Summary of City Sponsored Wage Study 

10/15/08

By Robert Schussel Ph.D

BACKGROUND

Earlier this year the City of Vallejo sponsored a Wage Study of Police and Fire Fighters using Management Partners.

A second wage study conducted by Management Partners (using September 1 2008 wage information) was just released. 

Full report-- HERE --scroll down to exhibit A

Both studies used a 15 City Comparison group who met the following criteria:

--within a 30 mile radius of Vallejo

--population of 50,000 or more

--10 or more Vallejo City workers live there—this resulted in Benicia being included.

Unlike the first study two types of wages were shown for Vallejo.

08/09 wage

• this is the wage Fire and Police would have received if the increases included in the contracts had been paid out.

EAP (Emergency Action Plan) wage

• this is the wage that is currently being paid. Originally an 8.5% increase was to occur but this was reduced to 2% as a temporary concession by the Public Safety Unions.

CAVEATS

Various incentives such as Educational Incentives and Longevity Pay were not included as part of an employee’s wages. If they had been Vallejo wages on a relative basis would have been higher.

A great deal of the analysis revolves around higher positions who proportionally account for a small percentage of those employed.

KEY FINDINGS/Conclusions

1. If the Vallejo 08/09 contract wages were being paid, Vallejo would be near the top of the 15 Comparison Cities.

2. The current Vallejo EAP wages results in Vallejo PSU members being paid about the median (middle) amount.

3. “Vallejo benefit levels are typically equivalent or better than those observed in the comparison jurisdictions.

--Vallejo’s Longevity pay is higher than most

--Vallejo offers most expensive Health Insurance Plans .No employee contribution is required.

--Vallejo’s sick leave and payout of accrued time tends to be more generous

than other cities.

PRIMARY CONCLUSIONS of Management Partners

1. “Vallejo should be able to remain competitive in retention and recruitment at the EAP compensation levels”

2. Vallejo’s competitive edge will erode as other cities have been increasing compensation levels on an annual basis.

COMMENTS

1) As PolicePay.Net had shown, the average hourly compensation for Vallejo Police Officers was the highest of the 15 city comparison group.

I believe a similar situation for the VFD would be found due to generous amount of vacation time (5 weeks after 13 years), Holiday pay and sick leave fire fighters receive.

2) Vallejo offers richer benefits such as Longevity and Health Care that result in Vallejo having the most expensive compensation package. Most Vallejo fire fighters also receive an educational incentive which further increases their wages.

3) Overly generous health care benefits for current employees and retirees continues to create a significant unfunded liability for the City.

BOTTOM LINE

Even with all of the givebacks Vallejo Public Safety Employees are being well compensated compared to their peers.