Concerning the Comprehensive Compensation System for State of North Carolina Employees
Resolution of the Employee Forum
of the University of North Carolina at Chapel Hill
October 4, 2006
WHEREAS the Mission of the Employee Forum is to address constructively the concerns of Employees of The University of North Carolina at Chapel Hill, including the representation of staff concerns to University officials, the University of North Carolina General Administration, State Legislators, and the citizenry of North Carolina; and
WHEREAS, those concerns include the receipt of regular and appropriate COLA salary increases as a means of maintaining parity with the cost of living and receiving a tangible reward for attaining a high level of proficiency, expertise and quality in one’s work; and
WHEREAS, the legislature is bound by statute to, “compensate its employees at a level sufficient to encourage excellence of performance and to maintain the labor market competitiveness necessary to recruit and retain a competent work force,” (1.); and
WHEREAS, while state employees are appreciative of any and all increases, these COLA increases over the past six years have not kept pace with the rising consumer price index (2.) and have placed EPA non faculty and SPA employees in a state of negative salary growth (3); and
WHEREAS for 2005 the Office of State Personnel reported the voluntary turnover rate for state Employees increased to 7.9% (4). Non-competitive salaries and employee benefits serve to exacerbate this turnover rate and cost the state approximately $220,900,000 in hiring, training and lost productivity costs; and
WHEREAS, a flat-rate salary adjustment is required to offset the continuing erosion of State Employees salaries for those receiving less than the median of $38,709 (4) and increase the retention of existing experienced Employees.
THEREFORE BE IT RESOLVED, that the Employee Forum of the University of North Carolina at Chapel Hill strongly recommends the legislature fully fund on an ongoing basis The Comprehensive Compensation System (5.) as set forth in the North Carolina Statutes, Chapter 126, article II; and
BE IT FURTHER RESOLVED, that the Employee Forum of the University of North Carolina at Chapel Hill strongly recommends that the Chancellor and his Administration support and convey the concept of this resolution and the position of the Employee Forum to the University System Office of General Administration, State Personnel Commission and the North Carolina State Legislature.
To be signed on Behalf of the Delegates of the Employee Forum,
Ernie Patterson, Chair
1. http://www.ncga.state.nc.us/EnactedLegislation/Statutes/HTML/ByChapter/Chapter_126.html
2. Table 1—CPI Index Change 1999-2006
| Percentage change | 12 months ending in December | 6 months ending in June | ||||||
| 1999 | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | |
| All items |
2.7
|
3.4
|
1.6
|
2.4
|
1.9
|
3.3
|
`3.4
|
4.7
|
| Food & beverages |
2.0
|
2.8
|
2.8
|
1.5
|
3.5
|
2.6
|
2.3
|
2.3
|
| Housing |
2.2
|
4.3
|
2.9
|
2.4
|
2.2
|
3.0
|
4.0
|
3.1
|
| Apparel |
-.5
|
-1.8
|
-3.2
|
-1.8
|
-2.1
|
-.2
|
-1.1
|
2.2
|
| Transportation |
5.4
|
4.1
|
-3.8
|
3.8
|
.3
|
6.5
|
4.8
|
13.2
|
| Recreation |
.8
|
1.7
|
1.5
|
1.1
|
1.1
|
.7
|
1.1
|
2.0
|
| Education & communication |
1.6
|
1.3
|
3.2
|
2.2
|
1.6
|
1.5
|
2.4
|
2.8
|
| Other goods & services |
5.1
|
4.2
|
4.5
|
3.3
|
1.5
|
2.5
|
3.1
|
2.4
|
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
|
| Special indexes |
–
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
| Energy |
13.4
|
14.2
|
-13.0
|
10.7
|
6.9
|
16.6
|
17.1
|
22.8
|
| – |
–
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
Source: US Department of Labor/Bureau of Labor Statistics
3. Table 1— CPI Comparison of CPI-U with [North Carolina] Legislative Increases (COLA only)
|
CPI-U |
COLA |
Compound Loss |
|
|
2000 |
3.4% |
2.2% |
-1.3% |
|
2001 |
1.6% |
1.9% |
-1.0% |
|
2002 |
2.4% |
0.0% |
-3.4% |
|
2003 |
1.9% |
0.0% |
-5.2% |
|
2004 |
3.3% |
2.5% (or $1,000) |
-6.1% |
|
2005 |
3.4% |
2% (or $850) |
-7.4% |
|
2006 |
4.7% |
5.5% |
-6.9% |
Source: US Department of Labor/Bureau of Labor Statistics & NC Office of State Personnel
4. Figure 1—CPI/COLA Loss to SPA Employees, 1999–2006
The top half of the graph below shows the progression of the median SPA employee salary from 1999 to 2006, each year adding the Cost of Living Allowance (COLA) allocated by the North Carolina Legislature for that year.
The Consumer Price Index (CPI) salary indicates the salary the median SPA employee should have received each year in order to maintain the same level of purchasing power.
The bottom half of the graph shows what the CPI-COLA difference means in actual loss of purchasing power for the median SPA employee. CPI minus COLA for each year is the median SPA employee’s Annual Loss in purchasing power.
Adding each year’s Annual Loss is the median SPA employee’s Cumulative Loss in purchasing power from 1999 to 2006.
Source: US Department of Labor/Bureau of Labor Statistics & NC Office of State Personnel
The budget cost for SPA salaries (excluding benefits) for 2006 is estimated as approximately $2,240,360,000.
The cost of the 5.5% increase is estimated as approximately $117,059,000.
The CPI Cumulative Loss to SPA employees is estimated as $656,425,000.