B-127739, OCTOBER 11, 1956, 36 COMP. GEN. 298

B-127739, OCTOBER 11, 1956, 36 COMP. GEN. 298

COMPENSATION - POSTAL SERVICE - FORMER GOVERNMENT SERVICE - APPOINTMENT AT RATES ABOVE FIRST SALARY STEP THE TERM "REGIONAL OR DISTRICT OFFICE" AS USED IN SECTION 501 OF THE POSTAL FIELD SERVICE COMPENSATION ACT OF 1955, RELATING TO INITIAL SALARY RATES IS NOT USED IN THE TECHNICAL SENSE AS APPLYING ONLY TO OFFICES OPERATING UNDER THE DIRECTION OF A REGIONAL OR DISTRICT MANAGER BUT REFERS TO REGIONAL AS DISTINGUISHED FROM LOCAL FUNCTIONS WHERE THE HANDLING OF MAIL IS INVOLVED SO THAT EMPLOYEES WITH PRIOR FEDERAL EMPLOYMENT MAY BE APPOINTED TO POST OFFICE POSITIONS WHERE HANDLING OF MAIL IS NOT INVOLVED AT RATES HIGHER THAN THE ENTRANCE STEP OF SALARY GRADE. B-127739, JULY 2, 1956, UNPUBLISHED, MODIFIED.

TO THE POSTMASTER GENERAL, OCTOBER 11, 1956:

REFERENCE IS MADE TO LETTER OF AUGUST 24, 1956, FILE 800, FROM THE ACTING POSTMASTER GENERAL, REQUESTING RECONSIDERATION OF OUR DECISION OF JULY 2, 1956, B-127739, AS TO THE EFFECT OF SECTION 501 OF THE POSTAL FIELD SERVICE COMPENSATION ACT OF 1955, PUBLIC LAW 68, 84TH CONGRESS, 69 STAT. 124, 39 U.S.C. 991. THAT SECTION PROVIDES AS FOLLOWS:

THE POSTMASTER GENERAL MAY APPOINT ANY PERSON WHO HAS BEEN EMPLOYED IN A CIVILIAN CAPACITY IN ANY BRANCH OF GOVERNMENT TO ANY POSITION IN A REGIONAL OR DISTRICT OFFICE OR TO ANY PROFESSIONAL OR SCIENTIFIC POSITION AND MAY PLACE SUCH PERSON IN ANY STEP IN THE SALARY LEVEL OF THE POSTAL FIELD SERVICE SCHEDULE WHICH IS LESS THAN ONE FULL STEP ABOVE THE HIGHEST BASIC SALARY WHICH SUCH PERSON RECEIVED FROM THE UNITED STATES.

OUR DECISION CONSTRUED THE SECTION AS AUTHORIZING APPOINTMENTS (OTHER THAN TO PROFESSIONAL OR SCIENTIFIC POSITIONS) ABOVE THE ENTRANCE STEP OF A SALARY GRADE, ONLY WHERE THE POSITION, TO WHICH THE APPOINTMENT IN THE POSTAL FIELD SERVICE WAS TO BE MADE, WAS ONE IN A REGIONAL OR DISTRICT OFFICE WHICH "OPERATES UNDER THE DIRECTION OR GUIDANCE OF EITHER A REGIONAL DIRECTOR OR DISTRICT MANAGER" AS THOSE TERMS ARE USED IN ORGANIZATIONAL CHARTS 814 AND 824 OF THE POSTAL MANUAL; AND THAT, AS A CONSEQUENCE, PRESENT OR FORMER EMPLOYEES OF THE GOVERNMENT MAY NOT BE APPOINTED TO MORE THAN THE ENTRANCE STEP OF SALARY GRADES OF NON- SCIENTIFIC AND NON-PROFESSIONAL POSITIONS IN POST OFFICE DEPARTMENT SUPPLY CENTERS, THE KANSAS CITY MONEY ORDER CENTER, AREA INTERNAL AUDIT OFFICES, AND THE POSTAL INSPECTION SERVICE.

THE LETTER OF THE ACTING POSTMASTER GENERAL REPORTS THAT THE DEPARTMENT HAD TAKEN THE VIEW THAT THE IMPLIED PROHIBITION OF SECTION 501 AGAINST APPOINTMENT ABOVE STEP 1 (TO OTHER THAN PROFESSIONAL AND SCIENTIFIC POSITIONS) WOULD NOT APPLY TO RECRUITMENT FROM OTHER AGENCIES OR TRANSFERS FROM THE DEPARTMENTAL SERVICE IN WASHINGTON FOR POSITIONS IN POSTAL FIELD SERVICE OFFICES THE FUNCTIONS OF WHICH WERE IN FACT REGIONAL IN CHARACTER RATHER THAN LOCAL. THE TERM LOCAL WAS UNDERSTOOD AS ENCOMPASSING POSITIONS PRIMARILY CONCERNED WITH HANDLING THE MAIL IN POST OFFICES, POSTAL TRANSPORTATION UNITS AND IMMEDIATELY ASSOCIATED LOCALLY SUPERVISED ACTIVITIES. IT IS REPORTED THAT AS A RESULT AND PRIOR TO OUR DECISION OF JULY 2, 1956, THE DEPARTMENT APPOINTED OR TRANSFERRED 27 EMPLOYEES TO SUCH FIELD POSITIONS AT RATES OF COMPENSATION IN EXCESS OF THE ENTRANCE STEP OF THEIR GRADES. IT IS STATED THAT SUCH RECRUITMENT WOULD NOT HAVE BEEN OTHERWISE POSSIBLE AND THAT THE GOOD MORALE, IF NOT THE ACTUAL SERVICES OF MOST OF THESE EMPLOYEES, WILL BE LOST IF THEIR SALARIES MUST BE REDUCED EVEN PROSPECTIVELY. THE ACTING POSTMASTER GENERAL ALSO REPORTS THAT LIMITING THE AUTHORITY OF SECTION 501 TO POSITIONS IN THE REGIONAL ORGANIZATION WILL INCREASE ADMINISTRATIVE DIFFICULTIES WITHOUT PROTECTING THE INTERESTS OF THE EMPLOYEES HANDLING MAIL FOR WHOSE BENEFIT THE PROVISION WAS PRIMARILY ADDED AND THAT IT WILL HAMPER FUTURE REORGANIZATIONS AND TEND TO MAKE FURTHER DECENTRALIZATION OF DEPARTMENTAL ACTIVITIES DIFFICULT.

RECOGNIZING THAT AT THE TIME THE CONGRESS CONSIDERED THE LEGISLATION THE DEPARTMENT'S REGIONALIZATION PROGRAM WAS NOT FULLY COMPLETED, THAT CHARTS 814 AND 824 OF THE POSTAL MANUAL WERE NOT ISSUED UNTIL AFTER THE HEARINGS ON THE PROVISION WERE COMPLETED AND THAT THE LANGUAGE MAY NOT HAVE BEEN USED IN THE SAME SENSE AS IN THOSE CHARTS, WE HAVE REEXAMINED THE LEGISLATIVE HISTORY OF SECTION 501 TO SEE WHAT WAS INTENDED BY THE WORDS "ANY POSITIONS IN THE REGIONAL OR DISTRICT OFFICES" IN SECTION 501.

THIS STUDY SHOWS, AS POINTED OUT IN THE DEPARTMENT'S LETTER OF APRIL 23, 1956, THAT THE PROVISION AS ORIGINALLY SUBMITTED READS AS FOLLOWS:

"THE POSTMASTER GENERAL SHALL APPOINT EACH EMPLOYEE NEW TO THE POSTAL FIELD SERVICE AT THE FIRST SALARY STEP ESTABLISHED FOR HIS POSITION, EXCEPT THAT HE MAY APPOINT ANY PERSON WHO HAS BEEN EMPLOYED IN A CIVILIAN CAPACITY IN ANY BRANCH OF THE GOVERNMENT TO THE STEP IN THE SALARY LEVEL OF THE POSTAL FIELD SERVICE SCHEDULE WHICH IS LESS THAN ONE FULL STEP ABOVE THE HIGHEST BASIC SALARY WHICH THE EMPLOYEE RECEIVED FROM THE UNITED STATES.'

THE HOUSE HEARINGS, PAGE 34, SHOW THAT THE DEPARTMENT REPRESENTATIVE TESTIFIED THAT THE PROVISION WAS NOT INTENDED TO APPLY TO POSITIONS IN POST OFFICES BUT TO POSITIONS IN THE REGIONAL AND DISTRICT OFFICES AS TO WHICH THE DEPARTMENT PREVIOUSLY WAS COMPELLED TO OBTAIN A NUMBER OF EMPLOYEES FROM OTHER BRANCHES OF THE GOVERNMENT SERVICES WHO WERE PAID UNDER THE CLASSIFICATION ACT OF 1949, AND WAS INTENDED TO GIVE THEM THE BENEFIT OF A COMPENSATION RATE TAKING INTO CONSIDERATION THE PREVIOUS SALARY IN THE OTHER GOVERNMENT AGENCY. IT WAS THERE STATED:

IF WE WERE NOT PERMITTED TO DO THAT, IT OBVIOUSLY WOULD MEAN THAT EMPLOYEES ENTERING THE DISTRICT OR REGIONAL OFFICES UNDER THE POSTAL FIELD SERVICE SCHEDULE FROM ANY OTHER AGENCY OF THE GOVERNMENT WOULD BE FORCED TO TAKE A CUT IN PAY, AND WOULD PROHIBIT US IN MOST CASES FROM RECRUITING THEM.

REPRESENTATIVES OF THE POSTAL EMPLOYEES UNION IN TESTIFYING BEFORE THE HOUSE COMMITTEE OPPOSED THE PROVISION AS ORIGINALLY PROPOSED ON THE GROUND THAT THE SECTION WOULD PERMIT EMPLOYEES FROM OUTSIDE OF THE POSTAL SERVICE TO BE BROUGHT INTO THE SERVICE AND PLACED AT A HIGHER THAN ENTRANCE LEVEL OF THE GRADE ON THE BASIS OF THE TRAINING RECEIVED IN ANOTHER AGENCY WHICH WAS NOT COMPARABLE WITH THAT OF EMPLOYEES WHO HAD LONG SERVICE IN POSTAL AND TRAINING WORK AND MIGHT PREVENT THE PROMOTION OF SUCH CAREER MEMBERS OF THE SERVICE AND BE SUBJECT TO OTHER ABUSES. (PAGE 151, HOUSE HEARINGS). THE CHAIRMAN OF THE HEARINGS CALLED ATTENTION OF ONE OF THESE UNION OFFICIALS TO A MODIFICATION PROPOSED BY AN OFFICIAL OF THE DEPARTMENT TO LIMIT THE PROPOSAL TO REGIONAL AND DISTRICT OFFICE POSITIONS AND PROFESSIONAL POSITIONS SO AS NOT TO AFFECT RANK AND FILE POSTAL EMPLOYEES (PAGE 177). ANOTHER UNION OFFICIAL IN TESTIFYING ON THE BILL (PAGE 225) CRITICIZED THE ORIGINALLY PROPOSED PROVISION STATING THAT THE LANGUAGE WITHOUT AMENDMENT MAY BE CONSTRUED TO ALLOW APPOINTMENTS IN ANY POSITION OF THE FIELD POSTAL SERVICE EVEN THOUGH INTENDED FOR APPLICATION ONLY TO DISTRICT AND REGIONAL OFFICES. IN THE COLLOQUY REPORTED ON PAGE 246 OF THE HEARINGS THE FOLLOWING STATEMENT BY REPRESENTATIVE FASCELL APPEARS SIGNIFICANT:

* * * THE DEPARTMENT HAS AGREED THAT THAT SECTION SHOULD BE DELIMITED TO TRANSFERS OF DEPARTMENTAL STAFF AND PROFESSIONAL PERSONNEL ONLY. * * *

IN HOUSE REPORT NO. 728 ON THE SECTION, THE COMMITTEE REPORTED AS FOLLOWS:

SECTION 501 AUTHORIZES THE POSTMASTER GENERAL TO APPOINT ANY INDIVIDUAL, WHO HAS BEEN EMPLOYED IN A CIVILIAN CAPACITY IN ANY BRANCH OF THE FEDERAL GOVERNMENT (INCLUDING THE MUNICIPAL GOVERNMENT OF THE DISTRICT OF COLUMBIA), TO A POSITION OF A CERTAIN TYPE IN THE POSTAL FIELD SERVICE. SUCH TYPE OF POSITION TO WHICH APPOINTMENTS MAY BE MADE IN THIS MANNER IS EITHER A POSITION IN A REGIONAL OR DISTRICT OFFICE OR A PROFESSIONAL OR SCIENTIFIC POSITION. THE POSTMASTER GENERAL MAY PLACE SUCH INDIVIDUAL SO APPOINTED IN ANY STEP IN THE SALARY LEVEL OF THE POSTAL FIELD SERVICE SCHEDULE WHICH IS LESS THAN ONE FULL STEP ABOVE THE HIGHEST RATE OF BASIC SALARY (EXCLUDING LONGEVITY COMPENSATION) WHICH SUCH INDIVIDUAL RECEIVED FROM THE FEDERAL GOVERNMENT OR THE MUNICIPAL GOVERNMENT OF THE DISTRICT OF COLUMBIA.

FOR EXAMPLE, IT IS NOT NECESSARY THAT AN INDIVIDUAL WHO HAS BEEN EMPLOYED IN A CIVILIAN CAPACITY BY THE FEDERAL GOVERNMENT OR THE MUNICIPAL GOVERNMENT OF THE DISTRICT OF COLUMBIA BE ASSIGNED TO THE ENTRANCE STEP OF THE SALARY LEVEL OF THE POSITION IN THE POSTAL FIELD SERVICE TO WHICH HE IS APPOINTED IF SUCH POSITION IS IN A REGIONAL OR DISTRICT OFFICE OR IS OF A PROFESSIONAL OR SCIENTIFIC CHARACTER. HE MAY, INSTEAD, BE ASSIGNED TO THAT STEP IN THE SALARY LEVEL OF HIS NEW POSITION WHICH IS LESS THAN ONE FULL STEP ABOVE THE HIGHEST BASIC SALARY HE RECEIVED FROM THE FEDERAL GOVERNMENT OR THE MUNICIPAL GOVERNMENT OF THE DISTRICT OF COLUMBIA.

IF AN INDIVIDUAL IN THE FIRST STEP OF GRADE 11 OF THE GENERAL SCHEDULE OF THE CLASSIFICATION ACT OF 1949, AT A RATE OF BASIC SALARY OF $5,940 IS TO BE APPOINTED TO A POSITION IN THE POSTAL FIELD SERVICE IN SALARY LEVEL PFS -9 OF THE POSTAL FIELD SERVICE SCHEDULE, SUCH INDIVIDUAL MAY BE ASSIGNED TO STEP 5 OF THE SALARY LEVEL PFS-9, AT A BASIC SALARY OF $6,020, IN THE POSTAL FIELD SERVICE SCHEDULE.

EXCEPT FOR APPOINTMENTS TO POSITIONS MENTIONED IN SECTION 501, THE PRESENT PRACTICE OF THE POST OFFICE DEPARTMENT OF APPOINTING EACH EMPLOYEE NEW TO THE POSTAL FIELD SERVICE TO THE LOWEST STEP OF THE SALARY LEVEL FOR THE POSITION TO WHICH HE IS APPOINTED, AND THE PRESENT PRACTICE WITH RESPECT TO REINSTATEMENTS TO THE POSTAL SERVICE, IS EXPECTED TO BE CONTINUED.

IT APPEARS FROM THE HISTORY OF THE PROVISION SET OUT ABOVE, THAT THE INTENT OF THE AMENDMENTS TO THE SECTION WAS TO PROTECT THE SENIORITY AND PROMOTIONAL OPPORTUNITIES OF THE RANK AND FILE LOCAL EMPLOYEES ENGAGED IN HANDLING THE MAIL BUT TO PERMIT THE HIRING THEREUNDER OF EMPLOYEES WITH PREVIOUS TRAINING IN OTHER DEPARTMENTS OR THE POST OFFICE DEPARTMENT IN WASHINGTON IN PROFESSIONAL, SCIENTIFIC POSITIONS AND ADMINISTRATIVE AND CLERICAL POSITIONS IN THE REGIONAL AND DISTRICT OFFICES NOT INVOLVED IN MAIL HANDLING. ALSO, SINCE THE DEPARTMENT'S REGIONALIZATION PROGRAM WAS NOT COMPLETED UNTIL AFTER THE HEARINGS WERE HELD AND THE CHARTS 814 AND 824 IN THE POSTAL MANUAL HAD NOT THEN BEEN ISSUED AND NO WHERE DOES IT APPEAR THAT THE CONGRESSIONAL COMMITTEES WERE ADVISED IN CONSIDERING THE PROVISION OF THE TECHNICAL TERMINOLOGY USED IN CLASSIFYING OFFICES THEREUNDER, IT APPEARS THAT THE WORDS "REGIONAL AND DISTRICT OFFICES" AS USED IN SECTION 501 WERE NOT USED IN THE TECHNICAL SENSE OUT IN CHARTS 814 AND 824 NOR AS APPLYING ONLY TO OFFICES OPERATING UNDER THE DIRECTION OR GUIDANCE OF EITHER A REGIONAL DIRECTOR OR A DISTRICT MANAGER BUT RATHER GENERICALLY AS REFERRING TO OFFICES THE FUNCTIONS OF WHICH ARE REGIONAL RATHER THAN LOCAL AND DO NOT INVOLVE THE ACTUAL HANDLING OF THE MAIL.

POSITIONS IN THE POST OFFICE DEPARTMENT SUPPLY CENTERS, THE KANSAS CITY MONEY ORDER CENTER, AREA INTERNAL AUDIT OFFICES, WHICH WERE, UNTIL THE EFFECTIVE DATE OF PUBLIC LAW 68, PAID UNDER THE CLASSIFICATION ACT OF 1949, 5 U.S.C. 1113 (B/--- NOT UNDER LAWS APPLICABLE TO THE POSTAL FIELD SERVICE--- AND POSITIONS IN THE POSTAL INSPECTION SERVICE WHICH ARE REGIONALIZED, NOT LOCAL, ALL OF WHICH DO NOT INVOLVE ACTUAL HANDLING OF THE MAIL, APPEAR TO BE POSITIONS IN "REGIONAL OR DISTRICT OFFICES" WITHIN THE MEANING OF THOSE TERMS IN SECTION 501 OF THE ACT.

OUR DECISION OF JULY 2, 1956, IS MODIFIED ACCORDINGLY, AND WE WILL INTERPOSE NO OBJECTION TO THE USE OF THE AUTHORITY GRANTED IN THAT SECTION IN HIRING EMPLOYEES WITH FORMER GOVERNMENT SERVICE FOR POSITIONS IN SUCH CENTERS, OFFICE OR SERVICE AT RATES ABOVE THE ENTRANCE STEP OF SALARY GRADES TO WHICH THEY ARE APPOINTED PROVIDED OF COURSE THAT THE RATES AT WHICH THEY ARE HIRED ARE LESS THAN ONE FULL STEP ABOVE THE HIGHEST BASIC SALARY (EXCLUDING LONGEVITY COMPENSATION) WHICH THE EMPLOYEE RECEIVED FROM THE UNITED STATES IN HIS FORMER EMPLOYMENT.