Public Sector Workers Still Earn More Than Private Sector Workers
For first time in years, compensation gap narrows
For the first time in four years in Michigan, the gap in compensation between public sector employees and private sector employees declined, according to research by James Hohman, fiscal policy analyst with the Mackinac Center for Public Policy.
The average compensation of public sector employees (state and local government, public schools and universities) dropped from $60,620 in 2010 to $58,400 in 2011. At the same time, private-sector workers had an increase in average compensation from $55,922 in 2010 to $56,234 in 2011.
“Throughout the decade, Michigan’s state and local government workers enjoyed robust increases in the value of their wages and benefits while the private sector fell substantially,” Hohman said. “It looks like these trends have begun reversing as the private sector average compensation increased slightly in 2011 while state and local government average compensation fell.”
Hohman said the end of federal stimulus dollars in 2011 as well as public sector early retirements that erased the highest paid government employees could explain why there was a drop in public sector compensation.
For years, private sector compensation had been well above of the public sector. That changed around 2005 when public sectors employees began earning more. From 2008 to 2011, the gap between private and public sector compensation increased.
Charles Owens, state director of the National Federation of Independent Business, said it was “unconscionable” that while private sector compensation was falling for years, taxpayers were still supporting higher pay and benefits for public sector jobs.
“These (public sector) payrolls and benefits were on an unsustainable course,” Owens said.
~~~~~
See also:
Bringing Balance to Public Benefits
'Budget Cut' Doesn't Mean the Same Thing to Public and Private Sectors
Michigan Public Employee Pay and Benefits Growing
State Pension Funds: Evidence of Public Class’s Overcompensation
Yes, Government Workers Get More Benefits
Helpful Facts About Michigan's Public Sector
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.
Most Popular
FROM MICHIGAN HOME HELP PROGRAM PROVIDERS — OFTEN FAMILY MEMBERS
ATTORNEY GENERAL ORDERED THE STATE TO STOP TAKING MONEY ON MAY 25, 2012
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.
For more information, visit:
Comments