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B-126015, FEB. 9, 1956

B-126015 Feb 09, 1956
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GENERAL SERVICES ADMINISTRATION: REFERENCE IS MADE TO LETTER DATED NOVEMBER 3. THE LETTER STATES THAT THE PRESCRIBED PROCEDURES ARE BASED ON ESTABLISHED WAGE ADMINISTRATION PRACTICES. TO WHICH WAS ATTACHED THE COMMISSION'S BASIC REGULATION FOR MAKING PAY COMPUTATIONS INCIDENT TO SUCH CONVERSIONS. CERTAIN EXAMPLES ARE GIVEN IN THE LETTER CONCERNING THE AGGREGATE PAY PROPOSED TO BE SAVED IN SUCH CASES WHERE A CLASSIFICATION ACT RATE IS CONVERTED TO A WAGE BOARD RATE. THE LETTER STATES THAT IN MOVING AN EMPLOYEE AMONG THE THREE 8-HOUR SHIFTS OF THE DAY IT WOULD BE MOST EQUITABLE (REGARDLESS OF THE SHIFT TO WHICH HE IS REASSIGNED AFTER THE DATE OF CONVERSION) TO CONTINUE HIM AT THE SAME STEP IN HIS WAGE BOARD GRADE.

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B-126015, FEB. 9, 1956

TO HONORABLE EDMUND F. MANSURE, ADMINISTRATOR, GENERAL SERVICES ADMINISTRATION:

REFERENCE IS MADE TO LETTER DATED NOVEMBER 3, 1955, AND ENCLOSURES, FROM THE ASSISTANT ADMINISTRATOR OF GENERAL SERVICES, REQUESTING OUR VIEWS REGARDING THE PROPRIETY OF THE PROCEDURES ADOPTED BY YOUR ADMINISTRATION IN EFFECTING CONVERSIONS FROM CPC COMPENSATION SCHEDULES UNDER THE CLASSIFICATION ACT OF 1949, AS AMENDED, TO WAGE BOARD COMPENSATION SCHEDULES PURSUANT TO PUBLIC LAW 763, APPROVED SEPTEMBER 1, 1954, 68 STAT. 1105. SUCH PROCEDURES SUUPLEMENT CERTAIN PROVISIONS OF GENERAL SERVICES ADMINISTRATION MANAGEMENT ORDER NO. 48 DATED JULY 5, 1955, AS AMENDED ON JULY 25 AND AUGUST 31, 1955, BY TELEGRAPHIC INSTRUCTIONS TO YOUR REGIONAL PERSONNEL OFFICERS. THE EFFECT OF THESE PROCEDURES AND INSTRUCTIONS ALSO WOULD AMEND OR AMPLIFY SECTIONS 303.04 AND 303.07 CONTAINED IN PART 3,"PAY ADMINISTRATION," OF YOUR REGULATIONS ISSUED OCTOBER 5, 1954, VOLUME 2.

THE LETTER STATES THAT THE PRESCRIBED PROCEDURES ARE BASED ON ESTABLISHED WAGE ADMINISTRATION PRACTICES, AND UPON OUR DECISION DATED JUNE 28, 1955, B-124070, 34 COMP. GEN. 708, BUT THAT, SUBSEQUENT TO YOUR CONVERSION OF THE INVOLVED POSITIONS, THE CIVIL SERVICE COMMISSION ON SEPTEMBER 7, 1955, ISSUED SUPPLEMENT NO. 1 TO ITS DEPARTMENTAL CIRCULAR NO. 770, TO WHICH WAS ATTACHED THE COMMISSION'S BASIC REGULATION FOR MAKING PAY COMPUTATIONS INCIDENT TO SUCH CONVERSIONS. HOWEVER, AS STATED IN THE LETTER, THE COMMISSION'S REGULATION (5 C.F.R. 25.503) INCLUDES AS EXAMPLE OF PAY COMPUTATION WHICH DIFFERS IN SOME RESPECTS FROM THE METHOD FOLLOWED BY THE GENERAL SERVICES ADMINISTRATION IN ITS CONVERSION OF SOME 14,000 EMPLOYEES FROM THE CPC SCHEDULE OF THE CLASSIFICATION ACT TO THE WAGE BOARD OR PREVAILING WAGE RATE SYSTEM.

CERTAIN EXAMPLES ARE GIVEN IN THE LETTER CONCERNING THE AGGREGATE PAY PROPOSED TO BE SAVED IN SUCH CASES WHERE A CLASSIFICATION ACT RATE IS CONVERTED TO A WAGE BOARD RATE. PARTICULARLY, THE LETTER STATES THAT IN MOVING AN EMPLOYEE AMONG THE THREE 8-HOUR SHIFTS OF THE DAY IT WOULD BE MOST EQUITABLE (REGARDLESS OF THE SHIFT TO WHICH HE IS REASSIGNED AFTER THE DATE OF CONVERSION) TO CONTINUE HIM AT THE SAME STEP IN HIS WAGE BOARD GRADE.

THE STATEMENTS REGARDING THE ADMINISTRATIVE REGULATIONS AND THE QUESTIONS POSED IN YOUR LETTER HAVE BEEN CAREFULLY CONSIDERED IN LIGHT OF THE PURPOSE OF THE LAW AND THE CIVIL SERVICE REGULATIONS INVOLVED. SOME OF THE EXAMPLES GIVEN IN YOUR LETTER OF PROPOSED PAY ADJUSTMENTS IN EFFECT WOULD TREAT THE "AGGREGATE" NIGHT RATE OF THE CLASSIFICATION ACT POSITIONS AS THOUGH IT WERE THE "BASIC" DAY RATE OF SUCH POSITION IN CONVERTING THE POSITION TO THE RESPECTIVE PREVAILING WAGE GRADE. SUCH PROPOSALS IN THE LETTER AND THE PROVISIONS OF THE ADMINISTRATIVE REGULATIONS WHICH PURPORT TO AUTHORIZE SUCH ADJUSTMENTS APPEAR IN CONFLICT WITH SUPPLEMENT 1 OF DEPARTMENTAL CIRCULAR NO. 770.

AS A MATTER OF LAW, THE CIVIL SERVICE CIRCULAR (5 C.F.R. 25.503)PRIMARILY PRESCRIBES THE MINIMUM COMPENSATION WHICH IS REQUIRED TO BE SAVED BY VIRTUE OF SECTION 114 OF PUBLIC LAW 763, NAMELY, THE BASIC DAY RATE OF THE CLASSIFIED POSITION AT THE TIME IT IS CONVERTED TO THE PREVAILING WAGE RATE SYSTEM. THOSE SECTIONS OF THE LAW AND REGULATION DO NOT PURPORT TO CONTROL NIGHT DIFFERENTIAL PAY AFTER THE CONVERSION OF SUCH BASIC RATE IS ACCOMPLISHED. SEE THE EXAMPLES GIVEN IN PARAGRAPH 25.503 (C) OF THE CITED REGULATION WHICH INDICATE THAT IT IS ONLY THE BASIC (DAY) RATE OF THE INCUMBENT'S CLASSIFIED POSITION WHICH IS "SAVED" BY THE STATUTE AT THE TIME THE POSITION IS CONVERTED.

WHILE IN YOUR DISCRETION UNDER THE REGULATION A POLICY MAY BE INSTITUTED TO SAVE AN EMPLOYEE'S PRIOR TEN PERCENT NIGHT DIFFERENTIAL PAY (WHICH ADDED TO HIS BASIC RATE CONSTITUTES HIS ,AGGREGATE RATE"), SUCH A SAVING IS NOT REQUIRED BY SECTION 114. HOWEVER, AFTER APPLYING THE SAVINGS PROVISION OF THE ACT, SUCH ADDITIONAL COMPENSATION OR THE AGGREGATE RATE FOR NIGHT WORK IS TO BE FIXED OR ADJUSTED IN ACCORDANCE WITH SECTION 202 (7) OF THE CLASSIFICATION ACT, AS AMENDED BY SECTION 105 (A) OF PUBLIC LAW 763, OR IN ACCORDANCE WITH REGULATIONS PERTAINING TO THE RECOGNIZED HIGHEST PREVIOUS RATE RULE.

IN OTHER WORDS, AFTER THE "EXISTING RATE OF BASIC COMPENSATION" OF THE CLASSIFIED POSITION IS PROPERLY CONVERTED TO A PREVAILING WAGE RATE, THE EMPLOYEE'S SCHEDULED REASSIGNMENT OR REGULAR ROTATION TO ANOTHER SHIFT WOULD NOT REQUIRE FURTHER CONSIDERATION OR APPLICATION OF THE SO-CALLED "SAVED PAY" BENEFITS OF SECTION 114 OR OF THE SPECIFIC DISCRETIONARY AUTHORITY NOTED UNDER PARAGRAPH 25.503 (C) OF THE CIVIL SERVICE REGULATION. SEE OUR ANSWERS TO QUESTIONS 4 AND 6 IN THE DECISION B-124070 (34 COMP. GEN. 708) CITED IN THE REGULATION.

HENCE, IN THE ABSENCE OF A CLEAR SHOWING OF THE RECOGNIZED PRACTICE RESPECTING REGULAR ROTATIONS OR REASSIGNMENTS OF WAGE RATE EMPLOYEES, THE PROPOSAL TO SAVE THE RELATIVE WITHIN-GRADE STEPS, WHICH INITIALLY WERE ARRIVED AT ONLY IN THE PRIOR STATUTORY CONVERSION FROM THE CLASSIFIED POSITION, WOULD BE OBJECTIONABLE WHEN SUCH A STEP HAD NOT BEEN EARNED.

FOR THE ABOVE REASONS WE MAY NOT AT THIS TIME APPROVE THE ADMINISTRATIVE REGULATIONS OR OTHER PROPOSALS AS SUGGESTED IN YOUR LETTER.

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