Benefits widen public, private workers' pay gap
— -- The pay gap between government workers and lower-compensated private employees is growing as public employees enjoy sizable benefit growth even in a distressed economy, federal figures show.
Public employees earned benefits worth an average of $13.38 an hour in December 2008, the latest available data, the Bureau of Labor Statistics (BLS) says. Private-sector workers got $7.98 an hour.
Overall, total compensation for state and local workers was $39.25 an hour — $11.90 more than in private business. In 2007, the gap in wages and benefits was $11.31.
The gap has been expanding because of the increasing value of public employee benefits. Last year, government benefits rose three times more than those in the private sector: up 69 cents an hour for civil servants, 23 cents for private workers.
Labor costs account for about half of state and local spending, according to BLS and Census data. Benefits consume a growing share of that, now 34%.
Illinois state Sen. Chris Lauzen, a Republican, says government benefits are unsustainable and unfair to taxpayers who earn less than civil servants. "People will become angrier and angrier when they learn the difference between their pay and benefits and what we give to public employees," he says.
Jennifer Porcari of the American Federation of Teachers, a union representing 1.4 million educators and state employees, says BLS figures that show government employees earn higher wages are misleading because jobs aren't comparable. Government jobs, such as teaching, often require more education.
Some states are asking unions for help with budget problems. New Mexico employees will pay an extra 1.5% of salary toward pensions for two years, cutting the state's share. Ohio's unions will take unpaid furlough days to save the state $440 million over two years. In the third year, workers will get most of the money back.
The wage gap between government and private workers has stayed roughly the same since 2002. Benefits are a different story.
