Kelley Applauds Senate OK of Funding Bill with Pay, Contracting, And IRS Customer Service Provisions; Calls for Conference Approval

Press Release October 21, 2005

Washington, D.C.—The head of the nation’s largest independent union of federal employees today applauded bipartisan Senate approval of the fiscal 2006 Transportation-Treasury Appropriations bill containing a number of provisions important to federal workers, including a 3.1 percent pay raise.

President Colleen M. Kelley of the National Treasury Employees Union (NTEU) called for a House-Senate conference committee to retain in the final bill language providing the 3.1 percent pay raise for civilian federal workers; contracting provisions that are more fair to federal workers; and language requiring an in-depth analysis by the Treasury Inspector General for Tax Administration (TIGTA) of proposed Internal Revenue Service customer service cutbacks.

The House of Representatives earlier this year approved its version of the funding bill with the 3.1 percent pay raise, similar language restricting the IRS from cutting customer service and language that would prohibit funds from being used to implement revised contracting rules.

“There is clear and strong bipartisan support for a 3.1 percent pay raise for civilian federal employees next year,” said President Kelley. “I urge the White House to respect the action taken by Congress and support the 3.1 percent pay raise for civilian federal employees.”

A 3.1 percent civilian pay raise in 2006 would match that proposed by the administration for members of the military; in its budget proposal, the administration sought only a 2.3 percent raise for federal civilian workers. NTEU supports the 3.1 percent raise in 2006 for both military and civilian employees of the federal government.

The Senate bill includes language advanced by Subcommittee Chairman Sen. Kit Bond (R-Mo.) and Sen. Barbara Mikulski (D-MD) requiring that federal employees be given a chance to compete for work through formation of an employee bid known as the “Most Efficient Organization,” or MEO.

The legislation also would prevent direct conversions to private companies of federal functions involving more than 10 positions; require contractors to save an agency at least 10 percent of what it costs the MEO to perform the activity, or $10 million; and would allow an agency to compete an activity current being performed by a contractor.

These, President Kelley said, would be steps in the right direction in ensuring that federal workers have the chance to demonstrate their ability to get the job done in the most effective and efficient manner.

The union leader noted that the language prohibiting service cuts at the IRS is a direct result of an NTEU campaign launched earlier this year in opposition to proposed cuts to TACs and call sites. The ‘No Taxpayer Left Behind’ campaign was a nationwide grassroots effort conducted by NTEU members and chapters aimed at educating elected officials and the public of the detrimental impact on local communities of the IRS plan.

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