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Town Implements ‘Innovative’ Compensation Policy

On January 18, Council received and approved a report from staff that proposed a number of significant changes to the way that managers are compensated within the municipality.

On January 18, Council received and approved a report from staff that proposed a number of significant changes to the way that managers are compensated within the municipality.

According to the report, managers within the old system were compensated for 35 hours per week and given two weeks lieu time. However, the report argued that “this compensation goes largely unused and as a result the hours for which managers are compensated has not kept up with the changing reality of the work environment.”

The report further stated that these conditions create “An unhealthy work/life balance for managers” and cause “Strain on the mental and physical health of managers.”

Staff therefore recommended that Council “Eliminate vacation entitlement, thus allowing managers to take time the vacation they need [sic], when they need it,” and “eliminate the 2 weeks' lieu time/banked time that managers receive and offset with compensation based on a 40-hour work week.”

The implementation of this policy along with the standard employee cost-of-living adjustments will result in a $250,000 increase to the 2016 Operating Budget, according to a report made to Council on Monday.  Last year that figure was 271,000. Treasurer Cari Pupo attributed the savings to the new policy.

Councillor Papp expressed praise for the new policy, noting that Canadians often lag behind their European counterparts when it comes to work/life balance. “The two-week lieu just didn’t work,” he said, recalling his own experience in a similar position. “You didn’t have enough time to take the time that you needed. So this is a very good step forward.”

It is likely that the Town of Pelham is the first Municipality in Canada to institute such a policy, according to the Director of Corporate Services.

Staff indicated that the new compensation policy will result in an “Improved sense of value to the organization and thus improved satisfaction and engagement,” and that eliminating the old vacation entitlements would show that “the Town trusts and respects its managers to make responsible decisions.”

The report was approved on a one-year trial basis, retroactive to January 1 of this year.