Over the past decade, classification and compensation studies (“class and comp”) studies have risen in popularity with public employers to ensure that wages stay competitive and employers are able to attract candidates with the wages they are currently offering. In addition, Minnesota law requires that wages for similar job titles bear a “reasonable relationship” to one another.
However, conducting a class and comp study is not as easy as comparing jobs and implementing new wages based on the study, especially in a union environment. Compensation is a term and condition of employment, and any changes must be negotiated with bargaining unit representatives. Furthermore, the terms of the collective bargaining agreement in effect at the time of implementation still apply, and this can have serious implications about how employees are paid.
In LELS and Hubbard County, the County went through a years-long class and comp study, and it was implemented in 2022. As a result, the number of grades in the County was reduced, and most employees moved to a step at or above their current rate of pay. During the negotiation of the new collective bargaining agreement for 2023-2025 with the union, the County proposed that employees “on step 3 or higher on the existing grid would receive one additional step toward the implementation to the proposed compensation grid.”
Eventually, the parties reached a tentative agreement, which included a transition from one grade to another, in accordance with the class and comp study. At no point during the negotiation of the contract did the County discuss changes to the contract article addressing step movement after the initial step increase. However, three individuals in the unit were due for step increases after the date the contract was implemented.
While the County believed those employees should only be eligible for the step increase negotiated with the class and comp implementation, the union believed that after the initial step increase, employees would be eligible for their annual step increases on employee anniversary dates. The issue was brought to the County’s attention, but no changes were made to the agreement. The union refused to sign the contract, but the County responded the County Board approved of the action. The union grieved.
In its argument, the County argued that it did bring the step implementation process up with all bargaining units, and “it did not implement the new wage scale with any other bargaining unit in the manner sought by the union.” Arbitrator Baumann stated that while that may be true, it was not relevant to what was discussed or agreed to by the parties involved in the dispute.
The arbitrator then went into the bargaining history of the 2023-2025 collective bargaining agreement, and found that the step progression of the three grievants was not discussed, and the notes from the parties did “not reflect any discussion regarding the implementation of the new wage scale.”
The County argued that it provided the union with notice prior to the ratification of the agreement showing the step and grade of each employee, beginning with the following contract year. Arbitrator Baumann again found that the notice was irrelevant, as it did not suffice to serve as an agreement by the Union to the step progression being sought by the County.
The arbitrator held that while the management rights clause of the CBA reserved the right of the county to unilaterally determine positions and grades, “[i]t does not allow management the right to modify the step progression procedure in” the CBA. The arbitrator found that the County was “seeking through arbitration to obtain what it failed to seek at the bargaining table,” as nothing contained in the new agreement “referenced or reflected how employees would be placed on the new salary schedule.” With that, the grievance was sustained, and the three employees were awarded their step advancement.
Everyone feels a sense of relief once a contract is settled. Once the major terms are agreed to, the rest is just details. However, it is those details, that the documentation of how the changes will work going forward, that can be the most important for ensuring a smooth transition from one contract to the next. If you, or your organization, need assistance with negotiating, drafting, or enforcing new contract terms, contact Wiley Reber Law, for negotiations advice that works.