University of Illinois Chicago
PAE-11: Sustainable Compensation

University of Illinois Policy requires that compensation be at sustainable levels. Policy # 5 set forth in University of Illinois “Policy and Rules” states as follows: “Within the framework of applicable law, the University will provide compensation, i.e., wages and employee benefits, consistent with the judicious expenditure of funds entrusted to the University. The level of compensation paid to University employees will be set taking into consideration rates generally paid for similar work by other employers located in the recruiting area and maintenance of internal equity based on position classification factors. Employees with status appointments whose rates of pay are not negotiated, established, or set by law in accordance with prevailing rates for trades and crafts are subject to salary program(s) which recognizes service and/or individual merit. The President may issue rules and procedures and take other action as needed to carry out this policy.” The University’s lowest paid workers are covered by the State Universities Civil Service System. For many of those employees, the Civil Service System statute, 110 ILCS § 70/36d(3), prescribes that wage rates paid to such employees be “fair and equitable”. Indeed, certain of those classifications of employees are mandated to receive the “Prevailing Rate of Wages” which is the rate of wages being paid to employees doing similar work in the local area as determined by the Illinois Department of Labor. Generally, those prevailing rates are the rates established in private sector collective bargaining agreements between private employers and labor unions representing their employees. 110 ILCS § 70/36d(3) states as follows: “[The State Universities Civil Service System shall have the power and duty] To prescribe the range of compensation for each class or to fix a single rate of compensation for employees in a particular class; and to establish other conditions of employment which an employer and employee representatives have agreed upon as fair and equitable. The Merit Board shall direct the payment of the "prevailing rate of wages" in those classifications in which, on January 1, 1952, any employer is paying such prevailing rate and in such other classes as the Merit Board may thereafter determine. "Prevailing rate of wages" as used herein shall be the wages paid generally in the locality in which the work is being performed to employees engaged in work of a similar character. Each employer covered by the University System shall be authorized to negotiate with representatives of employees to determine appropriate ranges or rates of compensation or other conditions of employment and may recommend to the Merit Board for establishment the rates or ranges or other conditions of employment which the employer and employee representatives have agreed upon as fair and equitable. Any rates or ranges established prior to January 1, 1952, and hereafter, shall not be changed except in accordance with the procedures herein provided.” Wages for employees not entitled to prevailing wage rates are paid rates either negotiated with the labor unions that represent them here at the University or established pursuant to the University Policy noted above that requires equity with employees elsewhere performing similar work. There are 19 collective bargaining units at UIC for which unions negotiate the wage rates for employees of the University. Finally, all wage rates for the lowest paid University employees require the approval of the State Universities Civil Service System which requires that wages paid be fair and equitable. The University’s policy is designed to work toward the goal of having wage rates be set at rates which put the University at least at the median level compared to wages paid elsewhere in the our labor market.