In light of affordable housing issues in Charlottesville and economic troubles nationwide, the City of Charlottesville has recently raised city workers’ base wage and is encouraging the University to do the same. University officials, however, say they consider the University’s rate of pay to be reasonable, especially once benefits and development opportunities are factored in.
The city — which now offers a base wage of $11.44 an hour plus benefits — is attempting to change the market by raising its own employees’ pay, thus increasing pressure on the University to raise base wages in order to remain competitive, Charlottesville Mayor Dave Norris said.
Norris said he believes it is important for the University to provide a “living wage” that takes into account the cost of living in Charlottesville, though he did not cite a precise figure for what a living wage should be.
Susan Carkeek, University chief human resource officer, said emphasis on a living wage is misplaced because not only is an actual living wage figure unclear, but also the University has a “fair, reasonable, competitive rate of pay” with numerous benefits as well as opportunities for career advancement.
The minimum hiring rate at the University is $10.14 an hour, Carkeek said, adding that once benefits are factored in, the rate is $14.05 an hour. In addition to standard benefits such as health insurance and retiree benefits, Carkeek said, the University offers an annual $2,000 educational stipend and job training programs that give employees skills to further their careers. Furthermore, she said, wages will be going up 2 percent in November in accordance with classified commonwealth rates.
“I think we’re a responsible employer, great neighbor and citizen in the City of Charlottesville and we do the best for our employees,” Carkeek said.
Norris acknowledged the University’s efforts in workforce development, noting that these efforts benefit both employers and employees by increasing retention, productivity, morale and opportunities for advancement.
Carkeek said these efforts have been a recent focus at the University, which is assuming a positive role by investing in employees through education and training programs.
“I think it’s a more long-term approach,” she said. “We have to get off the living wage, [which is] an emotional term, and get on solutions to help employees.”
Echoing Carkeek’s statements, Economics Prof. Ed Olsen said the living wage is a misnomer because it implies fixing a standard of living that is a matter of personal opinion. He also countered the assumption that there are many homeless people without anywhere to live.
“In this country, subsistence is not an issue. People are not dying,” Olsen said. “What we are really talking about is what level of living do we want people to have, and that is not a scientific matter.”
Furthermore, Olsen said, employers should not be responsible for providing a certain standard of living by paying a living wage. The sensible solution, in Olsen’s opinion, is through the federal government and welfare programs, he said.
“Over $600 billion a year are spent on the welfare system,” Olsen said. “We have put these programs into place to help low-income people, we want them to use these programs.”
Norris, however, emphasized the need for a living wage in order to reduce dependence on government and charitable assistance.
“The best welfare is a well-paying job,” Norris said. “That’s the idea behind the living wage movement, that people who are trying to do their best and working a job should be able to raise their families without having to worry about having to put food on the table or whether electricity will be cut off.”
The city will continue to look into improving residents’ lives not only through increasing employee wages, but also through improving affordable housing within the city, Norris said.
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