A union contract amendment creating new pay grades for some Kalispell city workers was unanimously passed by the Kalispell City Council on Monday.

The new contract for Kalispell employees in the American Federation of State, County and Municipal Employees union runs from June 15 through June 30, 2014.

The amendment creates a new pay matrix for workers and rewards workers with higher pay as they complete job-related certifications and training on additional duties.

It was developed with input from union members in multiple city departments and is something the city of Kalispell promised to do during contract negotiations in December 2010 when the union agreed to go without any cost-of-living increases, according to Charles Harball, city attorney and interim city manager.

The merit-based pay increases are on top of regular longevity-based salary steps.

“From management’s standpoint, we see this as a real winning situation,” Harball told the council Monday.

If every AFSCME worker got the training needed to meet a new pay grade, the contract would increase overall wage costs by about 2.5 percent in the first year and 1.7 percent in the second year.

The city pays for worker training and certifications with management approval.

“We think the benefits would far exceed what we are paying out,” Harball said.

Mayor Tammi Fisher and other members of the council spoke in favor of the contract, calling it a great ideal for the city.

Council member Tim Kluesner liked the fact that it’s merit-based.

“It helps the crews, it helps the city,” he said.

Other provisions of the contract will:

v Separate supervisors into their own defined pay grade.

 vEstablish a “newly hired” employee base pay that is 90 percent of the entry level wage for the first year.

 vRecognize a “lead person” designation that will assist supervisors on select projects.

Reporter Tom Lotshaw may be reached at 758-4483 or by email at tlotshaw@dailyinterlake.com.