Repository: UIHistories Project: Board of Trustees Minutes - 1940 [PAGE 807]

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804

BOARD OF T R U S T E E S

[April 25

JANITORS* WAGES (22) T h e Building Service Employees Local Union No. 119 of ChampaignUrbana has again requested an increase in the wages of University janitors to 70 cents per hour. I submit a brief summary of adjustments made in the wages of this group of employees in recent years and the previous consideration given to the present request. P r i o r to July I, 1937, the janitors requested an increase from the then scale of 49 cents per hour for day work and 53^4 cents for night work to 60 cents per hour. On July 16, 1937 (Minutes, page 613), the Board authorized an increase to 56 cents per hour. Subsequently the janitors offered an alternative proposal of a 48-hour week at 60 cents per hour with time off on Saturday when it is necessary to work on the preceding Sunday. This request was disapproved. Last year the janitors requested a wage rate increase to 70 cents per hour. On July 14, 1939, when the operating budget for the current year, 1939-1940, was under consideration by the Board of Trustees, the Board authorized a further adjustment in the wages of this group of employees by placing them on a 44-hour per week schedule with the same total pay formerly received by them for 48 hours per week of service. This amounted to an increase in rate from 56 cents per hour to 61 cents per hour. T h e Board also authorized the payment of time and one-half for overtime and Sunday work and double time for work during holidays. Subsequently the janitors' organization requested a reopening of the matter, and their representatives met with the University Committee on Wages. A report of this conference was made to the Board of Trustees on October 20, 1939. T h e Board reviewed the whole question, and at the conclusion voted that in view of the reductions in the University's biennial budget, the prevailing local rates, and the privileges of vacation, sick leaves, retiring allowances, and death benefits available to the employees of the University, it could not see its way clear to making any further increases. According to our information, there has been no change in the conditions prevailing at the time the last action was taken by the Board of Trustees. Moreover, the University's budget for the current biennium, as originally submitted to the General Assembly of Illinois, was reduced by voluntary adjustments made by the Board of Trustees totaling $1,025,000 and subsequently by executive veto of items totaling $265,000. These reductions, of course, affect the internal operating budgets of both years of the biennium. In fact, in the preparation of the budget for 1940-1041 it was necessary to make reductions of approximately $75,000 below the budget for the current year because the University's income from student fees and other sources has decreased to that extent. T h e Board will recall that at its last meeting there was presented a letter from the Governor of Illinois requesting that consideration be given to any possible reductions in all classes of expenditures due to the fact that the balance in the General Revenue Fund of the State Treasury is steadily declining. T h e financial considerations, extremely important as they are, are however secondary to the principle involved in this question. It is the policy of the University to pay its employees wages comparable with rates prevailing in the local community. T h e cash wages paid University janitors compare favorably with those received by similar employees elsewhere in Champaign and Urbana which is aside from vacations, sick leaves, retiring allowances, and death benefits available to all University employees. However, in view of the request of their organization, I am presenting the matter again to the Board for its consideration.

On motion of Mr. Mayer, no action was taken on this matter.

STATUS OF PERQUISITES OF CERTAIN MEMBERS OF STAFF (23) The Commissioner of Internal Revenue recently has issued the following ruling concerning certain items furnished employees: "If a person receives as compensation for services rendered a salary and in addition thereto living quarters or meals, the value to such person of the quarters and meals so furnished constitutes income subject to tax. If, however, living quarters or meals are furnished to employees for the convenience of the