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Blue Collar Pay under the Federal Wage System
Federal
Blue Collar Pay
DoD
and the Department of Veterans Affairs (DVA) employ the largest numbers
of employees paid under the Federal Wage System (FWS), the prevailing
rate system for blue collar, or skilled craft and trade employees in the
federal government. Blue collar workers at both the DVA and the DoD play
an invaluable role in the missions of their agencies. Despite their
enormous contributions, federal blue collar workers have faced numerous
obstacles in their ability to obtain either the prevailing rates
promised to them by law, or even an equitable adjustment in their pay
that allows them to maintain or improve living standards for themselves
and their families.
Pay Caps
Undermine Market-Based Prevailing Rates
Although the law requires that blue collar workers be paid prevailing
private sector rates under the FWS, Congress and successive
administrations have ignored this mandate almost from the system’s
inception. The FWS stopped providing blue collar workers with
market-based prevailing rates in 1979, only seven years after the system
was established. The Bush Administration has followed its predecessors
by imposing pay caps, equivalent to the average GS increase, undermining
the ability of the FWS to operate as a prevailing wage system. The pay
caps have been put into effect through an annual provision in the
Transportation, Treasury and General Appropriations Bill. Even when the
government’s own FWS surveys demonstrate clearly that private sector
blue collar workers in various markets receive wages that are
substantially above the federal rates, the caps on the FWS system mean
no blue collar federal worker can ever have his wage adjusted by more
than the “average” GS pay raise.
FWS is
Hampered by Poor Data
One of
the key statutory principles underlying the FWS is that wages should be
determined by the market, described in the law as “prevailing levels of
pay for comparable levels of work in the private sector within a local
wage area.” To carry out this statutory principle, the Defense Civilian
Personnel Management Service (CPMS) conducts annual wage surveys to
collect wage data from private sector firms. The major reason these data
are so poor is that there is no legal mandate for local employers to
participate in the surveys. In fact, it is rare when a company chooses
to contribute information. Many businesses are reluctant to disclose
salary data or other confidential information about their employees, and
as a result the FWS rates are often based upon data from small, low-wage
firms that do not offer comparable job matches for those in the federal
workforce. Consequently, until Congress began to include blue collar
workers in the annual GS raise, they suffered for many of the past 25
years by receiving either no annual pay increase or an increase of only
one or two cents per hour.
Congress
Should Continue to Provide Federal Blue Collar Employees With a Minimum
Annual Pay Raise under Pay Parity
FWS
does not guarantee workers a general annual increase applied
across-the-board. White collar workers who are paid under the GS system,
however, are entitled to receive a minimum, annual increase. Under FEPCA,
GS federal workers receive both a nationwide ECI and a locality pay
raise. With the exception of those paid under special rate authority, GS
workers in the same city get the same annual salary adjustment. All
federal blue collar workers deserve to receive the same minimum annual
adjustment that white collar workers receive. Blue and white collar
workers work in the same localities, for the same employer and are parts
of the same labor market. The GS percentage pay increase for each pay
locality is therefore both relevant and appropriate for federal blue
collar employees.
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