Good:  With its passage the 4.1% average raise for Air Traffic bargaining units is funded.  The administration wanted, originally,  to thank you for your valuable service by only by only giving a 2% raise while giving 4.1% to the military but just like last year Congress, who has the final word , voted to keep parity as it should be.  What this means is the raise, backdated to January 11^th, will be paid to you in lump sum once payroll and the fine folks in management in the FAA figure out how to do this.  Maybe you will see this interest free loan to the Government paid back to you in enough time to help pay for a Valentines Day party.  I myself think it will arrive in a more helpful timeframe for a Memorial Day party.  I hope I’m Wrong.  Details of how the raise breaks down for air traffic BU’s and those BU’s covered under core comp (the text openly plagiarized from Pat Forrey) will appear at the end of this update.

Bad:  This bill includes billions upon billions of pure pork earmarks, most added in under cover of darkness in conference to pave the way for reelection in districts and grease its passage in congress (it worked).  Only one example benefiting a state in our region is $50 million for a rain forest habitat in Iowa.  Now I’m sure all of the indigenous rain forest animals and fauna within Iowa will appreciate this gesture, but the $50 million dollars spent on this debacle would pay for over 2000 controller flat rate moves.  And there are billions of dollars in examples of largess thrown into this bill in conference that were never voted on and Congress was offered a take it or leave it choice.  All your intrepid, fiscally conservative leaning author can say to this all is, “what the heck?”  In the worst of free spending years of the last several decades, a big increase in discretionary spending was 3%.  This amounts to a discretionary spending increase of over 8% from a President and leadership touting how wise they will be with your money.  It’s incredible.  While our government budgets are being viciously cut (FAA is operating in near default with a slew of unfunded or no longer funded programs), with war in Iraq and new commitments around the globe, and with deficits reaching unprecedented and frankly undreamed of levels (remember the huge surplus we started with in 2002?) our leadership is spending money like drunken sailors and I certainly fear the realities that the inescapable hangover will bring.  This lifelong Republican is in full head-scratching mode.

Terrible:  The Senate voted overwhelmingly not to back the Bush Administrations changes to overtime eligibility.  That was removed, under pressure from the White House and without debate, in conference and now with the bills passage we can expect to see them implemented in rapid fashion.  I detailed most of this in other updates and although the provisions apply only to the private sector in this law you can expect them to be to be adopted by OPM soon.  We will be exempt as long as our contract (ATC) says so, but it will be on the table for the next contract negotiations in a little over a year. Additionally the Congressional leadership stripped most of the provisions that that were voted in regarding changes to the A-76 process from the bill (once again in conference under White House threat)  and we can now expect open season on contracting out after the election year if our leadership remains unchanged.  These are just a couple of examples how parts of this legislation is not thrilling if you’re one who likes federal employment or cares about your pay.  Are you giving to the PAC yet?

Here, as promised, is the breakdown of the raise;

The pay adjustments made on January 11 will be increased retroactively to reflect an Organizational Success Increase (OSI) of 3.15 percent plus an average locality pay increase of 1.4%, for a total of 4.55% overall, applied to those employees covered by the core comp pay system.  Broken down this means that the 4.1% increase is divided into a pay increase of 2.7% and an average locality adjustment of 1.4%.  However, the agency is only going to pay these employees 85% of the pay increase due to the fact the agency wasn't completely successful in meeting its goals for the year.  Before, the agency OSI was made up from the annual federal pay raise plus 1% (from the old step pool).  Core comp employees received this in January.  This year however, that number was reduced, in that core comp employees will only receive 85% of the OSI pool.  So, 2.7% (federal pay raise portion of the 4.1% increase) plus 1% (step pool) would equal 3.7%.  However, 85% of 3.7% leaves 3.15% for the total federal pay raise.  If you add the 1.4% average locality pay, the total OSI equals 4.55%.

According to our pay rules, the controller BU will receive the agency OSI minus .8% or the general increase plus .8%, whichever is higher. Taking those numbers for our bargaining unit, we will receive the 2.7% plus an average 1.4% locality pay adjustment in January, totaling 4.1%, and an additional.8% in PP14 for a total 5% OSI.  We will then receive up to an additional .8% SCI increase depending on our success in meeting the new metrics negotiated.  The time frame for this rating period is from December 1, 2003 through March 31, 2004, so we won’t know how much SCI until the rating period is over.

Grant Anderson
Pin# 50501
ganderson@natca.org