To deal with wage compression attributable to the University System of Maryland elevating its minimal wage to $15, the system is planning to regulate nonexempt workers pay scales.
Nonexempt, hourly positions inside the USM are sorted into “pay grade” classes that denote the minimal quantity that function will be paid, the utmost it may be paid, and a midpoint between the 2. When the system elevated its minimal wage to $15 an hour in January, the 4 lowest pay grades — two via 5 — all had a minimal hourly wage of $15 precisely.
The college system’s Compensation and Classification Committee, which is chargeable for finishing critiques of the system’s wage buildings primarily based on exterior market information and developments, has now really useful a brand new pay construction to account for that compression.
The lowest pay grade will nonetheless have a minimal wage of $15, whereas the minimal wages of grades three, 4 and 5 will improve to $15.32, $15.64 and $15.96, respectively. These three pay grades will then be adjusted to realize a 35% vary between the minimal and most wages.
Pay grades six via 17 shall be bumped up by 3.6%.
Overall, it would value the USM $500,226 to implement these pay will increase — along with the $1,828,312 that it already value the system to extend its minimal wage to $15 an hour — and can have an effect on 770 workers, based on USM spokesman Mike Lurie. If accepted by the Board of Regents, the will increase will take impact on July 1, initially of the brand new fiscal yr.
Cost of dwelling and benefit raises that the system had beforehand scheduled for July shall be carried out primarily based on the brand new pay ranges.
The USM establishments’ presidents and vice presidents for finance and administration have really useful the adoption of the brand new pay construction, based on the USM Board of Regents Committee on Finance’s June 9 assembly agenda. The committee is scheduled to vote on the adjusted pay construction at that assembly, and, if the committee recommends approval, the total board will vote on the measure at its subsequent assembly on June 17, its final of the fiscal yr.
In addition to the aforementioned pay scale will increase, sure workers may even get wage bumps primarily based on how lengthy they’ve labored for a USM establishment. Employees in pay grades two via 5 will get hourly pay will increase starting from 30 cents, for individuals who have been employed by a USM establishment between three and 5 years, all the way in which as much as $1.30 for workers who’ve labored at a USM establishment for over 20 years. This will value the system $1,283,273.
AFSCME Council 3, the union that represents USM workers members and different state authorities workers, stated in an emailed assertion that they have been stunned to listen to in regards to the proposed changes.
“AFSCME has been bargaining with the USM about effects of the minimum wage increase and wage compression,” Stuart Katzenberg, the union’s director of collective bargaining and progress, wrote. “We are surprised by the unilateral and public actions of the USM. Unfortunately, we are not surprised by their bad- faith actions.”
According to Lurie, the USM normally notifies AFSCME forward of finance panel conferences, “with the understanding that the Finance Committee merely makes a recommendation for later consideration by the full board. In addition, AFSCME has the right to request the USM to bargain over the effects of these changes.”
Exempt workers may even get pay will increase this fiscal yr (historically, the pay construction for exempt workers is reviewed in even years and the nonexempt construction is reviewed in odd years). All pay grades will obtain a 4.4% improve, costing the system $961,141. This change may even go into impact on July 1.
Last time the compensation committee thought of adjusting exempt staff’ salaries in 2020, it didn’t suggest any will increase.
In reviews submitted to the Board of Regents recommending these pay scale will increase, the compensation committee requested that that the college system reevaluate its complete compensation system, which, it says, was initially designed over twenty years in the past.