State employee wages in Maine are still below competitive market rates, according to a new study released by the Department of Administrative and Financial Services. While the report cites areas of progress, the state employees union said much more needs to be done.
The report found state government wages increased by 21.6% over the last four years.
But that lags behind private sector wage growth, and puts the average, mid-range state worker pay at 14% below market averages.
That's an improvement of one percentage point since the last report was released in 2020, but the state said methodological differences between the two studies hinder a direct comparison.
The Maine Service Employees Association said the report is evidence of a persistent pay gap that stifles recruitment and retention.
"As a result, there are just less people to do the work," said Tom Feeley, general counsel with the MSEA-SEIU. "And so for the public that relies on the services, that means longer wait times, it means less efficient service."
Still, Feeley said Governor Janet Mills has been much more receptive than prior administrations to employee demands.
"We do appreciate that she is lightyears ahead of Governor LePage [...] in terms of raises for state workers, but it's still, you know, what this report shows is there's still a lot of work to be done," he said.
Feeley said better data are needed to craft a plan for closing the pay gap for state employees. Earlier this year, state officials contested the union's characterization of a pay gap, citing wage growth for state employees.
Following the new report, a spokesperson for the Department of Administrative and Financial Services said in an email that "We are encouraged to see that our 24-29% pay increases over the last five years — which is a larger increase in compensation than the previous sixteen years combined — have helped our employees outpace inflation," adding that the Mills Administration "will continue to work with the Legislature and labor partners to increase wages" and other benefits.
The MSEA-SEIU is scheduled to meet with the state this month to discuss implementing the findings.
Following a recent labor dispute settlement, the state agreed to study employee classification and compensation, and issue $2,000 one-time payments to state workers.
