B-126015, MAY 22, 1956

B-126015, MAY 22, 1956

TO HONORABLE FRANKLIN G. FLOATE, ADMINISTRATOR, GENERAL SERVICES ADMINISTRATION:

YOUR LETTER OF MARCH 29, 1956, REQUESTS RECONSIDERATION OF THE PROPOSALS AND PAY ADJUSTMENTS INVOLVED IN THE MATTER SUBMITTED BY YOUR PREDECESSOR ON NOVEMBER 3, 1955, AND WHICH WERE NOT APPROVED IN OUR LETTER OF FEBRUARY 9, 1956, B-126015. SUBSEQUENTLY, IN AN INFORMAL DISCUSSION OF THE PROBLEM YOUR REPRESENTATIVES EXPLAINED WHY THE PROPOSED PROCEDURES AND PAY ADJUSTMENTS ARE DESIRABLE, AS WELL AS REQUIRED, IN THE PUBLIC INTEREST.

YOU SAY THAT THE ELIMINATION OF IRREGULAR OR UNSCHEDULED RATES IN BETWEEN REGULAR WAGE BOARD STEP RATES, BY MOVING AN EMPLOYEE TO THE NEXT HIGHER STEP OF HIS WAGE BOARD GRADE, WAS CONSISTENT WITH ESTABLISHED PRECEDENT AND MATERIALLY SIMPLIFIED PERSONNEL, PAYROLL, AND OTHER ADMINISTRATIVE PROCEDURES. IT IS ALSO EXPLAINED THAT IN MOVING AN EMPLOYEE BETWEEN SHIFTS, AS FROM A NIGHT SHIFT TO A DAY SHIFT, IT IS A RECOGNIZED WAGE BOARD PRACTICE, AND IS IN THE PUBLIC INTEREST BECAUSE OF GREATER ADMINISTRATIVE SIMPLICITY AND ECONOMY, TO KEEP THE EMPLOYEE AT THE SAME WITHIN-GRADE STEP ON HIS NEW SHIFT.

OUR LETTER OF FEBRUARY 9 STATED THAT SECTION 114 OF PUBLIC LAW 763, 68 STAT. 1108, DOES NOT REQUIRE THE ADMINISTRATIVE AGENCIES TO SAVE AN EMPLOYEE'S NIGHT DIFFERENTIAL COMPENSATION WHEN HIS CLASSIFICATION ACT POSITION IS CONVERTED TO A PREVAILING WAGE POSITION. THE STATUTE SAVES ONLY HIS "EXISTING RATE OF BASIC COMPENSATION"--- HIS DAY RATE. THE CONVERSION REGULATION, 5 C.F.R. 25.503/C), LEAVES TO THE DISCRETION OF THE EMPLOYING AGENCY WHETHER IT SHALL ALSO SAVE THE NIGHT DIFFERENTIAL (AS ADDED TO THE CLASSIFICATION ACT'S DAY RATE), SO AS NOT TO REDUCE THE EMPLOYEE'S RATE OF "AGGREGATE COMPENSATION.' HOWEVER, AFTER SUCH CONVERSION IS PROPERLY ACCOMPLISHED, THE PROVISIONS IN SECTION 114, AND IN THE CITED REGULATION, EXPRESSLY DO NOT GOVERN THE SAVING OF WITHIN-GRADE STEPS. THE FACT THAT AT THE TIME OF A CONVERSION THE BASIC RATE OF SUCH WAGE STEP EQUALS OR EXCEEDS THE "SAVED COMPENSATION" RATE DOES NOT CONTROL THE EMPLOYEE'S WAGE RATE WHEN HE IS ASSIGNED TO ANOTHER WAGE SHIFT. THEREAFTER, AND PURSUANT TO SECTION 202/7) OF THE CLASSIFICATION ACT, THE BASIC WAGE RATE FOR EACH SHIFT (DAY OR NIGHT) "SHALL BE FIXED AND ADJUSTED FROM TIME TO TIME AS NEARLY AS IS CONSISTENT WITH THE PUBLIC INTEREST IN ACCORDANCE WITH PREVAILING RATES.' 68 STAT. 1106.

IT APPEARS THAT YOUR WAGE MANAGEMENT OFFICE MADE SURVEYS OF PRIVATE BUSINESSES AND FIRMS WHICH EMPLOY TRADES AND CRAFTS WHOSE DUTIES WERE MOST SIMILAR TO THE DUTIES PERFORMED BY THE CPC EMPLOYEES OF YOUR AGENCY. THAT REGARD WE UNDERSTAND THAT THE POLICIES AND FACTORS WHICH AFFECTED THE PAY CONVERSIONS AND THE WAGE RATES OF EMPLOYEES OF CERTAIN GOVERNMENT DEPARTMENTS AND OTHER AGENCIES ARE NOT THE SAME AS PREVAIL IN THE PUBLIC BUILDINGS SERVICES FOR WHICH YOUR AGENCY IS RESPONSIBLE. IN THE LETTER OF NOVEMBER 3, 1955, IT IS STATED YOU ADOPTED THE POLICY OF SAVING THE AGGREGATE PAY OF SUCH CONVERTED POSITIONS. PARAGRAPHS 3C/2), (3), AND (4) OF YOUR ORDER NO. 48 REVEAL THE ADMINISTRATIVE DETERMINATIONS WHICH HAVE BEEN MADE RELATIVE TO ADJUSTING INDIVIDUAL RATES UPON CONVERSION, AND THAT CONTINUATION OF CERTAIN "SAVED RATE" STEPS IS FOUND TO BE NECESSARY IN THE PUBLIC INTEREST.

WHILE THE REQUIREMENTS OF SECTION 114 APPEAR TO HAVE BEEN FULFILLED BY YOUR ADMINISTRATION, ANY AMOUNT ADMINISTRATIVELY ADDED TO THE "SAVED" BASIC RATE ESSENTIALLY MUST BE DETERMINED IN THE COURSE OF THE MANAGEMENT OF THE PREVAILING WAGE SYSTEM BY APPROPRIATE ACTION UNDER SECTION 202/7) OF THE CLASSIFICATION ACT, AS AMENDED, 68 STAT. 1106. IN VIEW OF THE FOREGOING, AND OF THE BROAD AUTHORITY WHICH SECTION 202/7) OF THE CLASSIFICATION ACT CONFERS UPON WAGE MANAGEMENT OFFICES, IT APPEARS WE ARE NOT REQUIRED NOW TO INTERPOSE FURTHER OBJECTION TO YOUR ADMINISTRATION'S PROPOSALS OR TO THE ACTION ALREADY TAKEN IN THE CIRCUMSTANCES.