{"id":960,"date":"2014-01-16T22:01:28","date_gmt":"2014-01-16T22:01:28","guid":{"rendered":"http:\/\/www.seiu105.org\/?p=960"},"modified":"2020-02-11T20:38:22","modified_gmt":"2020-02-11T20:38:22","slug":"stand-up-for-colorado-workers","status":"publish","type":"post","link":"https:\/\/www.seiu105.org\/es\/uncategorized\/stand-up-for-colorado-workers\/","title":{"rendered":"Stand UP for Colorado Workers"},"content":{"rendered":"

On Thursday, the\u00a0Denver Post editorial board published a brief but disingenuous editorial<\/a>\u00a0that can only fairly be described as a declaration of war against Colorado\u2019s middle class vis-\u00e0-vis Colorado\u2019s state employees.<\/p>\n

At issue, ostensibly, is the 3% pay raise that state employees have been advocating for since last fall and which was given temporary approval by the legislature\u2019s Joint Budget Committee on Monday.<\/p>\n

But really the issue goes well beyond state employees \u2013 this is an issue of whether Colorado is going to have an economy that works for the middle-class.\u00a0This is about whether or not Colorado policymakers are going to lead on the issue of income inequality or whether they\u2019re going to perpetuate economic stagnation for Colorado\u2019s middle-class.<\/strong>\u00a0The Post has clearly chosen the side of economic stagnation for the majority of Coloradans and now the question is which side are our elected leaders on?<\/p>\n

The Post blithely states that the 3% raise plus average merit pay comes with an $88 million price tag. That number is presented without any citation or context in a deliberate attempt to stoke maximal outrage. The Post neglects to mention that the governor\u2019s budget request is for $58.5 million in salary and merit pay funds, a request they seem to endorse when stating, \u201cIt\u2019s not a question of whether state workers deserve a pay hike.\u201d<\/p>\n

So fully 2\/3rds of what the Post insinuates is an extreme and untenable financial outlay had already been requested by the governor and is endorsed by the Post. Let us assume, arguendo, that the Post\u2019s completely uncited $88 million figure is correct. The governor\u2019s total budget request for 2014\/15 is $21.9 billion dollars \u2013 $88 million dollars is just\u00a00.4%<\/i>\u00a0of that total budget.If 30,000 middle-class workers aren\u2019t worth 0.4% of our budget then what are they worth?<\/strong><\/p>\n

Next the Post posts another uncited data point, that \u201c99% of state workers received some increment of merit pay\u201d last year. This may actually be a true statement as far as it goes, but it doesn\u2019t describe in any way the reality of the state\u2019s merit pay system for workers. If you scored average on your performance plan (a Level 2 out of a possible 3) and had wages at or below the median in your salary range your merit pay ranged from 0.6% to 1.1%. That\u2019s hardly the boondoggle that the Post would like to portray the merit system as. In fact, it means that many employees were, at best, keeping up with inflation.\u00a0Is a pay raise actually a raise when it doesn\u2019t actually increase your buying power?<\/strong><\/p>\n

Finally the Post gets to the issue of what they describe as a \u201cgenerous\u201d retirement savings plan that state employees enjoy. Let\u2019s be absolutely clear \u2013 PERA is the only source of retirement income for state employees, they don\u2019t receive Social Security \u2013 which also means that the state doesn\u2019t pay the employers 6.2% share of Social Security tax either. In fact, in the latest PERA Comprehensive Annual Fiscal Report (CAFR) the state\u2019s normal cost\u00a0[1]<\/sup><\/a>\u00a0for 2012\u00a0was just 1.64% of payroll<\/a>. Compare that to the private sector where employers pay 6.2% of payroll into Social Security and 4.45% of payroll into some sort of tax deferred retirement plan. So the state\u2019s annual contribution to their employee\u2019s retirement is actually well below what the private sector provides, 1.64% compared to 10.65%. Meanwhile employees pay 8.05% of their annual pay into PERA.\u00a0Can a system where employees pay 83% of the normal costs of their retirement be accurately described as \u201cgenerous\u201d?<\/strong><\/p>\n

During the recession state employees tightened their belts to continue to provide the highest possible level of service to the people of Colorado while working without any pay increases for 4 years.\u00a0Let\u2019s not forget that for two of those four years the employees not only didn\u2019t receive a raise but they elected to take a 2.5% take home pay cut in order to stabilize PERA,<\/strong>\u00a0which had been savaged by the excesses of Wall Street and the near collapse of the world economy. Last year, as the state economy improved, state employees were voted their first raise since the 2008 legislative session.<\/p>\n

While state employees saw no raise in 2010, 2011 and 2012 and take home pay cuts in 2010 and 2011, inflation continued unabated \u2013 eroding the buying power of more than 30,000 workers\u00a0by 7% from 2009 through 2012<\/a>.<\/strong>\u00a0These are workers who live in every county in this state; they are your friends, family and neighbors. Their economic impact is felt in every local economy \u2013 from Phillips County on the eastern plains to Delta on the western slope and literally everywhere in between.<\/p>\n

The state is Colorado\u2019s largest employer and when state workers fall behind it drags down every local economy in the state. If you say that you care about rural Colorado\u2019s future then you should support wages for workers who live in rural Colorado that let them keep their heads ever-so-slightly above water.<\/strong><\/p>\n

As the governor stated a week ago in his State of the State address,<\/p>\n

While the national economy around us remains sluggish, Colorado\u2019s unemployment rate has not gone up. It has gone down, to the lowest levels since 2008. This is our fourth consecutive year of economic growth. According to a study from the University of Colorado\u2019s Leeds School of Business, we can expect robust job growth in virtually every sector of the economy this year. Colorado is ranked among the top five states in the entire country for business, careers and job growth.<\/p><\/blockquote>\n

These are all things that we as Coloradans should be immensely proud of. But job growth and a friendly business environment alone won\u2019t move our economy forward. What competitive business pays their employees, year after year, less than the cost of living? \u00a0Are we running government like a competitive business, as so many advocate we should, or are we running a fast food chain?<\/strong><\/p>\n

Our economy is driven by the middle class and state employees are a critical part of that middle class. A 2011 Denver Business Journal article cites the\u00a0average worker pay in Colorado as $47,510<\/a>. The state\u2019s own salary survey this year showed that\u00a0state employee salaries lag private sector workers by 9.2%<\/a>. Don\u2019t believe the state\u2019s own survey? An independent audit by\u00a0Buck Consultants shows that state employee salaries lag by 6.5%<\/a>. Take your pick of numbers \u2013 it doesn\u2019t change the fact that\u00a0state employee pay lags behind private sector pay. And a 2% base building raise in 2013 followed by a 3% raise in 2014 doesn\u2019t come close to putting workers back in the same financial position they were at in 2009.<\/strong><\/p>\n

This Post editorial is not just an attack on state employees; it is a divisive and insidious ideological attack on all middle class Coloradans. The Post wants to make this an issue of class warfare \u2013 pitting state employees against other middle class workers. But you cannot separate state employees from the rest of the middle class \u2013 state employees\u00a0are<\/i>\u00a0the middle class.<\/p>\n

Our economy nationally and here in Colorado isn\u2019t working for the middle class.\u00a0As the Denver Post reported in August<\/a>, \u201cIn Colorado, the inflation-adjusted median hourly wage is down 1.7 percent [since 2000]\u2026\u201d Nationally we have unprecedented levels of income inequality. Workers are more productive than ever but that increased productivity is going to record corporate profits and record executive pay while middle class workers are in their third decade of stagnant wages.\u00a0The state has a $500 million budget surplus, taking 0.4% of the state budget and investing a small portion of our annual budget back into Colorado\u2019s communities helps the entire Colorado economy. State employees shop in your neighborhood grocery store, they buy clothes for their kids in your local stores, and they buy lunch at the restaurant on Main St.<\/strong><\/p>\n

In their editorial the Post, as an argument against state employee raises, says \u201c\u2026the pay of most private-sector workers [hasn\u2019t] ballooned.\u201d Shared misery is not a plan for economic growth. Wages need to rise for\u00a0all<\/i>\u00a0middle class Coloradans and as Colorado\u2019s largest employer the state can help Colorado\u2019s middle class finally break free of the economic doldrums and start participating in the economic growth we all keep hearing so much about.<\/strong><\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>","protected":false},"excerpt":{"rendered":"

On Thursday, the\u00a0Denver Post editorial board published a brief but disingenuous editorial\u00a0that can only fairly be described as a declaration of war against Colorado\u2019s middle class vis-\u00e0-vis Colorado\u2019s state employees. 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