Reduction in pay (employee, non-profit, job, insurance)
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I work for a non profit agency that is federally funded. We have just been refunded. We have a director that oversees all aspects of the agency. We are also governed by a Board of Directors. We run pretty much on our own- we have two board meetings per year. The board usually never questions what we do, although they do have to approve the yearly budget as well as any raises.
Due to medical insurance increases over the past few years we haven't had raises. About 3 years ago we got a $250 raise per person. We all like our jobs- it is a good place to work. I was promoted last year to management due to the former manager retiring. I knew money was tight, but I took the position anyways and received a $3500 raise.
The new budget for next year was presented to the board. I was suppose to get a $13K raise which puts me in line with similar managers in the state. It was not approved. A 3% raise per year was approved by the board. I sort of understand that- I was hoping but.... Even though I am management, all of my employees make more than me because they have been employees for 10+ years more than me (before I started- raises were handed out much more freely).
The board did a funding band this year- (range of salaries for the positions). What I am really upset about is I have 2 employees that have been employeed for over 18 years- they are wonderful employees- our clients love them- they are superior employees. Due to this funding band, these 2 employees are over the top of the salary band and we have been instructed by the board to reduce their salaries. One employee salary would be reduced by $7K and another by $9K. They both make under $55K per year.
The director refuses to discuss/argue this with the board. She has no leadership ability (that's another story). Do these 2 employees have any recourse. They are going to be devestated-hurt- etc. It will be their choice to quit, but this is so wrong, especially since we do have the money and this doesn't need to happen.
Our agency is small- we don't have a human resource dept. The director is human resources. She is very weak- it isn't standard procedure for me to contact the board- everything goes thru the director.
If there is a pattern of sex or age discrimination there may be grounds for a complaint to Federal or State agencies. Otherwise employees should vote with their feet.
Recourse with what? It's a non-profit run by a board. The decision has been made. They will have to find other jobs. It sucks but no one is doing anything illegal.
The board doesn't seem to value skilled, experienced employees. The real question is, knowing that, why wound anyone want to keep working there? What does the board think will happen? Or maybe they know what will happen and are counting on it so they can hire cheaper employees after everyone quits.
If the employees are worth more than the board is willing to pay them, and if they want to be compensated fairly, they are going to have to leave and go to work for an organization that will pay them in accordance with the value of their skills and experience and the value they add to the organization.
Too bad your workplace does not have a union. Then the couldn't get away with this kind of thing.
Unions are like strangulation for both the workers and management. All the alleged protection comes at the price of limited income growth and accepted mediocrity.
Charlygal- I asked because I didn't know if it was legal or not- I personally have never met anyone that this has happened to.
The girl that will lose $7K will be extremely hard to replace. She has kept her department afloat for the past 4 years. I personally know she is offered a job every few weeks. Once the word gets out she is looking she will have no problem finding a job at a significant higher salary. She stays in this job because she likes the mission of our agency and she likes our benefits, some of which will be hard to replace even if the salary is higher. Money is not the most important thing for her- the decrease in salary won't make a difference in her life, but feeling so devalued will have a significant impact.
Lots of posters here who obviously have never employed people or worked in a position where this type of decision is made.
Age discrimination? Unions???
The most obvious solution is that they could restructure the compensation categories. Someone who has put in almost 20 years shouldn't be penalized because they hit the top level of their pay grade and the board doesn't know how to handle it.
There also are options for restructuring the medical insurance. In fact, it's pretty nice and lucky that y'all even get insurance, but there are ways to still provide benefits without being forced to accept annual increases.
Sounds like you need a better CFO there.
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