As we work through this campaign we find that a large number of voters don't realize that many employees in the school district receive two salary increases annually -- a cost of living adjustment (COLA), also known as a base pay increase, and a step increase (SI). While not all of the employees receive the step increase, the majority do, and it makes a mockery of "pay freezes" when that only refers to the COLAs as was the case in Grove City a few years back.
So what is a Step Increase?
Well, there's actually two types.
One is a guaranteed salary increase simply for being an employee another year. In the HCSD, this occurs for the bulk of the district's employees in years 1-15, 20, and 23 of their "tenure". The increase is 4.15%.
Do you receive 4.15% annual raises? And that's before the COLAs.
In the last contract, these employees received between 3% and 7.15% in annual raises.
Step Increases are meant to compensate for the lack of promotional opportunities in the public sector. But anyone who has worked in the private sector knows that only the very best of the best employees receive promotional raises that come even close to what the district's employees who qualify for step increases receive.
But there's also a second type of Step Increase, one that is even worse, and that's the one that's based on the level of education achieved by the employee.
For example, obtaining a master's degree results in an automatic pay increase.
Do you know of any private business that
automatically rewards its employees for further education achievements? Of course not, and in fact many private sector employees further their education to simply remain competitive and keep their jobs.
But it gets worse. There are 4 steps: Bachelors, Bachelors + X hours, Masters, and Masters + X.
Now, the employees will claim that it makes them better at their jobs. Frankly we have yet to see any correlation between the number of hours studying in a classroom and someone's ability to teach. There are some incredibly talented teachers with Bachelors degrees, and some incredibly bad teachers with Masters degrees. And we are speaking generally here, not as a slight to teachers in the HCSD.
We're sure there are some employees who absolutely become better at their jobs with further education. Anyone who has taken college classes while working knows that some of the are invaluable (and other classes, not so much). But to receive an automatic increase?
But look at this chart:
You can clearly see from this that the COLAs are not what is driving compensation increases. A teacher's salary
would double in 15 years even without any base pay increases!
So, the next time you hear talk about "pay freezes" in any of the school districts currently negotiating new contracts (sadly, not ours, and we'll talk about this in an upcoming post), make sure you read more closely and see if it applies to both COLAs and SIs. Because the COLAs are a trivial piece of the equation. It's the Step Increases that are the problem.