Kelley, Cox Vow Strong Effort to Fight Outrageous Cuts to Federal Compensation

Press Release December 5, 2013

Washington, D.C.—Two federal union leaders used a joint media briefing today to underscore strongly not only the depth of their opposition to further cuts in federal employee compensation, but the frustration of their members at the continuing attacks directed at the federal workforce.

Presidents Colleen M. Kelley of the National Treasury Employees Union (NTEU) and J. David Cox Sr. of the American Federation of Government Employees (AFGE) represent the two largest unions of federal workers. President Kelley read a supportive statement from House Democratic Whip Steny Hoyer (D-Md.), a longtime, strong supporter of the federal workforce.

The two union leaders conducted the joint press conference today at NTEU headquarters aimed at expressing their determination to fight a potential proposal from a congressional budget conference committee that would raise federal employee pension contributions, but without a corresponding increase in annuity—thus making it effectively a pay cut.

President Kelley noted media reports suggesting budget conferees are nearing agreement, but that only a small portion of sequestration funding levels is likely to be replaced. She said this would mean that “federal employees would likely continue to face more unpaid furlough days and resulting loss of pay throughout 2014 and 2015.”

Moreover, she said, press reports of a looming budget deal also indicate that cuts to federal employee compensation and other negative impacts on federal and postal employees could account for between 25 and 50 percent of the entire amount of spending cuts under consideration to replace sequestration.

“That is outrageous and totally unacceptable,” she said.

In his statement, AFGE President Cox made clear his frustration with the ongoing attacks on federal workers. “We are drawing a line in the sand with the budget conferees. No further cuts to our retirement. No further cuts to our pay. No more furloughs and shutdowns,” he said.

The statement from Rep. Hoyer highlighted the unfairness of targeting federal employees.

“To continue targeting one group to carry the burden of fixing our deficits is absolutely unacceptable,” he said. “This denigration of our nation’s federal employees doesn’t just harm our ability to recruit and retain the top-notch workforce needed to serve the American people—it harms the American people who access the services of our government.”

The NTEU leader ran through a list of contributions the federal workforce already has made to deficit reduction and economic recovery—at more than $114 billion, an amount far greater than any other group in our society has been asked to sacrifice for these efforts. They include:

A three-year pay freeze, at a cost to federal workers of $99 billion;

Higher pension contributions from new federal hires, at a cost to them of $15 billion;

Unpaid furlough days for hundreds of thousands of federal workers due to sequestration;

An unnecessary 16-day government shutdown, resulting in delayed paychecks and forcing thousands of federal employees to take hardship withdrawals from their federal Thrift Savings Plan (TSP) accounts. A hardship withdrawal means an account holder cannot make any TSP contributions for six months—during which time they also lose the government match;

Agencies straining to meet their missions while short-staffed and underfunded, resulting in significantly higher employee workloads, greater pressure and more stress and anxiety.

“Their workloads have increased due to hiring freezes, and they just went through a morale-killing, 16-day government shutdown that delayed paychecks, even for those essential employees who were required to work without knowing when they would get paid,” Kelley said.

She added: “Requiring these employees to continue to bear such a disproportionate burden of deficit reduction, for deficits they did not cause, is grossly unfair—and we will do everything we can to prevent it.”

NTEU is the nation’s largest independent federal union, representing 150,000 employees in 31 agencies and departments.

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