The sad plight of government workers
Over in the Corner, Derb was engaging in some schadenfreude over the firings of a hundred or so unionized school employees (including all the teachers) in Central Falls, Rhode Island. The problem? According to this report, the recession is making folks a wee bit sensitive to the pay increases and pensions of public sector employees:
The teachers at the high school make $70,000-$78,000, as compared to a median income in the town of $22,000. This exemplifies a nationwide trend in which public sector workers make far more than their private-sector counterparts (with better benefits).
Following that link to another story in Business Insider, we find the following from the Bureau of Labor Statistics (BLS):
According to a December report from the BLS, state and local government employers spent an average of $39.83 per hour worked ($26.24 for wages and $13.60 for benefits) for total employee compensation in September 2009. Total employer compensation costs for private industry workers averaged $27.49 per hour ($19.45 for wages and $8.05 for benefits). In other words, governmentemployees make 45% more on average than private sector employees.
According to another BLS report, compensation for private industry workers has increased by 6.9% between December 2006 and December 2009, compared to a 9.8% increase for government workers (state and local) over the same period.
As with the unions, though, it’s not the pay that gets you, but the benefits and pensions. Next time you run into a retired school teacher or counselor who is retiring at 45 with a pension you will only be able to dream of at 65, ask yourself: Is this sustainable?





