State Employees Still Concerned About Salaries

Governor Phil Bredesen told the Tennessee State Employees Association today that he’s concerned about the pay scale for the state’s employees.

State employees are receiving raises this year, but at different scales to address what’s called compression: new employees are paid higher salaries each year to attract applicants from the private sector, without comparably raising existing employee salaries. When that happens, a new employee will make as much or more than someone who has been employed for years.

Bredesen says the state is also putting 64-million additional dollars into the pension system and more into the state employee health plan.

“We also added another 21-million dollars to meet cost increases related to our state health insurance plan. I say those things just to say to you there are lots of ways in which we’re trying to invest in state employees above and beyond the straight pay raise and compression issue, even though we want you to know those are there.”

Andrea Witt, with the labor department, says that state employees aren’t sure how much of the compression issue will be relieved this year.

“It’s not enough money, but we appreciate what he can do and the fact that he is willing to do something.”

Bredesen has budgeted nearly 89-million dollars for state employee raises this year.