THE VIRGINIAN-PILOT
                 Copyright (c) 1994, Landmark Communications, Inc.

DATE: FRIDAY, June 24, 1994                    TAG: 9406240765 
SECTION: CHESAPEAKE CLIPPER                     PAGE: 20    EDITION: FINAL 
SOURCE: BY STEPHANIE STOUGHTON, STAFF WRITER 
DATELINE: 940624                                 LENGTH: Medium 

PROPOSED CITY PLAN COULD MEAN RAISES FOR VETERAN EMPLOYEES

``It's demoralizing,'' said Charles Hendricks, a consultant hired by the city. ``You could be training someone who would be getting the same salary.''

{REST} The problem, Hendricks says, is that the city is relying on an outdated pay system it can't fund. A five-year freeze in merit raises, combined with other factors, has allowed newcomers to get hired at wages matching those of more senior workers.

Hendricks' firm has offered a solution: a pay-for-performance plan that would keep longtime employees' salaries from becoming flat and reward productive workers. The City Council planned to hold a work session on the proposal Thursday night.

Under his plan, senior employees would always stay ahead unless their job performances are unacceptable. In addition, the proposed 3 percent raise for fiscal year 1994-95 is entirely based on merit, so bad evaluations could translate into a kick in the wallet.

Hendricks cautioned that nothing is etched in stone. ``No one knows yet what the exact amount will be,'' he said.

In addition to the 3 percent raise, the city has funded a 1 percent hike to lift up employees who fall below the minimum salaries set for their positions.

Another 1 percent hike would lift up employees who fall below the minimum salaries set for their positions. The consultant is recommending that the city add $665,000 to its budget to fund that measure.

The consultant's report recommends renaming about 520 positions to more accurately fit employees' duties. Most people would get bumped up, but a handful would receive an instant demotion.

The study also condenses city jobs into 26 pay ranges instead of 50, with maximum pay higher at each level to keep longtime employees from getting ``maxed out.'' All raises would be based on a mid-point set for each range.

About 80 percent of employees are now below the mid-point, said Carolyn W. Darden, director of the city's Personnel Department. They would get an extra boost based on two factors: how far they're below the mid-point and their job performances, she said.

``Everyone would not be boosted to the mid-point,'' Darden said. ``They would be eligible to be moved, with the final decision being based on their performance.''

Employees have had mixed reactions to the proposed plan.

Those who find themselves above the mid-point are worried because their raise would be smaller than if calculated from their higher, base salary. Conversely, those below the mid-point are eagerly awaiting the extra boost.

Michael Keenan is one of them. The water service superintendent is below the mid-point and probably will get a raise of 3 percent or more.

``For me the pay plan works out great,'' said Keenan, who has been with the city for about 16 years. ``It definitely would be more than 3 percent.''

But he acknowledges some of the 16 workers he supervises are worried.

``A lot of people are concerned about the grade levels,'' Keenan said. ``They felt that their job titles, according what they do, were low. Some people felt they didn't belong in those categories.''

by CNB