President Neil L. Rudenstine has announced that he will form an ad hoc faculty committee to review the University's policies for employees and subcontractors.

"Harvard has a strong commitment to providing competitive wages and generous benefits," said Sally Zeckhauser, Vice President for Administration. "There are already administrative review procedures in place to guide the University's compensation and benefits policies. This ad hoc committee," says Zeckhauser, "will supplement those existing procedures by focusing on areas that are less well-defined, such as pay for subcontractors doing work for the University. The committee's work will not affect existing collective bargaining and contractual obligations."

One of the challenges for the committee, said Zeckhauser, will be the complexity of the issues in the context of Harvard's large, decentralized operating structure.

The concerns of Harvard students who are involved in the Living Wage Campaign will be only one of the many issues the committee will address. These students have asked the University to adopt a $10 per hour minimum wage, the same figure currently under discussion for employees and contractors of the City of Cambridge. Ordinances prescribing "living wages" that range from $6.50 to $10.75 have been passed in more than 30 cities across the country, including Boston which has established a living wage of $8.23. These ordinances apply to city workers and contractors. They are not applicable to private employers.

The vast majority of employees at Harvard are paid at rates well over the $10-per-hour threshold the students are suggesting, and many of those who earn less than that receive benefits that result in total compensation well above the $10 mark, said Zeckhauser.

"While discussions with the students are ongoing," said Zeckhauser, "the focus of the committee is on issues and considerations that are much broader than the question of a 'living wage,' such as: total compensation -- Harvard employees have generous benefits that supplement their wage rates; competing obligations -- Harvard must continually balance the increasing costs of its academic mission with its responsibility as an employer; and market considerations."

The President is expected to announce the members of the committee within the next two weeks.