Last week representatives of the University Staff Association presented to me a list of 15 concerns. Some of those topics have already been addressed in my remarks. Our resulting minimum pay for entry-level unskilled workers is approximately six percent above the Austin market rate, according to a study by the Texas Workforce Commission. We recognize that the cost of living in the Austin area is expensive. The University is, however, an institution that must operate within the context of market forces.
Labor costs are an enormous percentage of our operating budget.
While we are reviewing all budgets and staffing levels to determine areas that could produce funding flexibility, we also want to avoid situations that could result in unit closures and layoffs. Another issue raised by the Staff Association is that of the fairness of performance evaluations as they affect compensation. I agree that we need uniform, high quality evaluations in order for the system to work. The Office of Human Resources, under the leadership of Vice President James Hill and Associate Vice President Sandra Haire, is in the process of revising the performance management system and developing training for every supervisor on campus to conduct more effective performance evaluations. As for the suggestion that we freeze salaries of higher-compensated employees, I return to my opening statement.