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Agreement between the State of New Jersey, Governor's Office of Employee Relations (OER) and the Communications Workers of America, AFL-CIO (CWA) Regarding Titles Excluded from State Bargaining Units - PDF [213KB]

New Jersey Department of Personnel, Average Salary Percentage Increase by Department
[190 KB PDF]

Grievance - Non-Contractual

This grievance is filed on behalf of all members of the Public Sector Managers' Association ("PSMA"). PSMA is the recognized Constitutional Representative of career manager members serving in the Executive Branch of New Jersey State government. This grievance excludes managers that are not members of the PSMA.

Statement of Grievance

1. The State of New Jersey has and continues to discriminate against career managers in the executive branch by preventing their inclusion in the State Compensation Plan or other such equitable compensation plan, as required by N.J.S.A.11A:3-7, such as those enjoyed by managers in other branches of State government (e.g. compensation policy for Judiciary Branch Managers).

2. The State of New Jersey has and continues to discriminate against career managers in the executive branch by preventing their salaries from increasing via cost of living adjustments as part of the State Compensation Plan and causing a negative, inequitable impact on past, current, and future salaries which negatively impacts pension benefits.

3. The State of New Jersey has and continues to discriminate against career managers in the executive branch by preventing their salaries from increasing via the State Compensation Plan which establishes step increases specified in each salary range and causing a negative, inequitable impact on past, current, and future salaries impacting contributory life insurance benefits payable to designated beneficiaries.

4. The State of New Jersey only paid 2.9% of the 3.9% salary increase specified in the SFY '06 Appropriations Act designated for managers.

5. The State of New Jersey with the help and assistance of the Office of Employee Relations ("OER") has intentionally and knowingly created a working environment lacking dignity, equity and respect for career managers by continuing to endorse a compensation policy that discriminates against managers by knowingly allowing managerial salaries to be less than or equal to their subordinates. This is known as "Salary Compression." See attached reports commissioned by the State of New Jersey documenting the facts of Salary Compression and the deleterious effect it has on the work force.

6. The State of New Jersey has intentionally and knowingly created a working environment lacking dignity, equity and respect for career managers by supporting endorsing and continuing to support and endorse promotional procedures which ensure union staff promoted to management positions will earn a starting salary thousands of dollars more than the salary of managers who have served in the same title for numerous years. This is known as "Promotional Compression." This practice has caused a significant deterioration of management morale throughout the entire executive branch of New Jersey State government.

7. The State of New Jersey has and continues to intentionally interfere with managers' rights to seek collective bargaining representation before the Public Employee Relations Commission ("PERC"), in violation of N.J.S.A. 34:13A-5.4(a) (1)(2)(3) and (7) and in violation of the New Jersey State Constitution, Article I, Section 19. The State of New Jersey, Office of the Governor as well as the legislative branch of government, has knowingly and willfully engaged with the Communications Workers of America ("CWA") to prevent PSMA from organizing as a collective bargaining agent. Through the collusion between the State of New Jersey and CWA, PSMA members have been denied benefits and protections afforded those who fall within the New Jersey Employer-Employee Relations Act, N.J.S.A. 34:13A-1, et seq. These rights were denied through the passage of S-2235 (Vitale Bill) and the unfair labor practices engaged in by the State of New Jersey which occurred during the processing of PSMA's Representation Petition. This action was taken by the Office of the Governor despite well-documented and vigorous opposition expressed by career managers represented by PSMA.

Attachments

John J. Heldrich, Center for Workforce Development, Human Resource Management in New Jersey State Government, March 2006.

Salary Compression and State Managers - Setting the Record Straight, PSMA, April 1996.

Creating Fairness and Equity for Career Managers in New Jersey State Government: Recommendations to the Governor and Legislature, PSMA, May 2006.

Management Salary Compression: A Report to the New Jersey Legislature Submitted by Ida Castro, Commissioner, NJ Department of Personnel, John McCormac, Treasurer, NJ Department of the Treasury, and Charlene Holzbaur, Director, OMB, , December 1, 2003.

Memorandum from Benjamin Parvey, New Jersey Senate, to George J. LeBlanc, Budget Director, concerning Management Compression Report and Recommendations for FY '05, April 16, 2004

List of PSMA members.

The following reports are referenced but not included. Copies can be obtained from the Department of Personnel. Each of these reports document the problems with disparate treatment of managers regarding pay.

Governor's Management Review Commission: Operational Review of the State Compensation System. Submitted by Gerald W. Clearwater, Public Service Electric & Gas and Thomas Huban, Digital Equipment Corp., March 22, 1991.

Governor's Management Review Commission: Comparative Study of Total Compensation, January 9, 1992.

Report of the Compensation Study Task Force, New Jersey Department of Personnel, Anthony J. Cimino, Commissioner, November 1993.

The Department of Personnel, Office of Research and Development. Toward a New Philosophy: Alternatives for Updating New Jersey's Classification and Compensation System, Linda M. Anselmini, Commissioner, December 1994.

Public Sector Managers' Association, Inc. ("PSMA")
PROPOSAL for Compensation of Members
December 2006

The PSMA Board of Directors, as "Constitutional Representative", proposes the following compensation plan for PSMA members:

1. PSMA members, as constitutionally-represented employees, will have a unique identifier placed into the PMIS and payroll systems;

2. All PSMA members will receive the regular annual increments set forth in the Compensation Plan for their respective titles;

3. PSMA members will receive the same COLAs as negotiated by the unions representing State employees;

4. PSMA members shall be moved into the Compensation Plan at the next highest level to their existing salary plus one additional increment to compensate for lost salary;

5. PSMA members shall be entitled to receive the same COLA as granted to union-represented employees in July 2006 and January 2007;

6. The State of New Jersey shall immediately pay managers the one percent (1%) owed to them from the FY '06 Appropriations Act;

7. The State of New Jersey shall immediately adjust the retirees' pension negatively impacted by this disparate treatment in pay since 1985;

8. PSMA members will enjoy the same health and pension benefits as negotiated by the unions representing State employees and PSMA will enjoy the same right to work as enjoyed by union employees; and

9. PSMA and the State of New Jersey will sign a Memorandum of Agreement to memorialize this arrangement lasting five (5) years.

Good Morning Tom:

On September 8th, you sent me an e-mail requesting that the State recognize the Public Sector Managers Association (PSMA) as an employee representative pursuant to Article 1, Paragraph 19 of the State Constitution. As part of my response, sent to you later that day, I suggested that this arrangement may already exist, and indicated that I would review OER's records in this regard. That review has confirmed my understanding regarding PSMA's status vis-à-vis the State.

On November 16, 1993, Richard L. Wright, Chief of Staff to then-Governor Florio, issued a memo to Richard F. Keevey, then-Director of the Office of Management and Budget, concerning PSMA. In his memo, Mr. Wright observes that PSMA, through its counsel, Sidney Lehmann, had sought both dues deduction for its members and the right "to present grievances and proposals to the State under Article 1, Paragraph 19 of the New Jersey Constitution". The memo goes on to specifically approve dues deductions on behalf of PSMA, and you were advised of this approval by letter dated December 2, 1993. The Wright memo also provides that PSMA "should serve as a vehicle for two-way communications between the State as an employer and its managerial employees". I understand this remark, taken with the State's agreement concerning dues deductions, to mean that PSMA's request for recognition as a Constitutional Representative was also approved. Documents generated subsequent to November 16, 1993 confirm this understanding. Therefore, according to our records, the Public Sector Managers Association was recognized as a Constitutional Representative under Article 1, Paragraph 19 by the Florio Administration on November 16, 1993. Of course, such representation only extends to those people who are active dues-paying members of the organization. Therefore, should PSMA bring forth a "grievance or proposal" on behalf of any person, such action should be accompanied by a copy of that individual's dues authorization card, subject to verification through Centralized Payroll.

I trust this resolves the issue presented. Should you have any questions, please feel free to contact my office.

Kevin McGovern
Director
Office of Employee Relations

WHO WE ARE

The Public Sector Managers' Association, Inc. serves all non-aligned / non-union managers in New Jersey government by achieving and maintaining superior and ethical management service; promoting a high regard for our managers by those outside and within the government; and restoring equity to the human resource policies and practices of New Jersey government as they relate to managers.

MISSION AND GOALS
Re-evaluated, edited and re-adopted by PSMA Board of Directors 9/1/98

Mission

The mission of the Public Sector Managers’ Association, Inc., is to serve all non-aligned/non-union managers in New Jersey government by achieving and maintaining superior and ethical management service; promoting a high regard for our managers by those outside and within the government; and restoring equity to the human resource policies and practices of New Jersey government as they relate to managers.

Goals

• Protect managers’ professional, economic and legal status;
• Ensure the professional growth of members;
• Achieve equitable compensation and benefits for members;
• Promote a code of ethics for members;
• Increase the involvement of managers in influencing their destiny, through individual and group actions;
• Increase the visibility in the Legislature and Executive Branches of PSMA issues which impact the organization and provide recommendations to address those issues; and
• Enhance the influence and value of PSMA as a resource for managers and other government leaders.

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