Your Salary: Inflation and Wage Fairness

Your Salary: Inflation and Wage Fairness By: C.J. Betit, MEA Director of Collective Bargaining & Research

Are you earning what you should, based on both inflation and the new change in state law that increases the minimum wage? It’s a question you should all ask yourselves, and then inform yourselves to ensure you’re not being shortchanged.

MEA has done the homework for you—and now it’s time for you to study the data, and then study your contract so you can better bargain for yourselves and your colleagues.

The hard facts: Only one-third of MEA teacher contracts have a minimum salary that has not lost purchasing power since implementation of the $30,000 minimum. This is not for a lack of trying at the bargaining table to negotiate for more, but continued cuts to education funding at the state level have forced districts to make difficult choices at the local level, at the expense of the educators in our schools.

In addition, the state mandated minimum teacher salary of $30,000, enacted in 2007, have not in many districts, kept up with the cost of inflation. Many districts still pay a minimum of $30,000, but if that salary actually kept up with inflation, paychecks would look a lot different. Check out the chart below:

June Consumer Price Index (CPI-U) 208.352 218.815 215.693 217.965 225.722 229.478 233.504 238.343 238.638 241.018 244.955 Multiplier

start==> 1.050 0.986 1.011 1.036 1.017 1.018 1.021 1.001 1.010 1.016 If on track with CPI: $30,000 $31,507 $31,057 $31,384 $32,501 $33,042 $33,622 $34,318 $34,361 $34,703 $35,270

Sample Salaries & What They Should Look Like if They Kept Up With Inflation:

$50,000 in 2016 -> $45,000 in 2016 -> $40,000 in 2016 -> $50,817 in 2017 $45,735 in 2017 $40,653 in 2017

AN OPPORTUNITY FOR WAGE FAIRNESS: THE INCREASING MINIMUM WAGE

Educational Support Professional Associations across the state have a great opportunity to improve their wage scales over the next few years as the minimum wage continues to increase. Thanks to a ballot initiative approved by the voters of Maine, the minimum hourly wage will increase annually: January 1, 2017: $9.00 January 1, 2018: $10.00 January 1, 2019: $11.00 January 1, 2020: $12.00 January 1, 2021 and thereafter: Prior year increased by the increase in the cost of living

By the end of the ramp up of the minimum wage in 2020, well over 200 classifications in educational support professional (ESP) contracts throughout the state will have wage rates directly impacted by the increasing minimum wage, while all other classifications will be influenced by the increases. This is an excellent opportunity to not only make sure the starting wages improve but also to make sure the wage scale is properly structured so that it is adequate, equitable and fair. Do not leave wages that are below minimum wage in the contract.

Even though the minimum wage is increasing, the MEA bargaining minimum standard is to make sure at least a living wage is paid at every level of the scale. The MIT Living Wage Calculator is an excellent resource to determine what a living wage is in your location. Here are examples:

1 Adult 1 Adult, 1 2 Adults (both Child working), 2 children Aroostook $21,375 $44,484 $61,156 Cumberland $24,286 $49,994 $66,667 Kennebec $21,825 $45,808 $62,480 Knox $23,299 $47,555 $64,227 Oxford $21,238 $44,484 $61,156 Penobscot $21,608 $46,252 $62,925 Sagadahoc $22,917 $47,732 $64,405 Washington $21,484 $44,484 $61,156 York $23,945 $49,517 $66,190 Portland-SoPort. $24,063 $49,659 $66,332 Metro STATE $22,623 $47,294 $63,967 As a starting point, the target is to make sure the one adult level is reached. Although the minimum wage increases over the next three years will no doubt close the gap with the one adult living wage level for those employed year-round and full time (2080 hours a year) in many areas of the state many school-year employees will still struggle to reach the living wage target.

For county-by-county statewide living wage information for all living arrangement configurations, visit the Maine Educator Online.