution for their pension, this amount is added to the salary. VPOA (Vallejo Police Officers Association) members receive the average of the 7 comparison cities, some of which are among the highest paid in the Bay Area. While the survey was to be completed by October 1 2011 it was not made available to the public until November 1, 2011.
For the 2010/11 fiscal year VPOA members received a 6.29% raise PRIOR ARTICLE. The City reported that for 2011/12 VPOA members will receive a (slight) .0824% raise (about $100 for the rank of Police Officer). With both years' raise the top step base salary for a Vallejo Police officer is $102,060. This does not include educational incentives, longevity pay etc.
The results from the individual cities as well as the manner in which the City of Vallejo calculates pay increases raise some serious concerns.
Caveats
The information for this article was obtained from several sources: --California Public Records Act requests --websites of the 7 comparison cities --discussions with the Director of Human Resources and the Vallejo City Attorney.
Methodology
If a city requires an employee to pay more than a 9% contribution (which VPOA members are required to contribute) toward their pension the additional amount is NOT taken into consideration. A similar situation exists for comparison city employees who are required to take furlough days. The lost pay is not taken into consideration for the salary survey. The City claims this methodology is standard throughout the state. However nothing in the VPOA Supplemental MOU (Memorandum of Understanding i.e. contract) addresses the City position nor did the City produce any evidence supporting this claim. Failure to consider the downward impact of these factors on the comparison cities' wages acts to drive up the wage calculations for Vallejo.
Example if an employee in city A makes $100,000 per year and contributes 9% toward their pension and an employee in City B makes $100,000 but is required to make a 13% contribution (about $4,000 more than city A) both are considered to make $100,000 per year. Currently Alameda requires 11% and Hayward requires a 12% employee pension contribution.
The Vallejo HR Director stated that unless the gross wage shown on the paycheck is reduced the additional pension contribution is not taken into account for the salary survey.
It should be noted that if a city paid some or all of the employees' pension contribution the amount was included in the employees' wages. Currently only San Leandro pays the employees 9% contribution but is requiring Police Officers to be furloughed for 6 days (about a $2,000 pay reduction). The pay reduction resulting from the furlough is not taken into consideration.
Findings
1) The City states that due to past practices "it is required that the City and the Union both agree on the survey results and the actual amount of the raise" before the raw data is released. A written policy does not exist. As of this date I have not received a letter from the City Attorney that justifies the city's position that it has the legal right to with hold the raw survey data until VPOA approves it.
2) The yearly pay of VPOA members has increased by 6.37% for the two years 2010/11 and 2011/12. Vallejo wages have remained highly competitive in relation to the comparison cities and other departments statewide. While other cities (including comparison cities) have seen wages decline through wage freezes, furlough days, increased retirement and medical contributions contract provisions prevent Vallejo wages from doing so.
3) Only two of the cities (Berkeley and Richmond) gave their Police Officers a raise for 2011/12. In fact the pay of Oakland Police declined by 9% because Oakland Police now contribute to their PERS retirement. Previously, the City of Oakland paid for police retirements. In conversations the Vallejo HR Director had with union officials it appears likely the Berkeley police will also get a pay cut this year.
4) Additional required employee pension contributions ( 2% Alameda and 3% Hayward) and pay reductions due a required furlough (San Leandro) were not taken into account in the salary survey. No written description exists on how "pay" is determined. Clearly, the unwritten policy is: Round up, don't put it in writing, keep quiet and hope nobody asks questions.
5) If furlough days and additional employee pension contributions were take into account the 7 city survey average pay would have been reduced by $927 per officer annually. The agreement with VPOA will NOT allow a pay reduction even if the average for the 7 cities declines.
Comments
The way salary surveys are used by the City of Vallejo is fundamentally flawed and should no longer be used to determine compensation. In many ways it is like a Ponzi scheme that enriches the unions. When one city gets a raise they all get a raise. When the comparison city average declines, Vallejo never follows. (as per the contract). This is a major contributor to unsustainable wages which are out of step with the principles of competition or city revenues.
The current methodology used by Vallejo does not take adequately into account trends such as when the highest paying cities are cutting wages (most cities have frozen or decreased pay), furlough days (which reduces total pay) or additional employee pension contributions (which has the effect of reducing pay). VPOA members pay has not and will not be cut even if the seven comparison city average declines. Additionally, the seven comparison cities chosen for the Vallejo contract comparison tend to be the most highly compensated on average.
It also appears that the City's management hides the decision making process from the public until it is too late to do anything about it. The typical knee jerk response to public (or VIB) inquiry is to invoke "Past practices, work product or confidentiality" to prevent the taxpayers from knowing what is going on until the decision is finalized. In several instances VIB has had to resort to threatening lawsuits in order to get data the public should be entitled to.
Final Comments
To date I see no evidence that City Negotiators and Management have taken proper steps in protecting the public in labor negotiations. In plain English they have often given the unions whatever they wanted and left the taxpayers on the hook to pay for the "good deal" that was struck.
How can one explain a salary survey in which wages can go up but never down? selecting cities with the highest wages for comparison? not taking into account furlough days or increased employee pension contributions? and claiming that the raw data must be approved by the unions before it is released (a potential violation of the Public Records Act). Because documentation does not exist it makes it impossible for us (the public) to determine what is being done with our money.
Clearly, the benefits of upward wage compaction are enjoyed by management as well as some of the other employees. This creates an inherent conflict of interest and a lack of motivation to protect the interests of the citizens in labor negotiations. Unless something changes we can expect more of the same: A case of the fox guarding the hen house.
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