Posted in: Employment, In this week's e-newsletter, Latest News and Views, Pay
Go ahead and say it: There’s peace in the valley — Wyoming Valley, that is — since Scranton has come up with a financial plan that’ll free municipal employees from the shackles of minimum wage.
People who worked for the city of Scranton weren’t very happy when one of the solutions to the budget crunch was to reduce everyone’s wage — firefighters, police, garbage collectors and other government employees. (See You can’t do that — but they did, July 16.)
In addition to restoring municipal workers’ pay, the city has also pledged to give workers back pay, plus 6% interest.
Before you start asking what could possibly incite this budget turnaround, beware.
Local property taxes are slated to go up 33% over the next three years. The State of Pennsylvania is also loaning Scranton $2 million in no-interest funds.
Must be the price of progress.
Scranton’s not the only place where HR managers could find themselves in a comparably uncomfortable excitement.
It’s the fallout from lifeless housing markets and soaring pensions costs.
California municipalities like Stockton and San Bernardino have gone belly up due to similar financial problems.