Applicability of FY 1979 5.5 Percent Pay Increase Ceiling to Employees of Saint Lawrence Seaway Development Corporation

A wholly owned government corporation requested a decision on whether a 5.5-percent pay increase ceiling, legislated for fiscal year 1979, was applicable to prevailing rate employees. Corporation expenditures are made from user fees, which are considered to be appropriated funds subject to legislated ceilings and restrictions. However, the wage ceiling applies only to employees whose salary adjustments are based on wage surveys. Corporation employees negotiate wage adjustments and, therefore, are exempt by law from the ceiling restrictions.