University of Texas at Austin
PAE-11: Sustainable Compensation

University Human Resources does not track the number of contract employees working on campus, but estimates the total to be between 400 and 800 on an average day. The following material concerns the 14,211 employees (non-student, non-contractor) to whom the sustainable compensation reviews apply.

The University Budget Council reviews employee compensation annually to ensure equitable and competitive pay in accordance with the provisions of the compensation philosophy:

To fulfill its mission, the university must attract and retain outstanding staff members. To meet institutional staffing needs and priorities, the compensation system has the following objectives:
· Establish compensation levels for positions on the basis of their relative internal worth and external competitiveness within relevant labor markets
· Reward employees on the basis of work performance
· Administer pay equitably and consistently
· Establish a compensation policy that is consistent with the judicious expenditure of funds entrusted to the university
· Ensure accountability for compliance with The University of Texas System Board of Regents' Rules and Regulations and statutory requirements

With regard to the lowest paid workers, in December 1997, a presidential Compensation Advisory Committee recommended the first official Minimum University Salary Rate at $14,004/year. (i.e. 6.73/hour). This recommendation was implemented by President Faulkner.
 
· In November 1999, an Ad Hoc Committee expanded comparisons used to establish minimum wage rate resulting in a higher minimum rate.
 
· Information included in annual salary increase briefings for University Budget Council.
 
Minimum wages at the university have increased 45% over the past 7 years from $7.61/hour. to $11.00/hour or $22,884/year (Attached Appendix E shows history of university minimum wage rates since fiscal year 2000-01 to present). Attached is the details of our most recent analysis which indicated an increase from our current minimum of $11/hour. While we have made great gains in the minimum wage including a 9% increase in 2006 and a 10% increase in 2007, budget constraints prohibited a further increase in 2008. Our current picture is as follows:
 
· University of Texas’s current minimum wage of $11.00/hour is comparable to that found at its eleven peer institutions. Two of our eleven peers have established minimum wage levels in line with various living wage endorsements within their localities and state.
 
· University of Texas’s current minimum wage of $11.00/hour or $22,884/year is competitive with, and surpasses the market worth for comparable jobs in the area.
 
· Since University of Texas provides benefits which provide an additional 30% in in-direct compensation above the $11.00/hour. rate (i.e. $14.30 or $29,744/year.), the current university minimum wage level is well above federal poverty minimum for a family of 4 ($20,650/year) as well as the current federal and state wage minimum ($5.85/hour. or $12,168/year.)