Pay raise battle possible
By HOWARD TROXLER
RALEIGH To be ignored, in politics, is
the unkindest cut of all.
That's the position President Carter and
his chief inflation fighter Alfred E. Kahn face
in N orth Carolina, where the state legislature
is pushing through a pay raise of 7 percent in
addition to an across-the-board-bonus of
$200 per worker.
Kahn angrily charges that the pay hike is
in direct violation of Carter's voluntary anti
inflation wage guidelines, and he warns of
dire economic consequences if other states
follow North Carolina's lead.
That hasn't stopped the legislature, where
a key subcommittee has already approved
the raise. In their turn. General Assembly
leaders say the plan violates none of Carter's
guidelines and accuse Kahn of "double-,
talk.".
For in North Carolina, inflation-fighting
has taken a back seat,to politics. Everyone
involved is hoping to benefit from the raise,
arjd it's just not expedient to preach belt
tightening when votes are at stake. The
main supporters of the bill, such as Lt. Gov.
James C. Green and House Speaker Carl J.
Stewart Jr., hope to earn the gratitude of the
state's employees by raising their pay. And
legislators who oppose the hike will have to
face the not-inconsiderable wrath of various
employees' and teachers' groups.
Gov. James B. Hunt Jr. has expressed
, nominal opposition to the pay raise. Earlier,
Gov. Hunt suggested a 5 percent general
raise and 2 percent merit and longetivity
raises, but without the $200 bonus. He has
- said he will not support the plan until the
federal, government tells him it's all right.
Of course. Gov. Hunt's vocal opposition
costs him nothing; in fact, he hopes to gain
from his stance on two fronts. In the state, it
will be known that Gov. Hunt exercised
none of his political muscle to shoot the plan
down. In Washington, though. Gov. Hunt
has won lavish praise for his verbal,
opposition.
And it never hurts to look good in
Washington especially if you are a
moderate Southern governor trying to look
like prime ticket-balancing material.
Putting political considerations aside, the
pay plan does not technically violate the
guidelines since they expire in September,
before the heftier checks are distributed.
Besides, Green and Stewart argue, the $200
bonus is one-shot and will not permanently
affect the wage base.
They also point to other states such as
Georgia, where legislators recently approved
a 9 percent pay hike. They argue perhaps
rightfully North Carolina should not be
the only state forced to toe the line.
"It might do the guidelines some good if
someone else, like U.S. Steel, observed them
on occasion," one observer said.
On economic grounds, the plan faces the
same problems any new expenditure does.
The pay hike will cost the state some $31
million, which the state may very well need
elsewhere in the coming years.
On the other hand, it would be difficult to
argue that state employees' do not need a
raise. They have had to settle for only
occasional raises and even then at half of
requested levels. Teachers, for example,
have long lagged behind other states in pay
levels.
Although at first glance it is easy to cast
blame at the state, it must not be done
without looking at all the pressures on those
making the decision. It is unfortunate that
parochial politics must play a role in
economic affairs but it is equally
unavoidable.
Regardless of politics, the monetary
questions that confront the wage hikes are
not black and white. Kahn, by the nature of
his job, must be concerned with reducing
expenditures. We've not heard criticism as
strong from Carter himself, who surely
realizes there must be a balance between
fiscal conservatism and keeping the
government funded at subsistence levels.
Howard Troxler is a junior journalism
and political science major from Burlington.
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