You may have recently read in the Arizona Republic that Phoenix labor unions are demanding more pay raises in next year's budget. Government staff will indeed put pay raises for themselves and the labor unions in next year's budget.
Is this justified? Knowing we are coming out of a recession or some may even argue that we are still in a recession.
What is fair pay? How much should a worker be paid?
Following the principals of the free marked –A worker should be paid just enough to keep him from quitting.
Based on free marked principal, does the City of Phoenix pay its employees marked value?
Some numbers from City of Phoenix:
$98,322 – Average annual total compensation for Phoenix staff
14,999 – Number of city employees (3,500 police officers, 1,500 fire-fighters and 10,000 other emploees)
$17,975 – Average compensation increase since 2005-06
$270 million – Amount taxpayers pay more for same number of workers since 2005
$130 million – Increases in Phoenix taxes/fees in past 18 months
15 – Total number of city employees laid off because of the recession
40.5 Days off (each year) – (sick, holiday, personal, vacation) for first-year clerk
$8,000 – Education benefits per employee per year
$0 – What staff pay for bus/rail (It’s free to them.)
50s – Age at which Phoenix staff can retire with pension
These numbers show that a Phoenix City employee receives compensation and benefits well above what the private sector can offer.
However, knowing that less that 0.1% of the total City work force quit last year for various reasons indicated that their benefit/compensation is more than adequate.
A company of this size operating in the private sector has a turnover rate between 2-5%.
In the past six years, city staff has been granted over $270 million in compensation increases – which averages about $18,000 per employee. Have you received an $18,000 increase, or did your income drop due to the recession? Do you believe this recession is over? Do you think we should use that money for something else?
Maybe instead of increase compensation to City employees, the City should drop the food-tax (2% on food), not increase our water bill, increase seniors and library hours, etc.
If you are in agreement, please consider joining the Ahwatukee Tea Party and help us hold our city elected officials “feet to the fire”.