Dear Colleagues,

Last Spring, during the considerations by the University Budget Committee, we
made a conscientious effort to direct resources to university priorities.
Our university is committed to enhancing the academic excellence of each
academic program and/or support service - and to enhancing access to that
quality. One necessary strategic imperative to achieving excellence and/or
access is to "recruit, retain, and celebrate the quality and diversity of
our faculty,
staff, and students."

The budgeting of resources addressed recruitment and retention of faculty
and staff.  My July 7, l999, note to you indicated that we would implement
a modest equity pay plan to bring salaries of those staff and faculty
farthest away from peer average salaries closer to those averages.  Toward
that objective, a total of $227,501 ($116,667 for non-exempt staff; $46,667
for exempt staff; and $64,167 for faculty) had been allocated in the
University's budget for Fiscal Year 1999-2000 to promote salary equity
among faculty and staff.

Monitoring of the University's fiscal indicators to date suggests that we
are meeting projections. Therefore, after a comprehensive analysis of
salaries relative to comparable positions within UTC and in the broader job
market, I have approved a number of equity adjustments to be effective
December 1, 1999.

December paychecks will contain modest adjustments to nearly one third of
faculty and staff salaries. Under this Equity Adjustment Plan, 176
non-exempt staff (49.3 percent), 38
exempt staff (27.7 percent), and 71 faculty (21.6 percent) will receive
modest salary increases.  The chancellor, vice chancellors, deans, other
similar senior administrators, and coaching staffs were excluded from
increases under this plan.

These adjustments are but a single step toward more competitive salaries.
Using our financial resources, we must continue toward our goal of
providing compensation which is fair, competitive, and more commensurate
with the contribution made by each member of our University community. The
compensation enhancement plan for faculty and staff begins to address the
issues of internal and external salary equity in the following manner,
technically described by Dan Webb.

A. Non-exempt Staff

Our salary analysis showed that salaries for non-exempt staff were further
below comparable Market Values than  UTC employees in other categories.
Prior to these adjustments, the average salary of our non-exempt staff was
approximately 82 percent of the average Market Value. These increases will
bring the average salary of non-exempt staff to about 85 percent of the
overall Chattanooga/Hamilton County Market Average for comparable positions
(or at approximately the 43rd percentile).

 All regular employees (a total of 357) hired on or before September 1999
into a position classified as non-exempt under federal wage and hour law
were considered in the salary analysis. For each non-exempt salary level a
trend line was developed relating current incumbent salaries to years of
University service. (The trend line calculations were adjusted to exclude
CPS and degree increases.) Increases will be implemented to bring salaries
of non-exempt staff with less than 5 years UTC service to 95 percent of the
trend line for their level; those with more than 5 but less than 10 years
service to 98 percent of the trend line; and those with more than 10 years
service to 102 percent of the trend line.

Because of critical retention and recruitment issues among security and
custodial staff, special adjustments will be made to bring these employees
to a more nearly market competitive hiring rate and to maintain internal
equity within those job groups. The minimum wage for custodians is
increased from $5.65 to $6.25; the minimum for POST certified police
officers is increased from $7.88 to $9.00. Salaries of other personnel in
these job families are adjusted to compensate for wage compression created
by an increase in the wage minimum.

B. Exempt Staff

A job market analysis approach was used to calculate equity adjustments for
exempt staff hired on or before September 1, 1999. Average Market Value for
exempt positions was determined by reference to the most recent salary
surveys published by the College and University Personnel Association
(CUPA). For those exempt positions for which valid survey matches were not
available, a trend (regression) line was developed on the basis of  Hay
ratings related to median values of  positions for which valid matches
could be made; an estimated Average Market Value was then calculated for
"matchless" positions based on that trend line. Salary increases will be
made to bring individuals with less than 3 years exempt service to 80
percent of Average Market Value; those with more than 3 but less than 10
years exempt service to 85 percent of Average Market Value; and those with
more than 10 years exempt service to 88 percent of Average Market Value.

C.  Faculty

In the second year of addressing faculty salaries, a comprehensive equity
analysis was conducted by which each full-time faculty member's salary was
compared with the national average salary for faculty of the same rank and
discipline using data obtained from the 1998-99 National Faculty Salary
Survey conducted by the College and University Personnel Association (CUPA).
Faculty whose salaries were the lowest compared to the national averages
were selected for an equity adjustment.

In addition to these equity adjustments to faculty salaries, we have
budgeted for an additional $50,000 to fund merit awards for outstanding
faculty and $50,000 for increasing (starting with the Spring semester)
the salaries we pay adjunct faculty.

Thanks to many individuals who helped bring about this first step in our
ongoing efforts to improve faculty and staff compensation. Special thanks
go to Julia Cronin and other members of the Employee Relations Committee
who worked with the Personnel Services Office to establish the criteria for
distribution of non-exempt staff adjustments.

I would also like to thank the Budget and Economic Status Committee of the
Faculty Council for its review and suggestions regarding the formula for
faculty equity adjustments.

Also, thanks to Dan Webb and the Personnel Services staff for their
assistance in implementing these adjustments, and a special expression of
gratitude to Bill Aiken, Debbie Parker, and Pat Smith of Business and
Finance for giving up part of their holiday weekend to come in and input the
necessary data into the payroll system.

According to the UT Compensation Plan as required by state law, all salary
increases are subject to review by University Wide Administration and
approval by the UT Board of Trustees.  While the U T administration is
supportive of the pay plan, we are aware that all raises are granted
contingent upon formal action of the Board of Trustees in their February
meeting.

I am pleased that these modest improvements in university salaries are
possible and that we can begin to fund them this month.

Bill Stacy