Anchorage Daily News

Supervisors employed by the state of Alaska have been without a labor contract since July 1. These non exempt supervisors, many of whom work as program and front-line managers, are the backbone of state government.

The supervisors and the state are deadlocked over higher wages. The state is offering annual pay raises of 4 percent, 3 percent and 3 percent for the next three years. The supervisors, who are represented by the Alaska Public Employees Association, want 7 percent, 6 percent and 5 percent.

Since 1985, eroding wages have besieged the 1,900-plus state supervisors. There has been a constant downward trend in wages since the mid-1980s, which was about the last time the state offered competitive pay. For the past 22 years, there have been 12 years without pay raises and 10 years of pay raises averaging 2.5 percent per year. As a result, the eroding wages have caused significant difficulties in retaining and recruiting supervisors and have lowered morale among the work force.

The state cannot keep the best and brightest supervisors from leaving for better paying jobs, nor compete in the private and federal government sectors that are vying for the same qualified candidates. Job turnover is high.

It's commonplace for the state to hire and train less-qualified individuals to fill the vacant positions. Many times, the positions remain vacant due to the lack of applicants or because the applicants are not qualified. These problems have burdened the supervisors with heavy workloads and increasing responsibilities, requiring them to work longer hours without compensation.

From 1985 to 2006, the Consumer Price Index for Anchorage increased by 67.5 percent. During the same period, supervisors' wages increased by only 27.7 percent. The difference is a 40 percent loss in purchasing power.

The employment cost index, or ECI, is another way to determine fair pay raises. The ECI measures changes in the cost of labor for comparable occupations in the private and government sectors. Since 1989, supervisors' wages have lagged behind wages paid in the private sector by 25 percent to 35 percent and in the federal government by 40 percent to 50 percent.

Recently, the exempt employees in the executive branch were given pay raises to make up for eroding wages. In 2005, the Legislature increased the wages of the governor by 45.7 percent, the lieutenant governor by 22.5 percent and department commissioners by 18.4 percent. In 2006, the state increased the wages of division directors by an average 7.5 percent because of these executive pay raises. In fairness, the supervisors should receive the same pay raise as the directors were given.

The state's current offer will not make up for any of the supervisors' losses since 1985, nor is it likely to keep up with inflation for the next three years. Already, the change in CPI for 2007 is projected to be more than the 3.2 percent increase in 2006.

With budget surpluses of previous years and now more wealth coming from higher oil taxes, the state has the ability, more than ever before, to pay fair wages. The state should end the siege and be forward-looking and invest in its supervisors.

Higher wages would ease the difficulties in retaining and recruiting supervisors. If not, attrition of supervisors will worsen and hiring competent replacements will be nearly impossible, leaving the state in dire shape and without the capacity to administer its duties and responsibilities.

Greg Magee is a manager for the state of Alaska and works and lives in Anchorage. The views here are his own.

ADVERTISEMENT