[Limitation on Wage Increase]

Pursuant to a congressional request, GAO determined whether the Department of the Treasury properly limited wage increases for craft employees of the Bureau of Engraving and Printing to 4 percent. The action was based on the pay increase limitation imposed on federal employees by the 1983 Appropriation Act. GAO noted that, although the Bureau's craft employees are excluded from coverage of the act, regulations require wage increases to be consistent with the public interest. GAO held that, since most federal employees are subject to the 4-percent wage increase, Treasury properly exercised its administrative discretion to set the craft employees' increase to 4 percent as well. Accordingly, the craft employees are not entitled to a pay adjustment in excess of the 4-percent increase set by Treasury.