A-56330, AUGUST 7, 1934, 14 COMP. GEN. 94

A-56330, AUGUST 7, 1934, 14 COMP. GEN. 94

ECONOMY ACT - ADMINISTRATIVE PROMOTIONS - GOVERNMENT PRINTING OFFICE ADMINISTRATIVE PROMOTIONS FROM SAVINGS IN THE GOVERNMENT PRINTING OFFICE ARE TO BE CONFINED TO THOSE EMPLOYEES IN THE ADMINISTRATIVE OR NONPRODUCTION FORCE AND UPON A SHOWING OF SAVINGS SUFFICIENT THEREFOR UPON AN ANNUAL BASIS. THE PERMANENT CHANGE IN THE DESIGNATION OF A POSITION HELD BY A PRODUCTION EMPLOYEE TO CONFORM TO THE DUTIES OF THAT POSITION, NO INCREASE IN COMPENSATION BEING INVOLVED, IS NOT AN ADMINISTRATIVE PROMOTION WITHIN THE PURVIEW OF THE STATUTORY RESTRICTIONS AGAINST SUCH PROMOTIONS.

COMPTROLLER GENERAL MCCARL TO THE PUBLIC PRINTER, AUGUST 7, 1934:

THERE HAS BEEN RECEIVED YOUR LETTER OF JULY 24, 1934, AS FOLLOWS:

THE APPROPRIATED WORKING CAPITAL OF THE GOVERNMENT PRINTING OFFICE, FISCAL YEAR 1935, IS $2,500,000; BY COLLECTIONS FOR PRINTING AND BINDING FURNISHED THE VARIOUS GOVERNMENTAL ACTIVITIES THIS WILL BE INCREASED TO A TOTAL OF AT LEAST $12,000,000 WITH $9,840,000 THEREOF BEING USED FOR COMPENSATION TO EMPLOYEES. COLLECTIONS FOR EMERGENCY PRINTING AND BINDING MAY INCREASE WORKING CAPITAL BEYOND THE ABOVE FIGURE AND THUS CORRESPONDINGLY INCREASE THE EXPENDITURES FOR COMPENSATION.

ADMINISTRATIVE AND OTHER WORK OF A NONPRODUCTION CHARACTER ARE IN THE NATURE OF A PERMANENT OR FIXED PERSONNEL CHARGE. ON THE OTHER HAND, PRODUCTION EMPLOYEES ARE HIRED WHEN WORK REQUIRES THEIR SERVICES, AND ARE DISMISSED WHEN SUCH REQUIREMENT CEASES. PROMOTIONS FOR SUCH EMPLOYEES PRACTICALLY ARE WAGE ADJUSTMENTS REQUIRED BY FIXED RATES FOR HIGHER-GRADE WORK AND FOR WHICH OUR SCALE OF CHARGES AUTOMATICALLY PROVIDES FULL REIMBURSEMENT TO THE WORKING CAPITAL.

IN YOUR DECISION TO THE PUBLIC PRINTER, DATED JULY 3, 1934 (A 56330), IT IS STATED, IN EFFECT, THAT THE SAVING ACCRUING FROM THE NONFILLING OF APPRENTICE VACANCIES MAY BE CONSIDERED AS AVAILABLE FOR PROMOTIONS PROVIDED IT IS NOT REQUIRED FOR OTHER SALARIES. IF THIS MEANS THAT PAY TO NEW EMPLOYEES WHOSE SERVICES MAY BE REQUIRED ON PRODUCTION DURING THE YEAR MUST BE FROM SUCH SAVING, THEN NO PROMOTIONS WHATSOEVER WOULD BE POSSIBLE. AT THE PRESENT TIME ARRANGEMENTS ARE BEING MADE TO APPOINT SOME 400 NEW EMPLOYEES ON PRODUCTION AT AN ANNUAL COST OF ABOUT $800,000, AND THIS EXPENSE ALONE WOULD BE FAR GREATER THAN ANY SAVING WHICH MIGHT ACCRUE FROM THE NONFILLING OF VACANCIES. THEREFORE, IT WOULD APPEAR THAT NEITHER THE NONFILLING OF VACANCIES ON PRODUCTION OR THE APPOINTMENT OF NEW EMPLOYEES ON PRODUCTION SHOULD BE FOR CONSIDERATION IN THE SETTING UP OF SAVINGS AND THE USE THEREOF FOR PROMOTIONS.

IN VIEW OF THESE FACTS, AND FOR THE PURPOSE OF SETTING UP THE REQUIRED SHOWING OF SAVINGS, IF AND WHEN APPOINTMENTS AND PROMOTIONS ARE MADE, YOUR ADVICE IS REQUESTED AS TO WHETHER OBJECTION WOULD BE RAISED BY YOUR OFFICE SHOULD THE FOLLOWING PROCEDURE BE ADOPTED BY THE PUBLIC PRINTER:

1. ELIMINATE FROM CONSIDERATION AS A SAVING THE NONFILLING OF VACANCIES IN THE FORCES ENGAGED ON PRODUCTION, AND ALSO ELIMINATE FROM CONSIDERATION AS AN OBLIGATION AGAINST SAVINGS SUCH APPOINTMENTS AND PROMOTIONS AS MAY BE MADE DURING THE YEAR FOR EMPLOYEES ON PRODUCTION; ALL PROMOTIONS OR APPOINTMENTS OF EMPLOYEES ON PRODUCTION TO BE INDICATED ON FIRST PAY ROLL AS ,PRODUCTION.'

2. ADMINISTRATIVELY PROMOTE SUCH EMPLOYEES PAID BY THE HOUR WHO ARE NOW ENGAGED ON A HIGHER GRADE OF WORK THAN REQUIRED BY THEIR PRESENT DESIGNATIONS AND WHO HAVE BEEN PERMANENTLY ASSIGNED AND UPRATED TO THE FIXED RATES FOR SUCH HIGHER-GRADE WORK BUT WITHOUT CHANGES IN DESIGNATIONS; IN SUCH CASES THE NOTATION ON FIRST PAY ROLL TO BE "PRODUCTION.' FOR INSTANCE, A BINDERY OPERATIVE GRADE 2, 72 CENTS PER HOUR, HAS BEEN ASSIGNED PERMANENTLY TO 78 CENTS WORK AND UPRATED TO 78 CENTS; IT IS PROPOSED TO ACTUALLY PROMOTE THIS EMPLOYEE TO BINDERY OPERATIVE GRADE 3 AT 78 CENTS PER HOUR AND THUS MAKE HIS DESIGNATION AND PAY AGREE, AND ELIMINATE THE MAKESHIFT UPRATING. AS THE EMPLOYEE HAS BEEN RECEIVING THE UPRATE OF 78 CENTS, NO INCREASE IN EXPENSE IS INVOLVED; A VERY DEFINITE SAVING IN CLERICAL EXPENSE WOULD RESULT, AND TO SOME EXTENT OUR PAY ROLLS WOULD BE SIMPLIFIED.

3. CONSIDER AS SAVINGS THE NONFILLING OF VACANCIES CONCERNED IN THE ADMINISTRATIVE AND NONPRODUCTION EMPLOYEES, SUCH SAVINGS TO BE AVAILABLE FOR APPOINTMENT AND/OR PROMOTION OF EMPLOYEES ON ADMINISTRATIVE AND NONPRODUCTION WORK, COMPUTATIONS TO BE ON ANNUAL BASIS; NOTATION ON FIRST PAY ROLL TO BE "A.P. $ ------ " (ANNUAL BASIS).

I MOST EARNESTLY REQUEST YOUR APPROVAL OF ABOVE PROCEDURE, AND AN EARLY DECISION THEREON.

IT IS UNDERSTOOD THAT THE ONLY PROMOTIONS THAT WILL BE MADE WILL BE IN THE ADMINISTRATIVE OR NONPRODUCTION FORCE; THAT IS, AS TO EMPLOYEES IN THE POSITIONS, THE NUMBER OF WHICH DOES NOT NECESSARILY DEPEND UPON HOW MUCH OR HOW LITTLE PRINTING OR BINDING WORK IS TO BE DONE AND WITH RESPECT TO WHOM NO PROMOTIONS WILL BE MADE UNLESS SAVINGS THEREFOR ACCRUE ON AN ANNUAL BASIS.

REFERRING TO PARAGRAPH NO. 2, DECISION OF JULY 7, 1932, 12 COMP. GEN. 5, 6, HELD AS FOLLOWS (QUOTING FROM THE SYLLABUS):

TEMPORARY OR PERMANENT UP AND DOWN RATING OF PER DIEM EMPLOYEES UNDER THE GOVERNMENT PRINTING OFFICE QUALIFIED TO PERFORM VARIOUS OPERATIONS FOR WHICH DIFFERENT RATES ARE PAID IN ACCORDANCE WITH AUTHORIZED WAGE SCHEDULES UNDER REGULATIONS PRESCRIBED BY THE PUBLIC PRINTER PURSUANT TO THE ACT OF JUNE 7, 1924, 43 STAT. 658, AND THE PERIODIC READJUSTMENTS IN SALARY PAYMENTS OF TYPESETTING-MACHINE OPERATORS ON THE BASIS OF THE AMOUNT OF WORK DONE, OR PIECE WORK, ARE NOT ADMINISTRATIVE PROMOTIONS NOR PROHIBITED DURING THE FISCAL YEAR 1933 UNDER SECTION 202 OF THE ACT OF JUNE 30, 1932, 47 STAT. 403, PROVIDED NO INCREASE IS MADE ADMINISTRATIVELY IN THE RATES OF WAGES FOR THE VARIOUS TRADES OR IN THE RATES PER PIECE OR FOR THE AMOUNT OF WORK PERFORMED.

ACCORDINGLY, THE PERMANENT ADJUSTMENTS STATED IN PARAGRAPH NO. 2, INVOLVING NO INCREASE IN COMPENSATION, WILL NOT BE REGARDED AS ADMINISTRATIVE PROMOTIONS.