Plan to include pay increases for current electric employees and a payback clause to retain new employees
By Kellen Olshefski
Editor
Elkhorn’s Human Resources Committee took a look at a plan Monday night Elkhorn’s electric utility hopes will help to retain employees in the future.
Electric and Water Utility Director John Murphy told committee members Monday night he’s currently down to two linemen on the electric side of operations, down from four previously. He said the utility additionally has a utility technician and an apprentice.
Murphy said he’s lost two linemen to Alliant Energy for various reasons, including higher pay and better benefits.
However, Murphy said Alliant Energy is facing the same problems as the city, finding it difficult to get trained linemen.
“That industry right now is not good,” he said Monday, noting he thinks a lot of the linemen are going to private companies.
“They’re unionized, they’re making big money and that’s where they’re all going.”
Murphy described the current state as being dangerous and said the Occupational Safety and Health Administration requires him to have two linemen to do specified jobs and the loss of one more would be detrimental to the electric utility.
“We have to do something, it’s become a very big issue for Elkhorn Electric Utility,” he said. “If I lose one more I know I can’t get any more.”
Murphy said the issue isn’t that the city can’t afford to hire new linemen, it’s simply that linemen aren’t readily available in the workforce at this time.
As a potential solution, Murphy presented the committee with an employee retention plan.
One part of the plan included a non-compete clause, which Murphy said basically says an employee would have to be resigned from Elkhorn for a full-year prior to moving over to a local private company such as Alliant Energy. Murphy said this would help retain current employees of the city.
While it’s not likely, City Administrator Sam Tapson in discussions with Cities and Villages Mutual Insurance Company, which provides liability and risk insurance to the city, if the non-compete clause were to become a court issue, the city would have to pay for it’s own defense.
Murphy noted Richland Center just gave all of their employees a $5 raise across the board, rather than a non-compete.
“We need to find a way to stabilize our workforce when it comes to linemen, because they’re moving, they’re really moving,” he said.
Another part of the plan includes a payback clause, requiring employees sent to an apprentice program by the city to pay back the city for a portion of the training costs if they don’t stay with the city for 10 years. Murphy said this would help to retain new employees.
“If he doesn’t stay for 10 years, he’s paying part of that training cost back to us and that’s going to deter him from moving,” he said.
Alderman Scott McClory, who sits on the committee, said personally, he would be in favor of a pay raise and a payback clause, though he’s not in favor of a non-compete clause.
“Whether or not it would pass muster in a court of law or not, I don’t think ethically it’s our place to be telling them that they can’t leave,” he said. “It’s not proprietary, it’s not secrets, it’s not how to launch a rocket at NASA or some other kind of intellectual property.”
McClory made a motion to approve the plan with the payback and pay increase clauses, but not the non-compete clause. The motion was seconded by Alderman James D’Alessandro.
The committee voted unanimously in favor of McClory’s motion, sending the plan on to the City of Elkhorn Common Council for official approval.
