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Washington, D.C.—The leader of the nation’s largest independent union of federal workers today applauded approval by the Senate of a 4.1 percent pay raise for federal civilian employees in 2003, emphasizing the importance of competitive pay in the government’s effort to recruit and retain the high quality employees needed to serve the public.

“In the serious competition with the private sector for the best employees,” said President Colleen M. Kelley of the National Treasury Employees Union (NTEU), “higher pay is one of the most effective tools the federal government has.”

At the same time, the NTEU leader expressed her disappointment that the Senate rejected language offered by Sen. Barbara Mikulski (D-MD) that would have prohibited the Bush administration from imposing arbitrary quotas on federal agencies to contract work to the private sector. She said it “puts at serious risk” the ability of the government to provide essential services to the American people.

The 4.1 percent raise is contained in the fiscal 2003 omnibus appropriations bill, and is one percentage point higher than the 3.1 percent raise that became effective earlier this month. The administration originally had proposed only a 2.6 percent pay raise for civilian employees this year, but was forced to allow the 3.1 percent figure to go into effect.

The NTEU president has been the leader in arguing for adequate resources for federal agencies—including funding, technology and personnel—as well as for continued civilian-military pay parity. The administration authorized a 4.1 percent pay raise for the military this year, but suggested that civilian employees should receive only 2.6 percent.

On the contracting out issue, President Kelley said “the Mikulski language would have ensured that agency sourcing decisions are based on how best to get the work done to meet the unique mission requirements of federal agencies.” She noted that the language of the Mikulski proposal was identical to bipartisan legislation adopted by the House in the last Congress by a 261 to 166 vote.

The NTEU president was sharply critical of Senate approval instead of an amendment introduced by Sen. Craig Thomas (R-WY) that effectively gutted language prohibiting agencies from using numeric quotas, targets or goals in efforts to privatize federal work.

As the largest independent federal union, NTEU represents more than 150,000 employees in 28 agencies and departments.