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NTEU President Kelley Welcomes 3.7 Percent Federal Pay Raise, But Says It "Falls Short" Of What Is Needed

Press Release December 1, 2000

Washington, D.C.-The head of the nation's largest independent union of federal workers today welcomed approval of a 3.7 percent federal pay increase for 2001, but said that it "falls short of what is needed" to make the government "truly competitive" with the private sector in hiring talented employees.

"We must realize that in the long run," said President Colleen M. Kelley of the National Treasury Employees Union (NTEU), "higher pay for federal employees, both current and prospective, is a necessary investment in the future of America." NTEU represents some 155,000 employees in 25 agencies and departments.

Kelley is a member of the Federal Salary Council, which advises the administration on matters affecting compensation for federal employees. She has been an outspoken advocate of stepsCincluding higher payCto assist federal agencies in their recruiting and retention efforts.

She joined other members of the Council in recommending that one percentage point of the 3.7 percent pay raise go into locality pay as part of the government's continuing effort to compensate for regional cost differentials.

The strength of the economy over an extended period of time, Kelley said, highlights the importance of full implementation of the Federal Employees Pay Comparability Act (FEPCA), a law that became effective in 1994 and established locality pay. The thrust of FEPCA was to close, in stages over 10 years, the public-private pay gap-but the legislation has never been implemented as intended.

Kelley noted that a number of bodies, including the Salary Council, Office of Personnel Management (OPM), Bureau of Labor Statistics (BLS), other agencies and Congress, all have been reviewing issues surrounding federal pay and benefits.

"We need to move promptly toward a system that pays federal workers in a fair and competitive manner," Kelley said. "Only then will be able to say that we have done the most we could to attract to public service the best, most dedicated people availableCand that will serve our nation well."

Contact: NTEU-PR@NTEU.org, 202-572-5500