Fringe Benefit and Extra Pay Costs
2/28/08
By Paul Norberg--Retired CFO (With Glitter Sprinkles from Katy Miessner--Aging Disco Queen)
Contrary to Fire Union Vice President and Fire Captain
Jon Riley, the cause of out-of-control firefighter overtime is not due to too
few firefighters. The truth is it is
actually less expensive to pay existing staff overtime than to hire new
employees. Why?
Vallejo’s public safety employees—Fire and Police—are
among the highest paid in the Bay Area.
They also have a very generous fringe benefit and extra pay program. In
fact it is less expensive to pay existing staff overtime than to hire new
employees. Fringe benefits cost the
city about 80% of a public safety employee’s base pay so no wonder the City is
unable to hire more staff. As Riley
says, overtime is about 30% of an employee’s salary. That’s a whole lot cheaper than 80% of an employee’s salary. The full benefit and extra pay list
follows at the end of article.
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