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1 <br />COMMISSIONER SIEBERT THEN DISCUSSED THOSE EXEMPT AND NON- <br />EXEMPT FROM BEING PAID FOR OVERTIME. <br />MR. PELLEGRINO EXPLAINED THAT THEY TRIED TO DELINEATE WHAT <br />POSITIONS SHOULD RECEIVE OVERTIME PAY. 'A" DESIGNATES THOSE WHO ARE <br />NON-EXEMPT AND SHOULD RECEIVE OVERTIME AND "B" DESIGNATES THOSE EXEMPT <br />FROM RECEIVING OVERTIME. <br />CHAIRMAN WODTKE STATED THAT YOU HAVE BASICALLY A SITUATION <br />WHERE EVERYONE HAS AN AUTOMATIC 5% INCREASE IN SALARY EACH YEAR AND <br />THEN YOU TALK•ABOUT COST OF LIVING. IN PRACTICALITY, YOU CANNOT DO <br />ALL THOSE THINGS SO IF, FOR INSTANCE, THE BOARD AUTHORIZED 7%, YOU COULD <br />END UP ONLY GETTING A 2% COST OF LIVING RAISE. <br />COMMISSIONER SIEBERT STATED THAT HE FELT THE PLAN ELIMINATES <br />THIS, BUT THE CHAIRMAN STATED THAT HE THOUGHT MR. PELLEGRINO INDICATED <br />YOU GET 5% AND THEN GET COST OF LIVING. <br />MR. PELLEGRINO EXPLAINED THAT YOU WOULD FIRST OF ALL HAVE TO <br />CONSIDER YOUR FINANCIAL SITUATION AND DECIDE HOW MUCH YOU CAN SPEND FOR <br />INCREASING WAGES. THEN YOU MAY HAVE TO CONSIDER EITHER A COMBINATION <br />OF MERIT AND COST OF LIVING OR SIMPLY COST OF LIVING. HOPEFULLY, THERE <br />IS GOING TO BE A TIME WHEN COST OF LIVING WILL SLOW DOWN. HE REITERATED <br />THAT HE FEELS THIS PARTICULAR TYPE OF SYSTEM GIVES YOU GREATER FLEXI- <br />BILITY BECAUSE IF YOU HAVE INCREMENTS, YOU ARE HUNG UP ON AUTOMATIC <br />RAISES. HE FELT PEOPLE SHOULD EARN AN INCREASE THROUGH SOME TYPE OF <br />PRODUCTIVITY AND NOT JUST BECAUSE THEY HAVE BEEN HERE A CERTAIN NUMBER <br />OF YEARS. HE CONTINUED THAT OF YOUR TOTAL MONIES, PROBABLY THE MAJORITY <br />WOULD BE FOR COST OF LIVING, BUT TO TAKE CARE OF THE PEOPLE WHO TRULY <br />MERIT IT, A MERIT RAISE MAY BE A GOOD INCENTIVE. HE FELT YOU MUST REALLY <br />PRODUCE TO GET A MERIT RAISE. <br />CHAIRMAN WODTKE FELT WE HAVE NEVER HAD A DEPARTMENT'HEAD WHO <br />WOULD NOT TREAT EVERYBODY EQUALLY SO WE ALWAYS END UP RIGHT BACK IN THE <br />SAME POSITION. <br />DISCUSSION CONTINUED ON THE PROBLEMS INVOLVED. <br />CHAIRMAN WODTKE ASKED IF MR. PELLEGRINO FELT WE COULD LIVE <br />WITHIN THE SUGGESTED RANGES FOR A PERIOD OF TWO TO THREE YEARS AND <br />BASICALLY COULD ADDRESS.MERIT AND COST OF LIVING IN ONE FIGURE. <br />APR 4 1979 <br />BOOK 39 PAGE 40Z <br />