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From July 1996 to January 2007, the cost of living increased by 38.5%, yet compensation scales for staff in Boston and Amherst showed stark inequities. The disparity, influenced by arbitrary Merit Maximum caps, has led to diminishing returns for high-performing employees and declining morale. This document advocates for the removal of the Merit Maximum, ensuring fair rewards for employee performance and restoring salary equity among similar roles. It proposes resetting salary schedules to align with inflation and available funding, thereby addressing the growing wage gap.
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Professional Staff Salary Administration Plan 1996 - 2007
Consumer Price Index (CPI) • From July 1996 – January 2007 the cost of living grew by 38.5% • July 1996 CPI: 162.2 • Jan 2007 CPI: 224.4 • (224.4/162.2)-1 = 38.5 Index used: Boston MSA, all urban consumers. Data extracted on: April 7, 2007 (5:06:12 PM) from http://www.bls.Gov/cpi/home.htm
Employment Cost Index (ECI) Employment Cost Index (NAICS) Series Catalog: Series ID : CIU3010000100000A (B,I) Not Seasonally Adjusted Compensation : Total compensation Sector : State and local government Periodicity : 12-month percent change
Effect of Merit Max • The highest performing long-term employees in the unit are receiving ever diminishing returns for their efforts. • Decreasing morale among unit members due to the growing gap in compensation between similarly situated employees based only on their unit status. • By submitting salary calculations based on the Merit Maximum to the legislature, management spurned otherwise available funding for the Amherst campus.
Solution: Remove Merit Max • High performing employees should be rewarded for their efforts and should be held harmless from the application of an arbitrary and capricious Merit Maximum over the past year. • Equity should be restored between unit and non-unit employees performing similar work. • Union members should not suffer because management turned away otherwise available funds. • The PSSAP Salary Schedules at both Boston and Amherst should be reset to remove the artificial distortions and the bring the scales into line with the impact of 11 years of inflation. The easiest way to do this is to increase all the scales on both campuses at the same rate as the BRI.
Solution: Restore Integrity to the Salary Schedules • Reset the midpoints to BRI • Reset the minimums and maximums by calculating a 50% spread in each grade.