Some classified University employees will soon see a raise in their paychecks. University President John T. Casteen III announced last night that the new minimum pay rate will be $8.19.
The action, revealed at last night's Student Council meeting, is the result of the new Commonwealth classified compensation system, which went into effect Sep. 25. Employees who will receive the new benefit will see the increase in their paychecks as early as Nov. 16.
Colette Sheehy, the University vice president for management and budget, said this action was not the result of pressure by the Labor Action Group - a University activist group that has been pushing for the last several years for an $8 minimum wage. She said the University enacted the change because the job market dictated a need for the new rate to stay competitive.
The new wage adjustment will affect 474, or 11.6 percent, of classified salaried employees out of 4,083 classified salaried employees in the University Academic Division. Contracted employees, such as those who are employed by ARAmark, the University's dining service, will not fall under the new payment restructuring plan.
Some of these workers will still receive wages below $8.
According to University officials, the Commonwealth compensation system allowed state agencies more flexibility in adjusting employee salaries to meet market conditions, address recruitment and retention issues and reward performance. This enabled each department to make its own budget decisions and adjust budget plans to bring all employees to the $8.19 an hour, or $17,035 a year, level.
In auxiliary services departments that are self-supporting and do not receive state funding, the raises will be funded by future fee increases. As early as next year, students may see rate increases in such departments as housing, athletics, the University Bookstore and Parking & Transportation as a result of the wage increase.
Supervisors and managers have recommended the adjustments in their respective departments. The overall costs of the pay adjustments will be about $1.3 million.
These new adjustments will be in addition to the 3.25 percent raises that most classified employees will receive as of Nov. 25.
Casteen said the salary adjustments would help the University to "keep the kind of very effective and loyal workers we've had over the years."
Casteen's announcement met with mixed reactions from both contracted and University salaried employees.
Wilson McIvor, a LAG activist and research specialist in the Biology Department, said the announcement is "great news. We're all glad it finally came about, it has been a long time coming."
But McIvor said he was skeptical of University officials saying the salary increases had nothing to do with LAG.
"I find it incredulous that they say it's not a result of the work of LAG," he said.
"This is not a complete victory though," he said. "It won't be complete until everyone in the University family is treated" equally, he said.
LAG will meet today and plans to continue to put pressure on University officials for complete living wage coverage.
One contracted ARAmark employee who works in the Pav but wished to remain anonymous did not agree that contracted employees should fall outside the new wage increase plan.
However, he did not think contracted employees would be too upset by the action. "I don't think people are gonna start leaving as a result of this, it's a good environment and [despite the lack of a wage increase] people still enjoy working here."
Alonzo Washington, another ARAmark employee, called the action a "small step" in the right direction. He said he hopes contracted employees will receive a "living wage" soon and said it will only be a complete victory for LAG when that happens.
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