A Call for Change: It's Time for UPMC to Help Build Pittsburgh's Middle Class

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As the city and region’s largest employer, UPMC has incomparable influence on setting wage and benefit
standards for its own employees and for the city’s largest industry.

Yet even as UPMC continues to grow and prosper, it pays its largest group of workers – the service
workers who keep the hospitals running -- so little that they are in a constant state of financial
insecurity. In fact, many are living in poverty and rely on food stamps and other public supports just to
get by.

UPMC is helping to drive the vast income inequality now facing our country. With $1.3 billion in profits
the last three years – and more than $4 billion in reserves1 – UPMC paid 28 top executives and doctors
more than $1 million each last year, for a total of $48.8 million.2

1 UPMC Audited Consolidated Financial Statements for the Year Ended June 30, 2013, p. 2. available at
http://emma.msrb.org/EA562842-EA438547-EA834647.pdf

2 IRS Form 990 for UPMC Group, fiscal year ended June 30, 2012, pp. 308-13.
http://www.upmc.com/about/finances/irs-filings/Documents/UPMC-GROUP-MEDI....
Spreadsheet on file with authors.

Meanwhile, by UPMC’s own admission (disclosed in the report), thousands of its employees are paid less
than $12 an hour, a wage that does not support workers and their families, according to studies of the
actual cost of living in the Pittsburgh area.

Because of UPMC’s size and influence on the local economy, raising UPMC workers out of poverty will
have a much broader positive impact on the region’s economy.

Specifically, a base wage of $15 an hour for UPMC workers would result in:

1. $75 million more in the hands of UPMC service workers, which would significantly improve
their lives and pull many of them out of poverty;

2. $38.3 million and $53.4 million in new economic activity as a result of increased spending by
these workers;

3. At least 347 to 485 new jobs;

4. $500,000 in new revenue for the City of Pittsburgh and $1 million in new revenue for the
Pittsburgh Public Schools.

This analysis puts numbers to the facts that Pittsburghers already know well: when working people
have money in their pockets, we all thrive. That’s why people from every neighborhood across our city


are coming together to call on UPMC to improve wages. With better wages at UPMC, Pittsburgh will be
a healthier, more vibrant city for all of us now, and for our children in the future.

Working More for Less: The Crisis of the Shrinking Middle Class

Lately it seems that everyone is talking about the vast income gap between the very rich and the rest of
us. It’s not just Nobel Prize-winning economist Paul Krugman,3 who wrote last year in The New York
Times that rising inequality is “by far the most important single factor behind lagging middle-class
incomes.”4 Former Labor Secretary Robert Reich made a movie on the topic of inequality5 that won a
Special Jury Prize at the Sundance Film Festival.6 The Pope laments that “while the earnings of a minority
are growing exponentially, so too is the gap separating the majority from the prosperity enjoyed by
those happy few.”7 Christine Lagarde, the managing director of the International Monetary Fund, told
the Financial Times that “in far too many countries the benefits of growth are being enjoyed by far too
few people.”8 Elected leaders with political positions as varied as Republican Senator Marco Rubio9 and
President Barack Obama10 are affirming that economic inequality is a growing problem for our society.