Haslam Forced To Bend As State Workers Attack Merit Pay Plan

A plan from Gov. Bill Haslam to pay state workers for their performance is running into opposition, including from fellow Republicans.

That’s already led the governor to backtrack on one of the proposal’s most controversial parts.

The plan to bring merit pay to state government is the latest in a string of civil service reforms suggested by Haslam since taking office four years ago. The proposal is meant to build on 2012 legislation that set up a system to grade every worker in state government annually.

This year’s plan,
House Bill 647, would give workers who score highest the biggest raises. 
There’s just one catch: Haslam
wants to pay for these raises by doing away with longevity pay — bonuses almost all state workers get each year to reward them for staying with the government.

These payments start at $300 for three years of service and can reach as high as $3,000. 
Many workers depend on their longevity checks to make ends meet, said John Summers, head of the Tennessee State Employees Association.

“And then you go, ‘Hey, I can pay a few bills. I can catch up. I can pay for some tires on the car. We need to get a new washing machine or whatever,'” Summers said. “It kind of makes you feel better. It kind of tides you over, at least briefly.”

Summers hasn’t spoken to many workers who like Haslam’s plan. Neither has Rep. 
Bill Sanderson (R-Kenton).

“They just don’t understand what we’re up here trying to do. And I have to agree with them,” Sanderson said. “Yes, we actually are shortchanging our employees. Big time.”

Last week, the House State Government Subcommittee, which Sanderson chairs, delayed consideration of Haslam’s merit pay plan until later this month.

Already, the harsh criticism has forced the governor to back off a little. The administration recently released an amendment that would roll the longevity bonuses state workers have earned so far in their careers into their regular paychecks.

That means they wouldn’t lose any money they’ve already come to depend on. But those payments wouldn’t get any bigger after this year.

As of yet, that offer hasn’t been enough to win over workers. The TSEA’s Summers said they fundamentally fear pay-for-performance will be less fair than pre-determined bonuses.

“We think the problem with a merit pay system is coming up with an objective measure,” Summers said. “And that’s our concern. When you go to a merit raise system, you need to make sure that you don’t have a system where you just reward your friends.”