Limitation on Wage Increase

Certain trade and craft employees of the Bureau of Engraving and Printing requested a decision from GAO as to whether they were entitled to a 6.8-percent wage increase effective June 18, 1979, or whether that wage increase was subject to the 5.5-percent pay limitation for fiscal year 1979, contained in an appropriation act and a Presidential Memorandum. The employees involved in the request are those trade and craft employees of the Bureau whose positions are comparable to positions at the Government Printing Office (GPO) for which the pay was set by negotiations under the Kiess Act. Historically, these employees of the Bureau have received the same wage increases as the comparable employees of GPO. Pursuant to the Kiess Act, GPO employees received a 6.8-percent wage adjustment effective June 18, 1979. However, the Bureau refused to allow a raise of more than 5.5 percent during fiscal year 1979. The employees argued that since the pay rates for the Bureau and GPO employees have always been identical, the Bureau was required to grant the full increase, particularly since these Bureau employees were excluded from pay setting provisions. GAO held that, although the pay increase limitation in the 1979 appropriation act did not apply to these Bureau employees, agency officials properly exercised discretion in limiting pay increases in the public interest in accordance with the President's anti-inflation program. The fact that similar employees of GPO received higher wage increases is not controlling since they were not covered by the appropriation act limitation or the President's determination. Accordingly, the specified employees of the Bureau are not entitled to a wage adjustment in excess of 5.5 percent during fiscal year 1979.