Federal Pay€¦ · Federal Pay FAST FACTS • It’s time to restore the purchasing power of federal wages and salaries. Since 2011, federal pay has gone up by just 11.4 percent,

Federal Pay FAST FACTS•It’stimetorestorethepurchasingpoweroffederalwagesandsalaries.Since2011,federalpayhasgoneupbyjust11.4percent,leavingtheinflation-adjustedvalueoffederalwagesandsalaries4.5%lowerthanitwaseightyearsago.AFGEisaskingCongressforafederalpayraiseof3.5%for2021asameansofrestoringfederalemployeelivingstandards.

•BoththeGS(salaried)andtheFederalWageSystem(hourly)paysystemsaresupposedtoadheretoastandardof“marketcomparability”inpay-setting.Federalpayissubstantiallybelowmarketratesandshouldbeadjustedtomakethegovernmentacompetitiveemployer.

•TheboundariesoflocalpayareasshouldbeunifiedfortheGeneralScheduleandFederalWageSystems.Payareaboundariesforbothsystemsshouldbegovernedbycommutingrates,whichisthedefinitionofalocallabormarket.Retainingoldboundariesforhourlyworkerscreatesenormousinequitiesbetweenthetwopaysystems.

•Theadministrationandsomelawmakershavesuggestedcreationofanewwhitecollarpaysystemthatallowsmanagersandpoliticalappointeestodecidewhetherandbyhowmuchtoadjusteachfederalemployee’spay.Theywouldalsoreallocatepayfromthebottomofthescaleinordertofundraisesatthetop.

•Suchanapproachinevitablyresultsinpoliticizationanddiscriminationinpay,justasitdidduringtheGeorgeW.BusheraNSPSexperimentatDoD.OnecrucialvirtueoftheGSsystemisitsobjectivity.Salariesaresetforparticularjobs,notindividuals,sothereislittlediscriminationinpaybasedonrace,gender,orothernon-meritfactors.

•Theonlysystemicproblemwithfederalpaycomesfromafailuretofundmarketrates.So-calledpayforperformanceschemesarejustTrojanhorsesforredistributionofpayrollfromthebottomtothetopandopenthedoortodiscriminationandpoliticizationinpay.

AttackingtheCivilServiceFAST FACTS•Underthesloganof“employeeaccountability”politiciansareinarushtounderminethecivilservicebyreducingoreliminatingdueprocessandunionrepresentationforfederalemployees.

•Thepushtounderminethecivilserviceispresentedasanefforttoridthegovernmentof“poorperformers,”or“wrongdoers.”Itsrhetoricimpliesthatcurrentproceduresjustprotectlaziness,criminality,andincompetence.Itpretendstobeabout“goodgovernment”whendestroyingthecivilservicemakes“goodgovernment”impossible.

•Transparency,accountability,andprotectionfrompoliticizationaretherationalesforcivilserviceprotections.Iftheseprotectionsareweakened,governmentwillbelesstransparent,lessaccountable,andmoreofaspoilssystemthanmeritsystem.

•The115thCongresspassedabillthatdrasticallyalteredtherighttoappealadverseactionsandterminationsatVA.ItsupersededourCBAs,shortenedtimeframesandloweredevidentiarystandardsformanagers.ADoDpilotlimitsallattorneysandcybersecurityworkerstotermsoftwotoeightyears.Non-renewalofatermisafiringwithnoappealright,noaccountabilityforcorruptpersonnelpractices.

•Billsthattargetjustoneagencyoronegroupoffederalemployeeswithinanagency(evenSES)donotmeanthatcivilserviceprotectionsforeveryoneelsearesafe.Ineachcase,thebillisafirststeptowardunderminingtheapoliticalcivilserviceandexpandingprivatizationofgovernmentwork.

•Thecampaignagainstthecivilservice,disguisedasacampaignagainstbadfederalemployees,attacksontheonlysystemthatguaranteesaccountabilityfromfederalagencies.Ourcivilservicesystemprotectsbothitsemployeesandthepublicfromtheeffectsofpoliticization,corruption,andcronyism.Theselegalstandardsmustbedefendedfromthosewhowoulddestroyourgovernment’sabilitytofunctionaspartofthewaragainstfederalworkerrights.

CripplingtheUnionFAST FACTS•Lawmakerswhosegoalistogetridofworkplacedueprocess,cutpay,andreduceoreliminatehealthinsuranceandretirementbenefitsforfederalworkers,orjustprivatizeeverythingmustfirsteliminatethebiggestobstacleintheirpath:federalemployeeunions.

•ThefastestandmosteffectivewaytopreventourunionfromprotectingfederalemployeeseitheronthejoboronCapitolHillistoendofficialtimeforunionrepresentativesandprohibitthedeductionofunionduesfromemployees’paychecks.

•Currentlawprovidesofficialtimetofederalemployeeunionrepresentativesinordertocarryouttheirdutyoffairrepresentation.Inthefederalgovernment,whenemployeesvoteforunionrepresentation,theunionhasalegalobligationtoproviderepresentationtoeverysinglememberoftheworkunit.Butunionmembershipisentirelyvoluntary,andoverhalfofthosewhoenjoythebenefitsoftheunionchoosenottopaydues.

•Thegovernmentallowselectedrepresentativestouse“officialtime,”paidattheelectedrepresentative’sregularsalaryrate,toproviderepresentationalservices.Ifnotforofficialtime,itwouldbeimpossiblefortheuniontocarryoutitslegaldutiestoalltheworkersitrepresents.

•Theonlyfederalemployeeswhopayunionduesarethosewhochoosetodoso.Eachfederalemployeeinaworkunitthathasvotedforunionrepresentationchooseswhethertojointheunionornot.Thosewhochoosetojoinandpayduesauthorizeanelectronicpaymentstraightfromtheirpaycheck,justliketheydofortheTSP,theCFC,FEHBP,FSAs,orsupplementalvisionanddentalplans.

•Theefforttoprohibitjustoneitemfromthelistofpermissibledeductions,uniondues,isunion-bustinginitscrudestform.Endingofficialtimeand/orduesdeductionwouldspelltheendofworkplacerepresentation,dueprocessandfederalunions’abilitytoprotecttheirmembers’jobs,payandbenefits.

FederalRetirementFAST FACTS•TheadministrationandsomeinCongressarethreateningtoforceFERSemployeestopay7%ofsalaryfortheirannuities.Thisamountstoasubstantialpaycut.Intheprivatesector,96%ofworkerswithtraditionalpensionspaynothingforthisbenefit.

•EliminationoftheFERSsupplementhasbeenproposedbytheTrumpadministration,ashastheeliminationofFERSCOLAsreductionsinCSRSCOLAs,aswellasachangeinthebasisforannuitycalculationfromhigh3tohigh5.ThesechangeswouldapplytoallcurrentFERSemployees.

•TherearealreadythreetiersundertheFederalEmployeesRetirementSystem(FERS).TierOneisforthosewhoenteredthesystemfromitsinceptionin1986through2012.Theypay0.8%ofsalaryfortheirpension,alongwith6.2%ofsalaryforSocialSecurity.Thistotals7%ofsalary,thesameamountfederalemployeespaidfortheCivilServiceRetirementSystem(CSRS)thatFERSreplaced.

•TierTwoisforthosewhoenteredthesystemincalendaryear2013.Theypay3.1%ofsalaryfortheirpension,alongwith6.2%ofsalaryforSocialSecurity.Thiscutoffset$15billionfortheextensionofunemploymentinsurancebenefits.Althoughthiswasatemporaryexpense,itwasapermanentcuttotheseemployees’compensation.

•TierThreeisforthosewhoenteredthesystemin2014.Theypay4.4%ofsalaryfortheirpensionand6.2%ofsalaryforSocialSecurity,3.6percentagepointsmorethanTierOneand1.3percentagepointsmorethanTierTwo.Asunjustifiedastheseincreasesare,HouseRepublicanshaveproposedhavingnoFERSannuityatallfornewhires.

•Thisracetothebottomonretirementbenefitsmustendnow.TheefforttoeliminatetheFERSannuityfornewhiresmustberesisted.Thecutstothosehiredin2013,2014andbeyondmustberepealed.Thefederalgovernmentshouldneitherfollownoracceleratedeclininglivingstandardsforthisgenerationorthenext.

Sourcing FAST FACTS•Agenciesshouldmanagetheirin-houseworkforcesbybudgetsandworkloads—ratherthanarbitraryconstraints,likecaps,freezes,andcuts.Ifagencieshaveworktodoandmoneytopayforthatwork,thentheyshouldbeallowedtousefederalemployeesifthatwouldbeconsistentwithlaw,cost,andpolicy.

•Hiringfreezesand/orarbitraryconstraintsonthenumberofcivilianfederalemployeesforcemanagerstousecontractors,evenwhentheycostmoreortheworkisinherentlygovernmental.

•Arbitrarycutsinthesizeofthein-houseworkforce,e.g.,cuttingthenumberoffederalemployeesbyone-third,areirrationalandgutless.

•IftheCongresswantstoreducethecostofthefederalgovernment’soverallworkforce,itshoulddecidewhichfunctionsshouldnolongerbeperformedandthenreducetherelevantin-houseandcontractorworkforcesaccordingly.

•ImposingahiringfreezeorFTEcapsonfederalemployees,theleastexpensiveworkforcethegovernmentemploys,shouldnottranslateintohiringadditionalcontractors.Replacingcost-effectivefederalemployeeswithexpensivecontractorsisawasteoftaxpayerdollars.

•Itiswidelyacknowledgedthatcontractorscostmore,particularlyforlong-termservices;consequently,thequickestwayfortheCongresstoreducethecostofthefederalgovernment’soverallworkforceistosubstitutemorecost-efficientfederalemployees.Butcantheexecutiveandlegislativebranchessquarethatfactwiththeirmaniaforimposingarbitraryconstraintsonthesizeofin-houseworkforces?