Sunday, December 16, 2012

Longevity's Time has Expired

Nothing drives me crazier than dealing with longevity in labor agreements!  Many collective bargaining agreements (CBAs) in the public sector both municipal and educational, have employees that receive contracted adjustment increases each year based on a flat amount or percentage of their salary.

While longevity made sense in its day as a method of acknowledging years of service and more importantly serving to entice the employee to stay in lower paid public sector jobs vs. leaving for a more lucrative opportunity in the private sector; its rationale is gone.

In the words of Gene Raskin who put English lyrics to the Russian romance song "Dorogoi dlinnoyu," "Those Were the Days" ... "we though they'd never end," ... apparently they didn't!

Data based on research surveys from the
International Association of Administrative Professionals
 (IAAP) and/or other sources as noted
1975
Average Salaries (National Secretaries Association membership survey)
$9,000-$11,000 32%
$11,000-$13,000 17%
$13,000-$15,000 7%
$15,000 and over 4%
60% reported salaries of $9,000 or more.


The worst part of this lopsided initiative is the fact that at inception the percentage method agreed to by governing bodies seemed harmless as the salaries of the day were ranging from the low to mid teens in the 70's and administrative salaries were closer to forties.  Therefore, even at 5% the yield could range from $450 - $750.  Not very alarming on a salary of $11,000 that received a total adjustment after say a 3% raise to $11,897.

Compared to today, that secretary is closer to $60,000 and probably looking at a 2% raise with the same 5% longevity costing $3,000 bringing the total salary to $64,200. 

The real issue is ...given the state of the economy in the private sector with salary freezes, downsizing and cuts/elimination of benefits, these employees are not going anywhere.  Longevity has been stopped in many contracts by grandfathering existing staff; however, given the fiscal constraints of tighter budgets one must consider the need repeal and abolish the practice, especially the percentages as the dollars sky rocket as the base has more than doubled or even tripled since the practice began.  In some cases you can have a six figure salary receiving a 5% or more longevity stipend which yields an instant $5,000 increase before even considering a raise.

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