“New Jersey State Workers vs. Private Sector Workers”

In an article published in The Star-Ledger, New Jersey state workers salary and benefits were profiled along with a comparison of state worker salaries and benefits versus private sector employees.

This comparison was prompted by a desire by a few state congressional leaders (and it must be assumed by the majority of the citizens of the state) to bring these salaries and benefits in line with the private sector.

Comparing Contracts between State Workers, Teachers and Two Private Sector Unions

Although state workers are represented by seven different unions, the largest and most powerful union is the Communications Workers of America (CWA) representing almost 40,000 state workers. The two private sector unions shown include low-paid casino workers (who often garner much of their income from tips) and a typical butcher at Shoprite Supermarkets.

Item	State Worker (CWA)	Public School Teacher	Casino Service Worker	Shoprite Butcher
Pay	$52,000 (median)	$60,723 (average)	$4-$20 per hour	$50,128 (average)
Holidays	14	(Note 1)	9	9
Raises in last contract (annual average)	2.87%	4.65%	3.47%	3.38%
Vacation	12 days 3 weeks after 5 years on job 4 weeks after 12 years 5 weeks after 20 years	(Note 1	2 weeks 3 weeks after 8 years	1 week after 1 year 2 weeks after 3 years 3 weeks after 8 years 4 weeks after 12 years
Sick days per year	15	10	0	12
Annual Pension (25 years service)	$21,137	$26,635	$10,800	$16,500
Retirement Age	55 (After 25 years of service)	55 (After 25 years of service)	65	60
Note 1: Teachers work on 10-month contracts. The school year includes 182 days of instruction and a few days per year for parent-teacher conferences depending on their contract.
In comparing schoolteacher salaries, let us not forget that most teachers (but not administrators) have virtually the entire summer to run a small business and make between 5,000 and $20,000 in additional income, if they so desire. Therefore, a one-on-one comparison to other workers salaries does not necessarily reflect reality.

Comparing Benefits between State Workers and Private Sector Employees

Item	Private Employees	State Employees
Defined benefit pension	18%	100%
Medical Insurance	69%	100%
Free Health Insurance	12% (Note 1)	60% (Note 2)
Health Benefits for Retirees	5%	100%
Dental Plan	45%	100%
Vision Care Plan	28%	100%
Prescription Drug Plan	63%	100%
Note 1: In calculating take-home pay, the average private sector worker without free health insurance may often pay $800 per month for a family of four for medical premiums, reflecting a salary loss of at least $10,000 per year. Note 2: State workers in the NJ Plus plan pay no health insurance premium.