In declaring on January 24 that he wants to contract out "a lot" of work done by Maine Department of Transportation workers, Governor LePage appears to be pursuing a strategy that will absolutely increase the state's costs of providing public services to Maine people. A state-commissioned Labor Market Survey stamped as "confidential" on every page shows that State of Maine operations and maintenance workers, including those working for Maine DOT, are paid, on average, hourly wages that are 21.6 percent less than comparable jobs in the private sector.

 

In fact, the Labor Market Survey, which compares the wages of state workers to over 250 Maine companies, as well as over 100 municipalities and counties, shows that nearly across the board, state workers are paid hourly wages that are less than their private sector counterparts for comparable work.

 

The Maine Department of Administrative and Financial Services (DAFS), Bureau of Human Resources, commissioned Crescendo Consulting Group LLC of Portland, Maine, to conduct the study in late 2008. Crescendo submitted its report to Maine DAFS in January 2009. MSEA-SEIU Local 1989 obtained a copy of the report after requesting it under the Maine Freedom of Access Law.

 

The Labor Market Survey is available online here (PDF).

 

According to the Labor Market Survey, State of Maine workers are paid hourly rates that are less than their private sector counterparts as follows:

 

• Administrative services workers such as secretaries and clerical workers, 7.5 percent less than their private sector counterparts;
• Professional-technical services workers such as engineers, technicians and chemists, 21.7 percent less than their private sector counterparts;
• Institutional services workers such as corrections workers and mental health workers, 11.8 percent less than their private sector counterparts;
• Operations and maintenance services workers, including highway maintenance workers and Maine DOT highway crews, 21.6 percent less than their private sector counterparts;
• Supervisory services workers, 9.6 percent less than their private sector counterparts.

 

One glaring exception identified in the survey: The wages of State of Maine management workers with major policy-influencing positions. According to the survey, these management workers earn 17.7 percent more than their private sector counterparts. They "are salaried at the discretion of the Governor," the survey states.

 

The Labor Market Study was conducted prior to the implementation of the $34.6 million in pay and benefit cuts that the Maine Legislature imposed on state workers in July 2009 outside of the collective bargaining process. As such, the identified wage gap has only increased in the two years since the survey was conducted for the state.

 

In the case of Maine DOT workers, they consistently put their lives at risk making our highways and bridges safe for everyone else. Whenever a Maine DOT plow truck goes by, Maine people know their investment in public safety is paying off. That sense of security is the direct result of Maine DOT workers. They are trained and rigorously tested to ensure that all work is performed to the highest standards, with internal systems in place to ensure accountability. If ever there were a problem or question with a Maine highway or bridge, the only thing that Maine people need to do is pick up the phone and call a Maine DOT professional, all of whom ultimately report to the Governor, to get any issue promptly addressed.

 

Yet in declaring that he wants to contract out services provided by Maine DOT workers, Governor LePage appears willing to sacrifice this high level of accountability that Maine people deserve and demand, even though Maine DOT workers are doing their work at hourly wages that are much lower than their private sector counterparts.

 

Public services that are contracted out are often done so under the illusion of saving money. The reality is that workers who perform contracted work often are paid low wages with few, if any, benefits, and they often endure poor working conditions with minimal safety protocols, increasing risk of injury to themselves and others. To make up for the lack of benefits, contracted workers are likely to turn to public assistance programs such as MaineCare, driving up the costs of those publicly funded programs at a time when their budgets are already strained. In the end, the only winners in the race to the bottom known as contracting out are the contractors themselves who pocket the profits.

 

The Labor Market Survey shows that State of Maine workers are doing their work at a real value to the State of Maine. We are disappointed that Governor LePage appears to be willing to pursue a contracting-out scheme that would likely end up both diminishing the quality of public services and actually increasing the state's costs, either through direct or indirect costs. We look forward to talking with Governor LePage about the many problems inherent in contracting out Maine's quality public services.

 

Source: Maine Department of Administrative and Financial Services, Bureau of Human Resources, Labor Market Survey, Submitted By Crescendo Consulting Group, LLC, January 2009.