Executive Summary

Evidence shows that the UA staff salary scale is very much below market and has not kept up with cost of living increases. An adjustment to the salary scale and employee movement onto that scale is urgently needed. Additionally, a modest across the board cost of living increase would be very helpful and very appropriate. Also, for the longer term the overall scale structure needs a complete review and documented objectives.

Background

The last positive adjustment to the UA staff salary scale was in 1994 and the adjustment previous to that was some time prior to 1983. The 1994 adjustment represented a 10-20% increase when Consumer Price Index 1983-1994 increased 35%. The compensation study promised in 1996 upon completion of the JEF project was not concluded.

Staff-initiated salary surveys in 1996 and previously on over 20 benchmark positions demonstrated University compensation to be at least 4-28% beneath State of Alaska, 3-25% beneath Federal, and 4-40% beneath Industry levels. The 03/1998 Hay Report documents University staff compensation to be 9-28% beneath market.

The Consumer Price Index, US City average, has increased 12.4% between 1994 and 1999, and 67% since 1983. The Consumer Price Index, Anchorage average, has increased 9.9% between 1994 and 1999, and 48% since 1983. The Consumer Price Index, Anchorage average, has increased 0.9% for the first half of 2000 and steeper increases are projected for the last half of 2000.

The Federal General Salary schedule has increased by 12% since 1996 and 31% since 1990.

Additionally, the University has chosen to pass inflationary costs for health care onto employees through reduced benefits and increased employee contributions. Conversely, no inflationary adjustments have been made to the salary scales or wages.

University salary and benefits have often been unfairly equated to the State of Alaska employee when the State is generally better in significant areas: higher pay, shorter work weeks, higher leave accrual rates, higher geographic differentials, and higher annual step increases.

Finally, there are no documented objectives to the University compensation structure. Retaining experienced and highly qualified employees at the University is a tremendous challenge with under market salaries and no cost of living adjustments. Hiring competent employees at the University is also a tremendous challenge with the current salary ranges.

The following recommendations are offered by the UAF Staff Council to begin to alleviate the situation.

Recommendations (to University Administration or SWOHR as appropriate)

1. That the Board of Regents, in accordance with Policy 04.05.040 be urged to approve at least a 12% across the board increase to the staff salary schedule for all steps to become effective no later than 7/1/2001.
   
   
2. That existing employees be reclassified to the nearest step in the adjusted range to provide a minimum 3% cost of living increase to become effective no later than 7/1/2001.
   
   
3. That it be acknowledged this modest increase is not to market but an economically justifiable good faith effort in the short term to address the long over due range reclassifications.
   
   
4. That Statewide Office of Human Resources recommend granting hiring approvals to departments 3 steps higher than stated in Regulation 04.05.040.D1a.
   
   
5. That effective April 2001 the recommended minimum hiring step for new employees be 'Step C' in anticipation of 7/1/2001 adjustment.
   
   
6. That Statewide Office of Human Resources continue a systematic reclassification effort and publish the proposed time lines, project scope, and compensation objectives.
   
   
7. That Statewide Office of Human Resources report each October to the Board of Regents and Governance, in accordance with Regulation 04.05.040.D3 and 04.05.080, any general Federal or State of Alaska cost of living adjustments and public source inflation estimates so the Board of Regents can exercise, if they choose, their authority to approve cost of living adjustments according to Policy 04.05.040.
   
   
8. That the Board of Regents review cost of living information in accordance with Regulation 04.05.040.D3 and give serious consideration to cost of living adjustments on at least a biannual basis.
   
   
9. That the Statewide Office of Human Resources exercise their responsibility as stated in Policy 04.05.080 to document and promote appropriate range reclassification on an ongoing basis.
   
   
10. That the Board of Regents and Statewide Office of Human Resources compare the relationship of University staff compensation (wages and benefits) to the State of Alaska compensation to understand the 1999 Legislative Wage and Benefits study is not directly applicable to the University.