The Hillsdale City Council recently to end the per­for­mance-based pay system for BPU employees.
(Photo: Wiki­media)

The Hillsdale City Council voted to adopt a res­o­lution sup­ported by the Hillsdale Board of Public Util­ities to restructure the way the BPU’s pay structure operates, in a Feb. 20 meeting.

The res­o­lution is part of an ini­tiative lead by City Manager David Mackie to blend the city and the BPU into one cohesive unit.

“We’re looking at moving the city and BPU back together. That was the direction given to me when I was hired in July 2015,” Mackie said. “The city and BPU used to be viewed as two sep­arate entities. The city has basi­cally aban­doned that type of power structure for ten years.”

Mackie was a strong advocate for the measure, releasing a memo to the city council to vote in favor of the BPU’s res­o­lution.

“In 1989, the city estab­lished the per­for­mance-based pay system for all non-union employees,” Mackie said in the memo. “The system has become inef­fective and out­dated.”

Non-union employees’ starting pay was orig­i­nally defined by the position they held. Each employee would be eli­gible for a pay increase every six months for “sat­is­factory work per­for­mance” until an employee had been given a raise four times. The department head was respon­sible for rec­om­mending eli­gible employees and the city manager would approve the expense or not, based on the department head’s jus­ti­fi­cation.

Mackie wants to bring the BPU under the city’s control by elim­i­nating dis­crep­ancies in the way each entity operates. According to Mackie, removing struc­tural dif­fer­ences between the two, like the per­for­mance-based pay system, will reduce costs and create more uniform policies for city employees.