Biz leaders oppose state pay hike

C-suite executives from many of the state's largest employers today called on Michigan lawmakers to reject a 3% pay raise for state workers set for Oct. 1.

The Civil Service Commission has already rescinded the 3% raise scheduled for non-exclusively represented state employees. Now, Business Leaders for Michigan (http://www.businessleadersformichigan.com/) wants the legislature to do the same for all other state employees, exercising its option to reject the increase within 60 days of the Governor's budget presentation. That option expires April 1.

Governor Granholm defends her record on state-employee spending and her requests for Fiscal Year 2011, noting that Michigan has cut nearly 11,000 jobs since 2001. She also says state employees have contributed more than $650 million in savings through unpaid days off and increased cost sharing of health insurance premiums.

However, Business Leaders representatives suggest the government needs to swallow the same medicine as private-sector employers.


"At this time when our state's revenues continue on a downward spiral and when government programs and services are being cut or eliminated in order to help balance the state's budget, it is inappropriate for government workers to receive an increase in pay," says group president and CEO Doug Rothwell.

The 3% adjustment was agreed upon during prior labor negotiations, but Business Leaders says the current and projected financial condition of the state should now be taking into account. The group's most recent quarterly survey of 70 of top Michigan executives found that 89% believe the state economy will remain the same or deteriorate over the next six months. However, 42% forecast increased hiring in Michigan during the same time frame.

The group is seeking attention for its "Michigan Turnaound Plan" it says will help make Michigan a Top Ten state for job and economic growth. The pillars of the plan are:

• Changing the way the state manages it finances.


• Right-sizing and enacting structural budget reforms.


• Getting Michigan competitive to attract and retain jobs.


• Making investments to create a great job environment.


• Accelerating job growth through innovation and entrepreneurship.

Business Leaders for Michigan, formed last year, is an outgrowth of Southeast Michigan CEO group Detroit Renaissance. Members represent companies and universities that provide some 300,000 jobs in Michigan and generate more than $1 trillion in annual revenue.