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Congress, Freeze Workers’ Wages

Click to see original imageWhen Congress debates a pay raise for federal white collar workers in the weeks ahead, taxpayers as well as the employees will have an important stake in the issue. A lot of money is involved, and with annual federal deficits looming in the neighborhood of $210 billion, affordability ought to be a prime ooncem in this and other spending measures. The Federal Comparability Act of 1970 provides that the raise percentage keep government salaries at the same level for comparable work in the private sector. But the Administration differs sharply with the federal employees and certain govemment agencies on survey equations and conclusions. The American Federation of Govemment Employees claims workers are entitled to a raise of about 22 percent. On the other hand, President Reagan proposed, in his 1%-1 budget, the freezing of federal pay for a year. If studies by the U. S. Chamber of Commerce are correct, the President is fully justified in that position. The C. of C. asserted that, based on Department of Labor statistics, “pay for federal workers in 1982 was $4,000 to $6,000 – nearly 36 percent – above that of private employees.” it presented a chart showing federal employees as being paid better than private workers in every state except Alaska. Yet the Bureau of Labor Statistics, which conducts the annual study and makes recommendations, supports a 22 percent increase. The Administration is also being buffeted by several congressiona committees and govemment agencies. in its first two years the Reagan Administration granted increases far below BLS recommendations – 4.8 percent in 1981 and 4 percent in 1902. In the up coming deliberations, each 1 percent increase granted will total about $$0 million. The government would save more than $6 billion if it finds that no raise is justified this year. Proponents of a big 1984 raise largely base their case on BLS comparability studies which claim government pay lags 18 to 20 percent behind the scale in the private sector. These surveys are countered in Administration arguments asserting: – Private pay is overstated because the surveys cover only large emgloyers, which historica y pay higher salaries and wages. Small businesses, which have such a major role in the employment picture, are not represented. – Surveys fail to take into account higher govemmmt fringe benefits, particularly the generous pension system. in other words, “total compensation” is not measured. News dispatches say White House aides may urge President Reagan to ask for a delay in congressional pay raise action until April L This would be a wise step. An issue this complex and confusing should not he pushed through Congress in the limited time available this year. Investigation is needed to cut through biases and lobbyist propaganda to determine the true picture. In the longer view, a more dependable comparability study system is needed. The Administration has pointed out some weaknesses. Ani added question might be: Shou1dn’t Congress and the Executive Branch have a greater role instead of leaving the study to the bureaus racy itself? In the final analysis, the goal should be fairness and protection for taxpayers as well as employees, plus affordability which for too long has received too little consideration in federal budget-making.