Spokane7
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June 8, 2011 in Business
Wage figure included benefits
GSI overstated pay for jobs moving to Valley
Officials with Greater Spokane Incorporated provided inaccurate numbers on how much local workers would be paid when applying for a state grant to move jobs from Mexico to a Spokane Valley company’s new production site.
Based on Greater Spokane’s application, the state provided a total of $150,000 to Spokane Valley manufacturer Pyrotek Inc. The money will assist Pyrotek in adding 20 skilled jobs at a new site in Spokane Valley; half will go toward relocation costs and the other half toward training. Those workers will be making high-quality ceramic filters.
GSI submitted to the state estimates that the jobs paid $18 to $25 per hour. Those numbers, however, included the value of company benefits. The starting wage will be closer to $15 per hour, said Robin Toth, vice president of business development with GSI.
Even so, the net benefit to the state in new taxes and spending – in excess of $450,000 per year – is accurate, Toth said.
Pyrotek, which has operations in more than 30 countries, is moving the jobs to the U.S. from a production site in Apodaca, Mexico. It has not given a detailed reason for the move other than stating that the Spokane Valley site will provide more management and technical expertise.
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zelda on June 08 at 11:14 a.m.
It would go a long way toward preventing misunderstandings if business articles stated clearly whether compensation is soley wages or total compensation (wages + benefits). When businesses (and government entities) work on budgeting, total comp. is the figure they use in calculating costs. Union groups know this, too, but have a tendency to use only wages when it makes the comparison favorable to their cause.