5.2. SR 03-10-2003 - Laserfiche WebLink

Home Browse Search

THE . 15-Minute dvocate READ · CONSIDER · TAKE ACTION Senate schedules hearing on bill to freeze wages of public employees 1. Get informed Testimony on a bill to implement a two-year freeze on wages for public and state employees will be heard Friday, March 7, in the Senate State Government Budget Division. Introduced Jan. 30, SF 214 (Neuville, P~- Northfield) would prevent local and state employers from increasing the salaries or wages of full- and part-time employees, including school district workers, from Feb. 2003 through June 2005. Fringe benefit compensation, such as health and dental benefits, also would be frozen. 2. Take action Call your state legislator to share your perspective on the impacts of this legislation on your city. Legislative directories and contact information are on the Minnesota State Legislature's web site at: www. leg.state.mn.us. The League supports local decision-making authority, and opposes legislation intended to interfere in local employment-related decisions. Here are some points to consider when discussing this bill: · Local units of government are in the best position to decide how to manage proposed cuts for their cities. Local officials have the tools and authority to implement wage freezes, if they decide freezes are in the best interest of the city and taxpayers. · Local officials may choose other manners of wage and benefit reduction for their cities. For example, some are considering voluntary unpaid leave, early retirement, voluntary work hour reductions, and other wage and benefit cost savings. · The bill would give union employees an advantage. It could also create situations in which a substantial portion of employees receives wage increases in 2003-2004, while a small portion of employees would experience wage freezes. Employees are likely to perceive this as very unfair. · The bill does not address the potential for lawsuits by employees who believe they had an expectation and promise of wage increases based on the city's compensation plan at time of hire, or from union employees who believe it is a violation of their right to collective bargaining. There are costs to defend such suits, whether successful or not. · The bill penalizes employees in their "High 5" years of public employment. Public employment pension benefits for city employees are based on the highest five years of earnings. Those who are unfortunate enough to be in their final five years of employment during the wage freeze will have pension benefits permanently affected. Money is not saved, in the long run, by wage freezes. Wages inevitably need to be "caught up" to the market so that cities can attract and retain qualified employees. The wage freeze penalizes cities that have taken prudent fiscal measures to prepare for local aid cuts and have budgeted appropriate funds to pay for employee wage increases. The wage freeze creates severe recruitment and retention problems for certain classes of employees that are in high demand such as registered nurses for city hospitals. 3. Stay involved You can follow the progress of this piece of legislation by visiting the Minnesota Legislature web site at: www. leg.state.mn.us. The 15-Minute Advocate, through information and action by member cities and League staff, is designed to increase understanding among legislators, media, and residents about the impacts of public policy on Minnesota's residents and the cities in which they live. March 5, 2003 Page 5