Posts Tagged ‘government’
Everyone Needs Money Now, but Federal Employees are Getting Raises
Do They Know it’s a Recession?
At a time when many Americans need money now, a shocking new analysis by USA Today of federal salary information shows a dramatic increase in the number of federal employees who are making six-figure incomes. The numbers make it seem as if these workers are far from feeling the effects of the recession.
Employees previously making $ 100,000 or more saw an increase of between 14 and 19 percent in their salaries, before factoring in bonuses and overtime pay. That’s an awful lot of money for those that already are well off – and at a time when more people are hurting than ever.
And the Rich Get …Well, You Know the Rest
The number of civilian employees in the Defense Department earning $ 150,000 salaries increased from 1,868 at the end of 2007 to 10,100 in June of the current year. This news can be hard to swallow at a time when millions of Americans have lost their jobs and are struggling to make ends meets. A lot of people would love to be working, but can’t find even a basic job.
Conversely, federal hiring has been on a steady rise in recent months. In the last 18 months, the Transportation Department has bumped 1,689 people to over $ 170,000 – compared to only ONE person earning that before now.
Is this where it Ends?
Perhaps this would be easier to stomach if this were the extent of it. The truth is that the entire federal government is raising salaries, which is asinine considering we have a record deficit and debt. Six figure salaries are less common in these areas. Meanwhile in the rest of the country we desperately need money now.
How is this Justified?
According to Jessica Klement, the government affairs director for the Federal Managers Association, these employees work in industries that require greater amounts of training or skills, and are working for less then their private sector counterparts. The USA Today reports that Klement said these workers, according to Klement, made 26 percent less than counterparts in the private sector.
Does their Story Hold Water?
USA Today also looked at federal employee salary stats from the Office of Personnel Management (except workers in Congress, Postal Service, the White House, the military, and at “intelligence” agencies – their track record justifies quotes). From the study they found that the average private sector salary was $ 41,331 and the average federal employee is making $ 71,206.
Shocking, but True
For the majority of Americans who really need money now, this is going to be some tough news to hear. The previous administration approved pay increases of 3 percent in January of 2008 and 3.9 percent in January of 2009 across the board for federal employees. The recommendation of President Obama is to take this down to 2 percent for the beginning of 2010, which may still sound high but is actually the lowest increase since 1975. These raises, among others and modified pay systems, have led to these egregious salary increases.
Egyptian Employees Call For Rise In Minimum Wage
With elections scheduled later on this year in Egypt, workers have started to step-up their demands for a boost in the minimum wage. Â The thirty-five Egyptian Pounds per month minimum wage has stayed unchanged going back twenty six years and lots of ordinary Egyptians believe something needs to be done as inflation is just about 10%.
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Large groups of protestors in recent times clashed with police as they demanded a rise to 1,200 Egyptian Pounds each month. Presently, close to 40% of Egyptians live life below the poverty line and the rise in the minimum wage would make an immense impact to a substantial number of families. Nonetheless, it is being suggested that the Egyptian government are considering an increase to 450 Egyptian Pounds per month.
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There is little question that an increase in wages will assist a large number of men and women and in an election year, such a move would clearly help out the government at the polls. On the other hand, there is the tiny matter of how such an increase would be paid for. Governments do not have a bottomless pit of funding with which to pay public sector workers and at the same time businesses and organizations can only pay wages out of the money they produce.
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Egypt creates an awful lot of its wealth from natural resources such as oil, coal and gas together with tourism. Government may be able to pay extra for the rise in minimum wage for its personnel through a combination of tax increases, efficiency savings and redundancies. Even so, they may want to take into consideration that tax increases don’t always work as in 2005, the rate of corporation tax was cut from 40% to 20% year tax revenues the subsequent year doubled.
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A likely area to be hit with increases is the foreign visitor. The fees of visas could be increased to deliver increased government income while the private sector may likely have to raise room rates at resorts and prices at restaurants in order to pay their staff the bigger minimum wage. Â These expenses would almost certainly be passed on to the tourist. The real expense in Red Sea Holidays from the UK is the cost of flights. Hotels and services once in Egypt have always been superb value so there is scope for an increase there. However, pressure may be put on airlines to lower airfares so as not to price breaks to Egypt too far above their existing levels.