Members of the Hastings Board of Education will act on a proposal at their meeting on Monday that includes up to a $2-per-hour raise for most current Hastings Public Schools classified staff members as a way to stem rising health insurance costs.
Superintendent Jeff Schneider and David Essink, HPS director of human resources and operations, presented the proposal during the March board work session as well as at the April work session on April 7.
District officials have had at least five meetings with classified staff members since the March work session to answer questions about the changes.
The proposal includes a 4.25% wage increase, which is the same increase certified staff members are receiving, or a $1-per-hour increase — whichever is higher. In most cases, $1 is higher.
There could be a second $1-per-hour raise for current employees who choose to switch from family to single insurance or take no insurance from the district.
It will be a two-tiered system.
Tier I includes current employees who want to stay with the family insurance plan.
Tier II would be all new employees as well as current employees who don’t want family insurance. All new employees automatically would come in at Tier II, but could buy family insurance at their own cost.
Each employee has to choose to stay at Tier I or move to Tier II. Once an employee moves to Tier II, he or she can’t go back to Tier I.
“It’s something each person has to decide,” Essink said.
The district doesn’t want to inconvenience existing employees. That’s why they are grandfathered in and can keep family insurance as long as they want.
Dental insurance and vision insurance aren’t affected.
Employees who choose to stay with Tier I can switch to Tier II at a later time and get that second $1 raise.
Bus drivers are in a different situation. They start with a $2-per-hour raise with the option for a third $1 raise if they choose to go with Tier II.
“Our bus driver category was very low,” Essink said of wages.
He said hiring bus drivers has been difficult, so the district decided to increase those wages even more.
The district took similar action with wages for nurses a year ago.
Board members also will act on Monday on a wage scale for new hires that includes a $2-per-hour increase on every category.
“Our best chance to stay somewhat fully staffed, and I say ‘somewhat’ because we’re not fully staffed now, is to retain our current employees,” Schneider said. “If we don’t invest in this group of people here, we’re going to struggle.”
The district has studied health care costs versus wages for years.
Health care costs have escalated so much more rapidly than salaries that the district had to take action.
Family insurance next year will cost the district $26,000 per employee.
“That has outgrown starting wages of most of our positions,” Schneider said. “We are offering more in benefits than we are in salary. It’s not sustainable, because the insurance grows at 6% or 7% a year.”
While some candidates apply for classified staff positions with the district because of benefits, Schneider said, district officials hear more about wages from job candidates.
Education and experience factor into a new employee’s wages.
Schneider said that is true of a teacher, as well.
“One of our three-year teachers, if we hire a 10-year teacher from another district to come in they’re going to make more than that three-year teacher,” he said. “That’s no different for classified staff.”
This is a trial program for the district.
“We’re not 100% sure this is where we’re going to stay, but we’ve got to try this and see where it goes,” Schneider said. “It’s an interesting situation we’re in.”
