Stagnant wages reflect budget pressures

A new compensation survey released by AFT Public Employees shows that state employees’ wages are not keeping pace with other wages in the U.S. workforce—a result of continuing budget problems plaguing the states.

Specifically, salary increases among state employees have plummeted from a median 3.63 percent in 2002-03 to 0.45 percent in 2003-04. According to the Bureau of Labor Statistics, overall U.S. salary increases for 2003-04 were approximately 3 percent.

The anemic growth for public employee salaries is directly linked to state budget pressures, which also contributed to a decline in the number of public employees in key safety positions, reports the 2004 AFT Public Employees Compensation Survey, released in September.

“At a time when we are relying on public employees to redouble their efforts to protect our homeland and provide essential services, states are putting the brakes on salaries and laying off critical personnel,” said AFT president Edward J. McElroy.

Steve Porter, director of the AFT Public Employees division, warned that “it’s going to take years” for states to recover from the Bush administration’s tax policies.

“In a shortsighted effort to manage budget deficits, state agencies across the country are sacrificing experienced staff to layoffs, attrition and early retirement pension buyout options,” said Porter. “These stopgap measures can have disastrous effects.  For example, how can we effectively maintain the safety of our nation’s bridges when we have lost more than 700 inspectors, a 33 percent drop in one critical safety position alone?”

The survey also shows that public employees with union representation, by and large, earn higher salaries than nonunion public employees, mainly the result of collective bargaining rights.

Of the 44 surveyed job titles, 41 earned more in states with collective bargaining than those without. The average weighted mean salary for public employees in collective bargaining states is nearly 20 percent more than for those without collective bargaining.

The survey tracked 44 job titles covering a broad array of professional and scientific careers.  Registered nurses received the highest cumulative percentage change in the salary maximum, 22 percent, from 2000-05.

The report includes information on compensation structures and salaries, as well as the minimum and maximum rates, average annual salaries, numbers of employees, additional cash compensation opportunities and type of pay plan. The report is posted at AFT Online at www.aft.org/salary/2004/download/aftpe04survey.pdf.