A news service for the people of Michigan from the Mackinac Center for Public Policy

Public-sector average compensation grows while private sector's decreases

Spokespersons for Michigan government employee unions contend that they have given up hundreds of millions of dollars in wages and benefit concessions over the past few years. The claims are in dispute, and data from the U.S. Bureau of Economic Analysis offers some support for those challenging them. It shows that since 2000, government-employee compensation in Michigan has increased 11.4 percent, while private-sector employees are getting 5.1 percent less.

The trend continued in 2009. Average compensation per employee — which includes the value of benefits — was down 2.0 percent for private sector employees but increased 3.6 percent for Michigan's state and local government employees.

Overall, the total amount spent statewide on private-sector compensation, as opposed to the average compensation per worker, was 10.2 percent lower in 2009, while total state and local government compensation increased 2.6 percent. This reflects the contraction of the Michigan private sector workforce last year, as well as the lower level of compensation per worker.  

The original version of this story was posted online on March 31, 2010. 

Tight security locked out dozens of anti-right-to-work protesters from the State Capitol as Governor Snyder was delivering his "State of the State" address. Protesters tried to disrupt the speech by banging and chanting outside the building.

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SEIU TAKES $33M AND COUNTING
FROM MICHIGAN HOME HELP PROGRAM PROVIDERS — OFTEN FAMILY MEMBERS

ATTORNEY GENERAL ORDERED THE STATE TO STOP TAKING MONEY ON MAY 25, 2012
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Skimmed since November 2006
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Skimmed after reaching the MI Senate in June 2011
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Skimmed after the bill was signed April 10, 2012
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Skimmed after the Attorney General
opinion May 25, 2012

The Service Employees International Union (SEIU) "organized” Michigan's self-employed Home Help Program providers for the purpose of skimming dues from their ailing and disabled clients' Medicaid subsidy checks. The majority of these providers are relatives or friends taking care of loved ones. It’s been estimated that less than 25 percent of the providers are hired in an employment setting.

The first counter tallies SEIU dues skimmed since the union and state officials first launched this scheme in late 2006. The second shows the amount skimmed since June 9, 2011, when the Michigan House passed and sent to the Senate a bill to ban this and all similar “stealth unionization” efforts. The third counter shows the dues skimmed since the Governor signed the bill into law on April 10, 2012. The fourth counter shows the amount skimmed since May 25, 2012, when the Attorney General opinion was announced.

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