DeKalb County employees, who haven’t seen a raise in three years, could soon buy big-ticket items through a year of payroll deductions.
The Purchasing Power Program, approved Tuesday by the County Commission, does not charge interest on the sales of computers, washers or televisions. Instead, workers pay a higher rate for the items because there is no credit check on the sale.
“We can’t give them raises, we’ve raised their insurance, and if you can’t replace your washer and dryer, you don’t know what kind of trouble that is,” Commissioner Elaine Boyer said. “I think this is something for our employees.”
Supporters also say the new program won’t cost DeKalb anything and the county should receive 10 percent of the commission on the sales. No dollar amount was set on the rebate.
Detractors, though, worry the prices are higher than most retail stores and question whether the private firm is benefiting more than workers.
Actual prices of items were not available during the discussion, but because of the worries, the contract is only for a one-year trial period and can be canceled with two months’ notice.
“We are providing a service to people who cannot get credit, true, but at 20 percent markup with a company,” said Commissioner Kathie Gannon, who voted against the contract. “Most employees would probably be better off with layaway.”
Purchasing Power’s regional sales manager Gerald Kopydlowski said the company was established in Atlanta in 2001 and has since grown into a $300 million firm. Clients range from the Social Security Administration to Newell Rubbermaid.
Fulton County is the only metro government to offer the program. It does not have a tally of how many employees participate, but spokeswoman Jessica Corbitt-Dominguez said the county does allow the firm to directly market to workers via mailings and emails.
Fulton also doesn’t pay a fee to provide the program and views it as an employee discount benefit similar to discounts on sports tickets or AAA membership, she said.
DeKalb is signing a single-page contract with the company that is identical to Fulton’s deal. It allows employees to spend up to 7 percent of their gross salary on as many as three purchases in a year.
For workers making $40,000, that would limit borrowing to $2,800 a year. The contract also allows workers to return items within the first year and erase any remaining debt.
It was unclear Tuesday what costs DeKalb might incur by having its payroll department set up the deductions. The legal questions surrounding that prompted Commissioner Jeff Rader to abstain from the vote, saying he wanted more legal review.
State Rep. Fran Millar, the broker who helped arrange the deal, said he will give 10 percent of his commission to help cover county costs. Millar, a Dunwoody Republican, works for Wells Fargo.
“If this doesn’t work out, we’ll bring it back and end the contract,” Boyer said. “I look forward to trying to help our employees obtain things they might not otherwise be able to obtain.”
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