Tuesday, March 7, 2017

Why does PA think the PLCB has more value than the Military?

Back in August of 2014 I wrote about the supposed value of the PLCB workforce compared to the rest of the labor market. I said, "One can get an idea of how society values a profession by the compensation given." It's a fundamental truth of how the free market works...except in Pennsylvania, where the Legislature has denied reality for decades and inflated the value of PLCB workers to an extreme.

What do I mean? Try this. According to testimony at the State Senate Appropriations Committee meeting of 2 March 2017, the average value of benefits for a full time PLCB employee is 93.6% of salary; so for example, the value of benefits for a clerk making $30,000 a year would be 93.6% of their salary ($28,800), so their total compensation would be $58,800.

Now, for the actual average of a Liquor Store Clerk 2, that's a total of $64,060 in salary and benefits. Here's the rub. Compare that to a US Army Sergeant (E5) with six years in service, who these days may even have a couple combat tours under their belt: $55,233. (If you want to check my math...see below.*)

Really? Why are liquor store clerks worth about $9,000 a year more than combat infantrymen to the state of Pennsylvania? Is their job more stressful?  Do they work longer hours? Do they perform a greater service to the citizens?
I don't know who made this shirt but I want one**.
Of course, you can make this comparison with other jobs, and if you saw compensation like that the prices would probably be higher at that store or firm...but the State isn't forcing you to buy products from that person in that place under penalty of law. You have choices in the free market: you don't have to buy that product, and you don't HAVE to shop in that store. You don't HAVE to support a monopoly. But you do...if you're buying wine in Pennsylvania. (Yes, yes, with the exception of Pennsylvania-made wines bought direct, right.)

So the next time you have to go to the State Store, or have to settle for something because the bureaucrats in Harrisburg decided not to sell the item you wanted in their monopoly system, and they don't allow you to go anywhere else, stop for a moment. Ask yourself if maybe the state should be funding Veteran's care with the same zeal they fund state store clerks.

Privatization fixes that.

*pennwatch.pa.gov lists everybody and their salary who works for the state including those in the PLCB. Search under Liquor Control Board for Agency Name, then select Liquor Store Clerk 2 under the Positions drop-down menu in the results. There are 22 pages of data: add up the individual salaries, divide by the number of them to get an average, and then multiply that result by 1.963 to get the total of the average salary and benefits. For those working for Uncle Sam it is a bit easier.  They do it for you on this site (I used the PLCB HQ in Harrisburg zip code). I've just gone ahead and done the math on the PLCB compensation for you, but you can check my work.

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1 comment:

Anonymous said...

I think it is a little ridiculous to compare liquor store clerk 2's to our military. Should the military earn more than 55000 a year in salary and benefits? Sure. So should every other selfless profession that is underpaid, you might as well throw teachers, cops, firefighters and social workers in the mix too. Does that necessarily mean liquor store clerk 2's shouldn't earn 60000 in health benefits and salary? I don't think so. So a clerk 2 is an assistant manager and if we compare their value to other similar positions in the retail field instead of the military, its pretty fair. I used to be a clerk 2 (assistant manager) at a wine and spirits store that had yearly total sales of about 5.5 million. I was with the plcb for 5 years and my salary was 14.83 an hour plus health care benefits. To think that is being overpaid or over valued is a little extreme. For someone who manages the day to day operations of store that has 5.5 million in yearly sales, 29000 in yearly salary doesn't seem over inflated. I think you should compare the salaries of clerk 2's to other assistant managers in different retail setting with similar yearly sales. I'm sure most assistant managers in the retail field would be "valued" more than our military.