Bus 372 Week 4 Assignment
EXAMPLE
St Albans Police Force Salary Raise Proposal
BUS372: Employee & Labor Relations (BWK1627A)
Instructor:
Date
St. Albans Police Force Salary Raise Proposal
We had called for a meeting to propose one issue that the St. Albans Police Force has before renewing their contracts. They are proposing a cost of living increase which leads to a pay increase.
We claim that our salaries are below the national level.
During the past 10 years, police officers have received minimal cost of living increases, and this time they want to match what other police forces are making.
Introduction
This slide is to explain what the police officers are demanding as part of their contract renewal. It also shows
2
Is it true that the St. Albans Police Officers are underpaid?
According to the Bureau Labor Statistics the annual median (50%) salary for police officers is $58,320.
If you look at the chart it shows that for the state of Vermont the annual mean wage is between $44,070 - $53,590 dollars in the year of 2015.
According to this data that is below the national median wage for police officers.
This graph shows us the annual mean wage by state breaking down how much each state pays their police officers on average.
3
National estimates for Police Officer occupation and mean wage estimates:
| Percentile | 10% | B25% | 50% (Median) | 75% | 90% |
| Hourly Wage | $16.07 | $20.63 | $28.04 | $36.62 | $46.21 |
| Annual Wage (2) | $33,430 | $42,910 | $58,320 | $76,160 | $96,110 |
According to Bureau of Labor Statistics this is the estimates for police officer occupation nationally as of May 2015 and it was last modified on May 31st, 2016)
This chart breaks down by the percentile on how the officers are paid nationally. This gives us an idea on how much would be a fair amount according to statistics.
4
What is the cost of living in St. Albans City:
| Index | St. Albans | Vermont | National |
| Cost of living index | 108 | 113 | 100 |
| Goods & Services index | 106 | 106 | 100 |
| Groceries index | 109 | 109 | 100 |
| Health care index | 107 | 107 | 100 |
| Housing index | 99 | 115 | 100 |
| Transportation index | 128 | 128 | 100 |
| Utilities index | 123 | 123 | 100 |
As the website areavibes explains, “The cost of living in St. Albans is 8% higher than the national average.” (n.d)
The St. Albans, VT cost of living data displayed above is derived from the Council for Community and Economic Research (C2ER) for the fourth quarter of 2015. (n.d)
This is where we will discuss the cost of living comparing the national average to St.Albans City.
5
Why does the St.Albans Police need a pay raise?
According to the St. Albans police departments website a uncertified police officer’s starting salary is $43,617. The national median salary for a police officer according to Bureau Labor Statistics is $58,320. The national average is higher than the St. Albans new police hire salary by $14,703 dollars. The St. Albans police is being paid 25.2% lower than national average.
Consumer Price Index News Release (2016) wrote that, “The all items index rose 1.0 percent for the 12 months ending June. This is the same increase as for the12 months ending May, but smaller than the 1.7 percent average annual increase over the past 10 years. The index for all items less food and energy rose 2.3 percent for the 12 months ending June, a larger increase than the 2.2 percent rise for the 12 months ending May, and above the average annual rate of 1.9 percent over the past 10 years.” (para 4)
With the cost of living expenses raising at the average rate of 1.9% and the Police Officers of St. Albans being paid 25.2% lower than the national average they won’t be able to make a living comfortably.
According to the website areavibes (2015), “The cost of living in St. Albans is 8% higher than the national average. Vermont general sales tax is 18% higher than the national average. Vermont state income tax is 60% higher than the national average.” (n.d)
Closing Statement
With the Fire Department having a 33% increase in the budget based on their pay increase for the fiscal year 2015/2016 in the city of St. Albans, we propose that the police department has a 25.3% pay increase which will put the pay at national median.
Police officers of St. Albans put their life on the line on a daily basis keeping the city safe. Giving them the fair amount of pay for the work they do for the city is only fair and it will help motivate the officers to continue to work harder.
Matt Nesvicky (2016) wrote, "Crime doesn't pay" may be a debatable axiom, but new evidence strongly suggests that the more crime-fighters are paid, the better they will combat crime. In Pay, Reference Points, and Police Performance (NBER Working Paper No. 12202), Alexandre Mas maintains that when police officers are awarded salaries below their desires and expectations, both arrest rates and average sentence length will decline, but when police receive their salary demands, arrest rates will rise.” (para.1)
The police officers of St. Albans went 10 years without a single pay raise while the economy’s cost of living continued to raise. This makes the officers unable to accomodate for their basic needs for themselves or for their families. We need to make sure the officers who protect our city is also being protected by the city by giving them a pay raise to ensure they can make a living.
Reference:
33-3051 Police and Sheriff's Patrol Officers. (n.d.). Retrieved from: http://www.bls.gov/oes/current/oes333051.htm
Nesvicky, Matt. (2016). Police Pay and Performance. Retrieved from: http://www.nber.org/digest/jan07/w12202.html
Seaquist, G. (2015). Employee and labor relations: A practical guide. San Diego:
Bridgepoint Education.
St. Albans, VT Cost of Living. (2015). Retrieved from:
http://www.areavibes.com/st. albans-vt /cost-of-living/
St. Albans Police Department website (http://www.stalbanspd.com/)
St. Albans town website. (2015). Retrieved from : http://www.stalbanstown.com/wp- content/uploads/.../Budget-Justification-Final-2.9.15.pdf