Are municipalities and represented general municipal employees
limited to collectively bargaining on total base wage increases at or
below the consumer price index (CPI) only?
Yes. 2011
Wisconsin Act 10 limits increases to total base wages that may be
bargained by local governments. Under Act 10, if a local government
agrees to increase total base wages by a percentage that exceeds the
CPI change, the governing body must adopt a resolution specifying the
amount by which the total base wages increase will exceed the CPI
limit. The resolution may not take effect unless it is approved in a
referendum.. The referendum must occur in November for collective
bargaining agreements that begin the following January 1. The results of
a referendum apply only to the total base wages in the next collective
bargaining agreement.
It is important to note, however, that Act
10 allows local governments to unilaterally implement other compensation
measures or policies such as performance bonuses, merit increases,
premium pay, pay schedules, automatic pay progressions, and supplemental
compensation for general municipal employees without the need to go to a
referendum. In essence, under the bill represented employees are
treated the same as non-represented employees regarding “other
compensation” (compensation other than base wages). Local governments
will have discretion over how much or how little to award as “other
compensation” to general municipal employees. Moreover, local
governments may award different levels of “other compensation” to
employees based upon the performance of the employee or any other
measure the employer deems relevant.