Mr. D.C. Thomas is against city policy of setting the average non-union staff salaries to the 60th percentile among a group of municipalities in Alberta St. Albert Gazette ‘Your Views’ April 7). He states that this represents a 20-per-cent increase over what the salary would be at the 50th percentile, so he clearly misunderstands what “percentile” means, and conveys a gross inaccuracy of the actual situation.
If a group’s average salary is at the 50th percentile, it means that half of the compared group fall below this level; the 60th percentile means that 60 per cent of the compared group fall below (and 40 per cent fall above).
But there is no direct relationship between the percentile and the percent difference in salary. I learn from Mr. Chris Jardine, acting city manager, that the average salary difference between the 50th and 60th percentiles is currently less than three per cent, a far cry from the 20-per-cent difference that Mr. Thomas states. It makes St. Albert only marginally more competitive in attracting staff than any municipality that happens to be at the 50th percentile. However, these numbers are moving targets, depending on the individual changes that occur in each town over time.
Mr. Thomas calls the 60th percentile benchmark a “scam”, suggesting that members of the city administration are inflating their own salaries by this means. Frankly, I couldn’t imagine a more objective way of setting compensation to a group of employees. The method is nothing like the “big company” example Mr. Thomas provides. Why the 60th as opposed to any other percentile? I haven’t a clue, but I imagine that it represents some perceived balance between fiscal prudence and being competitive for hiring staff.
Are staff salaries currently “excessive,” as Mr. Thomas states? That’s a totally separate question, and the answer would depend on analyzing numerous factors. However, I doubt that many non-union employees would agree with Mr. Thomas that their salaries are excessive.
Reuben Kaufman, St. Albert
