B-106837, NOV. 6, 1957

B-106837: Nov 6, 1957

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YOUR VIEW IS THAT THE SETTLEMENT IGNORES THAT PART OF THE LANGUAGE OF SECTION 208 (A) (1) OF EXECUTIVE ORDER 10. THAT IS NOT THE CASE. THE PURPOSE AND INTENT OF THE ABOVE-QUOTED PROVISION OF SECTION 208 (A) (1) WAS CAREFULLY CONSIDERED. THE COST-OF-LIVING ALLOWANCES FOR EMPLOYEES SERVING IN THE TERRITORY OF HAWAII ARE DESIGNED AS ADDITIONAL COMPENSATION TO OFFSET THE LOCAL LIVING COSTS WHICH ARE DETERMINED TO BE SUBSTANTIALLY HIGHER THAN THE LIVING COSTS IN THE DISTRICT OF COLUMBIA. STATES THAT YOU WERE DETAILED TO WASHINGTON AND THAT YOU PERFORMED DUTIES CONCERNED WITH FUNCTIONS OF THE BUREAU OF SHIPS RATHER THAN DUTIES CONCERNED WITH YOUR REGULAR POSITION AT THE PEARL HARBOR NAVAL SHIPYARD.

B-106837, NOV. 6, 1957

TO MR. HUNG TONG CHANG:

YOUR LETTER OF SEPTEMBER 3, 1957, REQUESTS THAT WE REVIEW OUR CLAIMS DIVISION SETTLEMENT OF AUGUST 12, 1957, WHICH DISALLOWED YOUR CLAIM--- AS A LOCALLY RECRUITED EMPLOYEE--- FOR TERRITORIAL COST-OF-LIVING ALLOWANCE DURING THE PERIOD JANUARY 7 TO OCTOBER 25, 1956, INCIDENT TO THE DUTY YOU PERFORMED AS A SHIPYARD EMPLOYEE "ON LOAN" TO THE BUREAU OF SHIPS, WASHINGTON, D.C.

YOUR VIEW IS THAT THE SETTLEMENT IGNORES THAT PART OF THE LANGUAGE OF SECTION 208 (A) (1) OF EXECUTIVE ORDER 10,000, AS AMENDED, WHICH PROVIDES THAT IN THE CASE OF LOCAL RECRUITMENT, PAYMENT OF TERRITORIAL COST-OF- LIVING ALLOWANCES "SHALL BEGIN AND END AS OF THE BEGINNING AND END OF EMPLOYMENT, RESPECTIVELY.' HOWEVER, THAT IS NOT THE CASE. ON THE CONTRARY, THE PURPOSE AND INTENT OF THE ABOVE-QUOTED PROVISION OF SECTION 208 (A) (1) WAS CAREFULLY CONSIDERED.

FOR YOUR INFORMATION, THE COST-OF-LIVING ALLOWANCES FOR EMPLOYEES SERVING IN THE TERRITORY OF HAWAII ARE DESIGNED AS ADDITIONAL COMPENSATION TO OFFSET THE LOCAL LIVING COSTS WHICH ARE DETERMINED TO BE SUBSTANTIALLY HIGHER THAN THE LIVING COSTS IN THE DISTRICT OF COLUMBIA. FURTHER, THE LANGUAGE PRECEDING THE ABOVE-QUOTED PROVISION IN SECTION 208 (A) (1/--- TO THE EFFECT THAT PAYMENTS SHALL BEGIN AS OF THE DATE OF ARRIVAL AT THE POST ON ASSIGNMENT, TRANSFER, OR DETAIL AND SHALL STOP AS OF THE EMPLOYEE'S DEPARTURE FROM THE POST FOR SEPARATION, TRANSFER, OR DETAIL--- ALSO BECOMES APPLICABLE TO LOCALLY RECRUITED EMPLOYEES UPON THEIR ARRIVAL OR DEPARTURE FROM THE TERRITORY BY TRANSFER OR DETAIL. IN THAT REGARD, AN OFFICIAL REPORT FROM THE DEPARTMENT OF THE NAVY, OFFICE OF INDUSTRIAL RELATIONS, DATED MARCH 4, 1957, STATES THAT YOU WERE DETAILED TO WASHINGTON AND THAT YOU PERFORMED DUTIES CONCERNED WITH FUNCTIONS OF THE BUREAU OF SHIPS RATHER THAN DUTIES CONCERNED WITH YOUR REGULAR POSITION AT THE PEARL HARBOR NAVAL SHIPYARD.

YOU REFER TO THE PROVISIONS OF 5 U.S.C. 39, WHICH PROHIBITS THE DETAIL OF FIELD EMPLOYEES TO DUTY IN THE DISTRICT OF COLUMBIA, EXCEPT TEMPORARY DETAILS FOR DUTY CONNECTED WITH THEIR OFFICES. WHILE THE APPLICATION OF THAT STATUTE WOULD HAVE NO BEARING UPON YOUR CLAIM, YOU ARE ADVISED THAT THE PROVISIONS THEREOF HAVE BEEN INFORMALLY BROUGHT TO THE ATTENTION OF THE PROPER OFFICIALS OF THE DEPARTMENT OF THE NAVY. WE ARE INFORMED THAT THE PROVISIONS OF 5 U.S.C. 39 WERE INADVERTENTLY OVERLOOKED BY THE DEPARTMENT IN YOUR CASE, AS WELL AS OTHERS, BUT THAT STEPS ARE BEING TAKEN TO PREVENT VIOLATION OF THAT STATUTE IN THE FUTURE.

ACCORDINGLY, UPON REVIEW THE SETTLEMENT OF AUGUST 12, 1957, MUST BE AND IS SUSTAINED.