Skip to content

The Numbers Don’t Add Up

A reader asked me to run the pay increase percentages in the new PBA contract and see if there was some way to get to the 11% figure announced as the total increase over the contract period. I have to admit I’m not really sure where this number comes from.

Here are the numbers I came up with (and if I’m making a mistake somebody please let me know).

The raises in the contract are are 3.9%, 0%, 3.75%, 2%, 2% and 2%.

If you just add the percentages over the six years they total 13.65%.  Of course each raise is on the previously raised amount, so compounded it comes to 14.39%.

Incidently, the arbitrator’s award was for 3%, 3%, 3%, 1.25%, 1.25% and 2.25%.

If you add those percentages they total 13.75% and compounded come to 14.54%. So it’s only slightly higher than what the new contract calls for. 

The arbitrator’s award, however, was over five years not six as in the new contract. 

So if you drop the last raise off the new contract to compare it to the arbitrator’s award it comes to a total of 11.65% (and compounded is 12.15%).  Is this where the 11% comes from?  I certainly hope not.  It’s completely meaningless.  Even without compounding it to arrive at the actual increase, 11.65% is not 11%.  And it would be disingenuous to announce this as the number when there is another substantial increase built in the very next year.  Besides, the Coast Star in the very first sentence in it’s story about the contract says “a total raise of approximately 11 percent over the course of six years” and later states “The memorandum of agreement authorized by council extends the contract to 2013, but decreases the percentage of raises from approximately 14 percent to approximately 11 percent“.  Where does that come from?

It would also be incumbent on our elected leaders to announce any change in work rules or allowances such as uniform cleaning.

According to the average HOUSEHOLD income in Belmar in 2009 was $55,692.  Under the new contract, patrolmen will be paid $101,000 after ten years.

I appreciate the work our police and other municipal employees do but how can we be expected to keep granting raises year after year when we out here in the private sector are not getting raises and many of us are losing our jobs?  While their standard of living is going up and up, ours is going down.  I see no reason why public workers’ pay should increase any faster than the average for all workers.

Post a Comment

Your email is never published nor shared.