Council recently approved Cost of Living Adjustments in a tentative agreement with the Management (LiUNA) Unit, which resulted in a two-year contract with a 4% salary increase effective July 1, 2024, and 4% increase effective July 1, 2025. At-Will (unrepresented) employees are not recognized nor represented for the purpose of collective bargaining over salary, benefits, and/or working conditions. Salary and benefit provisions for the At-Will positions remain static and do not increase unless approved by City Council. The At-Will salaries were last updated in January 1, 2024, six months after the Management and General Units received their contractual Cost of Living Adjustments.
Establishing and aligning COLAs more closely to the Management Unit on a consistent basis, after City Council’s authorization of Cost of Living Adjustments with a represented unit, is critical for recruitment and retention purposes, but also to avoid salary compactions between the At-Will positions and those they manage. Staff is proposing a similar COLA in alignment with represented Management Unit of 4% salary increase effective on August 1, 2024, with a subsequent 4% COLA effective August 1, 2025.
The increases proposed are not only in line with our own internal represented units, but also many neighboring cities (i.e. City of Monterey, City of Pacific Grove, City of Marina, and City of Seaside) are moving towards implementation of COLAs and market equity adjustments for all position levels. As such, Staff recommends moving forward to enhance our ability to attract and retain talent while maintaining market comparability and internal salary equity.
Staff will incorporate the changes into the salary schedule as required by the CalPERS Regulations upon City Council approval, and return to City Council for authorization if any increases are determined necessary in the future.