Leader Of Largest Independent Federal Union Calls On President Clinton To Reward Workers With Higher Pay From Projected Record Surpluses

Press Release June 30, 1999

Washington, D.C.-- The head of the nation's largest independent union of federal employees today urged President Clinton "in the strongest possible terms" to use some of the looming record budget surpluses to begin to comply with a federal law designed to close the gap between public and private sector pay. The law has been largely ignored.

In a letter to Mr. Clinton, President Robert M. Tobias of the National Treasury Employees Union (NTEU) said that the "economic crisis" rationale used by the administration over the past seven years to keep from fulfilling the intention of the law "is now clearly and demonstrably wrong."

The Federal Employees Pay Comparability Act (FEPCA) calls for the closing, in stages over 10 years, of the gap between federal and private sector salaries. Since it became effective in 1994, however, Mr. Clinton has used a provision in it allowing him to declare an economic emergency to recommend pay raises for federal employees far short of those specified in FEPCA.

"In light of this week's announcement that the surging economy is expected to pump an additional trillion dollars into the federal budget over the next 15 years," Tobias wrote, "NTEU implores you to provide a federal pay raise consistent [with FEPCA] for the coming fiscal year."

Mr. Clinton has proposed a 4.4 percent raise for 2000; there are congressional proposals calling for parity between military and civilian pay raises, which would provide a raise of 4.8 percent. Both are far less than the raise that would be generated by following the phase?in schedule called for in FEPCA, Tobias said.

NTEU represents more than 155,000 employees in 21 agencies and departments. Tobias reminded Mr. Clinton that "federal employees and retirees, rather than being on the sidelines" while the federal budget was balanced and virtually unheard?of surpluses generated, "actively participated in helping bring about" the current financial bonanza.

Over the past decade, Tobias said, "federal employees have suffered inadequate pay increases, retirement contribution increases and reductions and delays in cost?of?living adjustments totaling more than $220 billion"? a level of sacrifice Tobias called "far greater" than that of any other group.

The union leader said that inadequate pay "is threatening the government's ability to hire and keep the high?quality employees" that are so necessary to provide the increasingly?complex services that people have a right to expect. This is particularly true, he said, in a strong economy such as the nation has been enjoying and which generates intense competition among employers for the best workers.

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