Gov. Herbert proposes pay raise for state liquor store workers

Gov. Herbert proposes pay raise for state liquor store workers

(Kristin Murphy/Deseret News, File Photo)


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SALT LAKE CITY — The governor's office wants to give state liquor store employees a pay raise to boost flagging morale and reduce turnover after its latest review of the Utah Department of Alcoholic Beverage Control.

In addition, the Governor's Office of Management and Budget aims to lessen incidences of product running out of stock and enhance selection to better meet customer demands.

The recommendations were among several state officials revealed Tuesday to improve management practices, retail service and the work environment at liquor stores after receiving a slew of employee and customer complaints this year.

The management and budget office reviewed all 44 state-controlled liquor outlets and interviewed 120 employees before coming up with the proposals.

Gov. Gary Herbert intends to include in his budget proposal due out next week money for raises, more staff hours and department operations. He also wants to restore $500,000 that was cut from the DABC budget last year, said Kristen Cox, management and budget director.

Current and former workers, and Sen. Karen Mayne, D-West Valley City, have criticized DABC the past few months for what they see as poor treatment of employees and low pay. A retail sales clerk starts at about $9 an hour.

Managers were having to oversee two or three stores, taking them away from assistant managers and clerks, who were often new, for long periods of time.

"We need stability in this retail store. It's run amok for so long," Mayne said Tuesday.

A longtime fair labor advocate, Mayne attended an alcohol commission meeting earlier this year where she blasted the agency's administrators and accused them of bullying and spying.

"I appreciate this," she said of the governor's efforts. "But they could have saved time and energy because I told them months ago exactly what the issue was and exactly what the problem was and exactly what the answer was."

The governor's management and budget office also recommends:

  • Increasing staff hours at liquor stores.
  • Improving collaboration between management and staff.
  • Systematically reducing and replacing nonselling items with new products.
  • More flexibility for store managers to decide what goes on shelves.
  • Better opportunity for customer feedback.

Mayne unveiled legislation this summer that would allow the governor to appoint an advocate for employees, alcohol permit holders and others to resolve problems with DABC related to services and responsiveness.

She also proposed a bill that would adjust the DABC budget to better fund security at stores, create a larger full-time employee base, offer more training and increase worker salaries.

The Legislature needs to take steps to make sure the department doesn't change direction every time there's a new governor or executive director or board, Mayne said.

But DABC Executive Director Sal Petilos said, "operationally, it doesn't need a legislative fix." The review process, he said, has created a long-term mechanism for making changes.

"As we respond to the environment and we make changes to the way we do things, what is essential is getting that input from the stores and customers," Petilos said.

Despite the problems at DABC, liquor sales in Utah continue to grow, increasing 35 percent from 2011 to 2015. Net profits went up 56 percent during that time, Petilos said. Per capita alcohol consumption, which has increased every year over the past decade, was 2.76 gallons in 2015, according to the department.

"The demand is there," Petilos said. "The critical thing for the department is meeting that demand."

Although some critics have called for privatization of alcohol sales, Cox said it would lead to a tax increase and a huge price markup on liquor. Last year, alcohol sales contributed $157 million to the school lunch program, public safety, sales tax and the state's general fund.

"If somebody's got a plan to do that, there's got to be a way to replace those revenues," she said. "There's cost to that. People just need to know that going into it."

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