Wages Up, Benefits Down in New Deals with Village Non-Union and Union Employees

Wage hikes outlined in new deals with village union and non-union employees are in response to an increase in employee contribution to their pensions and health care premiums, one village official said Monday.

"This is the general approach even with the police union, that a wage increase of 1.5 percent over four years would eventually compensate for the increased contribution to pensions and health premiums," Trustee Michael Maher said.

"It's not increased compensation, because they lost overall compensation."

The Village Board unanimously approved a new one-year deal for non-union employees Monday night, and a two-year pact with the police union was approved and ratified a couple weeks ago.

Maher said a 1.5 percent wage increase and the new requirement that they contribute 5.8 percent to the Wisconsin Retirement System toward their pensions and pay 12 percent of their health care premium is built into their recently adopted budget. Employees previously contributed zero to their pension and 8.5 or 10 percent to their health care premiums, depending on their hire date.

The increased contributions are in line with the budget repair bill, or Act 10, and passes on $234,000 in savings to the village.

Cash in lieu of opting into the village's health care insurance remains at $3,000 per year for all village employees. Shorewood pays up to $70 for dental insurance premiums.

Some residents at Monday night’s meeting opposed the wage increases and said the board shouldn’t be using the hike to offset the increase in contributions to fringe benefits.

While general employees see the 1.5 percent wage hike, the village’s Planning and Zoning Administrator, Ericka Lang, received a 6.28 wage hike from last year, an increase from $46,573 to 49,500. Lang was appointed to her position in 2007 at a salary of $42,000 and has seen annual pay increases of 1.5 percent per year.

In a memo dated Dec. 5, Village Manager Chris Swartz said Lang’s original base salary was low for her position and experience, and she has surpassed the entry-level scale and deserves to move up on the scale progression. According to the village, a planning and zoning specialist in Brown Deer is salaried at $51,450 and a senior planner in Milwaukee starts at $54,584.

In addition, Shorewood’s current code enforcement inspector, Victor Drake, will take on extra duties and change titles to code compliance inspector as of Jan. 1 His salary will increase from $42,000 to $46,000. He will perform real estate transfer inspections in addition to his current duties. The village was able to drop a part-time position as a result.

Police sergeants and lieutenants

Police sergeants and lieutenants will see a 1 percent wage hike overall, with 0.5 percent retroactive to July 1. Under the new deal, sergeants will top out at $69,911 per year and lieutenants at $81,119 per year.

The management employees will continue to pay 8.5 percent to their monthly health care premiums next year, but it will increase to 9.5 percent in 2013 and 10 percent in 2014.

Police supervisors will also contribute 1 percent to their pensions beginning Jan. 1, up from zero last year, under the new deal. That number will increase annually, peaking at 4.5 percent in 2014.

Officials didn’t change dental insurance for police management, which is an $80-per-month cap on premiums paid out by the village.

Pact with police union

The two-year deal calls for a wage increase of 1 percent on Jan. 1, a 1.5 percent increase in 2013 and a 2 percent increase in 2014.

Although the new state law exempted public safety employees from the mandated pension contributions, starting 2012, the union agreed to pay 1 percent toward their pensions. By 2014 they will pay 4.5 percent.

Employees will also pay 8.5 percent of their health care premium next year and the contribution will increase every year, with that number rising to 10 percent by 2014. Dental insurance premium payouts are capped at $80. The village is required to notify the union 60 days prior, if it decides to change its health care insurance provider.

Village department heads

Village leaders, including the village manager and director of public works, are looking at a 1.5 percent wage increase effective Jan. 1.

Police Chief David Banaszynski will receive a 1 percent increase. Banaszynski will see his salary increase to $94,140 and Swartz's salary will increase to $101,049. 

The positions of chief and deputy chief, which became , will see health care contributions increase from 10 to 12 percent.

Management employees will also start to contribute 5.8 percent to their pension plans, previously set at zero, and 12 percent of their health care premiums, up from 10 percent last year.