Wanted: Better reporting on labor contracts

September 3, 2013 at 5:03 pm

“A real and persistent problem with respect to improving government transparency and accountability – the lack of information on the implications of key contract provisions.”

Mark Haveman, Executive Director, Minnesota Center for Fiscal Excellence

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The Star Tribune reported that unions representing state employees, MAPE and AFSCME have ratified new labor agreements covering the two year period beginning July 1, 2013. They highlighted the 3% COLA in both contract years.

Deeper within the report is this brief note: “They (the agreements) call for annual step increases for years of service to continue in addition to the across the board hikes.”

Step increases are pay increases based on tenure effective on the hiring date anniversary. They are a major part of labor contracts and driver of changes in compensation costs, yet their implications are barely recognized.

Modeled Salary Growth under the New MAPE Contract Starting at Step Four
Job title: Accounting Officer Intermediate

LaborContract_PayRates

Entry filed under: Public Policy | Government Affairs.

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