Anticipated Non-Salaried Pay Increases for Wgi Related to the Madison Sewer Project
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Anticipated Non-Salaried Pay Increases for
WGI Related to the Madison Sewer Project
September 18th, 2010
Report Prepared by Dina Amodeo
(Roberta Bernhart, WGI HR Manager)
Table of Contents
Executive Summary
The City Council of Madison, Wisconsin has asked WGI to prepare the enclosed report which examines the current and anticipated wage rates of the non-salaried workers performing various tasks on the Madison Sewer Project. The purpose for the request is to provide The Council with information needed for budgeting for the Cost Plus Agreement between The City and WGI.

WGI has identified 19 workers that will receive hourly wage increases beginning the first of next month. These 19 workers, their current rates and projected rates were tabularized and graphed in an attempt to identify both the real cost increase, percentage increase and reveal any trends or tendencies that should be anticipated by The City. The new rates will provide greater parity between the 19 workers as the overall pay rates will be somewhat more compressed.

The findings presented were obtained by Statistical Analysis which indicates that the City of Madison will need to increase its Sewer Project budget, beginning the first of next month, by 5.0% for the duration of the Project.

Analytical Approach
The table below shows each workers current and new hourly pay rates. Included in the table are calculations of each individuals pay increase and the percent increase for each worker. Please note that no worker will receive a negative pay increase.

CURRENT RATE
NEW RATE
PAY INCREASE
PERCENTAGE INCREASE
$20.55
$22.55
$2.00
9.73%
$22.15
$23.81
$1.66
7.49%
THOMAS
$14.18
$15.60
$1.42
10.01%
SHARI
$14.18
$15.60
$1.42
10.01%
$18.80
$20.20
$1.40
7.45%
JARED
$18.98
$20.20
$1.22
6.43%
LOREN
$25.24
$26.42
$1.18
4.68%
$18.36
$19.28
$0.92
5.01%
PATRICK
$17.20
$18.06
$0.86
5.00%
SHARON
$16.99
$17.84
$0.85
5.00%
$16.45
$17.27
$0.82
4.98%
SUSAN
$18.90
$19.66
$0.76
4.02%
CHRIS
$18.30
$19.02
$0.72
3.93%
STEVE F
$27.45
$28.12
$0.67
2.44%
KEVIN
$16.00
$16.64
$0.64
4.00%
LARRY
$17.47
$18.00
$0.53
3.03%
MARY ANN
$23.99
$24.47
$0.48
2.00%
$22.62
$23.08
$0.46
2.03%
AARON
$15.00
$15.40
$0.40
2.67%
Table 1
An examination of the data above shows that the pay increase and percentage increases vary greatly from worker to worker. It will be helpful to determine maximums, minimums, averages and other analytical applications to aid in predicting budgetary needs. The data from Table 1 was used to create Histogram 1 and Histogram 2 presented on the following page. Frequency refers to the number of workers whose pay rate is in the particular pay rate range. Analysis of Histogram 1 shows that the first two ranges, $14.00 – $17.00 and $17.00 – $20.00, fall in the 70 percentile. When proposing the new pay rate, shown in Histogram 2, the same ranges fall in the 59 percentile. This drop is evidence of a shift increase in wages for the workers. There is a minor shift in the distribution as the majority of workers remain in the lowest two categories of pay rates, even with the increase. Further, both Histograms show that the distribution is relatively the same overall and both are right skewed. This is because the mean or average rates in both the current and new rates are still greater than the median of both the current and new rates. When the mean is higher than the median this means that the pay rates are not evenly distributed between the workers and that some employees are making considerately more which will offset the average as would be expected. Six individuals are making more than the average pay rate and thirteen individuals are making below the average pay rate. The value of understanding the median is that it is not affected by extreme values. The mean of $19.10 in the current rate is within the 2nd pay range. When WGI implements the wage increases, the mean changes to $20.06 and moves slightly into the 3rd pay range. The median is still below in the mean in both the current rate and the increase rate. Thus, the majority of workers are making under the mean, and a select few are causing the mean to be skewed toward the select few pay range. The Mode is irrelevant in this analysis as there is very little exact

repetition of pay rates among the group of 19 workers. An interesting observation is that it is evident that the overall Range decreases with the new rate, an indication of greater parity between the workers pay.

Histogram 1
Histogram 2
In Histogram 3 below, which is a melding of Histograms 1 and 2, is an excellent graphic representation

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Wage Rates Of The Non-Salaried Workers And Pay Increases. (June 14, 2021). Retrieved from https://www.freeessays.education/wage-rates-of-the-non-salaried-workers-and-pay-increases-essay/