LEGISLATIVE HISTORY OF THE CIVIL SERVICE REFORM ACT OF 1978

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85-00003R000300100001-9
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 978
• Document Creation Date: December 20, 2016
• Document Release Date: May 7, 2007
• Sequence Number: 1
• Publication Date: March 27, 1979
• Content Type: OPEN SOURCE

pproved For Release 2007/05/07: CIA-RDP85-00003R000300100001-9
96th Congress
1st Session
COMMITTEE
PRINT No. 96-2
LEGISLATIVE HISTORY OF THE CIVIL
SERVICE REFORM ACT OF 1978
COMMITTEE ON
POST OFFICE AND CIVIL SERVICE
HOUSE ,OF REPRESENTATIVES
VOLUME NO. I
r proved For Release.2007/05/07: L P8 -00.QR3R 00030a'~ 001-9
Printed for the use of the Committee on Post Office and Civil Service`
 proved For Release 2007/05/07: CIA-RDP85-00003R000300100001-9
96th Congress l
1st Session I
COMMITTEE
PRINT No. 96-2
LEGISLATIVE HISTORY OF THE CIVIL
SERVICE REFORM ACT OF 1978
COMMITTEE ON
POST OFFICE AND CIVIL SERVICE
HOUSE OF REPRESENTATIVES
Approved For Release 2007/05/07: CIA-RDP85-00003R000300100001-9 ;
 Approved For Release 2007/05/07: CIA-RDP85-00003R000300100001-9
JAMES M. HANLEY, New York, Chairman
MORRIS K. UDALL, Arizona, Vice.Chairman
CHARLES H. WILSON, California
WILLIAM D. FORD, Michigan
WILLIAM (BILL) CLAY, Missouri
PATRICIA SCHROEDER, Colorado
GLADYS NOON SPELLMAN, Maryland
HERBERT E. HARRIS II, Virginia
ROBERT GARCIA, New York
GEORGE THOMAS (MICKEY) LELAND,
Texas
GERALDINE A. FERRARO, New York
CHARLES W. STENHOLM, Texas
DONALD JOSEPH ALBOSTA, Michigan
EDWARD J. DERWINSKI, Illinois
GENE TAYLOR, Missouri
BENJAMIN A. GILMAN, New York
JIM LEACH, Iowa
TOM CORCORAN, Illinois
JAMES A. COURTER, New Jersey
CHARLES PASHAYAN, Jr., California
WILLIAM E. DANNEMEYER, California
DANIEL B. CRANE, Illinois
DAVID MINTON, Executive Director and General Counsel
THEODORE J. KAZY, Minority Staff Director
ROBERT E. LOCKHART, Deputy General Counsel
J. PIERCE MYERS, Assistant General Counsel
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 Approved For Release 2007/05/07: CIA-RDP85-00003R000300100001-9
CONTENTS
Page
H.R. 11280, introduced by request on March 3, 1978------------------ 1
Committee print dated May 12, containing the administration's proposed
new title VII to H.R.11280-------------------------------------- 65
Committee print dated June 15, 1978, to be used for purposes of markup- _ _ 91
Committee print dated July 10, 1978, which reflects the proposed draft of
title VII to be used in the consideration of the committee print of H.R.
11280, dated June 15, 1978, but does not include necessary technical and
conforming amendments------------------------------------------ 169
H.R. 11280 as reported from the House Committee on Post Office and Civil
Service, July 31, 1978-------------------------------------------- 504
House Report No. 95-1403, of the Committee on Post Office and Civil
Service on H.R. 11280, July 31, 1978------------------------------ 636
Debate on the House floor during consideration of H.R. 11280:
August 11,1978---------------------------------------------- 797
September 7, 1978--------------------------------------------- 829
September 11, 1978-------------------------------------------- 846
September 13,1978----------------------------- -------------- 1016
Debate on the House floor during consideration of the conference report on
S. 2640, Civil Service Reform Act of 1978:
October 5, 1978---------------* ------------------------- 1126
October 6,1978------------------------------------ ------ 1127
S. 2640, as passed by the House, September 13, 1978------------------- 1142
(III)
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 33
"(3) the decision to demote or remove was arbi-
trary or capricious.
" (f) This section does not apply to-
a supervisor who has not completed the probationary
period under section 3321 (a) (2) of this title in an
initial supervisory position,
"(2) the separation or demotion of an individual
probationary or trial period or who has not completed
one year of current continuous employment under other
than a temporary appointment limited to one year or
less, or
"(3) the separation or demotion of an individual
in the excepted service who has not completed one year
of current continuous employment in the same or similar
positions.
4304. Responsibilities of the Office of Personnel Masao-
" (a) The Office of Personnel Management shall make
ment of performance appraisal systems.
" (b) If the Office of Personnel Management determines
that a system does not meet the requirements of this sab-
chapter (including regulations prescribed under section
34
4305), the Office of Personnel Management shall direct the
agency to implement an appropriate system or to correct
operations under the system, and any such agency shall
take any action so required.
"The Office of Personnel Management may prescribe
regulations to carry out the purposes of this subchapter.".
(b) The item relating to chapter 43 in the table of
chapters for part III of title 5, United States Code, is
amended by striking out "Performaaes Rating" and inserting
in lieu thereof "Performance Appraisal".
ADVERSE ACTIONS
SEC. 204. (a) Chapter 75 of title 5, United States
Code, is amended by striking out subchapters I and II and
inserting in lieu thereof the following:
"SUBCHAPTER I-SUSPENSION FOR 30 DAYS OR
"17501. Definitions
"For the purpose of this subchapter-
" (1) 'employee' means an individual in the com-
petitive service who has completed a probationary or
trial period under an initial appointment or as a super-
visor or manager or who has completed 1 year of cur-
rent continuous employment in the same or similar
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 45
" (i) The Board may, by regulation, provide for alterna-
tive methods for settling matters subject to the appellate
jurisdiction of the Board. A decision under such a method
shall be final, unless the Board reopens and reconsiders a
case at the request of the Office of Personnel Management
under subsection (c) of this section.
"(j) The Merit Systems Protection Board may pre-
scribe regulations to carry out the purposes of this section.
"17781. Judicial review of decisions of the Merit Systems
Protection Board
" (a) Any employee, or applicant for employment,
adversely affected or aggrieved by a final order or decision
of the Merit Systems Protection Board may obtain judicial
review of such an order or decision.
"(b) A petition to review a final order or decision
16 of the Board shall be filed in the Court of Claims or a
17 United States Court of Appeals as provided in chapters 91
18 and 158, respectively, of title 28, except for actions filed
19 in the United States district courts under section 717 (c)
of the Civil Rights Act of 1964 (42 U.S,C. 2000e-16 (c) ),
21 under section 15 of the Age Discrimination in Employment
22 Act of 1967 (29 U.S.C. 033a (c) ), or under section 8715
23 or 8912 of this title. Notwithstanding any other provision
24 of law, any petition for review must be filed within 30 days
46
1 after the date the petitioner received notice of the final
2 order or decision of the Board.
3 " (c) In cases filed in the United States Court of Claims
4 or a United States Court of Appeals, the court shall re-
5 view the administrative record for the purpose of determin
6 ing. whether the findings were.arbitrary or capricious, and
7 not in accordance with law, and whether the procedures re-
8 gaired by statute and regulations were followed. The admin-
9 istrative findings of the Board are conclusive if supported by
10 substantial evidence in the administrative record. If the
11 court determines that further evidence is necessary, it shall
12 remand the ease to the Board. The Board, after such fur-
13 then proceedings.as may be required, may modify its findings,
14 and shall file with the court the record of such proceedings.
15 The findings of the Board are conclusive if supported by
16 substantial evidence in the administrative record as sup-
17 plemented.
18 "(d) The Director of the Office of Personnel Managp-
19 meat may obtain review of any final order or decision V1
20 the Board by filing a petition for judicial review in the
21 United States Court of Appeals for the District of Columbia
22 if the Director disagrees with a legal interpretation by the
28 Board of a law, rule, or regulation involving personnel
24 management end for which such Office has official reopen-
25 sibility. In addition to the named respondent, the, Board
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 95
1 Code, is amended by adding at the end thereof the following
2 new items:
"SUBCHAPTER VIII-PAY FOR THE SENIOR EXECUTIVE
SERVICE
"6881. Purpose; definitions
"5382. Eelablishment and adjustment of rates of pay for tba Senior
Executive Service..
"5383. Settiugindividual executive pay.
"6884. Performance awards for the Senior Executive Service.
?5385. Regulations".
PAY ADMINISTRATION
SEC. 408. Chapter 55 of title 5, United States Code,
is amended-
(1) by inserting "other than an employee or in-
dividual excluded by section 5541 (2) (xvi) of this
section" immediately before the period at the end of
section 5504 (a) (B) ;
(2) by amending section 5541 (2) by striking out
"or" after paragraph (xiv), by striking out the period
after paragraph (xv) and inserting "; or" in lieu thereof,
and by adding the following paragraph at the end
14 thereof:
15 " (xvi) executive managers occupying Senior Exec-
16 utive Service positions under the Senior Executive Serv-
17 ice established under subchapter II of chapter 31 of
this title."; and
12
13
14
15
16
17
18
19
96
(3) by inserting "other than a member of the
Senior Executive Service" after "employee" in section
5595(a) (2) (i).
TRAVEL, TRANSPORTATION, AND SUBSISTENCE
SEC. 409. Chapter 57 of title 5,,United States Code.
is amended-
(1) in section 5723 (a) (1) by striking out "; and"
and adding in lieu thereof "or of a new member of the
Senior Executive Service; and ";
(2) by adding at the end of subchapter IV the
following section:
5752. Travel expenses -of Senior Executive Service can-
didates
"Employing agencies may pay candidates for Senior
Executive Service positions travel expenses incurred incident
to preemployment interviews requested by the employing
agency."; and
(3) by adding at the end of the analysis of sub-
chapter IV the following new item:
"6752. Travel ezpeuemof Senior ExecutiveServiocandidate".
LEAVE.
SEc. 410. Chapter 63 of title 5, United States Code,
is amended by inserting in subsection (a) of section 6304
" (e) , and (f) " in lieu of "and (e) ," and by adding at the
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95h Congress, 2(1 Session. - - - - - - - - He :i e iieport No. 95-1403
CIVIL SERVICE REFORM ACT
OF 1978
REPORT
OF THE
COMMITTEE ON POST OFFICE AND
CIVIL SERVICE
H.R. 11280
'TO REFORM THE CIVIL SERVICE LAWS
JULY 31, 1978.-Committed to the Committee of the Whole House on the State
of the Union and ordered to be printed
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CONTENTS
Page
Amendments------------------------------------------------------ 1
Explanation of amendments________________________________________ 1
Purpose---------------------------------------------------------- 1
Committee action ------------------------------------------------- ' 2
Introduction------------------------------------------------------ 2
Justification '-------------------------------------------------- ?------ 3
Summary of major reforms ------------------------------------------ 4
Major changes in existing Civil Service laws__________________________ 6
Organization --------------- ------------------------------------- 6
Recruitment and examining-----------
-.Merit Systems Protection Board___________,__,____________________ , 6
Adverse actions ------------------------------------- ---------- 7
Protection of employee rights___________________________________ 7
Veterans' preference_______________________________________ 8
Dual compensation-------------------------------------------- - 9.
Senior Executive Service ----------------------- ----------------- 10
Merit pay---------------------------------------------------- 11
Research and demonstration projects____________________________ 11
Labor-management relations__"__________________________________ 12
Downgrading and saved pay____________________________________ 13
_______________________________
Hatch Act reform______________ 13
Firefighters--------------------------------------------------- 14
Sectional analysis-------------------------------------------------- 15
Title I-Merit system principles_________________________________ 16
Title II-Civil Service functions_________________________________ 17
Title III-Staffing--------------------------------------------- 23
Title IV-The Senior Executive Service --------------------- ------ 25
Title V-Merit pay-------------------------------------------- 34
Title VI-Research, demonstration, and other projects------------ 36
Title VII-Federal service labor-management relations- -------- 38
Title VIII-Grade and pay retention- ------ 62
Title IX-Political activities ------------------------------------- 72
Title X-Basic workweek of firefighters__________________________ 85
Title XI-Miscellaneous------------------ _------------- _------- 88
Congressional Budget Office cost estimate ------------------------------ 89
Oversight--------------------------------------------------------- 98
Inflationary impact statement______________________98
President's message --------------------------------------------- --__ 98
Views of the Comptroller General____________________________________ 104
Changes in existing law____________________________________________ 113
Separate, supplemental, additional, individual, and dissenting views------ 377
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95TH CONGRESS HOUSE OF REPRESENTATIVES J REPORT
2d Session f No. 95-1403
CIVIL SERVICE REFORM ACT OF 1978
JULY 31, 1978.-Committed to the Committee of the Whole House on.the State
of the Union and ordered to be printed -
Mr. Nix, from the Committee on Post Office and Civil Service,
submitted the following
REPORT
[Including cost estimate of the Congressional Budget Office]
[To accompany H.R. 11280]
together with;
SEPARATE, SUPPLEMENTAL, ADDITIONAL,
INDIVIDUAL, AND DISSENTING VIEWS
The Committee on Post Office. and Civil Service, to whicli-was::
referred the bill (H.R. 11280) to reform the civil service laws, having
considered the same, reports favorably thereon, with amendments, and.
recommends that the bill as amended do pass.
AMENDMENTS
The committee has amended the bill as introduced by striking out
all language after the enacting clause and inserting a new text which
is printed in italic in the reported bill.
The committee has also amended the title.
EXPLANATION OF AMENDMENTS
The Committee amendments include a complete substitute for the
text of H.R. 11280 as introduced and an amendment to the title.
The changes made by the committee amendments to the text of the
bill are explained in the body of this report.
The committee has amended the title to reflect more accurately the
content of the bill as amended.
PURPOSE
The purpose of this legislation is to reform the Civil Service of the
Government of the United States.
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COMMITTEE. ACTION
On March 2,. 1978, President Carter transmitted to Congress his
message on civil service reform which included a draft of legislation.
That legislation was introduced on March 3,1978, by Mr. Nix and Mr.
Derwinski (by request) as H.R. 11280.
The Committee on Post Office and Civil Service conducted 13 days
of hearings (including hearings conducted by Representative Gladys
Noon Spellman at four Federal agency locations) on March 14, 21;
April 4, 5, 6,11,12,28; and May 8,12,15, 22, and 23.
Testimony was given by 203 witnesses representing Federal em-
ployees, business organizations, women's groups, veterans, public in-
terest groups, and the executive branch, which presented testimony by
the Director of the Office of Management and Budget, the Chairman
of the Civil Service Commission, the Secretary of Health, Education,
and Welfare, and the Secretary of Defense. Additional written com-
munications have been received from 36 organizations and individuals.
At the conclusion of the hearings, the committee met for 10 days
(June 21, 22, 23, 28, 29, and July 11, 12, 13, 17, and 19) to mark up
H.R. 11280. Seventy-seven separate amendments were considered by
the committee, and extensive discussion occurred on all aspects of the
bill. In an unusual procedure by the Committee- on Post Office and
Civil Service, direct testimony was heard during the course of markup
sessions from administration officials so that the President's position
on specific issues would be announced. Forty-two rollcall votes were
taken during the committee's deliberations and on July 19, 1978, by a
vote of 18 to 7, the committee ordered the bill reported to the House
with one amendment striking all after the enacting clause and substi-
tuting an entirely new text incorporating all of the amendments
adopted by the committee. The rollcall vote to report the bill was as
follows : .. ,
Ayes-Mr. Nix, Mr. Udall, Mr. Hanley, Mr. Wilson, Mr. White, Mr.
Ford, Mr. Clay, Mrs. Schroeder, Mr. Lehman, Mr. Solarz, Mr. Myers,
Mr. Heftel, Mr. Garcia, Mr. Metcalfe, Mr. Ryan, Mr. Derwinski, Mr.
Leach, and Mr. Corcoran. . . i
Nays-Mrs. Spellman, Mr. Harris, Mr. Rousselot, Mr. Collins, Mr.
Taylor, Mr. Gilman, and Mr. Lott.
INTRODUCTION
In his message to. the Congress on March 2, 1978, President Jimmy
Carter stated :
Nearly a century has, passed since enactment of the first
Civil Service Act-the Pendleton Act of 1883. That act
established the U:S. Civil Service Commission and the merit
system it administers. These institutions have served our Na-
tion well in fostering development of a Federal work force .
which is basically honest, competent, and dedicated to con-
stitutional ideals and the public interest.
But the system has serious defects. It has become a bureau-
cratic maze which neglects merit, tolerates poor performance,
permits abuse of legitimate employee rights, and mires every
personnel action in redtape, delay, and- confusion.
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Civil service reform will be the centerpiece of government
reorganization during my term of office.
I have seen at first hand the frustration among those who
work within the bureaucracy. No one is more concerned at
the inability of Government to deliver on its promises than -
the worker who is trying to, do a good job.
Most civil service employees perform with spirit and in-
tegrity. Nevertheless, there is still widespread criticism of
Federal Government performance. The public suspects that
there are too many. Government workers, that they are under
worked, overpaid, and insulated from the consequences of
incompetence. -
Such sweeping criticisms are unfair to dedicated Federal
workers who are consistently trying to do their best, but we
have to recognize that the only way to restore public confi-
denee in the vast majority who work well is to deal effectively
and firmly, with the few who do not.
The objectives of the civil service reform proposals I am
transmitting today are:
To strengthen the protection of legitimate employee
rights ;
To provide incentives and opportunities for managers
to improve the efficiency and responsiveness of the Fed-
eral Government;
To reduce the redtape and costly delay in the present
personnel system ;
To promote equal employment opportunity;
To improve labor-management relations.
H.R. 11280 embodies the President's proposals for civil, service re-
form. As amended by the committee, it reflects changes in the original
proposal and V is designed to improve the civil service system, ensure
adequate protection for employees against unlawful abuses by agency
management, and provide a. framework for labor-management rela-
tions in the Federal Government.
JUSTIFICATION
Civil servants administer almost all functions of Federal activities.
Of 2.8 million civilian positions in the executive branch, more than 1.5
million are in the competitive service; that is, the positions are filled on
the basis of competitive civil service examinations in which any quali-
fied citizen ,is entitled to participate. Appointments are made by agen-
cies from lists of qualified. eligibles. In this process, the Civil Service
Commission is responsible for examining applicants, establishing
civil service registers, and referring registers to agencies for con-
sideration.
The problems of` any organization employing as many as work for
the Federal Government would be staggering regardless of the effec-
tiveness of the system, but it is evident that the Federal civil service
does not serve the public interest satisfactorily in several specific areas :
The delay between the time an individual applies for a . civil
service position and the time he is actually appointed, even if the
agency appointing him makes every possible effort to speed the
appointment process.
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The time necessary for an agency to dismiss an employee who
has tenure. but has proven to be an unsatisfactory worker. Al-
though all employees who have tenure should be protected from
arbitrary and capricious actions, neither the employee nor the
Government benefits from a system in which. unnecessary delay.
exists. The employee does not benefit because he may be removed
from a pay status 30 days after a notice of dismissal is given
and spends much of his time preparing his. defense for a hearing
on'the appeal, thus losing time he. could devote to other employ-
ment. The agency does not benefit because it has to devote costly
time to the defense of its action.
The "bureaucracy" at the higher level of the civil service is
sometimes considered to be not sufficiently responsive to an Admin-
istration's program. Career employees cannot be displaced, trans-
ferred or reduced to a lower level position for any reason without
requiring a full-fledged adverse action procedure with its attend-
and appeals and, in some cases, judicial proceedings.
The opportunity to provide employment for many well- 'qualified
individuals, particularly women, is severely limited because of
veterans' preference, which requires that most former members
of the armed services be given preference over applicants who
do not have this statutory preference.
H.R. 11280 is designed to resolve these and other civil service
problems.
SUMMARY OF MAJOR REFORMS
Title I establishes in law the general policies of the merit system,
principles applicable to the competitive civil service and throughout
the executive branch. Under existing law, there is no clear statement
embodying the merit principles, upon which the Civil Service Act of
1883 was based, and under which the civil-service system has gradually
evolved in the last century. The President's proposal and the commit-
tee's. recommendations include a specific statement of principles to
serve as guidelines for all Executive agencies to follow.
The bill also enumerates specific practices which may not be engaged
in and for which an individual shall be disciplined if these prohibited
activities occur. In particular, the bill prohibits reprisals against em-
ployees who divulge information to the press or the public (generally
known as "whistleblowers") regarding violations of law, agency mis-
management, or dangers to the public's health and safety. Generally,
title I provides protection for all employees against discrimination,
political coercion or unfair, arbitrary, or illegal actions regarding
appointments and advancements within the civil service.
Title II provides legislative authority for the division of the Civil
Service Commission into.two agencies : the Office of Personnel Man-
agement and the Merit Systems Protection Board. The Office of
Personnel Management shall be headed by a Director and Deputy
Director appointed by the President, with the advice and consent of
the Senate, and will be the central personnel office of the executive
branch. The Merit Systems Protection Board will be an independent
agency exercising appelate authority now vested in the Civil Service
Commission. The Board will have a Special- Counsel, appointed by the
President, with the advice and consent of the Senate, who will have
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5
broad- authority to investigate, particularly "whistleblower" cases.
Title II also revises existing law for the appraisal of employee per-
formance on the job, requires the establishment of specific performance
standards, and establishes procedures for adverse actions and
suspensions.
Title III includes changes in the law relating to the appointment
and retention of former members of the armed services-commonly
called veterans' preference.
Title IV establishes the Senior Executive Service, generally embody-
ing.those management positions which now comprise "supergrades"-
positions in grades GS-16, GS-17, and GS-18 under the General
Schedule in title 5, United States Code. The Senior Executive Service
is designed to provide.-greater mobility in the highest level of political
and nonpolitical positions in ,the. civil service and help ensure a high
quality of executives in agency management. Perhaps more than any
other provision in this bill, the Senior Executive Service can provide
the framework to meet the Government's management needs.
Title IV also authorizes performance awards for employees in upper
level positions whose work is of a sustained and outstanding nature.
Although bonuses are common in the private sector, there is almost no
opportunity under existing law for a Federal employee. regardless of
his achievements, to receive any financial reward for doing a superior
job. Title IV establishes such a program for career employees in the
Senior Executive Service.
Title V establishes a merit pay system for management employees
in the levels below the Senior Executive Service-GS-13, GS-14, and
GS-15. Under this program, automatic step increases will be elim-
inated and periodic adjustments, other than comparability increases,
will be based solely upon performance.
Title VI authorizes research programs and demonstration projects
in Executive agencies and improves the intergovernmental personnel
relations"program between the Federal and State governments.
Title VII establishes a new labor-management program applicable
to most agencies in the executive branch. Under the existing system of
labor-management relations in the executive branch, the President, by
Executive order, has complete authority to establish the labor-manage-
ment program. Title VII establishes a new program and provides for
greater employee and employee organization participation. However,
title VII does not authorize collective bargaining on substantive issues
of pay and fringe benefits, as is currently permitted in some agencies,
such as the Postal Service, the Tennessee Valley Authority, and the
Bonneville Power Administration.
Title VIII provides a new system for the salary and grade protection
of employees who are adversely affected by position reclassification
decisions or downgradings resulting from reductions in force.
Title IX incorporates revisions in the so-called "Hatch Act," which
places restrictions upon the political activity of certain Federal, State,
and local government employees.
Title X revises the working hours of employees of the Federal Gov-
ernment engaged in firefighting.
Title XI includes miscellaneous provisions necessary to carry out
the purpose of this legislation.
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. 6
MAJOR CHANGES IN EXISTING CIVIL SERVICE 'LAWS
The structure of the civil service system will be changed by abolish-
ing the U.S. Civil Service Commission and establishing two new Fed-
eral agencies. The Office of Personnel Management will administer the
personnel system, issue rules and regulations applicable to agency per-
sonnel system, and serve as the President's agent for all civil service
personnel matters. This independent establishment in the executive
branch will be headed by a Director, appointed by the President with
the advice and consent of the Senate, and a Deputy Director, similarly
appointed. The Director will be the chief executive officer of the agency
for all administrative purposes and may appoint as many as five asso-
ciate directors..
RECRUITMENT AND EXAMINING
A principal problem of the existing appointment system is that
all. examining authority is vested in the Civil Service Commission.
Although uniformity has some advantages, it invariably results in
delay in the appointment process. Hundreds of cases over the past
few years have been brought to the committee's' attention demon-
strating?inordinate-delay.'in the appointment process.' The Office of
Personnel Management will have the- authority to delegate the exam-
ining authority to individual agencies so that the entire appointment
process can be handled by an agency. This delegation will not relieve
the Office of Personnel Management from the respoiisibility to en-
sure that all aspects of the competitive civil service system are con-
ducted in accordance with the merit system principles and uniform
standards established by the Office.,
The Merit Systems Protection Board will take over the appellate
authority now vested in the Civil Service Commission. Under existing
law, when an agency proposes to remove an employee, an employee
may appeal the- agency's decision to the Federal Employee Appeals
Authority and subsequently to the Appeals Review Board, which
are part of the Civil Service Commission. The Board's decisions are
final unless the Civil Service Commissioners reopen the case for
reconsideration, a procedure which does not often happen. One of
the inherent conflicts in the present system is that the Commission
has both the enforcement authority as the chief personnel office of
the executive branch and also the administrative review authority
in adverse action cases. Almost all witnesses appearing -before the
committee supported- the proposal to.divide the Commission's au-
thority in the manner proposed by the President. The Merit Systems
Protection Board will be composed of three members appointed by
the President with the advice and consent of the Senate, each to serve
a term of 7 years.
The. Office of the Special Counsel in the Merit Systems Protection
Board is a new position designed to ensure that employees are fairly
protected. The Special Counsel is vested with specific authority to
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investigate any allegation of a prohibited personnel practice and, in
exceptional cases, to issue a stay against any personnel action proposed
to be taken by an agency if the Special Counsel believes that such a
stay is necessary to prevent a substantial and adverse impact on the
employee involved. The stay will remain effective for 30 days and may
be extended if the Board' agrees to, the extension. The quasi-judicial
authority vested in the-Special Counsel- goes farther than the President
proposed, but, the -committee believes that this authority is necessary
to adequately protect employees.
The Special Counsel -has specific authority to investigate viola-
tions of the Hatch Act and to bring actions against employees who
have engaged in prohibited personnel practices. The Merit Systems
Protection Board will have the authority to discipline any person who
has engaged in, a prohibited personnel practice, including the power
of removal, reduction in grade, debarment from the civil service, or
civil penalties of up to $1,000.
ADVERSE ACTIONS
Under existing law, an employee against whom an adverse action is
proposed has a right to 30 days' advance notice and an appeal to the
Civil' Service Commission. Although the agency may remove the em-
ployee from the payroll upon the expiration of the 30-day period,
there are many instances in which an employee is not removed for
several months. The average length of time- between the notification of
an adverse action and a decision by the Federal Einployee'Appeals
Authority is more than 5 months.,
H.R. 11280 does not fully address the problem of the adverse action
system. The committee considered at -length the advisability of adopt-
ing a new system which guarantees an employee the right to a hearing
before being removed from the payroll. This alternative was rejected
without prejudice at this time because a majority of the committee does
not believe that this legislation is the appropriate vehicle for such. -
change without further study. However, the adverse-action system is
deficient and the committee requests that the Office of Personnel Man-
agement undertake an immediate study of the adverse action system
with the view to proposing - changes in the system during the 96th
Congress.
PROTECTION OF EMPLOYEE RIGHTS
The President's proposal would have placed the burden of proof on
the employee against whom-an adverse action is taken to demonstrate
upon appeal that the agency action to remove or suspend him was
wrong. The President's proposal also eliminated the "preponderance
of the evidence" rule, which is the current basis for reaching a decision
in appeals cases. The committee has revised this proposal to retain the
"preponderance of, the evidence" rule and to give the employee to
greater -opportunity. upon appeal, to demonstrate reversible error.
However, the commit-tee agrees with the administration that a "re-
duction in-rank" shall no longer be -considered an adverse action sub-
ject to appeal. A reduction in rank includes those cases in which an
employee is moved from a position in the organizational structure
of the agency to another position of equal pay but not necessarily of
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equal stature. Under the committee proposal, such a change will not
be an adverse action unless the action involves a reduction in pay or
grade. However, the employee in such a case would have an appeal
right if the reduction in rank involves a prohibited personnel practice.
However, the employees in such a case would have an appeal right
if the reduction in rank involves a prohibited personnel practice.
VETERANS' PREFERENCE
The committee recommends that existing preference for certain for-
mer members.of the Armed.Forces be altered to provide greater em-
ployment opportunities for Vietnam era veterans and to encourage the
recruitment and retention of qualified applicants, particularly women
and minority applicants, who frequently are not now within reach on
civil service registers because of the statutory preference for veterans.
Under existing law, a veteran (which generally means an honorably
discharged individual who has served in the Armed Forces on active
duty during a period of war or armed conflict, or 'in an area for which
a campaign badge is authorized,' or for a period exceeding 180 days
any part of .which occurred between January 31, 1955 and October 31,
1976, and in certain cases the spouse or mother of such a person) is en-
titled to appointment and retention preference in the competitive serv-
ice. Preference is given by adding 5 points to the passing score of an
applicant entitled to preference, but an applicant who is disabled
on account of his military service receives 10 points, and an ap-
plicant who is disabled and is receiving compensation from the Vet-
erans' Administration because of such a. disability is entitled to 10
points and automatically rises to the top of the civil service register of
eligibles. A preference eligible may not be passed over to select a non-
preference eligible unless the Civil., Service Commission approves the
appointment. For retention purposes, all preference eligibles are re-
tained within their competitive group during a reduction in force
until all nonpreference.eligibles have been displaced.
The committee endorses the retention of- veterans' preference laws
as a benefit which'the Government bestowed and should continue to
bestow on its citizens who have served in the armed services during a
.period of war or armed conflict. However, the lifetime- preference
which all preference eligibles have today works to the- extreme. dis-
advantage _of Vietnam veterans and women and minority applicants
who do not. have preference eligibility. We are now in a period in
which the Government and private industry are strongly encouraged
to provide employment opportunities for women and minority appli-
cants to improve career opportunities for these citizens. The veterans'
preference laws, particularly that portion of the law which grants
preference for peacetime service between the end of the Korean con-
flict in 1953 and the -beginning of the Vietnam conflict in 1965, ef-
fectively serves' as a barrier for women and minority.-applicants at-
tempting to obtain competitive positions in the civil- service.
The committee has amended the bill to.modify veterans' preference.
in the following manner:
In the case of any individual who is retired from the Armed
Forces on account of physical disability, no change in existing law
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is proposed. These individuals will continue to enjoy lifetime
veterans' preference for both appointment and retention.
In the case of an individual retired at the rank of- major or its
equivalent except a disabled veteran, appointment preference will
major,'veterans' preference will be modified so that the individual
will have appointment preference for a period of 3 years follow-
ing his separation from the military service.
In all other cases, individuals who under current law have
preference on account of military service, will have appointment
preference for a period of, 15 years following separation from the
military service or until. appointed to a'permanent position in the
civil service, whichever occurs first.
For 'retention purposes in reductions in force, individuals re-
tired for physical disability incurred as a direct?result of armed
combat will continue to have full preference. Others retired will
have no preference, as is the case under existing law, 5 U.S.C.
3501 (a) (3) (A). All other individuals entitled to retention pref-
erence will have retention preference for a period of 8 years fol-
lowing their separation from the military service.
DUAL COMPENSATION
In the case of a nondisabled veteran retired below the rank of
The committee has amended the provisions of law enacted in the
Dual Compensation Act of 1964 affecting the pay of retired, officers
who are employees in civil service positions.
Under existing law, a Regular officer who retires for reasons other
than physical disability incurred as a direct result of war or armed
conflict and who is subsequently employed in a civilian position in
the Federal Government is required to take a reduction in retired-pay
during the period of civilian'service.:The'reduction does not apply
in the case of a retired Reserve officer, or in the case of a Regular officer
retired for combat disability.
Earlier this year, the committee, through its Subcommittee on In-
vestigations, found numerous instances where retired Regular officers
occupying civilian positions are paid total compensation substantially
in excess of the pay of members of the Cabinet. Justices of the Supreme
Court, and others at the highest levels of Federal pav. The dual
compensation reduction formula permits a retired Regular officer to
receive only the first $2,000 of his retired pay, plus 50 percent of-any
amount in excess of $2,000. The $2,000 figure is subject to a cost-of-
living escalation clause which, as of July 1978, actually permits a base
rate of $4,320 plus 50 percent of the remainder. Although this limita-
tion may have been ? suitable when the Dual Compensation Act was
written in 1964, the rapid 'increase in retired military pay since 1964
has resulted 'in very substantial pensions for senior officers, which,
when combined with civilian pay, particularly at the supergrade level,
result in pay levels which the committee believes are not justified for
an individual who is in essense on two Federal payrolls at the same
time.
The committee recommends that, on a prospective basis only. the
dual compensation provisions be revised so that any retired officer,
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10
Regular or Reserve, who becomes employed in a civilian. position in
the Federal Government receives his full military pension and his
civilian pay but that an absolute ceiling be imposed at the rate in effect
for level V of the Executive Schedule of title 5, currently $47,500.
The committee amendment will have no effect upon any officer al-
ready retired from the military service.. The provisions of existing
law will continue to apply to those individuals.
Title IV establishes a new Senior Executive Service to include man-
agement and program officials in Executive agencies who are now gen-
erally in the GS-16, GS-17, and GS-18 positions in the executive
branch, and individuals not appointed by the President with the ad-
vice and consent of the Senate whose positions are in levels IV and V
of the Executive Salary Schedule under title 5.
The "supergrades" in Executive agencies were created under the
Classification Act of 1949 and, with the exception of certain scientists
and professional positions, the total number of administrative super-
grade positions is controlled by acts of.Congress. There are more than
10,000 supergrade positions in the executive branch, but most are sci-
entific positions. Management supergrade positions are allocated to
agencies by the . Civil Service Commission generally on the basis of
agency need. ..,
The major, disadvantage in the existing program, in the administra-
tion's view, is that it does not have sufficient flexibility to meet agency
or Government-wide needs. Individuals of exceptional qualifications
are limited because of the inflexibility, and the rewards which can be
given to employees of superior capabilities and performance are ex-
tremely limited.
The.new Senior Executive Service is designed to resolve these man-
agement problems. Upon establishment, employees currently occupy-
ing supergrade positions who are responsible for.the management or
direction. of a program will be permitted to volunteer. to join the Sen-
ior Executive Service or to remain under the existing supergrade sys-
tem, which will continue to be applicable to nonmanagement positions;
Employees in the Senior Executive Service will be subject to promo-
tion and reassignment to meet agency needs and will be subject to a
probationary period to.determine whether they are fully qualified in
the position to which they have been appointed. Career employees who
fail to meet this test or who subsequently fail to perform at a fully sat-
isfactory level of work will be guaranteed the right to be reassigned
to a permanent non-Senior Executive Service position at no loss of
salary. Pay increase will be based on performance. No more than 10
percent of all Senior Executive Service positions may be filled by non-
career appointees; no agency may have more than 25 percent of non-
career appointees in these positions. (except certain agencies which, on
the effective date of this legislation, have a greater percentage) ; and
at least 70 percent of all employees in the Senior Executive Service
at any one time must have at least 5 wears' Federal Service.
Career employees in the Senior Executive Service will be eligible for
monetary performance awards based on sustained excellent work. Non-
career appointees will not be eligible for these awards.
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The committee; adopted an amendment proposed by Representative
Spellman to establish an experimental program for the Senior Execu-
tive Service: Under the Spellman amendment, the Senior Executive
Service will be conducted on a trial basis in three executive depart-
ments for a period of 2 years. Thereafter, the program will be estab-
lished on a Government-wide basis in the executive branch upon the
.adoption of a concurrent resolution by the Senate and House of
Representatives.
The administration bill recommended the establishment of a new
pay system for individuals in management positions in grades GS-13,
GS-14, and GS-15 of the General Schedule. Under the administra-
tion's proposal, these employees would not be entitled to annual pay
comparability' increases and would not be subject to periodic step
increases.
..-The committee agrees with the administration proposal that step
increases for management' employees be' eliminated and periodic ad-
justments be made on the basis of performance. alone.
The committee does not agree, however, that annual comparability
adjustments should be eliminated. Pay comparability is a concept
which establishes basic rates for positions in the Federal service, not
for individual occupants of those positions. The long struggle to
achieve comparability for Federal employees under the General Sched-
ule prevailed only after a 10-year .period of attempting to perfect- a
statutory and administrative system for comparability and pay re=
form. To abandon that principle, particularly for those employees in
the higher level positions in the Government, would be unfair and un-
wise. If the administration advocates changing comparability as the
basic principle of pay for Federal employees, it should do so across the
board rather than advocating that lower-level employees receive com-
parability and higher-level employees not-receive comparability.
The committee agrees with the recommendation that superior per-
formance cash awards be made available to management employees in
,the GS-13, GS-14 and GS-15 positions.
RESEARCH AND DEMONSTRATION PROJECTS -
The committee approved the administration's recommendation for
personnel research programs and demonstration projects in the execu-
tive branch.
. As proposed by the administration, the Office of Personnel Manage-
ment is authorized to develop a program for personnel research and
demonstration projects. The committee has amended the proposal.so
that all plans for such projects will be submitted to the Congress and
subject to disapproval by either House of Congress if a resolution of
disapproval is adopted. by either House within 60 days.
The committee also recommends that the Office of Personnel Man-
agement undertake a study, immediately following the enactment
of this legislation, -on the overall problem of the decentralization of
Federal Government functions.
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12
LABOR-MANAGEMENT RELATIONS
The committee has considered labor-management relations legisla-
tion,for several years. Over a long period of time, the Subcommittee
on Civil Service and its predecessor subcommittees have considered
legislation. Last year, following additional hearings, Representatives
William D. Ford and William (Bill) Clay, introduced H. R. 9094
representing what the sponsors considered to be a ? reasonable com-
promise between the", Administration which favored continuation of
labor-management relations under the Executive order and Federal
employee organizations which generally= favor collective bargaining
or Federal employees.
Following. the submission of his message to the Congress on civil
service reform, President Carter proposed additional legislation to be
incorporated in this bill establishing, by_ law, a system of. labor-man-
agement relations for employees in the executive branch. The Presi-
dent's proposal was essentially the codification of the existing Execu-
tive Order No. 11491 originally established by- President John F.
Kennedy -in- 1962, and subsequently revised by President Richard
Nixon in 1969:
The committee agrees that the time has come to establish by statute
.a labor-management relations system for Federal employees, but dis-
agrees with the. President's specific proposal. Employees in the private
sector have been covered by the Wagner Act since 1935. Major em-
ployers in this Nation are subject to the collective-bargaining proce-
dures of that law and other Federal statutes governing labor law.
More than half a million postal employees gained the right of collec-
tive bargaining in the Postal Reorganization Act 8 years, ago. In the
case of postal workers, their collective-bargaining rights extend to all
aspects of employment, including wages, fringe benefits, hours, and
work conditions. Employees in several smaller agencies, including the
Tennessee Valley. Authority, have had collective bargaining for dec-
ades. But most Federal employees have been subject to congressional
control of pay and fringe benefits or, in more recent years, congres-
sional-Presidential control of pay and a very limited program of col-
lective. bargaining established by Executive order.
The committee. recommends that a new broad program for labor-
management relations be established by law and that employees,
through their unions, be permitted to bargain with agency manage-
ment throughout the executive branch on most issues, except that Fed-
eral pay will continue to be set in accordance with the pay provisions
of title 5, and fringe benefits, including retirement, insurance, and
leave, will continue to be set by Congress.
Title VII adopts some of the provisions of that bill but does not
permit, an agency shop or bargaining on wages and fringe benefits
and does not go as far as H. R. 9094 in the scope of bargaining. The
committee amendment also includes a specific broad, statement of
management rights.
A majority of the committee believes that this system strikes a
proper balance between the public interest and the demands of citizens
who are employees of the Federal Government who wish to have a
greater voice in the employment policies applicable to them.
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13
The committee has amended the bill to include as title VIII the
provisions of H.R. 9279, relating to protections for employees who are
downgraded either. because of position reclassification or because of
agency reorganizations. This legislation: was separately reported by
the committee on March 21, 1978, and received specific support from.
President Carter who expressed his desire to have downgrading pro-
tection enacted to assist in the, various executive agency reorgamza-
tion programs. The administration ' continues to favor this legisla-
tion and has expressed its approval of the inclusion of the down-
grading bill in the civil service reform bill.
Over the past several years the downgrading of Federal employees
for reasons beyond'their control'has become one of the most pressing
problems facing the Government's civilian work force. Downgradings
occur when positions are recognized as being overgraded. because of
erroneous classifications or when, as a result of staff reductions, mis-
sion changes, consolidation of functions, or reorganizations, a reduc-_
tion-in-force action results in employees being placed in lower grades.
While these reclassification and reduction-in-force actions are neces-
sary, the major impact of such actions is felt almost' exclusively by
the employee. Employees who are downgraded not only experience a
reduction in pay but in many cases suffer irreversible -damage to their
careers. For an employee who is approaching retirement, a reduction
in grade can be particularly damaging.
Under existing law, an employee who is reduced in grade as a
result of the reclassification of his position or as a result of certain
reductions in force is entitled to retain his existing rate of pay, but not
his grade, for a maximum period of 2 years. At the end of the 2-year
period his pay is fixed at the appropriate step of the grade to which
he has been reduced. In certain cases, such as reductions in force caused
by lack of funds or curtailment of work, the employee is denied even
pay retention.
The current pay retention law does not afford sufficient protection
for an employee who has accepted a particular grade level in good
faith and subsequently is reduced to a lower grade because of circum-
stances over which he has no control.
Title VIII will substantially improve the protections afforded to
employees by authorizing indefinite grade retention for employees who
are reduced in grade as a result of reclassification actions and by
authorizing. temporary grade retention for 2 years to be followed by
pay retention, if necessary, for employees who are downgraded as a re-
sult of reductions in force. Most employees will be assured that they
will not be substantially harmed by the effects of necessary downgrad-
ing actions. At the same time, this legislation should assist Federal
agencies in carrying out the important tasks of reviewing and cor-
recting job classifications, and should facilitate the accomplishment
of the President's plans for reorganizing.various Federal agencies.
HATCH ACT REFORM
The committee has amended the bill to include the provisions of
H.R. 10, relating to revisions in the Hatch Act governing political
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activities of certain Federal, State, and local government. employees,
as title IX of the bill. This legislation passed the House by a vote of
244 to 164 on June 7, .1977, but has not been acted upon in the Senate.
Although the House has approved similar legislation, the committee
believes that it is desirable to include the provisions of H.R. 10 as
title IX in H.R. 11280 because it is. unlikely that the Senate will have
time to complete action on H.R. 10 this year. Placing the Hatch Act
reform provisions in H.R. 11280 ensures that, if the civil service re-
form bill is approved by the House, the provisions of the bill relating
to Hatch Act reform will at least be considered by the Senate.
The committee rejects the argument that modifying the Hatch Act
will inject too much politics into the civil service system. A majority of
the' committee believes that there are no greater priorities than to
broaden the extent to which Federal employees may participate in
political activities and strengthen protections to both the public and
public employees against coercion and ' improper political activities.
Guaranteeing the constitutional rights of free speech and association
to Federal' employees.is an integral part in the reform of the entire
civil. service system.
The Hatch. Act and its subsequent amendments contain two main
restrictions : a prohibition against the use of official authority or influ-
ence to affect the 'results of ail n-election and'a prohibition against taking
an active pact in political management or political campaigns during
on-duty or off-duty hours. The House and the President, who advo-
cated Hatch Act reform as part of his Presidential campaign in 1976
and subsequently supported the enactment of H.R. 10, have concluded
that such restrictions are improper and inappropriate.
The Civil Service : Commission, the agency responsible for the
administration of the Hatch Act, has always broadly interpreted the
law's restrictions against partisan activities, thereby prohibiting a wide
range of political activities. At the time of its enactment, four decades
ago, the Hatch Act incorporated. over 3,000 administrative determina-
tions by the Commission. The committee believes that these determi-
nations are too broad and infringe upon the right of Federal employ-
ees to participate in the political process.
The committee has been guided by the importance of striking the
proper balance between the right of Federal employees to participate
in the political life of this Nation at all levels and the right of the pub-
lic to an impartial, nonpolitical, civil service.
Title IX strikes a balance by relaxing the existing restrictions and
instead prohibiting only those activities which might, actually or ap-
parently, erode the integrity of the Government's ability to provide
protection for employees and the public against improper influences.
Title IX will also help avoid direct or subtle political coercion and
establish the means by which the law may be effectively enforced.
FIREFIGHTERS
The committee has amended the bill to include as title X the provi-
'sions of H.R. 3161, relating to the pay and hours of work of employees
who are engaged in firefighting. This legislation previously passed both
Houses but was vetoed by President Carter on June 19,1978. The Presi-
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dent's veto message was referred to the committee for further consider-
ation on June 28,1978.
Title X revises the laws relating to hours of work and prescribes'a
new basic workweek for Federal firefighters. Under existing laws, the
authority to fix the hours of work for firefighters rests with the heads
of employing agencies. The typical-workweek of the Federal firefighter
is 72 hours, consisting of three 24=hour shifts. Each shift contains an
8-hour period of actual work and a 16-hour period, of standby status.
During the standby period the-firefighter has a sleeping period; how-
ever, the entire standby period may be interrupted without additional
compensation not only for emergencies' but for duties normallyper-
formed during the designated work period. In no case may a firefighter
be away from assigned duties during the 24-hour shift.
The Federal Government . employs approximately 11,500 civilian
firefighters. About 10,500 of this number.are employees of the Depart-
ment of Defense. The remainder are employed by'the Department of
Transportation, the Nuclear Regulatory Commission, the Department
of Agricultire, and the Veterans' Administration. For some time, the
Civil Service Commission has appeared to be .unwilling to discuss the
firefighters' workweek with representatives of the firefighting em-
ployees. In view of this apparent refusal, the committee recommends
that legislation be enacted to resolve the dispute.
Title X provides thatthe regularly scheduled administrative work-
week of each Federal firefighter shall average 56 hours per week. In
addition, it authorizes payment of 25-percent premium pay to firefight-
ers who have a' 56-hour workweek and authorizes overtime pay for all
hours in excess of the 56-hour workweek.
SECTIONAL ANALYSIS
Section 1 prescribes a-short title for the bill, the "Civil Service Re-
form Act of 1978".
Section 2 is the table of contents.
Section 3 is a statement of congressional findings and a statement of
purpose.
Section 8(1) states the necessity for a statutory expression of the
Section 3(2) states the necessity for establishing the Merit Systems
Protection Board.
Section 3 (3) states the necessity for the Special Counsel of the Merit
Systems Protection Board.
Section 3(4) states the desirability for delegating appointment
power from a central authority to individual agencies in the executive
branch under the supervision and control of the Office of Personnel
Management.
Section 3(5) states the necessity for the creation of a Senior Execu-
tive. Service.
Section 3(6) states that in appropriate instances pay increases
should be based on quality of performance rather than longevity.
Section 3 (7) states the necessity for a personnel research and demon-
stration program to improve Government management.
principles of the merit system which shall be applicable to the Federal
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Section 3 (8) states the necessity for retraining of Federal employees
to avoid separations during reductions in force, which now results in
the loss of knowledgeable and experienced employees.
Section 101 (a) amends title 5, United States Code, by adding a new
chapter 23, relating to merit system principles. The new chapter con-
sists of four new sections: 2301, 2302, 2303, and 2304.
Merit system principles
The new section 2301 sets forth the merit system principles. Under
section 2301 (a)., the merit system will apply to Executive agencies, the
Administrative Office of the U.S. Courts, and the Government Print-
ing. Office.
The new section 2301(b) establishes the policy of recruiting and re-
taining a. Federal work force of high quality and maintaining a per-
sonnel system consistent with the merit system.principles.
The new section 2301(c) enumerates the merit system principles:
(1) Recruitment of qualified individuals reflecting all segments
of the national population; recruitment and advancement will be
based solely on relative ability, knowledge, and skills under a sys-
tem designed to ensure open competition and equal opportunity;
(2) Discrimination on account of political affiliation, race, color,
religion, national origin, sex, marital status, age, or handicapping
condition, should.not be a factor in Federal employment;
(3) The princinle of equal pay for equal work shall be continued
as -d basic pay policy, and pay rates determined under title 5 shall
reflect national and local rates in the private sector. The use of
the term "local rates" means specifically the rates applicable to
employees in the trades and crafts paid at prevailing rates under
.title 5, and is not meant to be used to alter the present sstem for
determining comparability for employees under the' General
Schedule ;
(4) Employees should maintain high standards of integrity,
conduct. and concern for the public interest;
(5) The Federal work force should be used efficiently and
effectively;
. (6) Employees whose performance is inadequate should be en-
couraged to improve, and employees who cannot and will not im-
prove their performance to.meet established standards should be
separated from the Federal service;
(7) Employees should receive education and training to
improve agency and individual performance;
(8) ? Employees should be protected against arbitrary actions,
personnel favoritism. or partisan political coercion: and
(9). Employees who disclose information which they believe
evidences violations of law, misuse of funds, or other wrongful
actions, should be protected from reprisals for such disclosure.
The new, section 2301(d) directs that the President take such actions
as he determines necessary to carry out the policies of subsection (b)
of this. section.
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Prohibited personnel practices
The new section 2302 enumerates prohibited personnel practices.
The provisions of section 2302 are applicable to Executive agencies,
the Administrative Office of the U.S. Courts, and the Government
Printing Office, but are not applicable to Government corporations or
agencies specifically enumerated in section 2302 (a) (2) (B) or agencies
designated by the President which engage in foreign intelligence or
counterintelligence activities.
The new section 2302(a) defines "prohibited personnel practice",
'"personnel action", and "agency".
The new section 2302 (b) prohibits any supervisor authorized to
take any. personnel action from discriminating on the bases enumer-
ated in the new section 2302 (b) (1).
The new section 2302(b) (2)-(11) enumerates specific prohibited
personnel practices actions which any supervisor may not take.
The new section 2302 (c) vests in the head of each agency the respon-
sibility to carry out and enforce applicable civil service laws, rules, and
regulations.
The new section 2302(d) reinforces equal employment opportunity
and affirmative action programs guaranteed under Federal law.
The new section 2303 authorizes the General Accounting Office to
conduct audits and reviews of executive agencies, when requested by
either House or any committee of either House, or upon the initia-
tion of the Comptroller General.
The new section 2304 provides that this chapter relating to merit
system principles will not impair the specific statutory authority
stated in the National Security Act, the Central Intelligence Agency
Act, Public Law 86-36, and Public Law 88-290. The purpose of this
section is to ensure that, although the merit system principles will be
applicable to security agencies, the activities of such agencies which
necessarily' require departures from basic merit system principles may
be undertaken to carry out agency functions provided for by law. This
language has been included at the request of these agencies. The com-
mittee notes that in any event, statements of principle which do not
involve the use of mandatory language should not be construed to be
judicially enforceable.
TITLE II
CIVIL SERVICE FUNCTIONS
Section 201 (a) of the bill amends chapter 11 of title 5, United States
Code, to provide for the establishment of a new Office of Personnel
Management. The provisions of amended chapter 11 are explained be-
low by Code section reference.
Section 1101 establishes the Office of Personnel Management as an
independent establishment in the executive branch.
Section 1102 provides for the appointment of a Director and a
Deputy Director by the President, by and with the advice and con-
sent of the Senate. Associsete Directors of the Office of Personnel Man-
agement will be appointed by the Director.
Section 1104 provides 'for the deleuation of power for personnel
management by the' President to the Director and by the Director to
heads of agencies. Under the new section 1104(b), the Office is given
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specific statutory.: authority to establish personnel management stand-
ards applicable to agencies covered by the chapter, to oversee agency.
activities, and to-ensure agency compliance.
Section 1104 (c), authorizes. the Office to require agency compliance
when agency actions are contrary to law, rule, regulations, or Office
standards.
Section 1105 provides for periodic reports from the Office of Person-
nel Management to the Congress And specifically provides that upon
the request of any committee or subcommittee of the Congress, the
Director shall report without review, clearance; or approval by any
other administrative authority. This section is designed to ensure
that the Office of.Management and Budget will not have any author-
ity concerning the views expressed by the Director in response to a
formal request by any committee or subcommittee of the Senate or
House of Representatives.
Section 1106 provides that the rulemaking provisions of section 553
of title 5 shall be applicable to the administrative procedures of the
Office of Personnel Management. .
Section 201(b) of the bill places the Director of the Office of Per-
sonnel Management in level II of the Executive Salary Schedule of
title 5, the Deputy Director in level III, and the Associate Directors
in level IV.
Merit Systems Protection Board
Section 202 (a) of the bill creates. statutory authority for the Merit
System Protection Board and the Special Counsel of the Board, A new
chapter 12 is.' added to title 5 and' is explained below by Code section
reference.
The new section 1201 provides for a Merit Systems Protection Board
composed of three members appointed by the President with the advice
and consent of the Senate.
The new section 1202 provides. a term of office of 7 years for each
member, prescribes procedure for filing vacancies, and requires a
quorum of two members to transact business.
The new section 1203 provides that the President shall designate
the Chairman and Vice Chairman.
The new section 1204 provides for the appointment by the President,
with the advice and consent of the Senate, of a Special Counsel foi a
term.of 7 years. The Special Counsel, who shall be independent of any
supervision or control by the Board, .may be removed only by the
President; only upon notice of hearing, and only for misconduct, ineffi-
ciency, neglect of duty, or malfeasance.
The new section 1205 establishes the powers and functions of the
Board and the' Special Counsel. The Board has, the specific authority
to issue subpenas and to seek judicial enforcement of its subpenas.
The new section 1206 provides for the authority and responsibilities
of the Special Counsel in investigating cases of prohibited personnel
practices.
The new section 1206'(a)- authorizes the Special Counsel to investi-
gate allegations of prohibited personnel practices and to respond to
individuals who 'have alleged that prohibited personnel practices have
occurred.
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The new section 1206(b) authorizes the Special Counsel to issue a
stay of any personnel action proposed to be taken against an employee
for a period of 30 days if the proposed personnel action is alleged to
be the result of a prohibited personnel, practice, and- if the personnel
action would have it substantial and adverse impact on the employee,
Under .the new section 1206 (b) (2), the 30-day stay -ordered by. the
Special Counsel may be extended after the Special Counsel petitions
the Board for an extension. If the total period of the stay, as proposed
to be extended, does not exceed 60 days, any member of the -Board
may approve the Special-Counsel's petition. If the total period of the
stay exceeds 60 days, it must be authorized by the full Board. .
The new section 1206(c) provides for handling cases involving dis-
closures of information. In such cases, the Special Counsel shall pro-
tect
the identity of an employee unless disclosure of the identity is
necessary to carry out the investigation.
Under the new section 1206(c) (2), the Special Counsel shall deter-
mine within 15 days whether the disclosed information warrants-an
investigation. If he determines an. investigation is warranted, he shall
notify the head of the agency and require him to conduct an investiga-
tion and submit a written report to the Special Counsel and the Gen-_
eral Accounting Office within 60'days.
The new section 1206(c) (3) enumerates the matter to be included in
the agency report.
The new section 1206 (c) (4) provides that in cases involving possible
criminal violations, the agency shall refer the matter to the Attorney
General, and advise the Office of Personnel Management and the Office
of Management and Budget of the referral.
Under the new section-1206 (c) (5), the Special Counsel. shall review
agency reports and determine whether the report is sufficient. . _
Under the new section 1206(c) (6), the General Accounting Office
shall review agency, reports and report the results of its review to the
Congress if it determines the action of the agency is inadequate.
The new section 1206(c) (7) reflects the intent of the committee that
except as specifically authorized nothing in section 1206(c) shall be
construed to authorize the disclosure of any information by the Con-
gress, any agency, or any person if the information is (a) specifically
prohibited from disclosure by any other provision of law, or (b) spe-
cifically required by Executive order to be kept secret in the interest
of national defense or the conduct of foreign affairs.
Under the new section 1206(c) (8), the Special Counsel is authorized
(with the consent of the employee involved), to participate in pro-
ceedings before the Board under section 7701 of title 5 (relating to
appeals to the Board), if the Special Counsel believes the appeal in-
volves a reprisal for a disclosure of information.
The new section 1206 (d) provides that the Special Counsel shall
recommend to the Board appropriate action for an agency to take to
correct prohibited personnel practices. The Board shall make a final
decision as to what action an agency shall berequired to take.
The new section 1206(d) (2) provides, for"the Special Counsel to
report possible criminal violations to the 'Attorney General and the
head of the agency, and advise the Directors of the Office of Personnel
Management and the Office of Management and Budget of his action.
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The new section 1206(d) (3) authorizes the Special Counsel-to report
noncriminal violations to the head of an agency and require a report
from the agency head as to the disposition of .the Special Counsel's
recommendations. -
The new section 1206(e) authorizes the Special Counsel to investi-
gate allegations of violations of the Hatch Act and certain other spe-
cial matters.
The new section 1206(f) provides that no-disciplinary action may
be taken against an employee for an alleged prohibited personnel prac-
tice or violation of the Hatch Act during the period of the Special
Counsel's investigation without the approval of the Special Counsel.
The new section 1206(g) provides authority for the Special Coun-
sel to bring actions against employees. In the case of individuals ap
pointed by the President of the United States, the Special Counsel's
report shall be presented to the President for whatever action the
President determines is appropriate.
The new section 1206(h) authorizes the Special Counsel to appoint
personnel to carry out the functions of the office of the Special Counsel.
The new' section 1206(i) authorizes the Special Counsel. to issue
regulations.
The new section 1206 (j) prohibits the Special Counsel from issuing
advisory opinions except in Hatch Act cases.
The new section 1206(k) requires the Special Counsel to. prepare
and submit to the President and the Congress an annual report.
The new section 1207 prescribes the administrative procedure for
hearings before the Board on complaints filed against employees by
the Special Counsel under section 1206.
The new section 1208 provides for periodic reports to the Congress
by the Board and, as is the case with the Office of Personnel Manage-
ment, specifically prohibits any prior clearance by the Office of Man-
agement and Budget or any other administrative authority.
Section 202(b) of the bill establishes the pay of the Chairman and
the members of the Merit Systems Protection board at levels III and
IV of the. Executive Schedule, respectively, and the pay of the Special
Counsel at level IV of the Executive Schedule.
Performance appraisal
Section 203 of the bill amends chapter 43 of title 5 to provide a new
system for employee performance appraisal. The provisions of the
amended chapter 43 are explained below by Code section references.
The new section 4301 establishes the coverage of the performance
appraisal system.
The new section 4301(3) defines "unacceptable performance" to
mean `performance which fails to meet established performance stand-
ards in one or more "critical elements" of an employee's position. The
committee recognizes that performance, standards are not adequately
described under the present civil service system. For that reason, the
committee, in section 4302(b) (2) authorizes a 3-year delay in the es-
tablishment of performance standards and the description of critical
elements of a job. Between now and October 1, 1981, the Office of Per-
sonnel Management must ensure that disciplinary actions against em-
ployees based on a failure to meet acceptable performance standards
in one or more critical elements of the job are very carefully adminis-
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tered so that no employee- will be disciplined when performance stand-
ards and critical elements have not been adequately defined by an
agency.
The new section 4302 provides for the establishment of performance
appraisal systems in Executive agencies and provides that the Office
of Personnel Management, shall issue regulations governing all per-
formance appraisal systems.
Section 4302(b) (7) authorizes promotions of more than one grade
during, a 12-month period in individual cases of exceptional merit.
This authorization changes a policy in effect since the Supplemental
Appropriations Act, 1951, which has limited most promotions to not
more than one grade in a 12-month period. The restriction was enacted
in 1950 as an emergency personnel control measure during the Korean
conflict, and, under the provisions of the National Emergencies Act of
1976, is due to expire on September 14, 1978. The Office of Personnel
Management must carefully monitor this authoriztion and should ini-.
tially submit periodic reports to this committee concerning, the imple-
mentation of this authority.
The new section 4303 provides authority for the removal or reduc-
tion in grade of an employee for unacceptable performance. Employ-
ees shall have a right to notice, representation by an attorney or other
person, an opportunity to improve performance, a written decision
by the agency, and, in the case of a preference eligible in the excepted
service or any employee in the competitive service, the right of appeal
to the Merit Systems Protection Board. The rights of appeal provided
in this section do not apply to individuals serving a probationary
period or to a nonpreference eligible in the excepted service.
The new section 4304 establishes the authority of the Office of Per-
sonnel Management-to require agency compliance and to ensure that
performance appraisal systems meet standards established by the Office
of Personnel Management.
The new section 4305 authorizes the Office of Personnel Manage=
ment to prescribe regulations.
Adverse actions
Section 204 of the bill revises chapter 75 of title 5 relating to adverse
actions. The revised provisions are explained below- by Code section
references.
The new subchapter I of chapter 75 relates to suspensions from a
pay status for a period of 14 days or less. Under existing law, suspen-
sions of not more than 30 days are not considered adverse actions for
the purpose of employee appeals. The committee recommends that the
30-day period be reduced to 14 days, which constitutes one full pay
period in the executive branch. The committee believes that a suspen-
sion of more than one full pay period is.a penalty of such magnitude
that an employee should have a right of appeal.
The new sections 7501 and 7502 provide definitions and descriptions
of coverage for the subchapter.
Under the new section 7503, an employee against whom a suspen-
sion of 14 days or less is proposed is entitled to notice, a reasonable
time to answer; representation, and a written decision. An employee
is not entitled to an appeal.
Subchapter II of chapter 75 relates to removals and suspensions of
more than 14 days, reductions in grade or pay, and furloughs of 30
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days or less. These actions. are adverse actions and in such cases, an
employee is entitled to full administrative protections.
The new section 7511 (a) describes the classes of employees who are
entitled to these protections..
The new section 7511(b) describes exclusions from the subchapter.
The new section 7511(c) authorizes the Office of Personnel Man-
agement to apply the subchapter to any position or group of positions
otherwise excepted from the competitive service.
The new section 7512 prescribes the personnel actions 'which are
subject to or excluded from this subchapter. A principal change rec-
ommended. by the committee is that a "reduction in rank" will no
longer be an adverse action. A reduction in rank involves a change
m an employee's relative position in his agency which does not in-
volve i reduction in pay or grade.
The new section 7513 sets out the procedure involved in admin-
istering adverse actions. Employees are entitled to 30 days' advance
notice, representation, a written decision, and an appeal to the Merit
Systems Protection Board.
. The new section 7514 authorizes the Office of Personnel Manage-
ment to issue regulations.
The new section 7521 continues. the present system of providing
protection for administrative law judges.
Appeals
Section 205 of the bill amends chapter 7.7 of title 5 relating to ap.
peals. The amended provisions are explained below by Code section
references.
The new section 7701. guarantees that an employee or an applicant
for employment may appeal actions which are otherwise appealable
to the Merit Systems Protection Board. An employee or applicant
is entitled to a hearing on the record and may be represented by an
attorney or other person. The Board may hear any case or refer a case
to an 'administrative law judge or another employee of the Board
designated to hear appeals. The decision of the agency to remove an
employee shall not be sustained if the employee shows that harmful
error occurred, that the decision was based on discrimination or any
other prohibited personnel practice, or was not otherwise in accord-
ance with law.
The Board must find that the agency decision is supported by the
preponderance of evidence. This standard of evidence is currently used
in Federal personnel cases and it should be continued: The committee
believes that the "substantial evidence" rule is not sufficient to protect
employees. "Substantial evidence" means merely enough evidence to
avoid a directed verdict in a court of law. That -standard-is not suffi-
cient in adverse action cases.
.The new section 7701(d) provides that a decision of the Board is
final unless a party or the Director of 'the Office of -Personnel Manage-
ment petitions for review. The Director may not petition unless he is
of the opinion that the decision is wrong and will have a substantial
impact on civil service operations.
The new section 7701(e) authorizes the Equal Employment Op-
portunity Commission to delegate its authority to the Merit Systems
Protection Board in discrimination cases to make preliminary deter-
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minations, but the Commission will continue to exercise the authority
to make final determinations.
The new section 7701(f) authorizes the Board to consolidate and
join appeals-cases.
The new section 7701 (g) provides for awarding attorney fees.
The new section 7702(a) -provides for judicial review by the Court
of_ Claims or any United States district court of decisions of the Board
appealed by an employee or applicant for employment. Under the
new section 7702(d), the Director of the Office of Personnel Man-
agement is authorized to file appeals in cases where he believes the
decision of the Board is erroneous and will have a substantial impact
on civil service operations.
TrrLE III
Voluntary services
Section 301 of the bill amends chapter 31 of title 5, to add a new
section 3111 providing for the use of volunteer student services. The
committee has amended this administration proposal to ensure that
volunteers will not be used in positions ordinarily occupied by Federal
employees.
Veterans' preference and probationary period for supervisors
Section 302 of the bill amends section 2108 of title 5, to eliminate
preference eligibility for a retired member of the Armed Forces who
is retired at or above the field grade officer rank of major or its equiva-
lent. The elimination of preference does not apply if the retired officer
is a disabled veteran.
Section 303(a) amends chapter 31 of title 5 by adding a new section
3112 which permits the noncompetitive appointment of disabled vet-
erans who have compensable service-connected disabilities of 30 per-
cent or- more, or disabled veterans who are enrolled in or have
completed. job training courses prescribed by the. Administrator of
Veterans' Affairs..
Section 304(a) amends chapter 33 of title 5 by adding a new sec-
tion 3303a. This new section provides that an individual who is en-
titled to veterans' preference but who is not a retired- member of the
Armed Forces will have appointment preference for a period of 15
years following separation from active duty or until appointment to
a permanent position in the competitive service, whichever occurs first.
The new section 3303a also provides that an individual who is a re-
tired member of the Armed Forces and who retired- below the rank
of major or its equivalent shall have appointment preference for a
period of 3 years following separation from active duty.
Section.304(b) amends section 3305 of title 5 so that a preference
eligible may request a competitive examination for any position for
which there is an appropriate list of eligibles.
Section 304(c) amends section 3309 of title 5 to make technical
chances relating to added points and placement on civil service regis-
ters for veterans entitled to preference.
Section 304(g) amends section 3321 of title 5 to authorize proba-
tionary periods for supervisors and managers in the competitive serv-
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ice. An individual who is appointed to a supervisory position but who
does not satisfactorily complete the probationary period is entitled to
be placed in a position, of no lower grade pay than the position that he
occupied immediately prior to his promotion to a supervisory position.
Section 305 revises veterans' preference for the purpose of retention
in the cases of reductions in force. Under existing law, a preference
eligible is `entitled to be retained .until all nonpreference eligibles are
removed when -both classes of employees are in the same competitive
group. Section 305(b) amends section 3502~(b) of title 5 to limit reten-
tion preference to the 8-year period following the preference eligible's
initial appointment to a position in the competitive service.
Training
Section 306. of the bill amends section 4103 of title 5 to authorize
training for mployees who would otherwise be. separated in order to
avoid hardship for employees as well-as the loss to the Government
of the employee's talents.
Travel and transportation
Section 307 of the bill amends section 5723(d) of title 5 to author-
ize the Office of Personnel Management- to delegate its, authority to
determine positions for which there is a man power shortage. This
change in existing law will permit agencies to pay the travel and trans-
portation expenses of a new employee and his family when he is ap-
pointed to a position for which a manpower shortage exists.
Retirement .
Section 308 of the bill amends section 8336(d) (2) of title 5 to
authorize early retirement. incases of an agency undergoing 'a major
agency reorganization, a major agency reduction in force or a major
transfer of function. Under existing law, this early retirement benefit
is limited to cases where 'an agency is undergoing a major reduction
in force. . -
Veterans' readjustment -
Section 309 of the bill amends section 2014(b) of title 38 to author-
ize the Office of Personnel Management to provide for noncompetitive
appointments for veterans of the Vietnam era.
Civil service vacancies
Section 310 of the bill adds a new section 3327 to chapter 33 of title
5 to establish a- new system for public notice of vacancies in the civil
service. Under existing law, Federal agencies do not advise the public
generally when vacancies exist in the civil service. In fact,.there is no
"central marketplace" where citizens looking for jobs can ascertain
vacancies in the Federal civil service..
This amendment requires that each Executive agency shall promptly
notify the Office of Personnel Management of each vacant position
in the agency as well as each appointment to previously vacant posi=
tions. The Office of Personnel Management shall notify the United.
States Employment Service of vacancies on a monthly basis. The com-
mittee notes that employers in the private sector are currently required
by law to make such- listings with the U.S. Employment Service.
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disability.
Dual compensation
Section 311 of the bill amends section 5532 of title 5 to provide a
new salary limitation for-retired officers of the Armed Forces. Under
existing law, retired Regular officers (other than those retired on com-
bat disability) - who are appointed to positions in the Federal service,
are required to take a. reduction in their retired military pay. At the
present time, such an officer may receive the first $4,320 of his -retired
pay plus one-half of the remainder, if any. The reduction does not ap-
ply to a retired-Reserve officer or a Regular- officer.retired for combat
so that retired officers, either Regular or Reserve; who are appointed to
positions in the Federal service will receive the full amount of their
retired pay and the full amount of their civilian position pay, subject
to an absolute maximum rate of pay equal to the rate payable for level
V of - the Executive Schedule; currently ` $47,500. The exception for
officers retired for combat disability will continue to apply.
Section 311(d) amends section 5532(d) of.title.5 to repeal the au-
thority. of the Civil Service Commission, the: Speaker, and the, Vice
President to inake`exceptions to the pay reductions on retired officers
holding civilian positions. This section also repeals the special author-
ity of the Administrator of-the.National Aeronautics and Space Ad-
ministration to make exempt 30 positions from the pay' reductions.
Section 311(f) provides that the amendments made by section 311
shall be prospective only and shall not affect the' pay of any retired
member whose eligibility for retired pay vested prior to the effective
day of this act. Similarly, the authority of the Civil Service Commis-
sion, the Speaker, the -Vice-President, and the Administrator of NASA
to make execeptions will -continue in effect for the- appointment of
an individual whose eligibility to receive retirement pay vested before
the effective day of this act. .
Minority recruitment .
Section 312 of the bill amends section 7151 of title 5 to establish a
minority recruitment program in the Federal service.
Under the new section 7151, the Office of Personnel Management
in cooperation with the Equal Employment Opportunity Commis-
sion will establish the program for the recruitment of members, of -
minority groups for positions in Federal agencies. Under this program,
each agency shall conduct a continuing effort for the recruitment of
members of minorities to eliminate underrepresentation of minor-
ities within the agency. The Office of Personnel Management will pro-
vide assistance to agencies and generally evaluate and review the
recruitment programs to determine their effectiveness. The Equal
Employment Opportunity Commission will establish guidelines and
make determinations of when underrepresentation of minority groups
exists in Federal agencies.
TITLE IV
The amendments made by section 311 (a) change the pay limitation
Title IV of the bill provides the statutory framework for the new
Senior Executive Service.
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Generi2 provisions
Section 401 (a) of the bill adds a new section 2101a to title 5. This
new section defines for purposes of title 5 "Senior Executive Service"
as consisting of Senior Executive Service positions (as defined in sec-
tion 3132(a) (2) of title 5 as added-by the bill and discussed below).
Section 401(b) of the bill amends section 2102(a) (1) of title 5,
relating to the. competitive service, to exclude from the competitive
service positions in the Senior Executive Service; and section 401(c)
of the bill makes a similar amendment to section 2103(a) of title 5
to exclude Senior Executive Service positions from the excepted serv-
ice. The effect of the amendments made by sections 401(a), 401(b),
and 401(c), is to create a new "service", the Senior Executive Serv-
ice, which; is separate and apart from the two existing services (com-
petitive and excepted) within the civil service. Thus, while a Senior
Executive Service position is subject to the laws whch apply to the
civil service generally, it is not subject to those laws which apply
solely to the "competitive service" or the "excepted service".
Section 401(d) of the bill amends section 2108(3) of title 5, relating
to the definition of "preference eligible", to exclude from. that defini-
tion "applicants for, or members of the Senior Executive Service."
The effect of this amendment is to exclude the Senior Executive Serv-
ice from the application of the various veterans' preference provisions
scattered throughout title 5.
Senior Executive Service
Section 402 amends chapter 31 of title 5, by adding a new subchapter
II relating to Senior Executive Service.
The- new section 3131 of title 5 states the purpose of the subchapter
and the reasons for the creation of the Senior Executive Service.
The. new section 3132 (a) provides definitions and exclusions for the
Senior Executive Service. The Senior Executive Service will consist of
career employees selected through a merit staffing process, and em-
ployees who do not have career status, including "limited term",
"limited emergency", and "noneareer" appointees. This new section
also defines the positions in the Senior Executive Service to include
"career reserved" which may be filled only by career employees, and
"general positions" which may be filled by any qualified individual.
. The new section 3132(b) authorizes the Office of Personnel Manage-
ment to prescribe criteria and .issue regulations concerning the desig-
nation of career reserved positions and the appointment of individuals
who have career status to these positions.
The new section 3132 (c) authorizes an agency to apply for an exclu-
sion from any provision or requirement of the Senior Executive Serv-
ice. The Office of Personnel Management will review the application
and recommend to the President whether the exclusion should be
granted.
The new section 3132(d) authorizes the President, upon recom-
mendation of the. Office of Personnel Management, to revoke exclu-
sions granted under the new section 3132(c).
The new section 3132(e) provides for periodic reports to the Con-
gress concerning exclusions and revocations under this subchapter.
. The new section 3133 establishes a method for authorizing positions
in the Senior Executive Service and the authority for appointment.
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The new sections, 3133 (a) and (b) provide that during each odd-
numbered-calendar, year, each Executive agency shall determine its
need for Senior Executive Service positions for. the next two fiscal
years and submit a detailed request to the Office of Personnel Manage
ment fora specified number of ppositions. '
The new section 3133 (c) authorizes- the Office of Personnel Manage-
ment, after consultation with the Office of Management and Budget,
to authorize a specific number of Senior Executive Service positions
for each agency. '
The new section 3133 (d) authorizes the Office of Personnel Manage-
ment to adjust.the.number of positions for each agency. However, the
total number of positions in the Senior Executive Service may not
exceed the number.. initially authorized by the Office of Personnel
Management by more than 5 percent during any fiscal year.
The new section 3133(e) authorizes Executive agencies to make
appointments to the Senior Executive Service. '
The new section 3134 establishes. limits on noncareer appointments
in the Senior Executive Service. -
The new section 3134(a) requires each agency to determine its needs
for noncareer appointees and to request authority to appoint a specific
number of noncareer employees to the Senior Executive Service for a
fiscal year.
The new section 3134(b) authorizes the Office of Personnel Manage-
ment to determine the number of noncareer appointees in the Senior
Executive Service but imposes a limit so that the total number of non-
career appointees in the Senior Executive Service may -not exceed 10
percent of the total number of employees in the Senior Executive
Service.
The new section 3134 (c) (1) imposes a limit -on the number of non-
career appointees in the Senior Executive Service in any one agency. -
Under this limitation, noncareer appointees in an agency may not
exceed 25 percent of the total number of employees in the Senior
Executive Service within the agency.
The new section '3134 (c) (2) provides an exception in the case of
agencies having a number of noncareer employees in supergrade posi-
tions in excess of 25 percent on the date of enactment of this legislation.
The limitation will also not apply to any agency having fewer than
four Senior Executive Service positions.
The new section 3135 provides for a biennial report by the Office
of Personnel Management to the Congress and enumerates the specific
matter to be included in the report.
The new section: 3136 authorizes the Office of Personnel Management
to issue regulations to carry out the purposes of the new subchapter.
- Section 402 (b) of the bill provides that appointments of experts and
consultants under section 3109 of title 5 may not.be used for appoint-
ments to the Senior Executive Service.
Appointments and career development
Section 403 (a) amends chapter 33 of title 5, by adding a new sub-
chapter VIII relating to the appointment, reassignment, transfer,
and career development in the Senior Executive Service.
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The new section 3391 of title 5 cross-references definitions for the
Senior Executive Service to the definitions provided in section 3132 (a)
of title 5 as amended by the bill.
The new section 3392 relates to appointments in the Senior Executive
Service.
Under the new section 3392(a), each agency will establish qualifi-
cation standards for each' Senior Executive Service position in- ac-
cordance with qualification requirements established by the Office
of Personnel Management.
The new section 3392(b) provides that no person maybe appointed
to the Senior Executive Service unless the appointing authority has
determined that the person meets the qualification requirements of
the position to which his appointment is proposed. This new-section
also provides that at least 70 percent of all individuals serving at any
time in the Senior Executive Service" must have?at least. 5-years' service
in the civil service before being appointed to a Senior Executive Serv-
ice position. The President is authorized to make exceptions by certi-
fication to the Congress that the limitation would hinder the efficiency
of the-Government. Under existing law (5 U.S.C. 2101(1) ), the civil
service"is defined to include all appointed positions in the executive,
judicial, and legislative branches of the ? Government of the United
States, except positions in the uniformed services.
The new section 3392(c) provides that if a career appointee in the
Senior Executive Service is appointed to a position by the President
which requires Senate confirmation, and the position is paid at a rate
equal to or greater than level V of the Executive Schedule, the ap-
pointee may at his option continue under the provisions of law relating
to pay, awards and other benefits governing the Senior Executive
Service while he serves under the Presidential appointment. -
The.-new section..3393 provides for the system for career appoint-
ments in the Senior Executive Service which each agency will carry
out during its recruitment program under guidelines established by
the Office of Personnel Management. Each agency shall establish
executive resources boards to review candidates for appointment and
make appropriate recommendations.
The new section 3393 (c) provides that the Office of Personnel Man-
agement shall establish qualifications review boards for the. Senior
Executive Service which shall certify as to the qualifications of candi-
dates for initial entry as career appointees in the Senior Executive
Service.
The new section 3393(d) provides for a probationary period of 1
year before an individual who is appointed as a career appointee in
the. Senior Executive Service acquires tenure.
The new. section 3394 provides that noncareer, limited-term, and
limited-emergency appointments may be given only to individuals
who=meet the qualifications of the position to which they are appointed.
The new section 3395 provides for the reassignment and-transfer of
senior executives. -
The,. new section 3995 (a) provides that a career appointee may be
reassigned to any other Senior Executive Service position in the
agency for which he is qualified and may transfer to another Senior
Executive Service position in another agency for which he is qualified
with the approval of the agency to which he is transferring.
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The new section 3395 (b) provides that a limited emergency appoint-
tee may be reassigned in the same agency to meet urgent agency needs
for a period of up to 18 months. A limited-term appointee may, be.
transferred to another position in the agency if the duties of the new
position will expire within 3 years.
.The new section 3395 (c) provides that limited and emergency ap-
pointments may not be renewed if 'the appointee holding the appoint-
ment'has;served more than 36 months in any such limited or emergency
appointment within the immediately preceding 48 months.
The new section 3395(d) provides that a noncareer appointee in the
Senior Executive Service may be transferred or reassigned to any
position within the: agency for which he is qualified or to any other
agency with the approval of the other agency.
The new section 3395(e) provides that career appointees - in the
Senior Executive Service may not be involuntarily reassigned to an-
other position within the agency within the first 120 days of service of
a new head of the agency.
.The new section 3396.provides for the career development of. senior
executives. .
Linder the new section 3396(c), career appointees may be granted
a sabbatical for up.-to 11 ?months.`The sabbatical may not occur more
than once in any 10-year period and is available only to appointees
who have completed at least 7 years of service in or comparable to the
Senior Executive Service. The sabbatical will not he applicable to, an
individual who is eligible for voluntary retirement on an immediate
annuity under the civil service retirement, system. Service on assign-
ment to State and local governments under section 3373 of title 5 may
not be considered in determining eligibility for a sabbatical.
Section 3396(c) (3) provides that career appointees who accept a
sabbatical must agree to complete 2 years of service following- their
term or reimburse the United States, including salary, for the sab-
batical taken. ?
The new section 3397 authorizes the Office of Personnel Management-
to prescribe regulations.
Section 404 of the bill amends section 3501 (b) of title 5, to provide
that members of the Senior Executive Service shall not be, entitled to
veterans' preference.
Removal and reinstatement
Section 404(b) of the bill adds a new subchapter V to chapter 35
of title 5, relating to the removal, reinstatement, and placement of
appointees in the Senior Executive Service.
The new section 3591 provides cross-references to the definitions
provided in the new section 3132 (a) .
The new section 3592 provides for the removal of appointees from
the Senior Executive Service.
The new. section' 3592 (a) provides that career appointees in, the
Senior Executive Service may be removed during the. period of proba-
tion. or at any time. for "less -than fully successful managerial
performance."
The new section 3592(b) provides that limited emergency, limited
term, and noncareer, appointees may be removed at any time.
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The new section 3593 provides for the reinstatement of career ap-
The new section 3593 (a) provides that a former- career appointee
may be reinstated if he has completed the probationary period-and
left,the Senior Executive Service under satisfactory conditions.
The new section 3593(b) provides that a former career appointee
appointed by the President to a position outside the Senior Executive
Service who leaves the position he holds by Presidential appointment
under satisfactory conditions may be reinstated in the Senior Execu-
tive Service during the first 90 days after separation from the posi-
tion to which he was appointed by the President.
Guaranteed placement -
The new section 3594 provides for guaranteed placement outside
the Senior Executive Service.
The new section 3594.(a)' provides that a career appointee in the
Senior Executive Service who was appointed from a career position
outside the Senior Executive Service and who is removed from the
Senior Executive Service during the' period of probation is entitled to
a career position outside the Senior Executive Service in any agency
in the Executive branch.
The new section 3594(b) provides that a career appointee who has
completed the period of probation and who is removed from the Senior
Executive Service for less than fully successful managerial perform-
ance: is entitled. to a .position outside the Senior Executive Service in
any, Executive agency.
The new section 3594(c) provides that the positions to which the in-
dividuals described in the new section 3594 (a) or (b) are entitled to be
placed shall be permanent full-time positions at grade GS-15 of the
General Schedule or an equivalent position. An appointee so placed
shall be entitled to the rate of pay, of the position to which he is ap-
pointed, at the current rate of pay for the position in the civil service
which he held immediately before being appointed to the Senior Ex-
ecutive Service, or his rate of pay in the Senior Executive Service,
whichever is higher.
The new section- 3594(c) (1) (C) -provides that placements made
under this authority may not cause a separation' or reduction in grade
.of any other employee.
The new section 3594(c) (2) provides that appointees placed under'
this authority who.continue to receive pay at a "saved rate" shall be
entitled to one-half of each' annual comparability increase until the
pay of the position under the placement appointment is equal to the
pay received by the appointee.
The new section 3595 authorizes the Office of Personnel Management
to issue regulations. -
Performance appraisals
Section 405 of the bill adds a new subchapter II to chapter 43 of
title 5, relating to performance appraisals.
. The new section 4311. cross-references definitions to the new sec-
tion 3132 (a).
The new section 4312 provides for performance appraisals in the
Senior Executive Service.
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The new section 4312 (a) provides that each agency shall develop
performance appraisal systems for the efficient management of the
Senior Executive Service.
The-new section 4312(b) enumerates the procedure for performance
appraisal systems.
The new section 4312(c) authorizes the Office of Personnel Man-
agement to ensure agency compliance, in the establishment of perform-
ance appraisal systems.
The new section, 4313? provides criteria to be included in perform-
ance appraisals.
The new section 4313 provides a method of rating appointees-by
performance appraisals and requires adequate review.
The new section 4314 (b) (1) (C) specifically provides that a ' per-
formance appraisal for a career appointee may not be-made within
120 days after the beginning of a new Presidential administration.
The committee defines a "new Presidential administration''-' to mean
an administration of a President other than the President. in office
immediately before the beginning of the current administration.
The' new section 4314(b) (3) and (4) provides that an appointee"
in the Senior Executive Service who receives an unsatisfactory rating
shall be reassigned, transferred, or removed. Any'appointee who re=
ceives two- unsatisfactory ratings within a 5-year period shall be re-
moved, and any appointee who twice in any 3-year period receives
a less than fully successful rating shall be removed.
The new section 4314(c) provides that performance review boards
shall be established to review the performance of appointees of the
Senior Executive Service.
The new section 4315 authorizes the Office of Personnel Manage-
ment to issue regulations.
Ranks for outstanding service .
Section 406 of the bill adds a *new section 4507 to chapter., 45
of title 5.
The new section 4507 (a) cross-references . definitions to - the new
section 3132(a).
The new section 4507(b). provides for agency recommendations' of'.
appointees. for the rank of "Meritorious Executive" and "Distin-
guished Executive." The Office of Personnel Management shall re-
view the recommendations and recommend to the President those
which it considers appropriate.
The new section. 4507 (c) authorizes the President to award career
appointees in the Senior Executive Service the ranks of "Meritorious
Executive" and "Distinguished Executive." .
The new section 4507(d) limits the number of Meritorious and
Distinguished Executive ranks. Meritorious Executive ranks may
not exceed 5 percent of the total number of appointees in the Senior
Executive Service, and Distinguished Executive ranks may not exceed
1 percent. ?
The new section 4507(e) provides that Meritorious Executives may
receive a one-time cash award of $2.500 and Distinguished Executives
may receive a one-time cash award of $5,000. '
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Senior Executive Service pay
Section 407 (a) of the bill adds a new subchapter VIII to chapter 53
of title 5, relating to pay in the Senior Executive Service.
The new section 5381 cross-references*definitions to the new section
3132(a). -
The new section 5382 (a) provides that the Senior Executive Service
pay schedule shall include. at least five rates. `
The new section 5382 (b)' provides that the minimum rate of pay
shall not be less-than the minimum-'rate for GS-16 and the maximum
rate shall not exceed.the rate for level IV of the Executive Schedule.-
The new section 5382(c) provides for annual comparability adjust-
ment for the rates of pay of the Senior Executive Service. ,
The new section 5383 (a). authorizes pay for individual appointees
in the Senior Executive Service.
The new section 5383(b) provides that. the total pay for any in-
dividual in the. Senior Executive Service in any 1 year, including
awards or ranks under the' new section 4507 and the new section 5384,
ma not exceed 95 percent of the current rate for level II of the Execu-
tive Schedule.
The new section 5383 (c) provides that senior, executives may not
receive more than o,ne merit pay increase during-any 12-month period.
Performance awards
The. new section 5384 provides for performance awards for ap-
pointees in the Senior Executive Service. Performance awards may
be -as much as 20 percent of current salary,- but may not be paid to
more than one-half of the senior executives in an agency. The limita-
tion does not apply to-agencies which have fewer than four senior
executive positions.
The new section 5385 authorizes the' Office of Personnel Manage-
ment to issue regulations.
Section 408 (1) and (2) includes appointees in the Senior Executive
Service within the biweekly pay period pay administration provisions
of section 5504 (a.) of title 5.
Section 408(3) amends section 5595 of title 5, relating to severance
pay, to ensure that appointees in the Senior Executive Service will be
covered by severance pay.
Section 409 amends section 5723(a) (1) of title 5 and authorizes
agencies to pay the travel expenses. of a new appointee in the Senior
Executive Service, and adds a new section 5752 to chapter 57 of title
5 to- pay travel. expenses of candidates for positions in the Senior
Executive Service to-be interviewed by Federal agencies.
Section 410 of the bill amends section 6304 of title 5, to exempt ap-
pointees in the Senior Executive Service from the provision of law
which limits the accumulation of annual leave to a maximum of 30
days.
Disciplinary actions
Section 411 amends chapter 75 of title 5, to provide a new subchapter
IV relating to disciplinary actions for appointees of the Senior Execu,
tive Service.
The new section 7541 provides definitions.
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The new section 7542 describes the actions covered by the new sub-
chapter.
- The new section 7543 prescribes the cause and procedure of dis-
ciplinary- action. A career appointee in the Senior Executive Service
against whom a disciplinary action is proposed are entitled to advance
notice, a reasonable time to reply, -representation. and a written deci-
sion by. the agency. An appointee is entitled to appeal to the Merit
Systems Protection, Board.
Section 412 of the bill amends section 8336 of title 5, to permit a
career appointee in the Senior Executive Service to retire on a reduced
annuity after completing 25 years of service or after reaching age 50
with 20 years service if the appointee is removed from the Senior
Executive Service for less than fully successful managerial perform-
ance.
Conversion
Section 413 provides for- conversion to the new Senior Executive
Service.
Section 413 (a) provides definitions by cross-reference to the defini-
tions provided in the -new section 3132 (a) and the.new section 2101a
of title 5, as added by this legislation.
Section 413:(b) provides that each agency shall: designate the posi-
tions in the agency which should be designated as Senior Executive
Service positions, and, of those, which should be career reserved posi-
tions. 'The agency recommendations shall be submitted- to the Office
of Personnel Management,. which shall establish interim authoriza-
tions for such positions and allocate a specific number of Senior Exec
utive Service positions to each agency.
Section 413(c) provides conversion rules for the appointment of
an individual serving in a position which is included in the Senior
Executive Service under section 413(b) of this legislation. An em-
ployee may accept conversion into the Senior Executive Service or
decline to accept. -
An employee who declines appointment shall be placed in a position
outside the Senior Executive Service under the current type of ap-
pointment without loss of pay, grade, seniority, and other benefits.
Each employee will be given 90. days to decide whether to elect or
decline to elect to be converted into the Senior-Executive Service.
Section 413 (d)-(h) provides technical language for the conversion
of employees into appropriate positions under appropriate appoint-
ments in the Senior Executive Service. -
Section 413 (i) provides -pay protection for employees converted
into the Senior Executive Service.
Section (413 (j) authorizes the Office of Personnel Management to
issue regulations. The regulations shall provide for employee appeals
to the Merit Systems Protection Board. .
Repeal-of existing supergrade authority
Section 414 of the bill repeals existing authority for supergrade
positions under section 5108(b)-(g) of title 5 and their equivalents.
The authority for agencies to appoint individuals to such positions is
terminated.
Section 414(a) (1) (C) authorizes the Director of the Office of Per-
sonnel Management to establish and revise the total number of posi-
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tions, not in excess of 10,920, which may be. placed in: GS-16, GS-17,
and GS-18 of the General Schedule and the Senior Executive Service.
Section 414(a).(2) (A) terminates the authority of agencies to
establish scientific and professional positions outside of the General
Schedule (Public Law 313 authority).
Section-414.(a) (2) (B) amends section 3104 of title 5 to vest in the
Director of the Office of Personnel Management the authority to create
scientific and professional positions outside of the General Schedule,
except that the authority granted shall not include authority to create
scientific and professional positions in the Senior Executive Service.
Section 414(a):(3) provides a saving clause for current occupants
of scientific and professional positions.
Executive level positions
'Section 414 (b) (1) adds a new section 5311(b) to title 5 and provides
that within six months after' the enactment of this act, the Director
of A lie, Office of Personnel Management shall determine the total
number of executive level positions in the Executive branch and that
the total number shall be the maximum number for such positions.
Executive level positions include those positions paid at a rate equal
to or in excess of the rate applicable to level V of the Executive Sched-
ule but does not include positions in the' Senior Executive Service.
.Section 414(b) (2) requires the President to submit to Congress a
plan for authorizing future -executive level positions by January 1,
1980.
Section 415(a) provides effective dates to title IV of the bill.
The Spellman amendment
Section 415(b) of the bill is the Spellman amendment, limiting the
Senior Executive Service to an experimental program in three Execu-
tive departments for a two-year period.
Section 415(b) (1) provides that not later than 60 days after the
enactment of this legislation, the Director of the Office of Personnel
Management shall issue regulations providing for the establishment
of the Senior Executive Service in "only three Executive departments"
designated by the Director.
Section 415 (b) (2) provides that within 30 days after the end of the
first two fiscal years, the Director shall submit a report on the Senior
Executive Service to the Congress.
Section 415 (b) (3) provides that the Senior Executive Service will
cease to exist unless the Congress, within 90 days of continuous session
following the receipt of the second annual report, adopts a concurrent
resolution favoring the continuation. of the Senior Executive Service.
Section 501 amends part III of title 5, by adding a new chapter 54,
relating to merit pay.
The new section 5401 states the purpose of the merit pay system.
The new section 5402(a) provides that the merit pay system shall
apply to all supervisory or management positions in grades GS-13,
GS-14, and GS-15 of the General Schedule.
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The new section 5402(b) provides for the range of salaries in the
grades under the merit system. '?
The new section 5402(c) (1) provides for annual comparability pay
adjustments in the rates of pay_ under the merit pay system.
Under the new section 5402(c) (2), employees currently occupying
such positions are protected from any loss of pay or future pay
Increases. ..
The new section 5402(d) :authorizes the Office of Personnel Man-
;tgement to issue regulations for agency implementation of pay in-
creases for employees covered by the merit pay system. Merit pay
increases may take :into account individual performance and agency
accomplishments and shall be based on employe efficiency, produc-
tivity, and quality of service, among other factors. -
The new section 5402(d) (3) provides that merit pay increases shall
be made only to the extent funds are available for?merit pay increases.
The new section 5402(d) (4) authorizes the Office of Personnel Man
agement to determine the amount. of funds available for an agency to
make merit pay increases.
The new section 5402(e) provides that the benefit of advancement
through the range of pay in grades in the merit system shall be pre-
served in the case of an employee whose civilian service is interrupted
for military service or essential civilian service during a period of war
or national emergency. -
The new section 5402(f) is a technical amendment which provides
that the rates of pay under the merit pay system will be the pay basis
for ascertaining cost-of-living allowances under 5 -U.S.C. 5941:
Cash awards
The new section 5403(a) authorizes the head of an agency to pay
.cash awards to employees for outstanding suggestions, inventions, and
accomplishments or special acts or services in the public. interest.
The new section 5403(b) provides that the President may pay such
awards.
The new section 5403(c) provides that the cash awards are in addi-
tion to any other pay and that acceptance of a cash award constitutes
an agreement by the employee for the Government's use of any idea,
method or devise for which the award is made.
The new section 5403(e) (1) provides that cash awards generally
cannot exceed $10,000.
The new section 5403(e) (2) provides that, upon approval by the
Office of Personnel Management, cash awards may exceed $10,000 but
not exceed $25,000.
The new section 5403 (f) provides for the payment of cash awards
notwithstanding the death or separation of the employee concerned.
The new section 5404 requires the Office of Personnel Management
to submit a report on the operation of the merit pay system by Janu-
ary 1, 1982.
The new section 5405 authorizes the Office of Personnel Manage-
ment to issue regulations.
Section 502 of the'bill makes technical and conforming amendments
in title 5, relating to the merit pay system.
Section 503 of the, bill provides that the merit pay system shall be-
come applicable on the first day of the first pay period on or after
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October 1, 1981, except the system may be commenced earlier as. pre-
scribed by the Director of the Office of Personnel Management.
TITLE VI
RESEARCH, DEMONSTRATION AND OTHER PROJECTS
Section 601 of the bill, amends part III of title 5 to add a 'new chap-
ter 47, relating to personnel research and demonstration projects.
The new section 4701 provides definitions.
The new section 4702 authorizes the Office of, Personnel Manage-
ment' to establish research and development projects: for the
improvement of methods and technology in the, Office of Personnel
Management.
The new section 4703 (a) authorizes the Office of Personnel Man-
agement to conduct and evaluate demonstration projects. Such proj-
ects may be undertaken notwithstanding any. lack of specific authority
and notwithstanding any other provision of law relating to personnel.
The new section 4703 (b) requires that the, Office of Personnel Man-
agement develop a specific plan for each demonstration project and
enumerates the contents to be included in each plan. Any proposal to
waive any provision of law, rule, or regulation shall be cited and the
entire plan shall be published in the Federal Register and subject to
public hearings.
The new section 4703(c) provides that each research or demon-
stration project may not be undertaken until a copy of the plan has
been submitted to the Congress and the plan has not been disapproved
by-either House by'the adoption of a resolution of disapproval within
60 calendar days of continuous session after the plan has been
submitted.
. The new section 4703(d) enumerates the provisions of law which
may not be waived in research or demonstration projects.
The new section 4703(e) provides general limits on any demonstra-
tion project.
The new section 4703 (f) authorizes the Office of Personnel Manage-
ment or an agency to terminate demonstration projects.
The new section 4703(g) (1) provides that employees in a unit sub-'
ject to a negotiated contract between an agency and a labor organiza-
tion. may not be included within a demonstration project if the
project would violate the agreement unless there is a written agreement
between the agency and the organization'with respect to the project.
.The new section 4703(g) (2) provides that'a project which includes
employees in a unit subject to a negotiated contract not covered by a
labor-management agreement shall not become effective until consul-
tation or negotiation has taken place between the agncy and the labor
organization., . . '
The new section 4704 authorizes the use-of appropriated funds for
research and demonstration projects.
The new section 4705 provides for the inclusion of reports on re-
search and demonstration projects in the annual report of the Office of
Personnel Management.'
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The new-section 4706 authorizes the Office of Personnel Management
to issue regulations.
Section 602 (a) amends section 208 of the Intergovernmental Per-
sonnel Act (IPA) to: (1) authorize Federal agencies through the Of-
fice of Personnel Management, to require State and local govern-
ments, as a condition of participation in Federal assistance programs,
to have merit personnel systems based on this bill's merit principles
for the positions engaged in the administration of such programs; and
(2) abolish all statutory personnel requirements established as a con-
dition of the receipt of Federal grants-in-aid by State and local gov-
ernments, except those listed in section 208 of the IPA, those that
prohibit discrimination in employment or require equal employment
opportunity or affirmative action, the Davis-Bacon Act, and the Hatch
Act.
Section 602 (b) amends section 401 of the IPA to extend the author-
ity to participate in the mobility program to "other organizations."
Section 602(c)- amends section 403 of the IPA to make commis-
sioned Public Health Service officers eligible to participate in the
IPA mobility program.
Section 602(d) amends section 502 of the IPA to define the Trust
Territory of the Pacific Islands as a jurisdiction which is eligible to
participate in all IPA programs.
Section 602(e) amends section 506 of the IPA to include the Com-
monwealth of Puerto Rico, Guam, American Samoa, and the Virgin
Islands in the formula' allocation of IPA grants and exclude these
jurisdictions from the local government allocation.
Section 603 amends the mobility program.
Sections 603 (a) through (d) amend section 3371 through 3375
of title 5 to extend eligibility to participate in the mobility program
to the Trust. Territory of the Pacific Islands ; to a military depart-
ment: a court of the United States; the Administrative Office of the
U.S. Courts; the Library of Congress; the Botanic Garden; the Gov-
ernment Printing Office; the Congressional Budget Office; the U.S.
Postal Service, the Postal Rate Commission; the Architect of the
Capitol; the Office of Technology Assessment; and other organizations
.such as a national, regional, statewide, or metropolitan organization,
representing member State or local governments; an association of
State or local public officials; or a nonprofit organization, one of whose
principal functions is to offer professional advisory, research, develop-
ment, or related services to governments or universities concerned with
public management. Federal employees in noncareer appointments in
the Senior Executive Service and employees in the excepted service
who are serving in confidential or policy determining positions are
excluded from participation in the, mobility program.
Section.603(d) amends section 3374 of title 5 to provide technical
amendments designed to ensure fairness and equity for persons partici-
pating in mobility assignments. Federal retirement and other benefits,
in the rare cases where such programs apply to certain State and Dis-
trict of Columbia government employees, would not be lost by
employees while they are on mobility assignments. Federal agencies
would be authorized to reimburse State and local governments, institu-
tions of.higher learning, and "other organizations" for various fringe
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38
benefits (health and life insurance, retirement, etc.) of employees on
detail from such organizations.
Section 603(e) amends section.-.3375 of title 5, to authorize an ex-.
ecutive agency to reimburse mobility assignees for certain miscel-
laneous relocation expenses related to a geographic move for purposes
of mobility assignment on the same basis such payments are authorized
on a permanent change of station (automobile registrations, drivers'
license, etc.).
TITLE VII
FEDERAL SERVICE. LABOR-MANAGEMENT RELATIONS
Title VII of the bill establishes a statutory basis for labor-man-
agement relations in the Federal service. Since 1962, Executive
orders have governed the collective bargaining relationship in the
Federal sector. Title VII would for the first time enact into law
the rights and obligations of the parties to this relationship-em-
ployees, agencies, and labor. organizations.
. Title VII, in concert with the President's Reorganization Plan No. 2
of 1978, also constructs a new? framework ,for the conduct of Federal
labor-management relations. -The Federal Labor. Relations Authority,
an independent establishment in the establishment, together with its
Office of General Counsel, will be primarily responsible for the ad-
ministration of the -program and the enforcement of the policies re-
flected in Title VII. The Federal Service, Impasses Panel (an entity
within the Authority)' and the independent Federal. Mediation and
Conciliation Service will be empowered to facilitate the collective
bargaining.process.
SECTION 701
Section 701 of the bill amends subpart F of part III,of. title 5,
United States Code, by adding new language to chapter 71. The pro-
visions are explained below by Code section references.
Findings and purpose
Section 7101 (a) set's forth'the finding that collective bargaining in
the Federal Service is in the public interest, in that it safeguards
employee rights and contributes to the effective conduct of public
business'-by encouraging amicable resolution of employment related
disputes. Statutory protection of Federal employees' right to organize
and bargain collectively through labor organizations is in the public
interest.
Section 7101(b) states the. chapter's purpose : to prescribe the rights.
and obligations of employees and to establish procedures -to meet the
special needs of the Federal Government in the labor-management
relationship.
Employees' rights
Section 7102 provides that each Federal employee shall have the
right to form, join, or assist any labor organization-or to, refrain
from that activity-freely and without fear? of penalty ..or or reprisal,
and that each employee shall be protected in the exercise of this right.
Except as otherwise-provided by the chapter, this basic right, includes
the rights: (1) To act for a labor organization as a, representative and
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to present the ` views. of a labor organization to Executive branch
officials, to the Congress, and to other authorities; (2) .to engage in
collective bargaining over conditions of employment through chosen
representatives; and (3) to engage in. other lawful activities for the
purpose of establishing, maintaining, and improving conditions of
employment.
Definitions; application
Section 7103 defines various terms used throughout the chapter. The
definitions effectively set the coverage. and exclusion from coverage
for individuals, agencies, and labor organizations.
Section 7103 (a) (1) defines "person" to include an individual, labor
organization, or agency. The definition is critical- to the meaning and .
effect of later sections which vest "persons" with substantive and pro-
cedural rights (e.g., section 7123, Judicial Review). "Agency" and
"labor organization" are defined terms in section 7103.
-Subsection (a) (2) of section 7103 defines "employee" for the chap-
ter's purposes as an individual who is employed in an agency (as
defined by section 71.03(a)'(3). Also to be deemed an "employee"
is any individual whose work as an employee in an . agency has
ceased as the result of an unfair labor practice as described in section
7116,'as added by this bill, and who has not obtained any other regular
and substantially equivalent employment, as determined under regu-
lations to be prescribed by the Federal Labor Relations Authority.
-Such an individual, for example, would be eligible to vote in'a.repre-
sentation election under section 7111, as added by this bill.-
Subparagraphs (i) through (iv) exclude certain individuals from
the definition of "employee";. aliens or noncitizens occupying positions
outside the United States; members of the uniformed services (as
defined by section 2101(3) of title 5; the armed forces; commissioned
corps of the Public Health Service and of the National Oceanic At-
mospheric Administration) ; supervisors or management officials, (as
defined by section 7103; and individuals in the Foreign Service of the
United States employed in the Department of State,- Agency for In-
ternational Development, or ,International Communication Agency.
Subsection (a) (3) defines "agency" as an Executive agency :(in-
eluding the Veterans'-Canteen Service, the Veterans' Administration,
and nonappropriated fund instrumentalities under section 2105 (c) of
title 5, such as the Army and Air Force Exchange Services, the Army
and Air Force Motion Picture Service, and similar instrumentalities
under the jurisdiction of the Armed Forces), the Library of Congress,
and the-Government Printing Office. Specifically excluded from cov-
erage are GAO, the FBI, "and CIA' NSA, the Foreign Service, TVA,
the.Federal Labor Relations Authority, and the Federal Service Im-
passes Panel. Section 7103(b) sets forth a procedure through which
any other agency - may apply for exclusion on national security
grounds.
Subsection (a) '(4) of section 7103 defines "labor organization" as
an organization composed in whole or in part of employees, in which
employees .participate and pay dues, and which -has as a purpose the
dealing with an agency. concerning grievances and conditions of 'em-
ployment. The committee intends that the latter criterion be deemed
.as met by an organization which has one one of its basic- purposes,
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though not its only purpose, or its primary purpose, the representa-
tion of. employees in. a- collective bargaining relationship. The term
"labor organization" is thus intended to encompass professional asso-
ciations (such as the-American Nurses Association, the National Ed-
ucation Association, the National Association of. Social Workers, the
Physicians National Housestaff Association, and the National Eco-
nomic Council of Scientists) which seek to avail themselves .of repre-.
sentational rights under chapter 7L An organization which is not a
"labor organization" under section 7103(a) (4) is one: (1) whose basic
purpose is purely social, fraternal, or limited to special interest objec-
tives only. incidentally related to matters affecting conditions of em-
ployment; or, (2) which denies membership because of race, color,
creed, national origin, sex, age, preferential or nonpreferential civil
service status, political affiliation, marital status, or handicapping
condition; or, (3) which. is sponsored by an agency.
Subsection (a) (5) of section 7103.defines "dues" to mean dues, fees,
and assessments.
Subsection (a) (6) defines "Authority" to mean the Federal Labor
Relations Authority
Subsection (a) (7) defines "Panel" to mean the Federal Service-
Impasses Panel.
Subsection (a) (8) defines "collective bargaining agreement" as
an agreement entered into as a result of collective bargaining pursuant
to chapter 71. The term "collective bargaining" is defined in subsec-
tion (a) (12)? of section 7103. .
Subsection (a) (9) of section 7103 defines "grievance" to mean any
complaint by any agency, labor organization, or employee concern-
ing: (1) any matter relating to the employment of such person with
an agency; or, (2) the effect or interpretation, or claim of breach, of
a collective bargaining agreement; or, (3) any claimed violation, mis-
interpretation,. or-misapplication of any law, rule, or regulation affect-
ing conditions of employment. It should be noted that, although this
subsection is virtually all-inclusive in defining "grievance", section
7121 excludes certain grievances from being processed under a negoti-
ated grievance procedure, thereby limiting the net effect of the term.
Subsections (a) (10) and (a) (11) of section 7103 define the key
terms "supervisor" and "management official". Any individual deemed
a "supervisor" or a "management official" is generally excluded from
inclusion in bargaining units and is ineligible to act as a representative
of any labor organization. A "supervisor" or a "management official"
is generally a representative of the agency in the collective bargain-
ing relationship.
Subsection (a) (12) of section 7103 defines the terms "collective bar-
gaining" and "bargaining" to-mean the performance of the mutual
obligation of management and labor to meet, confer, and consult in a
good-faith effort to reach agreement on matters affecting conditions
of employment. Any agreement reached must, upon the request of
either party, be reduced to writing and executed. Neither party is com-
pelled to agree to a proposal or. to make a concession.
Subsection (a) (13) of section 7103 defines a "confidential employee"
as one who acts in a confidential capacity to an individual. who formu-
lates or effectuates management policies in the field of labor-manage-
ment relations. Confidential employees are generally excluded from
bargaining units.
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Subsection (a) (14) of section 7103 defines a critically important
term "conditions of employment." Management and labor are obliged
to'bargain over all matters affecting "conditions of employment." The
term is defined to mean personnel. policies, practices, and matters,
whether established by rule, regulation; or otherwise, affecting work-
ing conditions-except'for,policies, practices, and matters: (A) relat-
ing to employment discrimination on the basis of race, color, religion,
sex, age; national ~ori n or handicapping condition; or (B) relating
to prohibited political activities; or (C) to the extent they are specifi-
cally provided for by Federal statute. Certain "conditions of employ-
ment" are removed from- the obligation to bargain.
Subsection (a) (15) of section 7103 sets forth the criteria for deter-
mining whether an employee is a "professional employee." The term
is relevant primarily to the determination of appropriate bargaining
units under section 7112.
Subsection (a) (16) of section 7103 defines-another key term "ex-
clusive representative," as any labor organization which has been :
(1) is certified pursuant to section 7111, below, as the representative
of employees in an appropriate bargaining unit; or, (2) was recog-
nized as a unit's representative before effective date of`this chapter and
continues to be so recognized pursuant to this chapter (see section
7136, below). The committee intends that these pre-existing recogni-
tions (granted or continued under the provisions of Executive Order
11491, as amended) , in conformance with section 7136 continue until
withdrawn or modified under the provisions of this chapter.
Subsections (a) (17) and (a)-(18), and (a) (19) of section 7103 de-
fine the terms "firefighter," and "United States," and "dues," respec-
tively, for the purposes of the chapter. .
Subsection (b) of section 7103 sets forth the procedures and stand-
ards by which an agency (or any sub-unit) not specifically. excluded
by section 7103 may be granted an exclusion from coverage under this
chapter'on national security grounds.
Federal Labor Relations Authority
Section 7104, in concert with Reorganization Plan No. 2 of 1978,
establishes and describes the Federal Labor Relations Authority, an
independent establishment in the executive branch. The committee
intends that the Authority's role in Federal sector labor-management
relations be'analogous to that of the National Labor Relations Board
in the private sector. Functions which, under the Executive Order
11491 program, were distributed among various entities (such as the
Civil. Service Commission and the Department of Labor) are to be
consolidated under the Authority.
Subsection (a) of section 7104 provides that the Authority be com-
posed of three members. No more than two may be of the same politi-
cal party. No member may engage in other business or employment,
or hold another position in the Federal Government, except as other-
wise provided by law. The committee intends that the position of rriem-
ber be a full-time position, just as is the.position of member of tho
Natonal Labor Relations Board.
Subsection '(b)~ of section 7104 provides that Authority members
be appointed by the President, subject to. Senate confirmation. They
may be removed by the President only for cause, and only upon.notice
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and hearing. This provision is intended to help ensure the independ-
ence of the Authority. The President may name any one of the mem-
bers as Chairman. The committee intends that members be eligible
for reappointment. ~
Subsection (c) of section 7104 provides for staggered terms for Au=
thority members. A member shall serve until the member's successor
takes office or. until the last day of the Congress beginning after the
member's term is.scheduled to expire (whichever comes first). An in-
dividual appointed to fill a vacancy shall be appointed only to. serve
the unexpired term. It is intended that any sitting member be eligible
for reappointment. .
Subsection (d) of section 7104 provides. that a vacancy shall not
impair the functions of the Authority. The committee intends-that
neither one nor two vacancies impair the -Authority's functions. It is
also intended that the President promptly nominate successors to fill
any vacancies.
Subsection,(e) of section 7104 requires the Authority to submit an
annual report of its activities to the President-for transmittal to
Congress.
Subsection (f) of section 7104 describes the Office of General Coun-
sel of the Authority.; The committee intends that'the General Counsel
be analogous in role and function to the -General Counsel of the Na-
tional Labor Relations Board. Subsections (f)'(1) and (f)(2).prom
vide that the General- Counsel be appointed by the President (subject
to Senate confirmation) for a 5-year term, and be removable by the
President at will. The General Counsel may investigate alleged-viola-
tions-of this chapter; file* and, prosecute complaints, intervene -in unfair
Tabor practice proceedings, and exercise any other powers delegated by
the Authority. _ . .
Subsection (f) (3) gives the General Counsel direct. authority over,
and responsibility for, all employees-in the Office of General Counsel,
including those in field offices of the Authority.'
Subsection (f) (4) prescribes the procedure for filling any vacancy
in the Office of General Counsel. The President is to promptly name an
Acting General Counsel, and then submit a nomination fora new
General Counsel within 40 days of the vacancy's occurrence. If
the Congress adjourns sine die before the 40-day .period expires, the
nomination is to be submitted within 10 days after Congress
reconvenes.,;
Powers and ,duties of the Authority
Section 7105 sets forth the powers and duties of the Authority.
Subsection .(a) directs the Authority to provide leadership in
establishing policy and giving guidance in labor-management.rela-
tions matters under chapter 71, and, except as otherwise provided,
be'responsible for carrying out the purposes of chapter 71.
Subsections (b) through (d) are administrative provisions relating
to the Authority. The Authority is required to adopt an official seal
which shall be judicially noticed, establish its principal office in or
about the iDstritc of Columbia, although it may meet and exercise
any or all of its powers at any time or place, appoint an Executive
'Director, regional directors, administrative law judges, and. other em-'
ployees. It is intended that the Authority may. establish and operate
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areas.
any field offices it deems necessary. Except as otherwise expressly pro-
vided by law, the Authority may, by one or more of its, members or
by any agents it designates, make any. inquiry necessary to carry out
its duties wherever persons subject to chapter 71 are located. A mem-
ber who participates in an inquiry is not disqualified from later
participating in a decision of the Authority in any case.
Subsection (e) authorizes the Authority. to delegate its functions
relating to the determination 'of exclusive representation to its regional
directors. The Authority may delegate to its administrative-law judges
its functions under section 7118 to determine whether any person has
engaged, or is engaging in, an unfair labor practice.
Section 7105(f) provides that, upon the filing of an application by
anyinterested person; the Authority may review and, upon review, may
modify,- affirm, or reverse any action taken by a regional director or -
administrative law judge in performing 'a- delegated function under
section ? 7105. The application must be filed within 60 days after the'
date of the action. The review itself does -not operate as a stay' of an
action unless the Authority specifically so orders. If the Authority
does not undertake to grant review within 60 days after the date of
the action,'or within 60 days after an application. for review is filed,
the actionbecomes.the final action f the Authority. -
Subsection (g)' of section 7105 grants the Authority necessary power
to hold hearings, administer oaths, take testimony and depositions, and
subpena witnesses and documents.
Management rights.
Section 7106 sets forth rights which are reserved to management.
The, effect. of this section is to place limits ' on the number of sub-
jects about which agency management may bargain with a labor
organization.
Subsection (a) (1) preserves to agency management the right (subject
only to subsection (b) of section 7106), to determine the mission, bud-
get, organization; number of employees, and internal security practices
of the agency. Management may not bargain away its authority to
make decisions. in' these areas.
Subsection (a) (2) sets forth the other areas of management au.
thority which may not be subject to collective bargaining: (1) to
direct employees; (2) to assign work, to make- determinations with
respect to contracting-out, and to determine. the personnel by which
agency operations shall be conducted; and (3) to take whatever actions
may be necessary to carry out the agency's mission during national.
emergencies.
Subsection (b) of section 7106 provides that management and the
union may bargain over the procedures management will use in exer-
cising their authority to determine the mission, budget, organization,
number of employees, and internal security practices of the agency.
They may also negotiate appropriate arrangements for employees
adversely affected by management's exercise of , authority in these
of the scope of collective bargaining to an extent greater than the scope
has been "under the Executive Order program, but to preserve the es-
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sential prerogatives and flexibility Federal managers must have. The
"management. rights" language of Executive Order 11491 has been -
a substantial- barrier against negotiations. The committee intends that
section 7106-which retains, several of management's rights under the
Executive Order, but also eliminates several-be. read to favor col-
lective bargaining whenever there-is.doubt as to the. negotiability of a
subject or a proposal.
For example, in the controversial area of promotions, section 7106
does not contain the Executive Order's "management right" to "pro-
mote." The committee thereby intends that promotion standards and
procedures be negotiable within the limits set by statute and applicable
.government-wide regulations. -
Another troublesome area-overtime-is an example. Whether over-
time is necessary and how much is necessary are non-bargainable man-
agement decisions. But procedures to be used in assigning overtime
are negotiable. For example, management and the union could nego-
tiate_a rotation system for assignments. Rates of overtime pay are not
bargainable, because they are specifically provided for by statute.
Exclusive recognition of labor organizations
Section 7111 sets forth the procedures for determining whether
employees will be represented by a labor organization.
Subsection .(a) states the general rule that exclusive recognition will
be accorded -to a labor organization selected by a majority of employees
in an appropriate bargaining unit who participate in an election in
conformity with this chapter's requirements.
,Subsection (b) (1) of section 7111 sets forth the procedures for
initiating -a representation proceeding. If any person (meaning an
individual, labor organization, or agency) files a petition with the
Authority alleging that 30 percent of the employees in an appropriate
unit wish to be exclusively represented, or, where there currently is an
exclusive representative, that 30 percent no longer wish to have that
exclusive representative; or, seeking clarification of, or an amendment
to, an existing. certification or a matter relating to representation, the
following procedures apply. (The committee intends that existing
practice be continued in determining whether the requisite number of
employees have satisfactorily indicated their desires, i.e., the "showing
should suffice.)
The Authority must investigate each petition and, if it has reason-
able cause to believe there is a question of representation (i.e., whether
the subject employees wish to have a labor organization as an exclusive
representative), provide an opportunity for a hearing. Questions-of
appropriateness of unit, showing of interest sufficiency, and employee
eligibility should be raised and, if possible, resolved during this phase
of the proceedings. Except as provided by subsection (e), if the. Au-
thority finds on the compiled record that a question of representation
does exist, it shall conduct a secret ballot election in accordance with
procedures set. forth. No election may be held in.any unit or unit sub-
division in which a valid -representation election has been.held during
the previous 12 calendar months.
Subsection (b) (2) (A) of section 7111 requires the Authority to pro-
ceed with the election in the petitioned-for unit even if, 45 days after
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the petition was filed, there are still unresolved issues about the unit,
voter eligibility, or any other election-related matter. Subparagraph
(B) requires the Authority, after the election, to expedite resolution-of
the issue or issues. If the Authority determines the disputed matter -
did not affect the election's outcome, the election results shall be certi-
fied. If the matter,did affect the outcome, the election must be re-run.
For example, if ten individuals the labor organization claimed to be
in the unit were, after the election, found to be outside the unit (and
therefore ineligible to"vote), but the labor organization won the elec-
tion by one hundred votes, then the election probably would not have
to be re-run, because ten votes one way or the other would not have
affected the outcome. If, however, the labor organization's margin of
victory were only five votes, the :election would probably have to be
rerun.
Subparagraph (c) of section- 7111 provides a right to intervene in a
representation proceeding, and to be placed on the ballot in. any-
elec-tion, to any labor organization which: (1) presents a "showing of in-
terest" of 10 percent of unit employees; or (2) submits a valid copy
of a current or recently expired collective bargaining agreement for
the unit (in other words, the incumbent exclusive representative) ; or
(3) presents any other evidence that it is-the current exclusive repre-
sentative of the employees involved.
Subsection' (d) of section 7111 directs the Authority to determine
eligibility and rules for elections. In every election, employees must be
given the right'to choose one labor. organization from those on the
ballot, or to choose to have no labor organization as exclusive repre-
sentative. If no choice on the ballot receives a majority of the votes
cast, the Authority must hold a run-off between the two choices re-
ceiving the most votes. A labor organization receiving the majority
of votes cast in any election shall be certified by the Authority. as ex
clusive representative of the employees in the unit.
Subsection (e) of section 7111 sets forth the conditions under which
a petitioning labor organization may be certified as an exclusive repre-
sentative without a secret ballot election. The Authority may so certify
if, after investigation, it determines : (1) that agency conduct which is
prohibited under section 7116 precludes the holding of a free elec-
tion; or (2) that, the labor organization represents a majority of
employees in an appropriate unit based on the securing of the valid
signatures on petitions or authorization cards of more than 50 per-
cent of the employees. In the latter case, the majority :status must
have been achieved. without benefit of an unfair labor practice by either
the agency or the labor organization. Also, no other petition for
recognition or request for intervention may be pending and no other
question of representation may exist in the unit. This subsection neces-
sarily entails a determination by the Authority of unit appropriate-
ness.
Subsection (f) of section 7111 provides that any labor organization
recognized by an 'agency before this .chapter's effective date as the
exclusive representative of employees in an appropriate unit may peti-
tion the Authority for an election to determine whether that organiza-
tion is the exclusive representative of that unit, or of any appropriate
unit.
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Subsection (g) of -section 7111 requires any labor organization seek-
ing exclusive recognition.to submit to the Authority and to the agency
involved a roster of its officers and representatives, a copy of its con-
stitution and bylaws, and a statement of its objectives.
Subsection (h) sets forth three specific conditions under which- a
labor organization shall not be accorded exclusive 'recognition : (1) if
the Authority determines the labor organization is subject to corrupt
influences or influences opposed to democratic principles; (2) when,
where a petition is necessary under section 7111(b) (1) (A), there is
not credible evidence (i.e., valid signatures on petitions or -cards) of
a sufficient showing of interest;. or (3) when there is in effect a lawful
collective bargaining agreement between the involved agency and an-
other labor organization covering any employees included in the peti-
tioned for unit. The latter prohibition is commonly referred to as a
"contract bar": The subsection provides, however; that there is no
contract bar if: (A) the agreement has been in effect for more than
three years ; or, (B) the petition for exclusive recognition is filed
during the 4-month period which begins on the 180th day before the
expiration date of the agreement -(commonly known as the "open
season"). -The- "contract bar" provision Wends stability to collective
bargaining relationships ? by. precluding continuous-'challenges to an
'exclusive representative's -status, while at the same time giving em-
ployees the opportunity at reasonable intervals to choose,. if they so
desire, a -new representative. Subparagraph (4) prohibits the ac-
cording of exclusive recognition if the Authority has conducted dur-
ing the previous 12 calendar months a secret ballot election involving
'any of the employees in the unit.
Subsection (i) of section 7111 permits the waiving of a hearing by
stipulation where the parties consent to proceed to an election without
further proceedings. '
Determination of appropriate units for labor, organization representa-
tion
Section 7112;. sets forth- standards for determining the units of
employees which -are appropriate for purposes of collective bargain-
ing.
Subsection; (a) (1) states, that the Authority shall make the deter-
min"ations.of -appropriateness. The goal for the Authority for deter-
mining in each case whether the appropriate unit should be established
on an agency, plant,: installation, functional, or other basis shall be
to ensure empoyees the fullest freedom in exercising the-:rights guaran-
teed :them under this chapter. Notwithstanding, a unit is to be deter-
mined "appropriate" only if the determination will ensure community
of interest among the employees concerned, and promote effective deal-
ings with, and efficiency.. of the operations of, the agency involved.
Subsection (b) of section 7112 states that the extent to which
employees have been organized shall not be the sole criterion of
.appropriateness. The subsection then lists those employees who shall
not be part of any appropriate unit.: (1)1- management officials and
supervisors (as defined by section 7103-except where a preexisting
and continuing unit under section 7136 (a) contains those -individuals
or where a majority of the. unit' is composed of firefighters or nurses;
(2) confidential employees (as defined in section 7103) ; (3) employees
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engaged in personnel work (other than in a purely clerical capacity) ;
(4) employees engaged in administering the provisions of this chap-
ter; (5) professional employees (as defined in section 7103) when
mixed in a unit with nonprofessionals, unless the professionals vote
for. inclusion in that unit; (6) employees of any agency who are en-
gaged in intelligence, investigative, and security functions which di-
?rectly affect national security; or, (7) employees engaged primarily
in an agency's audit or investigative functions relating to that agency's
internal security.
Subsection (c) of section 7112 provides that the Authority shall
consolidate two or more units in an agency for which a labor organiza-
tion holds exclusive recognition by reason of elections in each of the
units, if the Authority deems the larger unit to be appropriate (using
the criteria in section 7112 applicable to all determinations of appro-
priateness). The Authority shall then certify the labor organization as
the .exclusive -representative of the larger unit. The committee intends
that this consolidation procedure be initiated by petition of the labor
organization involved, or by petition of the agency.
Subsection .. (d) of section 7112 provides that in the case of an
agency reorganization affecting one or more exclusively represented
units, the certified, exclusive representative, or exclusive 'representa-
tives, shall continue in that status for the unit or units until new
elections are held (with new appropriate unit determinations), or
until 45 days elapse from the effective, date of the reorganization,
whichever comes first.
National consultation lights'
Section 7113 provides for the granting of. ".national consultation
rights."` .
Subsection (a) requires that an agency grant national consultation
rights, when there is no exclusive recognition on an agency-wide basis,
to'any labor organization which exclusively represents a substantial
number of that agency's employees. The Authority shall prescribe the
standards and. procedures for granting national consultation rights.
Exclusive representation of 10 percent of the total number of employ-
ees in an agency should satisfy the "substantial number" criterion.
Consultation rights` terminate when the labor organization no=longer
meets the Authority's criteria.. Questions of a labor organization's
initial or continuing eligibility shall be resolved'by the Authority.
Subsection .(b) of section 7113 requires that any labor organiza-
tion having national consultation rights in an agency be informed in
advance of any change in conditions of employment proposed by
that agency and be given a reasonable time to present its views and
recommendations regarding the change. The agency- must consider
any views and recommendations so submitted, and give the? labor
organization a.written statement of-the reasons for its final decision on
the matter. .
Subsection (c) states that collective bargaining rights are not
affected in anyway by national consultation rights.
Representation rights and duties
Section 7114 sets forth the rights and obligations of agency manage-
ment and a labor organization once the' latter has been accorded
exclusive recognition.
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Subsection (a) states that a labor organization accorded exclusive
recognition is the exclusive representative of all employees in the unit,
and is entitled to act-for and negotiate agreements with management
covering those employees. It must represent the interests of all em-
ployees in the unit without discrimination and regardless of member-
ship or nonmembership in the organization. It has the right to be given
the opportunity to be represented at: (1) any discussion between one
or more agency representatives and one or more employees (or their
representatives) concerning any grievance, personnel policy or prac-
tice or other condition of employment; or, (2) any discussion between
an employee and an agency representative if the employee reasonably
believes he may be the subject of a disciplinary action (when an em-
ployee is interviewed by a supervisor concerning alleged abuse of leave
or.interrogated by the agency's internal security- division concerning
alleged irregularities in a. travel voucher). The agency and the
exclusively-recognized labor organization are obligated to meet and
negotiate in good faith, through appropriate representatives, for the
purpose of arriving at a collective bargaining agreement. Nothing in
this subsection, however, is to be construed so as to preclude an em-
ployee's being represented by an attorney or other representative of
his own choosing in procedures other than those negotiated by the ex-
clusive representative and the agency pursuant to this chapter.
Subsection (b) specifies that the mutual obligation to negotiate in
good faith includes, the obligation to: (1) resolve to reach an agree-
ment; (2) 'be represented by duly authorized and prepared represent-
atives; and (3) meet at reasonable times and convenient places as
frequently as may be necessary, and to avoid unnecessary delays.
Subsection (b) (4) requires an agency to provide to the exclusive rep-
resentative, upon request and within the limits of Federal law, any
normally maintained and reasonably available data necessary for the
negotiations. Subsection (b) (5) requires that if an agreement is
reached, it must, upon request of either party, be reduced to writing
and executed. All steps necessary for implementation must be taken
by both parties.
Uotm.ents to representatives
Section 7115 provides for the withholding of labor organization
dues through payroll deductions. The section reflects a compromise
between two sharply contrasting positions which the committee con-
sidered.: no guarantee of withholding for any unit employee and man-
datory payment by-all unit employees ("agency shop"). The committee
believes section 7115 to be a fair resolution for agencies, labor orga-
nizations, and employees.
. Subsection (a) provides that if an employee in an exclusively repre-
sented unit presents to the agency a written assignment authorizing
the agency to deduct the labor-organization's dues from the employee's
pay each pay period, the agency must honor the assignment and must
deduct the dues. The decision to pay, or not to pav is solely the em-
ployee's. If the employee decides to have dues withheld, the agency
must honor that decision. The allotments are to be made at no cost to
the employees or to the labor organization. Assignments normally are
to be irrevocable for one year.
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? Subsection (b), however, requires that an allotment terminate,
when : (1) the existing collective bargaining agreement between the
agency and labor organization ceases to be applicable to the employee
(the employee is promoted to a management position or leaves the
employ of the agency) ; or (2) -the employee is suspended or expelled
from the labor organization.
. Subsection (c) of section 7115 provides. for the negotiation of dues
withholding-agreements in units in which there is no exclusive repre-
sentative. Any person may filea petition with the Authority alleging
a labor: organization has as members at least 10 percent of the em-
ployees in a nonrepresented unit. If, after investigation; the Author-
ity certifies that there is, in fact, 10-percent membership; the agency is
obligated. to negotiate with the labor organization solely concerning a
voluntary dues withholding agreement. This procedure necessarily
entails a determination by the Authority as to the appropriateness of
the unit. Any withholding agreement reached pursuant to this subsec-
tion shall automatically terminate upon certification of an exclusive
representative.
Unfair labor practices.
-Section 7116 setsforih actions by agencies and by labor organiza-
tions which constitute "unfair labor practices".
Subsection (a) provides that it shall be an unfair labor practice for
an agency : (1) to, interfere with, restrain, or coerce employees in
the exercise of the rights assured by chapter 71; (2) to encourage or
discourage membership in any labor organization by discrimination
in regard to hiring, tenure, promotion, or other conditions of employ-
ment;. (3). to sponsor, control, or otherwise assist any labor organiza-
tion, except that the agency may furnish customary and routine serv-
ices and facilities when the services and facilities are furnished, if
requested, on an impartial basis to organizations having equivalent
status (e.g., providing equal bulletin board space to two labor orga-
nizations which will will be on the' ballot in an exclusive representation
election) ; (4) to discipline or otherwise discriminate against an em-
ployee because the employee has filed a complaint, affidavit, petition, or
has given any information or testimony under chapter 71; (5) to
refuse to consult, confer, or negotiate in good faith with a labor orga-
nization as required: by chapter 71; (6) to fail or refuse to cooperate-in
impasse procedures and impasse decisions as required by chapter 71;
(7 to fail or refuse to comply with any provision of chapter 71; or,
(8) to prescribe any, rule or regulation which restricts the scope of col-
lective bargaining. permitted by chapter 71 or which is in conflict with
any applicable agreement negotiated under chapter 71.
Subsection (b) provides that it shall be an unfair labor practice for
a labor organization to: (1) interfere with, restrain, or coerce an
employee in the exercise of the-rights assured by chapter 71; (2) cause
or attempt to cause an agency to discriminate against an employee in
the exercise of his rights. under. chapter 71; (3) coerce or attempt to
coerce, discipline, or fine a member of the labor organization as punish-
ment or reprisal for, the purpose of hindering or impeding his work
performance, productivity, or the discharge of his duties as an em-
ployee of an agency; (4) discriminate against an employee with regard
to the terms or conditions of membership because of race, color, creed,
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national origin, sex, age, preferential or nonpreferential civil service
status, political affiliation, marital status, or handicapping condition;
(5) refuse to consult, confer, or negotiate in good faith with an
agency as. required by chapter 71; (6) fail or refuse to cooperate in
impasse procedures and impasse decisions as required by chapter 71;
(7) call or engage in a strike, work stoppage, or slowdown, or to
condone any such activity by failing to take action to prevent or stop
it; or (8) fail or refuse to comply with any provision of chapter 71.
The 'language "fail or refuse to comply-with any provision of this
chapter" used in section 7116(a) (7) and section 7116(b) (8) is
intended to include the failure or refusal on the part of an agency or a
labor. organization to comply with any order or decision issued in
accordance with chapter 71 such as the final order of the Authority in
an unfair labor practice proceeding. This'does not in any way affect
the rights of the Authority or any person under section 7123, below
(Judicial Review; Enforcement).
The committee intends that disputes concerning the. negotiability
of proposals and matters .affecting working conditions, except for
questions. of "compelling need" under section 7117, be resolved through,
the ling and processing of unfair labor practice. charges under sec-
tion 7116 and section 7118. Under the Executive order program, a
separate procedure for' resolving.negotiability disputes was provided.
The method of resolution provided here"is analogous to that in the
private sector under the National Labor Relations Act.
Subsection (c)-provides that in addition to those actions enumerated
in section 7116 (b) ?it shall be- an unfair labor practice for a labor
organization which is accorded exclusive recognition to deny member-
ship to an employee in the appropriate unit except for reasons specifi-
cally set forth in .that subsection. Those reasons include: (1) the
failure to meet reasonable occupational standards uniformly required
for admission; or (2) failure to tender initiation fees and dues uni-
formly required as a condition of acquiring and retaining member-
ship. The last sentence of subsection (c) provides that the. subsection
does not preclude a labor organization from enforcing discipline in
accordance with procedures under its constitution or bylaws, provided
that the procedures conform to the requirements of chapter 71.
Subsection (d) of section 7116 is directed to those situations .in
which an alleged improper action may (but for subsection (d)) appro-
priately be considered under more than one administrative procedure.
For example, if an employee is removed from his position, he may
have the right to appeal that action under statutory appeals proce-
duresrelating to adverse actions. In addition, the removal could con-
stitute an unfair labor, practice under section 7116 (a) (1),'thereby per-
mitting the employee to utilize the unfair labor practice procedures
under section 7118. The removal might also appropriately be consid-
ered in a grievance proceeding, under the terms of a collective bargain-
ing.agreement negotiated pursuant to this chapter.
Subsection (d) provides that, in such instances, the aggrieved party
may choose which form of proceeding he wishes to follow. Specifically,
it ,provides that issues which properly can be raised under (1) an
appeals procedure prescribed by or pursuant to law, or (2) a grievance
procedure negotiated pursuant to section 7121 of chapter 71-Pay, in
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the discretion of the aggrieved party, be raised under either the appro-
priate appeals or ' grievance procedure, or if applicable, under the
unfair labor practice proceedings under section 7118 of chapter 71, but
not both. The. Authority is required to issue regulations prescribing
the procedure and time frame for. the election. In the event an issue is
decided pursuant to an appeal or grievance procedure, and.that issue
could also have been properly raised in an unfair labor practice pro-
ceeding,.-the last sentence of subsection (d) expressly provides that
the appeal or grievance decision shall not be construed as an unfair
labor practice decision nor as precedent for any such decision:
Duty to bargain in -good faith; compelling need
Section 7117 sets; forth a procedure for determining whether matters
affecting conditions of employment which are the subject of .any
Government-wide rule or regulation shall be negotiable
Subsection (a) (1) states the-:general rule that an agency's and a
labor organization's duty to bargain in good faith under this chapter
includes, to the extent not, inconsistent with Federal law, the duty to
bargain ,over matters which are the subject of''any rule or regulation
which, subject to paragraph (2), is .not a Government-wide rule. or
regulation. However, agency-wide rules, regulations, and policies are
not. a. bar to negotiations over matters which would otherwise be
negotiable under this chapter. For 'example, if an agency were
to have a regulation stating that each male employee-in the
agency must wear a. necktie while on duty, and a labor organization
holding exclusive recognition for a unit within the agency were to
make a proposal that male employees be permitted not to wear neckties
during the summer months, the agency could not invoke its regulation
as a bar to negotiations-on the -proposal. Similarly, an agency regula-
tion restricting the area, of consideration for promotion eligibility
could not be invoked as a bar to a proposal for a wider area of consid-
eration.
Subsection (a) (2) of section 7117 provides thatthe duty to bargain
in good' faith, to the extent not inconsistent with Federal law, also
extends to matters. which are the subject of any Government-wide
rule or regulation-for which the Authority - determines that there
is no "compelling need" for the Government-wide rule or regula-
tion. The Authority is to prescribe by regulation the criteria for
determining "compelling need." The committee intends that. the cri-
teria be similar to those promulgated by the Federal Labor Relations
Council to determine "compelling need" for agency-wide regulations
under the Executive order program, with the Authority's determina-
tion to be based primarily on whether there is a demonstrated,.and
justified, and overriding need for Government-wide uniformity in the
matter covered by the rule or regulation.
The term "Government-wide" shall be construed literally; only
those regulations which affect the Federal civilian work force as a
.whole are "Government-wide" regulations. No-other regulations may
bar negotiations.
Subsection (b) (1) of section 7117 requires the Authority to hold
a hearing (in accordance with regulations it shall prescribe) when-
ever an exclusively recognized - labor organization alleges that no
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compelling need . exists - for a Government-wide rule- or regulation
which an agency has invoked as a bar to negotiations on a matter.
Subsection (b) (2) requires expedition of the proceeding to the ex-
tent practicable, so as not to delay unduly the'completion of ongoing
negotiations. The Authority's General Counsel may not be a party to
the proceeding' (as the General Counsel would be in an unfair labor
practice case). The committee's intent is that the parties. before the -
Authority will be the involved agency and labor organization, and
the agency which. issued the regulation. The burden.shall be on the
issuing, agency. to demonstrate "compelling. need".
Subsection (b) (3) provides that the Authority shall determine that
a "compelling need" does not exist. (thereby making the matter ne
gotiable) only if: (A) the agency which issued the rule or regulation
informs the Authority in writing that there, is. no compelling need;
or, (B) the Authority itself determines, after a hearing that there
is no compelling need.
Subsection'(b) (4) requires that the agency issuing the subject Gov-
ernment-wide rule, or regulation be a necessary party to the-proceed-
ings: Typically, it is anticipated, the issuing agency will be the Office
of Personnel hfanagement or the General Services Administration.
The_committee,intends that nothing in section 7117 ' be. construed as
preventing -agencies from issuing Government-wide revelations. Nor
should section 7117 be read. as voiding any Government-wide regula-
tion for which a finding of "no compelling need" is made. Such a
regulation would remain in full force and effect for all-purposes.ex-
cept that it. would not bar negotiations over the subject, matter in the
particular appropriate bargaining unit involved. Any collective bar-
gaining agreement provision then negotiated which conflicts with the.
Government-wide regulation would take precedence for purposes of
that bargaining unit.
Prevention of un f air'labor practices
Section 7118 sets forth the procedures to be followed in processing
unfair-labor practice cases.
The committee intends that the process begin with the filing of an
unfair labor practice charge by the aggrieved party.
Under subsection (a) (1). the sole responsibility for investigating a
charge rests with the General Counsel of the Authority. If, after
investigation, the General Counsel determines that a complaint should
issue, he is required to cause the complaint to be -served upon the
charged agency or labor organization. The General Counsel's decision
as to whether a, complaint should issue shall-not be subject to review:
If a. complaint is, issued, it is required to contain a notice : (1) of the
charges; (2) that- a hearing will be held before the Authority or,. a
member thereof, or before an individual employed by the Authority-
and designated for that purpose; and (3) of the time and place fixed
for the hearing.
Subsection (a) (3) gives the charged party the right to answer and
to be a party.to the hearing. .
Subsection (a) (4) prohibits the issuance of a'complaint based upon
an unfair labor practice which occurred more than 6 months before the
filing of the charge with the Authority unless the person aggrieved
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was prevented from filing the charge because the agency or labor
organization against whom the charge is made failed to perform a
duty owed to the aggrieved person, or due to concealment. In addition,
the concealment or failure to perform a duty must have prevented the
discovery of the unfair labor practice within 6 months of its.-
occur-rence. In such a case, the 6-month period during which. a charge may
be filed is computed :from the day of the discovery of the occurrence.
Subsection (a) (5) of section 7118, provides that, if 'a complaint is
filed by the General Counsel, the Authority is'required'to hold a hear-
ing, not earlier than- 5 days after=the complaint is served. (The:Com-
mittee -intends, however,' that nothing preclude waiver of a hearing
by stipulation:) The individual or individuals conducting the hearing
may allow any person other than the involved labor organization or
agency to intervene in the hearing and present testimony. The attend-
ance of witnesses and the production of documents at the hearing may
be compelled in accordance with section 7133, relating to subpena
power: To the extent practicable, the- hearing shall be conducted in
accordance with the applicable provisions- of the Administrative Pro-
cedure Act. 'A transcript will be'kept. If, after completion-of the hear-
ing, the Authority''(or its designee), in its discretion, determines that
further evidence or argument- is necessary, it may, upon notice.to the
parties, receive'or hear such further evidence or argument.
Subsection (a) (6) provides that a.decision of the Authority or its
designee, such as the administrative law judge or'other individual who
.conducted -the hearing shall be based upon the preponderance of the
evidence received.' If the Authority (or its designee) determines that
an' agency or labor organization?.named in the complaint' has engaged
in or is engaging in an unfair- labor- practice, the Authority or its
designee is required to state its findings of fact and to issue and cause
an order to be served on the agency or labor organization. The order
shall require the party to take such action to carry out the policies of
chapter 71. The action ordered may include : ceasing and desisting
from the unfair laborpractice; directing retroactive amendment of a
collective bargaining agreement; requiring an' award of reasonable
attorney's fees and reasonable costs=and expenses of litigation; or
requiring reinstatement of employees' with backpay and interest. -
Subsection (a) (7) requires that if, upon a preponderance of the
evidence, the- Authority or its designee determines that an unfair
labor-practice has not been committed, the Authority or its designee
must state its: findings- of- fact and ' issue an order dismissing the
complaint.' - -
It should be noted that. under section- 7105(e), the Authority is
authorized to delegate its' functions under section 7118 to its adminis-
trative.law_ judges, with'their decisions being subject to'review by the
Authority under section 7105 (e).
Subsection, (b) of section 7118 permits the Authority to request
advisory opinions from the Director of the Office of Personnel Man-
agement concerning proper interpretation of OPM rules, regulations,
and directives. - -
Negotiation impasses; Federal Service Impasses Panel
Section 7119 provides for. mediation and arbitration of negotiation
impasses, and establishes within the Authority the Federal Services
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Impasses Panel, to which parties may agrea,to refer such impasses for
resolution.
Under subsection (a), the Federal Mediation and Conciliation Serv-
ice is required to provide services and assistance to agencies and labor
organizations in the resolution of negotiation disputes and impasses.
The Service will determine under what circumstances and in what
manner it will provide services and assistance.
Subsection (b) provides that when voluntary arrangements, includ-
ing the services of the Federal Mediation and Conciliation Service or
other third :party mediation fail to resolve a negotiation dispute or
impasse, either party'may request the Federal Service Impasses Panel
to consider the matter, or the parties may agree to adopt a procedure
for binding arbitration of the impasse.
Subsections ' (c) (1), ,(c) (2), (c) (3), and (c) (4) of section. 7119
describe the Federal Service Impasses Panel, an entity within the
Authority composed of a Chairman and at least six other members,
appointed by the - President, with. the advice ' and consent of the
Senate, on the basis of fitness to perform the. duties and functions of
the office, familiarity with Government operations, and knowledge in
labor-management relations. The members are appointed for 5-year
terms, staggered on a 2-year basis. An. individual chosen to fill a
vacancy is appointed for the unexpired term of the member replaced.
A member may be removed by'the President at will. Members are*
eligible for reappointment.
The Panel is authorized to appoint an Executive Director and
other employees as it may from time to time find necessary for the
proper performance of its duties. A member of the Panel who is not
otherwise an employee (meaning are employee as defined in section
2105 of title 5) is entitled to pay at a rate equal to the daily equivalent
of the maximum annual rate of basic pay currently, paid, from time
to time, under the General Schedule for each day he is engaged in the
performance of official business of. the Panel, including travel time,
and is entitled to travel expenses and a per diem allowance under
section 5703 of title 5. A member of the Panel who is a Government
employee is not entitled to any additional pay, but is entitled to
travel expenses and a per diem allowance.
Subsection (c) (5) requires the Panel (or its designee to investi-
gate promptly any impasse presented. to it under section 7119(b).
gate promptly any impasse presented to it under section 7119 (b). Upon
consideration of. the impasse, the Panel is required either to recom-
mend procedures to the parties for the resolution of the'impasse, or to
assist the parties in arriving at a settlement through whatever meth-
ods and procedures, including factfinding and recommendations, it
may consider appropriate. If the parties do not-arrive at a settlement,
the Panel is authorized to hold hearings, compel the attendance of wit-
nesses.and production of documents (as provided in section 7133 re-
lating to subpenas), and take whatever action is,necessary and not in--
consistent with the provisions of chapter 71 to resolve the impasse.
Notice of any final action of the Panel must be promptly served upon
the parties, and the action is final and binding upon the parties during
the term of the .agreement, unless the parties agree otherwise. Final
action of the Panel under.'this section is not subject to appeal,_ and
failure to comply with any final action ordered by the Panel con-
stitutes an unfair labor practice by an agency under section 7116(a)
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Standards of conduct for labor organizations
Section 7120 (a) requires a labor organization representing or seek-
ing to represent employees to adopt governing requirements contain-
ing explicit and- detailed provisions to which it subscribes, providing
,for: (1) the maintenance of democratic procedures and practices, in-
eluding. provisions for -periodic elections to be conducted subject to
recognized safeguards, and provisions defining and securing the right
of individual members to participation in the affairs of the labor or-
ganization, to .fair and ' equal treatment under the governing rules of
the organization, and to fair process in disciplinary proceedings; (2)
the prohibition of business or financial interests on the part of labor
organization officers and agents which conflict with their duty to the
organization and its members; and- (3) the maintenance of fiscal in-
tegrity in the `.conduct of the affairs of the labor organization, includ-
ing provisions for accounting and financial controls and regular. fi-
nancial reports or summaries to be made available to members.
Subsection (b) of section 7120 states the general rule (except as
specifically provided by this chapter) barring mangement officials
and supervisors, as defined in section 7103, from participating in
the management of a labor organization or acting as a labor or-
ganization representative. Employees are so barred if there would be
a resulting or apparent conflict of interest, or if the participation
or activity would be incompatible in any way with law or with
the employee's official duties.
Grievance procedures
Section 7121 (a) provides that any collective bargaining agreement
entered.into by an -agency and a labor organization must contain
procedures for the settlement of grievances, including questions of
arbit.rability. An employee to whom the agreement applies is specifi-
cally afforded the choice to have his grievance processed under either
a procedure negotiated in accordance with chapter 71 and set forth in
the agreement reached pursuant to those negotiations or any applica-
ble appeals procedure established by or pursuant to law. It should be
noted-that, in addition, if the subject matter of the grievance is such
that it would comewithin the provisions of section 7116, relating to
unfair labor practices, the employee may elect to pursue procedures in
accordance with section 7118. An employee, then, could conceivably
have a choice of three procedures.
Section 7121(b) further provides that a negotiated grievance pro-
cedure must be fair, simple, provide for expeditious processing, and
shall include procedures that assure a labor organization the right (in
its own behalf or on behalf of -any employee in the unit) to present
and process grievances; and assure an employee, the right to present a
'grievance on -the employee's own behalf, as well as assure the labor
organization the right to be present when the grievance is adjusted.
Only the exclusive representative is entitled to, represent employees
under the negotiated grievance procedure, but employees may repre-
sent themselves. The, negotiated procedure shall provide that any
grievance not satisfactorily settled in the grievance process be subject
(8).
(6) and (7) or a labor organization under section 7116(b) (6) and
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to binding arbitration which may. be invoked by either the labor
organization or the agency.
. Subsection (c) of section 7121 provides that either party to an
agreement may seek to compel the other to proceed to arbitration by
filing a complaint in the appropriate U.S. district court, or in any
appropriate court of a State. territory, or possession of the United
States. The court shall hear the matter without jury in an expedited
manner' and shall decide whether to issue an order directing that
arbitration proceed under the terms of the agreement. -
Subsection (d) of section 7121 provides that grievances over certain
matters may not be processed through the negotiated grievance pro-
cedure. These matters include: (1) Hatch Act violations (prohibited
political activities) ; (2) retirement, life insurance, or health insurance
matters; or (3) suspensions or removals effected.for reasons of na-
tional security. Grievances concerning all other matters-including -
other matters for which there are statutory appeals procedures, such as
adverse, action appeals and position classification appeals, shall be
grievanle and arbitrable under the negotiated procedure. A unit em-
ployee in such- a case' would have a choice between the statutory pro-
cedure or the negotiated procedure-or, if'applicable, the unfair labor
practice?procedure,provided by section 7118.
Subsection (e) of section 7121 sets forth the right of an employee
who grieves through the negotiated procedure a matter which, in part,
involves an allegation of discrimination prohibited by section 717 of
the Civil Rights Act of 1964. The employee retainsthe right to request
the Equal Employment Opportunity Commission to review the griev-
ance decision and make the final determination on the allegation of
di'scririlination. Reorganization Plan No. 1 of 1978 vests the function
of making final determinations concerning Federal employees' allega-
tions of discrimination in.the Commission.
Exceptions to arbitral awards
Section 7122 sets forth the procedures under which a party may
obtain review by the Authority of an arbitrator's award. The proce-
dures apply in the case of.. either an :award in an arbitation resulting
from an. impasse. proceeding under section 7119(b), as added by the
bill, or an award in', a grievance proceeding tinder section 7121, as.
..added by the bill, If an exception is filed by a party ,to an arbitral
award the Authority must review the award. If upon review, the Au-
thority- finds. that the -award is .deficient because : (1) it is contrary
to any applicable law, rule, or regulation; (2) it was obtained by
corruption, fraud, or other misconduct; (3) of partiality of the arbi-
trator; or (4) the arbitrator exceeded his powers; the Authority may
take such action and make such recommendations as it considers nec-
essar, ,consistent with applicable law .or regulations and. the provi-
sions, of chapter-71.- If no exception is filed within the 60-day period
beginning'on the date of the'award, the decision of the arbitrator is
final and binding. A final decision of the Authority under section 7122
(an arbitration award which has been reviewed by the Authority or
for.which the time period for filing exceptance has run) -is subject to
the judicial review provisions of section 7123, as added by the bill. The
Committee rejected a proposed amendment to give the Comptroller
General authority to review arbitration awards to determine the le-
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gality of the -use of appropriated funds to pay arbitration awards.
An agency must take the actions required by the final award of.an
arbitrator including, if ordered, payment of backpay, with interest.
Judicial review
Section 7123 provides for judicial review of certain final orders of
the Authority by the circuit courts of appeal, enforcement. of orders
of the Authority by the same courts, and injunctive ,relief in appro-
priate cases.
Section 7123(a) provides that (1) the final order of. the Authority
in an unfair labor practice proceeding under section 7118, as added by
the bill; (2) the award by an arbitrator (which has. been reviewed
by' the Authority in accordance with section 7122, as added by the
bill) ; or (3) a determination of appropriate unit under section _7112;
may, upon the filing of an appropriate pleading by an aggrieved party
within 60 days from the issuance of the order or award,. be reviewed
by the appropriate United States court of appeals. Jurisdiction is
within the circuit where the, aggrieved . person resides or transacts
business, or, in any case, in the District of Columbia Circuit.:
Subsection (b) of section 7123 provides that, the Authority may
petition any appropriate U.S. court of appeals for enforcement of any
Authority order and for appropriate temporary relief or. restraining
order. .
Subjection (c) of.section.7123 requires the Authority;upbn the filing
of a petition for judicial review or for enforcement, to file with.the
court the administrative record of the proceeding. The court must then
serve notice on the parties and take,jurisdiction. The court may grant
temporary relief or a restraining order; and may affirm and enforce
the subject Authority order, or modify and enforce the order as modi-
fied, or set it aside in whole or in part. The court may stay an Author-
ity order, but the mere filing with the court, of'a petition for review of
an Authority order does not operate as a stay. Review of'Authority
orders is on the record and the scope of review.by the court is governed
by section 706-of title 5 (which governs judicial review of final ad-
ministrative orders). Absent extraordinary circumstances, only those
objections raised and urged before, the Authority maybe considered
by the court.
Subsection (c) further provides that the Authority's findings of'fact
are conclusive for purposes of judicial review and enforcement if the
findings' are supported by substantial evidence'on the record. How-
ever, any person may.applyto the court for-leave to adduce, additional
.evidence. If the-court is satisfied that there is additional material
evidence, and that there were reasonable- grounds for failing'to ad-
duce the evidence ', before the Authority, the court may order
the Authority to take'the additional evidence and make it part of the
record. The Authority may then modify its original'findings of fact,
affirm them,- or make new findings. Modified or new .findings shall be
filed with the court, along with any recommendation for modifying
or setting aside its original order. The court will thhe.n make its final
'judgment and enters its decree: In all cases, courts of appeals"judg-
ments and. decrees are finial, subject only to review by the Supreme
Court. ,
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Subsection (d) sets forth a procedure through which -the Authority
may seek temporary relief or a restraining order concerning the com-
mission of-"alleged unfair labor practices prior to final administrative
or judicial processing and decision on the- matter involved. Under
section 7118 as added by this bill, the General Counsel of the Authority
makes the final decision as to the issuance of a complaint of an unfair
labor practice. If a complaint is issued, the General Counsel acts as
prosecutor of the complaint. Subsection (d) of section 712.3 authorizes
the General Counsel, upon the issuance. of the complaint, to petition
the U.S. district court (for the district in which the unfair labor prac-
tice is alleged to have occurred, or where the person complained of
resides or transacts business) for temporary relief or a restraining
order pending prosecution of the complaint and final determination
by the Authority. The petitioned court must serve notice on the parties,
take jurisdiction, and grant or deny relief. .
Only those labor-management relations matters specifically referred.
to in section 7123 shall be judicially reviewable.
Reporting requirements for standard's of conduct
Section 7131 makes applicable to labor organizations which have or
are seeking to obtain -exclusive recognition under chapter 71. the
provisions of Labor-Management Reporting and Disclosure Act of
1959, as amended; popularly known as the Landrum-Griffin Act
29 U.S.C., chapter- 12. The provisions'of the Labor-Management Re-
porting and Disclosure Act of 1959, are also specifically made appli-
cable to the officers, agents, shop stewards, other representatives, and
members of a labor organization to the extent the provisions would
be applicable if the agency were an employer under section,402 of
title 29, United States Code. The section further authorizes the Sec-
retary of Labor, under regulations issued with the concurrence of
.the Authority, to prescribe simplified reports for labor oganizations,
and to revoke the provisions for simplified reports for any labor orga-
nization if he determines, after investigation. and after due notice and
opportunity for hearing, that the purposes of chapter 71 of title 5 and
chapter 11 of title 20 would be served thereby.
O ffrcial time
Section 7132 provides standards for determining when an indi-
vidual may or may not be authorized official time (paid time) to en-
gage in activities concerning labor-management relations.
Section 7132(a) provides that employees representing an exclu-
sively recognized or certified labor organization in the negotiation
of a collective bargaining agreement under chapter 71 (includint at-
tendance at impasse settlement proceedings) are authorized official
time for that purpose during the time the employees would otherwise
be in a duty status. The number of employees for whom official time..is
authorized may not exceed the number of, persons designated by the
agency as representing the agency in the subject negotiations.
Section 7132 (b) provides that matters solely relating to the internal
business of a labor organization must be performed when the subject
employee is in a nonduty status.
Section 7132(c) empowers the Authority to make determinations
as to whether employees participating in proceedings before the Au-
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thority shall be authorized official time. However, official time specifi-
cally required under section 7132 (a) must be authorized.
Section 7132(d) makes all other matters concerning official time
for unit. employees engaged in labor-management relations activity
subject to negotiation between the agency and the exclusively recog-
nized labor organization involved.
Subpenas
Section 7133 (a) gives the Authority-for the purposes of all hear-
ings and investigations which.it, any-.of. its members, its agents, the
Panel, or. its members deem necessary and proper-the right to see
and copy any evidence which relates to the subject matter of the in-
vestigation or hearing. -
The Authority, any member thereof, its designee, the Panel, or
any member thereof. (referred to. hereinafte'r.as the "issuer") may, on
-application of any, party to a proceeding or investigation, or on its
own initiative, issue subpenas requiring the attendance and testimony
of witnesses and the production of any relevant evidence applied for
including books and papers of the Federal Government to the extent
otherwise available under law.
Section 7133(a) further provides a procedure through which the
individual. or organization receiving a subpena for production of evi-
dence may seek its revocation. The issuer may be petitioned to revoke
within 5 days after service of the subpena. The subpena shall be re-
voked if the issuer determines the evidence sought is irrelevant, or if
the subpena does not describe the evidence sought with sufficient par-
ticularity. The issuer or its designee may administer oaths and affirm-
ations, examine witnesses, and receive evidence.
Subsection (b) of section 7133 provides that the issuer may seek
enforcement of any of its subpenas in the appropriate U.S. district
court (i.e., the court for the district in which the person to whom the
subpena is addressed resides or is served). The court may order com-
pliance with a subpena, and treat any failure to obey its order as con-
tempt of court, with appropriate punishment.
Subsection (c) provides that subpenaed witnesses be paid the same
fees and mileage as are paid subpenaed witnesses in the Federal
courts.
Subsection (d) of section 7133 provides that no claim of self-
incrimination or resultant penalty or forfeiture shall excuse a person
from obeying a subpena. No person making such a claim, however,
shall be prosecuted or subjected to any penalty or forfeiture because
of compliance, but there is no exemption from prosecution and
punishment for -perjury committed in testifying in compliance with a
subpena.
Subsection (e) of section 7133 authorizes a fine of up to $5,000 or
imprisonment for up to one year, or both, for any person who will
fully resists, prevents, impedes, or interferes with any member or
agent of the Authority or the Panel in the performance of their duties
under chapter 71.
Compilation and publication of data
Section 7134 (a) requires the Authority to maintain a file of its pro-
ceedings and maintain copies of all available collective bargaining
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agreements and arbitration decisions. It.must also publish the texts of
its decisions and of all actions taken by the Panel.
Section 7134'(b) requires that the Authority's files be open to inspec-
tion and reproduction, subject to the provisions of the Freedom of
Information Act and the Privacy Act.
Issuance of regulation
Section 7135: authorizes and requires the Authority, the Federal
.Mediation and.Conciliation Service, and the Panel each to prescribe
rules, and regulations-to carry out the provisions of chapter 71 which
are applicable to each of them, respectively. Unless otherwise, specifi-
cally provided in this chapter, the.. applicable portion of the adminis-
trative procedures provisions of title 5 shall govern the issuance,
revision, or repeal of these rules and regulations.
Continuation. of existing' laws, recognitions, agreements,,. and
procedures
Section 7136(a) (1) provides for the continuation of existing exclu-
sive "recognitions (including appropriate unit determinations) and col-
lective bargaining agreements granted or entered into before the effec-
tive date of this chapter. These recognitions and unit determinations
continue until terminated or modified under the provisions of this
chapter, and all agreements continue in effect in accordance-with their
own-terms and the applicable provisions of this chapter.
Section 7136(a)`(2) provides for the renewal, continuation, or initial
according of recognition for units of management officials or super-
visors represented by labor organizations which historically or tradi-
tionally represent management officials or-supervisors in private indus-
try, and which hold exclusive recognition for units of such officials or
supervisors in any agency on the effective date of this amended chap-
ter. Otherwise, ino management official or supervisor as defined under
section 7103 of this chapter may be a member of an appropriate unit
. Section 7136(b) provides, basically that provisions of the. labor-
management relations program established by and under the Executive
order which conflict with the provisions of this chapter, or with remI-
lations issued hereunder, are superseded by the provisions of this Act.
Other provisions and Executive orders remain effective until revised
or revoked by the President.
SECTION 702
Section 702 of the bill makes certain amendments to section 5596 of
title 5:United States Code (commonly referred to as the Backpay Act).
Section 702 (a) makes' several revisions in the present. section 5596 (b)
of title 5. First, the parenthetical "(including an unfair labor practice
or a grievance decision)" is added immediately after "administrative
'determination" to insure that such decisions will be considered ad-
ministrative determinations for purposes of section 5596 of title 5.
Second, paragraph (1) of the. present section 5596(b) of title 5,
is revised to specify the items which are recoverable on correction
of an unwarranted personnel action. As revised by the bill, section
5596 (b) (1) of title 5 entitles the employee to the recovery of an amount
equal to all or any part of the pay, allowances, or differentials, as
applicable that the employee normally would have earned or received
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if- the personnel action had not occurred,-less any amounts earned by
him through other employment during that period plus interest on
the amount payable: The employee is. also entitled to reasonable at-
torneys' .fees and reasonable costs and expenses of litigation related
to the personnel action.
Section 702(a) of the bill also amends section 5596(b),(2) of title 5,
United States Code. Under the existing provisions of section 5596, an
employee who is restored to duty following a period of separation
resulting from an unjustified or unwarranted personnel action is
deemed for all purposes to have performed 'service for the agency
during the period of separation except'that he may not be, _credited
with annual leave in excess of the maximum amount of leave that is
authorized for the employee by law or regulation.
Section 702(a) of the bill amends'section 5592(b) (2) so as to permit
,restoration of all of the annual leave that an employee would have
earned during. the period of separation. However, any annual leave
which is in excess of the employee's annual leave ceiling. shall be
credited to a; separate leave account. The restored leave then. will be
available for use by the employee within, reasonable time limits to
be' prescribed by regulations of .the Office of Personnel Management.
The, amendment further provides that in the case: of an employee
who. leaves the service or who enters on- active duty in the armed
services any leave credited under this provision which is- unused. and
still available to the employee under the time limits prescribed-by the
Office shall be included in, the lump-sum payment authorized under
section 5551 or 5552(1) as applicable, of title 5 .
With respect to employees who enter on active duty in thearmed
services, the annual,, leave credited under the provision may not be
retained.to.the credit of the employee under. section 5552 (2) of title 5.
The employee will be required to- take a lump-sum payment.
Finally, section 702 (a) of the bill adds anew sentence at the.. end of
section .5596(b) of title 5,, which defines certain terms for purposes
of section 5596 (b). "Unfair labor practice", "grievance", and "agree-
ment" are. given the meanings as set forth in chapter .71 of* title.5 as
amended by tire. bill (see section 7136 above), and "personnel, action"
is defined to include the omission or failure to take an action or.confer
a benefit.
Section 703 of the bill contains technical amendments. Among other
sections which are redesignated, the existing section 7102, concerning
employees' right to petition Congress, is redesignated as section 7211.
SECTION 704 ,
Section 701(a) of the bill states that, except as provided in sub-
section (b), the amendments made by title VII of this bill shall take
effect on the first day of the first calendar month beginning 'more than
90 days after the date of enactment. Subsection (b) provides that sec-
tions 7104 and 7105 (relating to the establishment of the Authority)
and- section -7136 (the "grandfather" provision) 'be :effective upon
enactment.
Section 704(c) is intended to preserve the existing right of certain
Federal prevailing rate employees to negotiate terms and conditions
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of employment. The committee intends that this subsection preserve
unchanged the scope and substance of the existing collective bargain-
ing relationship between the employees' representatives and the
agencies involved. The subsection excludes these employees from the
restrictions' on the scope of collective bargaining under chapter 71,
and grants them authority to negotiate pay and pay practices without
regard to any provision of chapters 51, 53, and 55. of title 5, or other
provisions relating to rates of pay or pay practices with :respect to
Federal employees.
TITLE VIII
GRADE AND. PAY RETENTION
Section.801 (a) (1) of the bill amends chapter 53 of `title 5, United
States Code, by inserting. a new subchapter VI entitled "Grade and
Pay Retention." The provisions of the new subchapter VI are.ex=
plained below by United States Code section references.,
De fimitions
Section 5361, consisting of seven numbered' paragraphs, defines var-
ious terms for purposes of the new subchapter VI.
Paragraph (1) defines the term "employee" as meaning an employee
to whom the classification provisions of chapter 51 of title 5 apply
and a prevailing rate employee, as defined by section 5342 (a) (2) of
title 5. However, the definition specifically excludes those employees
whose employment is on a temporary or term basis. Under section
5342 (a) (2) of title 5, the term "prevailing rate employee" includes
certain employees of. nonappropriated fund instrumentalities and
certain employees of the Veterans' Canteen Service.
Paragraph (2) provides that the term "agency" has the meaning
given it by section 5102 of title 5.
Paragraph (3) defines the term *"retained. grade" as meaning the
grade used for determining benefits to which an employee who is
covered by the subchapter is entitled. Generally, the retained grade
of an employee is the grade held by, the employee immediately before
the reclassification of his position to a lower grade or immediately
before a reduction in force.
Paragraph (4) defines the term "rate of basic pay." Although the
term "rate of basic pay" appears frequently throughout title 5 of the
United States Code, the term is hot now defined in the code. How-
ever, with respect to the General Schedule pay system; the term "rate
of basic pay" uniformly is understood to mean the rate "of pay fixed
by law or administrative action for the position held by an employee
before any deductions and exclusive of any kind of additional pay
(see 5 CFR 531.202). With respect to prevailing rate employees, the
term "scheduled rate of pay," as used in section 5343 of title 5, is
synonymous with the term "rate of basic pay" as discussed above in
connection with General Schedule employees.
It is the committee's intent.that for purposes of subchapter VI,
the term "rate of basic pay" shall mean, with respect to all employees,
the rate of pay fixed by law or administrative action for the position
held by the employee. Thus, as so defined, the term excludes night dif-
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68
ferential, environmental differential, cost-of-living allowances, over-
time pay, and any other form of additional pay.
Paragraph (5) defines the term "covered pay schedule" to mean the
General Schedule (5 U.S.C. 5332) any prevailing rate schedule estab-
lished under the provisions of subchapter IV of chapter 53 of title 5,'.
or the merit pay system under. chapter 54 of title 5, as added by section
501 of this-Act.
Paragraph (6) defines "position subject to this subchapter" to-mean
any position under a covered pay schedule.
Finally, paragraph (7)' of section 5361 defines "reduction-in-force
procedures" as meaning the procedures applied in carrying out any
reduction in force due to a reorganization, lack of funds, or curtail-
ment of work, or any other factor. The Civil Service Commission's
regulations governing reductions in-force are contained in part 351 of
title 5, Code of Federal Regulations. Those regulations, and the proce-
dures prescribed thereunder, apply when an employee is reduced to a
lower grade as a result of (1) lack of work, (2) shortage of funds, (3)
reorganization, (4) reclassification of position because of a change in
duties, or (5) the exercise by another individual of reemployment or
restoration rights.
Grade retention following a change of positions
Section 5362 authorizes temporary (2 years) grade retention for
certain employees who are reduced in grade as a result of reductions
in force.
The provisions of this section apply when an employee (as defined
in section 5361(1)) who occupies a General Schedule or prevailing rate
position is reduced to a lower graded General Schedule or prevailing
rate position as a result of a reduction in force. In order to be eligible
for grade retention, the employee must have served for 52 or more
consecutive weeks in, a position (or positions) at a grade (or grades)
higher than the grade of the position to which he has been reduced., It
should be noted that the qualifying service must have been performed
in either a General Schedule or prevailing rate position but not nec-
essarily in the same position. The service may have been performed
in one or more positions under the same covered pay system or. in
positions under different covered pay systems. However, all service
must have been at a grade or grades higher than that of the position
to which reduced.
Under subsection (a) of section 5362, an employee who satisfies
the requirements of the subsection is entitled to retain the higher grade
of his previous position for a 2-year period beginning on the date of his
placement in the new position. Grade retention under this section is
an entitlement and not a requirement. Therefore, if for some reason
the employee prefers not to retain his previous grade, he may waive
(irrevocably) the benefits authorized under the provisions of sub-
chapter VI.
Subsection (b) of section 5362 provides that, with certain exceptions,
the retained grade of the employee shall be treated as the grade of the
employee's position for all purposes during the 2-year period. Specif-
ically, the retained grade is to be used for purposes of pay and pay
administration (chapters 53, 54 and 55 of title 5), retirement (chapter
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64
83), life insurance (chapter 87), eligibility for training, promotion,
and reassignment, and other employee benefits.
Paragraph (1) of subsection (b) provides that the employee's re-
tained grade may not be used for purposes of applying the provisions
of subsection (a) of section 5362. There may, be instances when an
employee who is entitled to 'a retained grade- for 2 years under sub
section (a) is reduced in grade as a result of another reduction in
force before the 2-year grade retention period has expired. During
the second reduction in force the employee will compete at the grade
of the position occupied rather than at his retained grade (see dis-
cussion of subsection (b) (2), below). Upon the expiration of the 2-
year.period of grade retention based on the initial reduction in grade,
the employee will be entitled under subsection (a) of section 5362 to
an additional period of grade retention based on the second reduction
in grade. In effect, paragraph (1) of subsection (b) provides that for
purposes of determining an employee's entitlement to' grade retention
under subsection (a), the grade of the position occupied, rather than
the retained grade, shall be used. Thus, in the above example, upon
expiration of the initial 2-year period of grade retention the employee
is entitled to-retain for an additional period the lower grade of the
position occupied at the time of the second reduction in -force and not
the retained grade which he held at that time.
One of the underlying principles of the reduction-in-force pro-
cedures is that 'an employee shall compete with all other employees
performing.the same type of work. To preserve the application of this
principle, paragraph (2) of subsection (b) specifically provides that
the retained grade may not be used for purposes of applying reduction-
in-force procedures. Thus, in a reduction in force, an employee with
a retained-grade would compete at the. lower assigned grade of the
position occupied rather than at the higher retained grade.
Paragraph (3) of subsection ,(b) provides that the Office of, Per-
sonnelManagement may, by regulation, establish other purposes for
which the employee's. retained grade shall not be treated as the grade
of his position. For example,.for purposes of determining the number
of positions at .GS-16, 17, and--18 authorized by an act of Congress,
the committee believes' the grade of the position; occupied, rather
than the retained grade, should be used.
As a result of the application of section 5362, the positions occupied
by downgraded employees will, in effect, have two-grades-the.higher
retained grade of the employee, which will be used for most purposes,
and the lower assigned grade of the position, which will be used for
limited purposes.
Subsection (c) of section 5362 sets forth four conditions under
which an employyee's entitlement to a retained grade will terminate.
reak in service of one workday or more will. terminate a
First, a break'
retained grade.
Second, a demotion for personal cause will result in termination of
a retained grade. For .purposes of determining under this subsection
whether an employee has been demoted, the assigned grade of the
position occupied, rather than the employee's retained grade, must be
used. For example, assume an employee occupies a GS-7 position but
has a retained grade of GS-9. The subsequent placement of such
employee in a GS-'8 or. a different GS-7 position would not constitute
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a demotion and would not terminate the retained grade. Also,. the
placement of the employee in a lower graded position for reasons
other than personal cause will n,ot result in termination of his retained
grade (for example, a demotion at the employee's request).
Third, an employee's retained grade will terminate if he is placed
in, or declines a reasonable offer of, a position the grade of which is
equal .to or higher than this retained grade. The.issue of whether a
particular 'offer of a position is reasonable will, of course, depend on
the facts and- circumstances of each case. However, the committee
assumes that instructions and guidelines relating to this matter will be
issued by the Office of Personnel Management under the authority of
section 5366 of subchapter VI. Also, it should be notedhere 'that the
termination of a retained grade on the grounds the employee declined
a reasonable offer is appealable to the Office of Personnel Management
under section 5367 of subchapter VI, discussed below.
The fourth condition under which a retained grade may be ter-
minated is an employee's written election to have the benefits of section
5362 terminate. The committee suspects that there may be instances
when it would be 'advantageous for the employee to terminate the
retained grade and assume the lower assigned grade of the position to
which' he was reduced. This may be so since under section 5362 the
retained grade, is treated as the. grade of the employee's position for
most purposes, including` eligibility for training, promotion, and re- -
..
.-assignment.
Unless terminated earlier under one of the conditions discussed
above, the retained grade will, continue in effect for a' period of 2
years from the date of the employee's placement in the lower grade.
The employee continues to be entitled to the retained grade even if he
subsequently is placed in a still lower graded position. Of course, each
reduction to a lower grade, if'it results from the application of re-
duction-in-force procedures, will entitle the employee to retain his
previous higher grade for a period of 2 years_ under section 5362. For
example,-assume a GS-9 is demoted'to GS-7 as-a, result of a reduction
in force and after a.period of 18 months is demoted to GS-6 as a
result of another reduction in force. Under section 5362 the employee
is entitled to retain the GS-9 fora full 2 years. At the expiration of the
2-year period the entitlement to GS-9 terminates. and the GS-7 re-
tained grade becomes applicable. The employee's entitlement to .retain
the grade GS-7 continues in effect for. 18 months.
Grade retention following position reclassification .
Section 5363 authorizes indefinite grade-retention for employees
whose positions are reduced in grade. The provisions of this section
apply to an employee (as defined in section 5361(1) ) who occupies a
General Schedule or prevailing rate position which has been reclassi-
fied to a lower grade.
11 Under subsection (a) of section- 5363, an employee whose position
has been reduced in grade is entitled to have the grade of the position,
'before the reduction, be treated as his retained grade so long as he
continues to occupy such position. The higher retained grade will be
'treated as the employee's grade for all purposes except, for the applica-
`tion of reduction-in-force procedures. For purposes of a reduction, in
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force the employee will compete at the lower grade to which his
position has been reduced.:
The employee's entitlement to retain the higher grade terminates
as soon as he vacates the position. Thus,-if the employee is demoted or
reassigned to another position, or if he transfers to a different agency,
the retained grade will terminate.
Subsection (b) provides that the grade retention benefits provided
under subsections (a) shall not apply in the case of any position which
had not been classified at the higher grade for a continuous period of
at least 1 year immediately before the position was reduced in grade.
Subsection (c) of section 5363 sets forth three conditions under
which the provisions of subsection (a) of section 5363 will cease to be
applicable to an employee. These three conditions, which are sub-
stantially the same as those discussed earlier under section 36 c),
are as follows :
1. A break in service of one workday or more;
2: A declination of a reasonable offer of a position the grade of
which is equal to or higher than the employee's retained grade;
and
3. A written election (irrevocable) to terminate the benefits of
section 5363. The termination of benefits on the grounds stated
in paragraph.(2), above, is appealable to the Office of Personnel
Management under section 5367 (a).
Any change, in position by the employee, such as reassignment,
transfer, or demotion, will result in termination of the retained grade
under section 5363(a).
Section 5364 authorizes pay retention for employees in certain sit-
uations. This section replaces the existing pay retention provisions,
of sections 5334(d), 5337, and 5345 of title 5, which are repealed by the
bill.
Under section 5364, pay retention is authorized -for-
1. An employee who ceases to be entitled to grade retention
under section 5362 (reduction in force cases) because of the ex-
piration of the 2-year period;
2. An employee who is in a General Schedule or prevailing
rate position and is subject to a -reduction or termination of a
special pay rate established under section 5303 of title 5; or
3. Any General Schedule or prevailing rate employee under
circumstances which the Office of Personnel Management deter-
mines, by regulation, warrant the application of this section.
With respect to the authority granted to the Office of Personnel
Management under paragraph (3) of -section 5634 (a), the committee
anticipates the application of the pay retention provisions to situations
such as when (1) a prevailing rate employee is moved with his posi-
tion to the General Schedule, or vice versa; (2) an .employee moves
from one pay schedule to another within the prevailing rate system;
or (3) pay rates based on out-of-area data (Monroney rates) are re-
vised or canceled. The authority granted under paragraph (3) is suffi-
ciently broad to permit the Office to authorize pay retention in such
situations and in other similar situations where pay retention is
warranted.
Pay retention
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704
. It is important to note that, with respect to employees, whose periods
of grade retention under section 5362 have expired, the rates of pay
of most of these employees will be accommodated within the rate range
of the grades of the positions to which the employees have been re-
duced. The committee anticipates that the regulations of the Office of
Personnel Management will specify that the pay rates of such em-
ployees which fall between rates of the grade to which reduced will be
established at the higher rate. In these cases, the employees no longer
would be covered by the provisions of this legislation, and they would
receive the full amount of any future general increases in pay which
are authorized for the rate of the grade in which they are placed.
In those cases where the employee's existing rate of basic pay ex-
ceeds the maximum rate of the grade to which reduced and, therefore,
cannot be accommodated within the rate range of the grade, the
employee will be entitled to the lower of (1) his existing rate of pay
or (2) 150 percent of the maximum rate of basic pay payable for the
grade of the position. to which the employee has been reduced. There-
after, the employee will be entitled to one-half of the amount of each
increase in the maximum rate of the grade.
Subsection (c) of section 5364 provides that the pay retention pro-
visions of that section shall cease to apply to an employee who has a
break in service of one or more workdays or to an employee who is
demoted for personal cause. In addition, an employee's entitlement
under section 5364 terminates when he becomes entitled to a rate of
basic pay which is equal to or higher than the rate of pay he is receiv-
ing under section 5364. For example, the provisions of section 5364
eventually will cease to apply to an employee who has been receiving
only one-half of the increases in the maximum rate of his grade when
that maximum rate equals or. exceeds the employee's retained rate of
basic pay.
The provisions of section 5364 also will cease to apply if the em-
ployee declines a reasonable offer of a position the rate of pay for
which is equal to or higher than his retained rate of pav under section
5364. In such case the termination of benefits is appealable to the Office
of Personnel Management under section 5367.
Remedial actions
Section 5365 authorizes the Office of Personnel Management to pre-
scribe regulations under which agencies may be required to take certain
actions to assist employees who have been downgraded and are receiv-
ing grade or pay retention benefits under the provisions of sub-
chapter VI.
Paragraph (1) of section 5365 provides that the office's, regulations
may require an agency to report to the office information concerning
existing and impending vacancies within the agency. Such information
will then be available for distribution by the office to other agencies to
facilitate the training of eligible employees for placement in the vacant
positions. .
Paragraph (2) of section 5365 provides that the office's regulations
may require agencies to take appropriate steps to assure that employees
who are receiving grade .or pay retention benefits under sections 5362,
5363, or 5364, have the opportunity to obtain the necessary qualifica-
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tions for selection to positions in grades which are at least equal to the
grades from which such employees were reduced. Under the language
of paragraph (2) the office has specific authority to direct agencies to
establish programs for the training or retraining of eligible employees
for selection to higher grade positions. It is the committee's intent that
the office shall have authority to mandate specific types of programs
under this section notwithstanding the provisions of section 4118(d)
of title 5 which prohibit the office from prescribing the types and
methods of intra-agency training under the Government Employees'
Training Act (chapter 41 of title 5). Also, it is the committee's intent
that, when necessary, the office may require agencies to train employees
for placement in vacant positions in other agencies. It is the commit-
tee's view that, such action is not precluded by sections 4103 or 4118 (d)
of title 5, since section 5365 will constitute separate and specific author-
ity for the office to direct the training of certain Federal employees.
It should be noted that any program established under paragraph
(2), or under paragraph (3) discussed below, will apply only to em-
ployees who are receiving grade or pay retention benefits -under sections
5362, 5363, or 5364 of the new subchapter VI. Such programs and any
other form of assistance directed by the Office under section 5365 are
intended to minimize the need for the application of those sections.
Thus, an employee who is downgraded as a result of a reclassification
action or a reduction in force and who does not qualify for grade or
pay retention under sections 5362, 5363, or 5364 will not be eligible for'
training or other programs of assistance established pursuant to the
provisions of.section 5365.
Paragraph (3) of section 5365 authorizes the Office to require agen-
cies to establish programs under which eligible employees will be given
either priority consideration for selection to positions which are equal
to or greater than their retained grades or pay or, if necessary, priority
placement in such positions.
Finally, paragraph (4) of section 5365 authorizes the Office to re-
quire agencies to place certain -employees in vacant positions within
such agencies notwithstanding the fact that the employee's previous
position was in a different agency. The exercise of this authority,
however, is limited to those circumstances in which the Office deter-
mines such action is necessary to carry out the purposes of section 5365.
Regulation s
Subsection (a) of section 5366 requires the Office of Personnel Man-
agement to prescribe such regulations as are necessary to carry out the
purposes of the new subchapter VI.
Subsection (b) of section 5366 authorizes the Office to prescribe
regulations providing for the application of all or portions of the pro-
visions of subchapter VI to individuals and situations not otherwise
covered by such provisions. As explained above, the grade and pay
retention provisions of sections 5362, 5363, and 5364 are applicable to
employees who occupy positions under the General Schedule or under
a prevailing rate schedule established under subchapter IV of chapter
53 of title 5. Movements within or between these pay schedules are
specifically covered under the provisions of sections 5362-5364. How-
ever, the committee recognizes that there will be other circumstances in
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which the application of all or part of the provisions of subchapter
VI can be fully justified. Under the authority of subsection (b) the
Office may' provide for the application of all or any portion of the
provisions of subchapter VI- .
1. To individuals who are reduced to a grade of the General
Schedule or a prevailing rate schedule from a position under an-
other pay system;
2. To individuals who are not otherwise covered under the
provisions of subchapter VI; and
3. To situations where such application is justified for purposes
of carrying out the mission of the agency or agencies involved.
Movements of employees or positions between different pay systems
are not uncommon. For example, an employee in a position under the
Foreign Service pay system could be reduced to a grade under the
General Schedule as a result of a reclassification action or reduction
in force. The application of the grade or pay retention provisions of
subchapter VI to such an employee may be fully justified. It is the
purpose of section 5366(b) to authorize the application of the pro-
visions of subchapter VI, including the provisions of section 5365.
to employees and situations not otherwise specifically covered by the
subchapter whenever such action is deemed iiistified by the Office of
Personnel Management.
Appeals
Subsection (a) of section S)367 provides for an appeal to the Office
of Personnel Management when benefits available to an employee
under subchapter VI are terminated on the grounds the employee de-
clined a reasonable offer of a position the grade or pay of which was
equal to or greater than his retained grade or pay. The declination of
a reasonable offer will result in termination of the employee's retained
grade tinder sections 5362 and 5363 and termination of retained pay
under section 5364. The term "reasonable offer" is not subject to
definition and reasonable men may differ as to what constitutes a
reasonable offer in a particular case. Therefore, the committee con-
cluded that the termination of benefits on such grounds should be
reviewable by the Office of Personnel Management. The Office is au-
thorized to prescribe the appeal procedures.
Paragraph (2) of subsection (a) of section 5367 provides that
nothing in subchapter VI shall be construed to affect the right of any
employee to file a classification appeal under section 5112(b) or
5346(c) of title 5, or under any other comparable provision, or it
reduction-in-force appeal under procedures prescribed by the Office of
Personnel Management (such as part 351 of the current regulations
of the Civil Service Commission).
Subsection (b) of section 5367 provides that any action which is
the basis of an individuates entitlement to benefits under subchapter
VI or any termination of such benefits shall not be treated as an ap-
pealable action for purposes of any appeal procedure other than the
appeal procedures described in paragraph (2) of subsection- (a).
Under subsection (b), the following actions would not be appealable
(except as provided in paragraph (2) of subsection (a) )
1. Reduction of employee to lower grade as a result of reclassi=
fication of position;
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2. Reduction of employee to lower grade as a result of reduc-
tion-in-force action;
I. Termination of retained grade or pay because of break in
service;
4. Termination of retained grade or pay because of placement
in position .equal in grade or, pay to employee's retained grade
or pay;
5. Termination of retained grade or pay because of demotion
for personal cause (demotion would constitute an appealable
action) ; ?
6. Termination of retained grade because of expiration of
2-year period of entitlement under section 5362; 7. Termination of retained grade under section 5363 because of
change in position; and
8. Receipt of only one-half of general pay, increases under
section. 5364 (a).
As noted above, the termination of any benefits under subchapter
VI on the grounds the employee declined a reasonable offer is appeal-
able to the Office under the provisions of subsection (a).
Repeal of pay-savings provisions
Paragraph (2) of section 801 (a) of the bill repeals sections 5334(d),
5337, and 5345 of title 5, United States Code.'
Section 5334(d) authorizes the Civil Service Commission to pre-
scribe regulations governing the retention of the rate of basic pay of
an employee who, together with his position, is brought under the
General Schedule. Section 5337 authorizes pay retention for General
Schedule employees who are reduced in grade, and subsection (c) of
that section authorizes pay retention for employees who are reduced
to a grade of .the General Schedule from positions under other pay
systems. Section 5345 -authorizes pay retention for prevailing rate
employees who are reduced in grade, and subsection (d) of that section
authorizes pay retention for employees who, together with their
positions, are brought under a prevailing rate pay schedule.
These pay-saving provisions' are repealed because the. provisions
of the new subchapter VI contain authority -for pay retention in all
situations covered by the existing pay retention provisions of title 5.
Conforming amendments ?
Paragraph (3) of section 801 (a) consists of numerous conforming
amendments -which are necessary to reflect the new subchapter - VI
provisions and the redesignation of section 5361 through 5365 of title 5
as section 5371 through 5375, respectively.
Effective date and savings provision -
Paragraph (4) (A) of section 801 (a) provides that the amendments
made by subsection (a) of section. 801 shall take effect on the first day
of the first applicable pay period beginning on or after October 1, 1978,
or the 90th day after the date of the enactment of the act, whichever
date is later. -
Paragraph (4) (B) of section 801(a) is-a savings provision for those
employees, who were receiving saved pay benefits under sections
5334(d), 5337,. or 5345 of title 5, United States Code, immediately
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before the effective date prescribed in paragraph (4) (A). Paragraph
(4) (B) provides that such employees shall not have their saved pay
reduced or terminated by reason of the amendments made by section
801(a) unless they are entitled to the grade retention benefits pro-
vided under section 5362 or 5363 of title 5, as amended by section
801(a). An employee, of course would not be entitled to benefits under
both the former pay savings provisions (section 5334(d), 5337, or
5345) and the grade retention provisions of. section 5362 or 5363.
Retroactive application of provisions
Paragraph (1) of subsection (b) of section 801 provides for the
application, under regulations to be prescribed by the Office of Per-
sonnel Management, of the grade retention provisions of section 5362
or 5363 of title 5, as; amended by subsection (a), to any employee whose
grade was reduced on or after January 1, 1977, and before the effective
date of the amendments made by subsection (a), under circumstances
,which would have entitled the employee to coverage under such pro-
visions if they had been in effect at the time of the employee's demotion..
To be eligible for such benefits the employee, must have remained
employed by the Federal Government from the date of the reduction.
in grade to the effective date of the amendments- made by subsection -
(a) without a break in service of one workday or-more. .
An employee who qualifies under paragraph (1) is entitled to receive
the additional pay and benefits which he would have been entitled to
receive if the amendments made by subsection (a) had been in effect
at the time of the reduction-in grade and is entitled to have the provi-
sions of the new section 5362 or.5363 apply as if the reduction in grade
had occurred on the effective date of the new sections. The effect of
paragraph (1) is to authorize back pay. and benefits for the employee
for the period beginning on the date of the employee's reduction in
grade and ending on_ the 'effective date of the amendments made by
subsection (a), and grade retention benefits under the new section
5362 or 5363 beginning on the effective date of those sections.
With respect to the retroactive application of section 5363, relating
to classification actions, the committee realizes that many employees
whose. positions were reduced in grade during the retroactive period
may have changed positions prior to the effective date of that section.
Since a change in position automatically terminates.an employee's en-
titlement to a retained grade under section 5363, a special rule is
provided under paragraph (2) of subsection (b) for employees who
changed positions during the retroactive period. Under paragraph (2)
an employee who changed to any other position under a covered pay
schedule during the retroactive period and who is holding such posi-
tion on the effective date of the amendments made by subsection (a)
is entitled to retain the higher grade of the position which was reduced
in grade. If after the initial reclassification of the employee's position
to a lower grade, the position is reclassified to a still lower grade, the
employee is entitled to retain the grade which was in effect prior to the
initial reclassification action.
The provisions of paragraph (2) apply regardless of the reason for
the employee's change in position except when the reason is a demotion
for personal cause. An employee who qualifies for grade retention
under paragraph (2) is entitled to have the retained grade be treated
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709
-as the grade of his position for all purposes except for the application
of reduction-in-force procedures. The employee's entitlement to the
higher grade commences on the.effective date-of the new section 5363
and remains in effect so long as the employee continues to hold the
position he held on that effective date. The Office of Personnel Manage-
ment is given specific authority to prescribe regulations to carry out
the provisions of paragraph (2).
Paragraph (3) of subsection (b) provides that no employee whose
reduction in grade resulted in a pay increase shall have his pay reduced
by reason of the amendments made by subsection (a).
Paragraph (4) of subsection (b) provides that the continuous
employment. requirement under paragraph (1) (B) of subsection (b)
shall be considered to be met in the case of any employee who retired
with a right to an immediate annuity or who died before the effec-
tive date of the amendments made by subsection (Q).
Paragraph (5) of subsection. (b) provides that the Office of Per-
sonnel Management shall have the same authority to prescribe regula-
tions under subsection (b) as it has under section 5366 of title 5, as
added by subsection (a) of section 801.
Subsection (a) of section 901, of the bill amends subchapter III of
section 7103 of this chapter may be a member of an. appropriate unit.
sections (5 U.S.C. 7321-7327) and adding one new section (5 U.S.C.
7328). The revised and expanded provisions of subchapter III are
explained below by code section references.
Political participation
Section 7321 sets forth the policy of the Congress that employees
should be encouraged to fully exercise, to the extent not expressly pro-
hibited by law, their rights of voluntary political participation in the
political processes of the Nation and their rights to form, join, or
assist, or to refrain from forming, joining, or assisting, any organiza-
tion, political, party, committee, association, or other group which
advocates or encourages political activities. The phrase "should be
encouraged to fully exercise, to the extent not expressly prohibited
.by law", reflects the committee's belief that any legislation restricting
political activities by employees should do so expressly, and that in
the absence of an express prohibition, an employee may, of his own
volition, engage in any political activity.
In this regard, the bill includes, in most instances in revised lan-
guage, those prohibitions in the Criminal Code which pertains to politi-
cal activities of Federal employees (see 18 U.S.C. 594, 597, 599, 600,
601, 602, 603, 606, 607). In other instances the bill includes, with minor
revisions, definitions in the Criminal Code (see 18 U.S.C.. 591 (b)
and (e) ). .
With the inclusion of these provisions the committee intends this
bill to serve as a codification of the restrictions on political activities
of emplyoees. With the exception of section 602 and 607 of `title 18,
which the bill amends to permit certain previously prohibited activi-
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73
ties, the criminal provisions remain unchanged. Accordingly, activity
by an employee which. violates one or more of the criminal provisions
cited above (including sections 602 and 607, as amended by the bill,
would also constitute a violation of section 7323, 7324, or 7325 of title
5, as amended by the bill.
Definitions
Section 7322, consisting of eight numbered paragraphs, defines vari-
ous terms for purposes of subchapter III.
Paragraph (1) defines "employee" to mean any individual, other
than the President or the Vice President, employed or holding office
in: (A) an Executive agency; (B) the government of the District of
Columbia; (C) the U.S. Postal Service or the Postal Rate Commis-
sion; or (D) a position within the competitive service or within the
Senior Executive Service as a career appointee (as defined in section
3132(a) (4) of title 5.) Thus, all officers and employees of agencies and
the District of Columbia, whether they are in the competitive service
(see 5 U.S.C. 2102), the Senior Executive Service (see U.S.C. 2101a)
,or in the excepted service (see 5 U.S.C. 2103) are included in the defini-
tion. Also included are those employees in the legislative and judicial
branches who hold positions in the competitive service or as career
appointees in the Senior Executive Service. Members of the uniformed
services are specifically excluded from the definition.
Paragraph (2) defines "candidate." The definition is similar to that
presently found in the Criminal Code (see 18 U.S.C. 591(b), as
amended) and provides that the term "candidate" means any individ-
ual who seeks nomination for election, or election, to an elective office.
whether or not the individual is elected. Thus an individual who is
seeking to win a party's nomination in a primary election or in a con-
vention as well as an individual who has already been nominated and
is seeking election to a particular office is included within the defini-
tion. Subparagraphs (A) and (B) of paragraph (2) establish the
point in time at which an individual is deemed to seek nomination for
election, or election, as that time when an individual has: (A) taken
the action required to qualify for nomination for election, or election;
or (B) received political contributions or made expenditures, or has
given consent for any other person to receive political contributions
or make expenditures, with a view to bringing about that individual's
nomination for election, or election.
Paragraph (3) defines "political contribution." The committee
intends that this definition be given a broad interpretation.
Subparagraph (A) of paragraph (3) provides that "political con-
tribution" means a gift, subscription, loan, advance, or deposit of
money or anything of value, made for any political purpose.
Subparagraph (B) provides that the term "political contribution"
includes a contract, promise, or agreement, express or implied, whether
or not legally enforceable, to make a political contribution for any
political purpose.
Subparagraph (C) provides that the term "political contribution"
also includes the payment by any person, other than a candidate or a
political organization, of compensation for the personal services of
another person which are rendered to a candidate or political organi-
zation without charge for any political purpose.
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Subparagraph (D) 'provides that the term "political contribution"
includes the provision of personal services for any political purpose.
Thus, the term includes volunteer work.
Paragraph (4) defines "superior" to mean an employee who .exer-
cises supervision of, or control or administrative direction over, an-
other employee. The definition is intended to include those employees
who,-through the exercise of the authority of their position, may influ-
ence or affect the career advancement or working conditions of other,
employees. Thus an employee who has the authority to promote (or
recommend or approve the promotion of) another employee, or to
assign work to, or to evaluate the performance of, another employee
would be deemed a "superior."
Paragraph (5) defines "elective office" to mean any elective public
office and any elective office of any political party or affiliated organi-
zation. The phrase "elective public office" is intended to include any
Federal, State, or local office which is filled by the election of an in-
dividual. The phrase "elective office of any political party or affiliated
organization" is intended to include offices of a political party or
organization such as committeeperson, convention delegate, president,
or chairperson which are filled by the election of an individual.
Paragraph (6) defines State to include the several States and the
District of Columbia.
Paragraph (7) defines person to mean any individual, corporation,
trust, association, any State, local, or foreign government, any terri-
tory or possession of the United States, or any agency or instrumen-
tality of such entities.
Paragraph (8) of section 7322 defines restricted position. The Office
of Personnel Management is required to designate, by regulation, those
positions it determines should be restricted. The Office may designate
a position as restricted only if it determines that the position meets
the statutory criteria set forth in subparagraphs (A) and (B) of para-
graph (8). Office of Personnel Management regulations designating.
restricted positions must be prescribed in accordance with the rule-
making procedures prescribed in section 553 of title 5, United States
Code.
Before designating any position as restricted, the Office must apply
two separate tests. Only if a position meets both of these tests may it
be designated as restricted. The first test is set forth in subparagraph
(A). That subparagraph requires that the duties and responsibilities
of a particular position must require the incumbent of the position
to engage in one of three types of activities before the position may be
considered for designation as a restricted position. The three types-of
activities are as follows :
(i) the duties and responsibilities of the position must require
the incumbent "as a substantial part of his official activities, to en-
gage . in foreign intelligence activities relating to national
security" ;
(ii) the duties and responsibilities of the position must require
the incumbent in the normal course of carrying out his duties and
responsibilites to make decisions binding on employees with
respect to whom he is a superior with regard to who shall be the
subject -of any action which is to be taken by any such employee
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in connection with the enforcement of any civil or criminal law
(including any inspection or audit under any, such law, to actually
carry out the action, or to make final determinations with respect
to the actions ; or
(iii) the duties and responsibilities of the position must require
the incumbent in the nomal course of carrying out those duties and
responsibilities to make binding decisions which are for the
procurement of goods or services for the Government and which
have substantial monetary value, or who shall be awarded licenses,
grants, subsidies, or other benefits, which involve funds or other
interests having a substantial monetary value, or to supervise
individuals engaged in the awarding, administering, or monitor-
ing of such contracts, licenses, grants, subsidies, or benefits.
If a position meets the tests required by subparagraph (A), it still
may not be designated as restricted unless an additional determination
is made by the Office under subparagraph (B). That subparagraph
requires the Office to determine that "the restrictions on political ac-
tivity imposed on such employee in such position are justified in order
to insure the integrity of the Government or the public's confidence in
the integrity of the Government." This subparagraph, in essence, re-
quires the Office to apply a balancing test and reflects the committee's
firm belief that employees should be prohibited from engaging in po-
litical activity only when such a-prohibition is absolutely essential.
The committee stresses that the purpose of this bill is to permit em-
ployees to exercise (or not to exercise) those rights with respect to
political activity which are presently enjoyed-by other citizens. In
applying the balancing test required by subparagraph (B) the com-
mittee intends that the Office carefully consider the restrictions on
the rights of employees who hold positions designated as restricted.
Substantial weight should be given by the Office to the effect of such
restrictions, particularly since under the bill the vast majority of em-
ployees will be free to, engage in political activity.
With respect to the application of the foreign intelligence or na-
tional security criteria, the committee intends that the terms "foreign
intelligence" or "national security" be given a narrow interpretation.
For example, it is not intended that "national security" be construed
to relate to the security classification of a position.
This exception is necessary because of the sensitive role intelligence
plays in the formulation of foreign policy. This role places intelligence
employees squarely in that category of employees which the President
has said must "retain in both the appearance and substance of imparti-
ality." It is intended that the Office of Personnel Management in carry-
ing out its responsibilities with respect to designating restricted posi-
tions will consult with the Director of Central Intelligence and the
heads of departments and agencies with foreign intelligence or na-
tional security responsibilities such as the Secretary of Defense, the
Secretary of State, and other heads with similar responsibilities. Em-
ployees engaged in duties relating to foreign intelligence affecting the
national security covered under subparagraph (A) (i) include, but
are not necessarily limited to, those substantially engaged in the col-
lection, processing, analysis, production, or dissemination of foreign
intelligence information.
If a position meets the criteria in subparagraph (A) (i), a second
determination pursuant to the balancing test prescribed in subpara-
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graph (B), discussed above, must also be made by the Office before a
position is designated as restricted.
Use of official influence or o ffieial information; prohibition
Section 7323 sets forth prohibitions on the use of official authority
or influence or official information for political purposes, and defines
"use of official authority or influence."
Subsection (c) of section 7323 defines "use of official authority or-
influence" for purposes of the prohibitions contained in subsection (a)
as including : (1) promising to confer or conferring any benefit (such
as any compensation, grant, contract, license, or ruling) or effecting
or threatening to effect any reprisal (such as deprivation of any com-.
pensation, grant, contract, license, or ruling) ; or (2) taking, directing
others to take, recommending, processing, or approving any personnel
action (as defined in section 2302 (a) (2) (A) of this title).
Paragraph (1) pertains essentially to matters which would be of
concern to persons outside the Government such as contracts, grants
and licenses, which an employee could affect pursuant to the exercise
of his official authority or influence. Paragraph (2). is directed pri-
marily at matters which would be of concern to employees themselves
such as promotions, transfers, assignments, and disciplinary actions,
another employee could similarly affect.
Subsection (a) of section 7323, prohibits an employee from using or
attempting to use that employee's official authority or influence, either
directly or indirectly, for political purposes. The phrase "directly or
indirectly" recognizes that the use of official authority or.in fluence may
often not be manifested in an overt act but instead may be exercised in
a subtle fashion. The committee intends that such subtle use or at-
tempted use of official authority or influence for political purposes be
included in the prohibition of subsection (a).
Paragraphs (1) and (2) of subsection (a) set forth the political
purposes for which it is improper for an employee to use or attempt to
use official authority or influence.
Paragraph (1) prohibits the use or attempted use of official author-
ity or influence for the purpose of interfering with or affecting the re-
sult of any election. This provision is.identical to one of the primary
prohibitions of the present Hatch Act (5 U.S.C. 7324 (a) (1)).
Paragraph (2) of subsection. (a) prohibits the use or attempted use
of official authority or influence for the purpose of intimidating,
threatening, coercing, commanding, or influencing, or attempting to
intimidate, threaten, coerce, command, influence: (A) any individual
with regard to the right of that individual to vote, or not to vote, as that
individual -may choose, or to cause an individual to vote for or against
any candidate or measure; (B) any person to give or withhold any
political contribution ; or (C) any person to engage, or not to engage,
in any form of political activity whether or not the activity is-pro-
hibited by law. It should be noted that although the, committee intends
that it be ' the policy of the Congress, as set forth in section 7321 dis-
cussed -above, to encourage employees to fully exercise their rights of
political participation, the committee also intends that the prohibi-
tions in subsection (a) of, section 7323 provide protection against the
use of offieial authority or influence for those employees who-choose
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The committee points out that section 7323 is intended to protect
members of the public and employees from being coerced by employees
with respect to political activities. Clearly the section does not prohibit
the use of official authority or influence by employees for all purposes.
Each day employees exercise such authority to award grants, hire,
discipline, or promote other employees, and with respect to numerous
other matters. If, however, an employee uses his official authority or
influence in connection with those matters specified in subsection (a),
such use would constitute a violation of section 7323 and appropriate
disciplinary proceedings should be instituted with respect to that
employee.
Subsection (b) of section 7323 prohibits an employee from directly
or indirectly using, attempting to use, or permitting the use of any
official information obtained through, or in connection with, his em-
ployment for any political purpose, unless the official information- is
available to the general public. The term official information is in-
tended to include agency records as well as information contained in
those records, and the prohibition against use of such information
applies only if that information is obtained through or in connection
with the employee's Government employment. An employee may use
official information obtained through or in connection with his em-
ployment so long as that information is available to the general public.
In this regard the committee does not intend that such information
need be published or otherwise publicly disseminated. For purposes of
subsection (b) such information is available to the general public if it
would be provided upon request.
Solicitation; prohibition.
Section 7324 sets forth prohibitions applicable to employees with
regard to soliciting, accepting, receiving, or giving political con-
tributions.
Paragraph (1) of section 7324 (a) prohibits an employee from giv-
ing or offering to: give a political contribution in return for any indi-
vidual's'vote, or abstention from voting, in any election.
Paragraph (2) of section 7324(a) prohibits an employee from
soliciting, accepting, or receiving a political contribution in return for
his vote or abstention from voting.
Paragraphs (1) and (2) parallel,.with minor rewording, existing
prohibitions in the Criminal Code pertaining to the buying or selling
of votes (see 18 U.S.C. 597), and it is the intention of the committee
that any act prohibited by the criminal provision also be prohibited
by these paragraphs.
Paragraph _(3) of section 7324(a) prohibits an employee from
knowingly giving or handing over a political contribution to a superior
of that employee. The phrase "superior of that employee" is intended
to limit the prohibition to instances where an employee makes a politi-
cal contribution to a superior who has the authority to affect that par-
ticular employee's employment. Thus, while an employee may not give.
a political contribution to another employee who is his superior, an
employee is not prohibited from giving a political contribution to an-
other employee solely because the other employee is a superior as de-
fined in paragraph (4) of section 7322. For example, an employee of
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one agency is not prohibited from giving a political contribution to a
supervisory employee of 'another agency.
Paragraph (4) of section 7324 (a) sets forth two prohibitions against
the solicitation or receipt of political contributions by employees.
Subparagraph (A) of paragraph (4) prohibits an employee from
knowingly soliciting, accepting, or receiving, or being in any manner
concerned with soliciting, accepting, or receiving, a political contribu-
tion from another employee (or a member of another employee's im-
mediate family) with respect to whom the employee is a superior. As
with the prohibitions in paragraph (3) discussed above, the phrase
".with respest to whom such employee is a superior" is intended to
limit the prohibition to instances where a superior has the authority to
affect an employee's employment. In most instances where an em-
ployee is a superior with respect to another employee, both employees
would be in the same agency. The inclusion of the phrase "member of
an employee's immediate family" is intended to prohibit possible. cir-
cumvention of the literal prohibition against a superior soliciting
political contributions from an employee such as where a superior
solicits a contribution from the employee's wife. A member of an
employee's immediate family would generally include those blood rela-
tions who resides in the employee's household, although in certain in-
stances it could. include other relations such as parents, children,
brothers, or sisters, who reside in the nearby vicinity, and whose deci-
sion to give or not to give a political contribution to a superior of an
employee could be affected by the superior-employee relationship.
Subparagraph (B) of paragraph (4) prohibits an employee from
knowingly soliciting, accepting, or receiving, or being in any manner
concerned with soliciting, accepting, or receiving, a political contribu-
tion in any room or building occupied in, the discharge of official duties
by: (i) an individual employed or holding office in the Government
of the United States, in the government of the District of Columbia, or
in any agency or instrumentality of the foregoing; or (ii) an indi-
vidual receiving any salary or compensation for services from money
derived from the Treasury of the United States. Thus, .an employee
is prohibited from soliciting political contributions in any room or
building where Federal Government business is being conducted. In
addition, an employee is prohibited from soliciting political contribu-
tions in any room or' building where an individual being paid from
money derived from the. Federal Treasury is working; for example,
where an, individual whose salary is paid through a Federal grant
or where an employee of a Federal contractor whose salary derives
from Federal funds is working.
Subparagraph (B) parallels, with minor rewording, existing pro-
visions in the Criminal Code (see, 18 U.S.C. 603), and it is the inten-
tion of the committee that any act prohibited by the criminal provision
also be prohibited by subparagraph (B).
Subsection (b) of section 7324 prohibits an employee holding a re-
stricted position (as defined in section 7322(8)) from soliciting. ac-
cepting, or receiving a political contribution from, or giving a political
contribution to, employees, -Members of Congress (or candidates for
such office), members of the uniformed service. or any agent of these
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individuals. The subsection exempts from this general prohibition,
however, contributions given to a political committee.
With respect to employees holding restricted positions, subsection
(b) is intended to continue existing prohibitions concerning certain,
political contributions now contained in sections 602 and 607 of title
18, United States Code. Although sections 602 and 607 do not specifi-
cally exempt contributions given to political committees, it is the com-
mittee's understanding that both the Civil Service Commission and the
Department of Justice have consistently interpreted those sections as
not applying to such contributions, thereby permitting employees to
contribute to campaigns.
The term political committee is not defined by the bill. Although
"political committee" has been statutorily defined for other purposes,
such as in connection with campaign financing laws (see; e.g., 18 U.S.C.
591(d)) , such definitions generally hinge on the dollar amount. of
funds handled by such a committee, e.g., $1,000, during a calendar year.
Since the purpose, of limiting certain political contributions by re-
stricted employees to only those given to political committees is to
permit some degree of financial participation in the electoral process
but at the same time provide a, layer of insulation between the em-
nloyee and b6neficiary of the contribution, a certain amount of flexibil-
ity should be allowable in determining what constitutes a political
committee.
While the dollar amount of funds handled by a committee may be a
valid criteria in some instances for determining whether an organiza-
tion is a bona fide political committee, in other instances it may not.
The committee anticipates that the Office of Personnel Management
in the exercise of its general regulatory authority under. section 7328,
will define."political committee" in a manner such that these considera-
tions may be taken into account.
Paragraph (1) of subsection (c) provides a final prohibition with
respect to the solicitation of political contributions by employees. Para-
graph (1) of that subsection provides that an employee may not solicit,
accept, or receive a, political contribution from, or give a political con-
tribution to, a person who (A) has, or is seeking to obtain, contractual
or other business or financial relations with the agency in which the
employee is employed ; (B) conducts operations or activities which
are regulated by such agency; or (C) has interests which may be sub-
stantially affected by the performance of the employee's official duties.
Paragraph (2) of subsection (c) provides that the Office of Person-
nel Management shall prescribe regulations under which an employee
may be exempted from the application of paragraph (1) with respect
to any political contribution to or from an individual who has a family
or personal relationship with the employee, if the employee complies
with such requirements as the Office shall prescribe, relating to dis-
qualification of such employee from engaging in any official activity
involving such individual.
Political activities .on duty, et cetera; prohibition
Subsection (a) of section 7325 prohibits an employee from engaging-
in political activity: (1) while on duty: (2) in any room or building
in which an- individual employed by the Government of the United
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717
States, or the government of the District of Columbia is engaged in
official duties; or (3) while wearing a uniform or official insignia
identifying the office or position of the employee. Subsection (a) re-
flects the belief of the committee that political activity of employees
should not be allowed to interfere with the effective conduct of the
Government's business. -
Subsection (b) of section 7325. provides several exceptions to the
prohibitions of subsection (a). First, individuals paid from the appro-
priation for the White House Office, paid from funds to enable the
Vice President to provide assistance to the President, or on special
assignment to the White House Office, are excepted. Second, the Mayor
of the District of Columbia, and the Chairman and members of the
Council of the District of Columbia are excepted. The committee rec-
ognizes that these individuals hold positions that are essentially politi-
cal in nature and that. determining whether many activities in which
they engage constitute "political activity," and thus are prohibited
by subsection (a), would be difficult.
Subsection (b) also excepts any activity of an individual which is
not otherwise prohibited by or under law and which is part of such
individual's official duties. This exception is intended to preclude the
possibility that an employee may have to decide whether a specific task
which he is assigned as part of his official duties could be construed as
"political activity" and thus be subject to the bill's prohibitions.
For, example, if an employee of the Domestic Policy Staff prepared a
paper explaining the administration's position on- a particular issue
at the request of his immediate superior, and he was aware that parts
of that paper could be used in a campaign speech to be given by the
President, he should not have to worry that by carrying out his official
duties in writing the paper he would be engaging in political activity
on the job. So long as an employee is performing a function which is
required by the duties and responsibilities of his position, his per-
formance of that function should not be construed to constitute politi-
cal activity. Should a superior require an employee to engage in
activities which are not a part of that employee's official duties, and
which are political in nature, the superior would be in violation of
the misuse of authority prohibition in section 7323(a) (2) (C).
Subsection (c) of section 7325 provides that nothing in section 7325
shall be construed to authorize an individual who is excepted from the
prohibitions of subsection (a) to engage in political activity otherwise
prohibited by or under law.
Candidates for elective ofce; leave noti fication by employees'
Section 7326 authorizes leave without pay and accrued annual leave
for employees who are candidates for elective office.
Subsection (a) of section 7326 requires an employee to notify his
employing agency promptly upon becoming a candidate and upon
the termination of his candidacy.
Subsection (b) of section 7326 provides that an employee who is
a candidate shall, upon that employee's request, be granted leave with- -
out pay for the purpose of engaging in activities relating to that em-
ployee's candidacy. It should be noted that there is no requirement
that an employee who is a candidate take leave without pay, but if the
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employee requests such leave without pay, the employing agency must
grant the request.
Subsection (c) of section 7326 provides that an employee who is a
candidate shall, upon that employee's request., be granted accrued an-
nual leave for the purpose of engaging in activities relating to that
employee's candidacy. As is the case with leave without pay, an em-
ployee is not required to take accrued annual leave, but-if the employee
requests such leave, the employing agency must grant the request, not-
withstanding the provision in section 6302(d) of title 5 which pro-
vides that the granting of annual leave is within agency discretion.
The term "accured annual leave" means that an employee is entitled
only to that annual leave which he has actually earned. An agency is
not required to advance annual leave.
Under section 7326, an agency is only required to grant leave to an
employee who is a candidate, as defined in section 7322(2), and to pre-
vent possible abuses of-leave requests, an agency should verify that an
employee is actually a candidate before granting a request. An em-
ployee's right to be granted leave without pay or accrued annual leave
terminates immediately following election day whether or not, the
employee is elected or at such other time when the candidacy termi-
nates such as the date on which an employee withdraws from candi-
dacy.-The phrase "to engage in activities related to such candidacy"
reflects the committee's intent that leave under this section is to be
used primarily for such activities. Thus, an agency may deny a re-
quest for.leave under this- section if it is apparent that the'leave is re-
quested for other activities; unrelated to the employee's candidacy.
Subject to the foregoing qualifications, the decision as to whether to
take leave without pay, accrued annual leave, or a combination of both,
rests with the employee who is a candidate. If an employee who is a
candidate does not take leave and engages in activities relating to that
candidacy of other political activity while on duty, the activities
would violate section 7 325 discussed above.
Subsection (d) of section 7326 provides that the provisions relating
to leave for employees who are candidates do not apply to individuals
who are employees by reason of holding an elected public office, for
example, those individuals referred to in section 7325 (b) (3). _
Penalties
Section 7327 sets forth the penalties which the Merit Systems Pro-
tection Board may order when violations of section 7323, 7324, or 7325
have been found, and specifies the manner in which penalties shall be
imposed.
The committee believes that violations of section 7323, relating to
misuse of official authority, influence, or official information, constitute
the most serious offenses which may be committed under the bill. It
further believes that employees who misuse their official authority or
influence or who misuse official information should be severely
punished.
Accordingly, subsection (a) (1), reouires that, as a minimum, the
Board must order a penalty of suspension for not less than 30 days in
the case of an employee who has been found to have violated section
7323. The maximum penalty for violating that section is removal and
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if removed, the employee is permanently barred thereafter from hold-
ing any position (other than an elected position) in which the employee
would be subject to the provisions of subchapter III.
Subsection (a) (2) sets forth a range of penalties which the Board
in its discretion, may order in cases involving violations of sections
7324 and 7325.
Under paragraph (2) (A) of subsection (a) the Board may order
the removal of an employee and, in addition; if removal is ordered, the
Board must prescribe a period of time during which the employee
may not be reemployed in any position (other than an elected posi-
tion) in which the employee would be subject to the provisions of
subchapter III. Under paragraph (2) (B) the Board may order the
suspension without pay of an employee for such period as they pre-
scribe. Under paragraph (2) (C) the Board may, in its discretion,
order lesser forms of penalties as they deem appropriate.
The committee recognizes that certain violations of sections 7324
and 7325 are necessarily more serious than others and intends that the
penalty provisions give complete discretion to the Board with regard
to the severity of the penalty to be imposed in such cases so that what-
ever penalty is ordered may be tailored to the nature of the actual
violation.
Subsection (b) requires. the Board to notify the Special Counsel, the
employee, and the employing agency of any penalty ordered. It is then
the responsibility of the employing agency to effect the disciplinary
action, and that agency is required to certify to the Board the measures
it has undertaken to implement the penalty.
Regulations
Subsection (a) of section '7328 requires the Office of Personnel Man-
agement and the Merit Systems Protection Board to prescribe such
rules and regulations as may be necessary to carry out their respective
Subsection (b) of section 7330 requires that regulations designat-
ing "restricted positions" must be prescribed not later than 90 days
after the-effective date of section 7322(8), defining "restricted posi-
tions." Since section 903(a) of the bill provides that section 7322
becomes effective 120 days after enactment, regulations designating
restricted positions must be prescribed not later than 210 days after
the date of enactment. Thereafter, any revision of the restricted posi-
tion regulations must be prescribed not later than March 1 of the
calendar year in which the revision is to take effect. The committee
intends that "revision" include adding or subtracting any position
from those designated as restricted.
Subsection (b) also permits an employee who holds a position which
has been designated as restricted to file a petition in the U.S. Court of
Appeals for the District of Columbia, or for the judicial circuit in
which such employee resides or is employed, requesting judicial review
of the regulation designating his position as restricted. The commit-
tee intends such review to be for the purpose of determining whether,
the Office of Personnel Management has correctly applied the re-
stricted position criteria set forth in section 7322(8). An action for
review of a restricted position designation may not be instituted more
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than 30 days after the effective date of the regulation designating the
position as restricted.
Technical and conforming amendments
Subsection (b) of section 901 of the bill contains several technical
and conforming amendments to title 5.
Section 901(b) (1) amends section 3302 of title 5, relating to the
President's authority to prescribe rules for neceesary exceptions from
certain provisions of title 5, by striking out the references to sections
7321 and 7322. Under the new subchapter III, as revised by the bill;
all exceptions from the provisions of that subchapter are expressly
set forth in the subchapter itself. Accordingly, no authority for addi-
tional exceptions is deemed necessary.
Section 901(b) (2) amends section 1308(a) of title 5, relating to
annual reports of the Office of Personnel Management by striking out
paragraph (3) relating to reports of the office concerning its actions
under existing section 7325 of title 5. The remaining paragraph of
section 1308 (a) is appropriately redesignated.
Section 901(b) (3) corrects an existing technical error in the second
sentence of section 8332 (k) (1) by striking out "second" and inserting
in lieu thereof "last".
Section 901 (b) (4) of the bill amends the section analysis for sub-
chapter III of chapter 73 of title 5 to reflect the changes made by
section 901 (a) of the bill.
Amendments to the Criminal Code
Section 901(c) of the bill amends sections 602 and 607 of title 18,
United States Code, relating to solicitations and making of political
contributions, by adding a new sentence at the end of each section to
provide that those sections do not apply to any activity of an.em-
ployee, as defined in section 7322 (1) of title 5, unless such activity is
prohibited by section 7324 of that title. Since section 7324 of the bill,
relating to solicitations and making of political contributions, permits
employees to engage-in certain activities which are presently prohib-
ited. under sections 602 and 607, this amendment is necessary to ensure
that an employee is not criminally liable for an activity that, although
permissible under the bill, would, except for this amendment, be pro-
hibited under section 602 or 607. It should be noted that the amend-
ments to the criminal provisions pertain only to activities by "em-
ployees" as defined under section 7322(1) of title 5. Accordingly, the
criminal prohibitions applicable to other individuals who are covered
by the prohibitions in sections 602 and 607 of title 18, remain
unchanged.
Amendments to other laws
Section 901(d) of the bill is a conforming amendment which amends
section 6 of the Voting Rights Act of 1965 (42 U.S.C. 1973d), relating
to the appointment of Federal voting examiners, by striking out "the
provisions of section 9 of the Act of August 2, 1939, as amended (5
U.S.C. 118i), prohibiting partisan political activity", and inserting in
lieu thereof "the provisions of subchapter III of chapter 73 of title 5,
United States Code, relating to political activities".
Section 901(e) is a conforming amendment which amends sections
103(a) (4) (D) and 203(a) (4) (D) of the District of Columbia Public
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721
Education Act, relating to the employment of officers and educational
employees of Federal City College and the Washington Technical
Institute, by striking out "sections 7324 through 7327 of title 5" and
inserting in lieu thereof "section 7325 of title 5".
Section 901(f) amends sections 8332(k) (1), relating to civil service
retirement coverage, section 8706(e), relating to civil service life
insurance coverage, and section 8906(e) (2), relating to civil service
health insurance coverage, by inserting a reference to leave without
pay granted under section 7326(b) of title 5, as amended by this bill,
in each of those sections. The effect. of these amendments is to permit
an employee who is a candidate and who is granted leave without pay
under section 7326(b) of title 5, as amended. by the bill, to elect,
within 60 days after entering on leave without pay, to continue under
the, civil service retirement, life insurance, or health insurance pro-
grams.
An employee who elects to continue in one or more of those pro-
grams is required to arrange through his employing agency to pay
currently into the appropriate fund an amount equal to the employee
and the agency contributions. An employee who so elects may continue
in a program for as long as that employee remains in a leave without
pay status. With regard to retirement benefits, failure of an employee
to make the required election precludes the period spent on leave with-
out pay from being included as creditable service for retirement pur-
poses. With regard to health and life insurance benefits, the failure of
an employee to make an election will result in termination of coverage
under those respective programs only if the employee continues on
leave without pay for longer than 12 months. The provisions of subsec-
tion (d) of section 901 relating to retirement, health insurance, and
retirement coverage, accord identical treatment to employees who enter
on leave without pay for purposes of engaging in candidacy for
elective office as is presently accorded to employees who enter on leave
without pay to serve as officers of employee organizations.
State, and local employees' political activities
Section 902(a) amends section 1502 of title 5, United States Code,
relating to political activities of certain State and local government
employees, by striking out paragraph (3) of such section which pro-
hibits State and local employees from running as candidates for
elective office. The effect of this amendment is to permit State and
local employees to be candidates for such offices. This is consistent with
the provisions applicable to Federal employees pursuant to the amend-
ments made by section 901 of the bill. It should be noted that this
amendment pertains only to restrictions on political activities imposed
by Federal law. State laws and local laws relating to political activ-
ities made by State and local employees are unaffected.
Section 902(b) makes necessary conforming amendments by strik-
ing out section 1502(c) of title 5, repealing section,1503 of title 5, and
amending the section analysis for chapter 15 of title 5 appropriately.
Section 903 of the bill provides for the effective date of the bill, and
sets forth certain savings and transition provisions.
Subsection (a) of section 3 provides that the act shall become effec-
tive 120 days after the date of enactment. The authority for the Corn-
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mission to prescribe regulations granted under section 7328 is effective
on the date of enactment.
Subsection (b) of section 903 is a savings provision which provides
that any repeal or amendment made by the act shall not release or ex-
tinguish any penalty, forfeiture, or liability incurred prior to the
effective date, and that existing provisions of law shall be treated as
remaining in force for the purpose of sustaining any proper proceeding
or action for the enforcement of any penalty, forfeiture, or liability.
Subsection (c) of section 903 is a transition provision which governs
proceedings initiated under existing law which may be pending on or
before the effective date of the act. It provides that if charges were
filed on or before the effective date of the act, the proceeding- shall be
completed under the provisions of existing law and orders shall be
issued and appeals shall be taken therefrom as if the act had not been
enacted. The committee intends that the term charges means formal
charges filed, under existing law, by the Commission's general counsel
(or other appropriate officials with respect to excepted service em-
ployees) pursuant to the procedures set forth in part 733 of title 5, Code
of Federal Regulations.
Study concerning political participation by Federal employees
Section 904 of the bill requires the Office of Personnel Management
to study and review the effect of the amendments made by new title IX
on (1) the level of participation by Federal employees in activities
relating to Federal, State, and local elections; (2) the merit system
particularly the hiring, termination, or advancement of Federal em-
ployees; and (3) matters generally, affecting and contributing to the
improper use of official influence or official information by Federal em-
ployees as ' prohibited under subchapter III of chapter 73 of. title 5,
United States Code (as amended by this title).
The Office is required to report to the Congress not later than March
31, 1980, and March 31, 1982, the results of the study and review and
any findings therefrom together with such legislative or administra-
tive recommendations as the Office considers appropriate.
Subsection (a) of section 1001 of the bill amends chapter 61 of title
5, United States Code, relating to hours of work, by inserting a new
section 6102, entitled "Basic workweek of firefighters".
Subsection (a) of the new section 6102 provides that the regularly
scheduled administrative workweek of each firefighter shall be an aver-
age of 56 hours per week, computed on the basis of a period of 21
consecutive days. The term "regularly scheduled administrative work-
week" is not defined in title 5 of the United States Code. However,
the term is defined in section 610.102 of the Civil Service Commis-
sion's regulations as meaning the period within an administrative
workweek within which an employee is required to be on duty regu-
larly. Thus, the regularly scheduled administrative workweek consists
of the employee's basic hours of duty plus all hours of overtime work
which are regularly required. Under existing law, the regularly
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scheduled administrative workweek of most Federal firefighters con-
sists of 72 hours. Under the new section ?6102 (a), the regularly sched-
uled administrative workweek of firefighters may not exceed an aver-
age of 56 hours over any period of 21 consecutive days. This means
that overtime work in excess of the average 56 hours may not be
regularly scheduled.
The bill prescribes a 56-hour workweek rather than the 54-hour
non-overtime tour of, duty established under section 6 (c) (1) of the
Fair Labor Standards Amendments of 1974, because the 56-hour work-
week easily accommodates a "24-on-48-off" work schedule which ap-
pears to be the most practical.
Section 6102 (a) further provides that the duration and frequency
of work shifts occurring within a period of 21 consecutive days shall
be determined under regulations to be prescribed by the Office of Per-
sonnel Management.
Definition on "firefighter"
Subsection (b) of the new section 6102 defines the term "firefighter"
for purposes of the, new section. The term "firefighter" means an em-
ployee in an Executive agency (as defined in 5 U.S.C. 105), the duties
of whose position are primarily to perform or to supervise work di-
rectly connected with the control and extinguishment of fires or the
maintenance and use of firefighting apparatus and equipment. How-
ever, the term "firefighter" does not include any employee who has
a regularly scheduled administrative workweek of 40 hours estab-
lished under section 6101(a) (2) (A) of title 5.
The primary purpose of this bill is to reduce the average work-
week of Federal firefighters. Approximately 90 percent of Federal
civilian firefighters are employed by the Department of Defense, and
almost all of them have a 72-hour weekly tour of duty. However, there
are other Federal firefighters (particularly in the Forest Service) who
have a 40-hour workweek. Obviously, the primary intent of this legis-
lation would not be served by extending application of the 56-hour
workweek to these employees. Accordingly, the provisions of the new
section 6102(a) will not apply to employees who have a regularly
scheduled administrative workweek of 40 hours.
Premium pay for firefighters
Subsection (b) (1) of section 1001 of the bill amends section 5545 of
title 5 by adding a new subsection (e) at, the end thereof. Paragraph
(1) of the.new subsection (e) provides that each firefighter (as defined
in the new section 6102(b) of title 5) with a regularly scheduled ad-
ministrative workweek established under section 6102(a) of title 5, as
added by subsection (a) of section 1001, shall be entitled to premium
pay equal to 25 percent of his annual rate of basic pay or 25 percent
of the minimum rate of basic pay for GS-10, whichever is less. This
25 percent premium pay for the average 56-hour regularly scheduled
administrative workweek is in lieu of all other premium pay author-
ized under the provisions of subchapter V of chapter 55 of title 5, other
than premium pay authorized in paragraph (2) of the new subsection
(e), discussed below.
Presently, most Federal firefighters are eligible for premium pay
under section 5545(c) (1) of title 5. That section, generally, authorizes
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payment of premium pay, not in excess of 25 percent, to an employee
who regularly is ,required to remain at his duty station during longer
than. ordinary periods of duty, a substantial part of which period
consists of remaining in a standby status, rather than performing
work. The authority to fix the rates of premium pay (up to 25 per-
cent). under section 5545 (c) (1) rests with the Civil Service Commis-
sion. Federal firefighters who have a 72-hour tour of duty are author-
ized to be paid the maximum percentage (25 pecent) of premium
pay. (See section 550.144 of the Civil Service Commission's
regulations.)
Under this amendment to section 5545, and the amendment to section
5545(c) (1) discussed below, those Federal firefighters whose work-
weeks are established under the new section 6102 (a) will be entitled to
25 percent annual premium pay under the provisions of the new section
5545(e), rather than premium pay under the existing provisions of
section 5545 (c) (1). Thus, most firefighters will continue to ,receive 25
percent annual premium pay, notwithstanding the reduction in their
weekly tours of duty from 72 to 56 hours.
Paragraph (2) of the new subsection (e) of section 5545 provides
that all officially ordered or approved hours of work which are in
excess of the regularly scheduled administrative workweek established
under section 6102(a) of title 5 (the average 56-hour workweek) con-
stitute overtime work and shall be paid for in accordance with the
rates specified in section 5542 of title 5. Since the ,regularly scheduled
administrative workweek established under section 6102(a) may not
exceed an average of 56 hours, any work in excess of the average 56
hours will have to be limited to irregular, occasional overtime and paid
for in accordance with the overtime rates specified in section 5542.
The overtime pay provisions of the new subsection (e) of section
5545 are not intended to supersede the overtime provisions of the Fair
Labor Standards Amendments of 1974 (20 U.S.C. 207 (k) ). Since the
FLSA now requires payment of overtime for all hours in excess of 54
per week, Federal firefighters who have a regularly scheduled admin-
istrative workweek of 56 hours will be entitled to payment for 2
hours of overtime under the FLSA.
Conforming amendments
Paragraphs (2), (3), and (4) of subsection (b) of section 1001
of the bill consist of conforming amendments to other provisions of
title 5, which necessitated by the addition of the new section 5545(e).
Paragraph (2) amends section 5545(c) (1) to make clear that fire-
fighters who are entitled to premium pay under the new section 5545
(e) are expected from the premium pay provisions of section 5545
(c) (1)?
Paragraph (3) amends section 5547 of title 5, which prescribes a
limitation on the total amount of premium pay payable to an employee
for any pay period, to include therein a reference to the new section
5545(e).
. Paragraph (4) amends section 5595 (e), relating to severence pay,
section 8114(e), relating to compensation for work related injuries,
section 8331(3) (C), relating to civil service retirement benefits, and
section 8704 (c), relating to Federal employees group life insurance, so
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725
that premium under section 5545 (e) (1) will be included as part
of the employee's pay for purposes of these various benefits.
Effective date
Section 1002 of the bill provides that the amendments made by sec-
tion 1001 shall take effect at the beginning of the first applicable pay
period which begins at least 60 days after the date of the enactment
of the act.
MISCELLANEOUS
.Decentralization of Government study
Section 1101 provides that the Director of Personnel Management
shall, as soon. as practicable after the enactment of this legislation,
undertake a study, of the decentralization of Government functions.
The study.. shall include a 'review of geographical distribution of
Government functions and a review of the possibility of redistribution
of functions now concentrated in the District of Columbia.
The report of the Director shall be presented to the President and
the Congress within 1 year.
Savings provision
Section 1102(a) provides that all Executive orders, rules, and regu-
lations affecting the Federal seivice shall continue in effect until modi-
fied, terminated, or superceded in accordance with the terms of this
legislation and other lawful authority.
Section 1102(b) preserves any administrative proceeding pending
at the time the provisions of this legislation take effect.
Section 1102(c) preserves the status of any lawsuit in progress at
the time of the effective date of the provisions of this legislation.
Authorization of appropriations
Section 1103 authorizes appropriations to carry out the provisions
of this legislation.
Powers of the President
Section 1104 preserves any authority of the President except as
specifically provided otherwise by the provisions of this legislation
Technical amendments
Section 1105 provides technical and conforming amendments, prin-
cipally by inserting the words Director or Director of the Office of
Personnel Management, and Office of Personnel Management for the
current terms Chairman, Chairman of the Civil Service Commission,
and Commission or Civil Service Commission in current law.
Section 1105(o) provides that further technical and. conforming
amendments shall be prepared by the President or his designee and
submitted to the Congress for consideration within- 30 days following
the enactment of this legislation.
Effective date
Section 1106 provides that, except as. otherwise provided in this
legislation, this legislation shall take effect 90 days following,
enactment.
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726
The committee has reviewed the cost estimate furnished by the Con-
gressional Budget Office pursuant to section 403 of the Congressional
Budget Act of 1974 and adopts that estimate as the cost estimate of
the committee for the purpose of clause 7 of House rule XIII. The
cost estimate prepared by the Congressional Budget Office is set forth
below :
CONGRESSIONAL BUDGET OFFICE, -
U.S. CONGRESS,
Washington, D.C., July 31, 1978.
Hon. ROBERT N. C. Nix,
Chairman, Committee on Post Office and Civil Service, U.S. House of
Representatives, 309 Cannon; House Office Building, Washington,
D.C.
DEAR MR. CHAIRMAN : Pursuant to Section 403 of the Congressional
Budget Act of 1974, the Congressional Budget Office has prepared
the attached cost estimate for H.R. 11280, the Civil Service Reform
Act of 1978.
Should the committee so desire, we would be pleased to provide fur-
ther details on the attached estimate.
Sincerely,
JAMES BLUM,
(For Alice M. Rivlin, Director.)
CONGRESSIONAL BUDGET ? OFFICE-COST ESTIMATE
JULY 31, 1978.
1. Bill number : H.R. 11280.
2. Bill title : Civil Service Reform Act of 1978.
3. Bill status : As ordered reported by the House Committee on
Post Office and Civil Service, July 19,1978.
-4. Bill purpose: The purpose of this legislation is to reorganize
the Federal personnel system. The Civil Service Commission would
be divided into two agencies-the Office of Personnel Management
and the Merit Systems Protection Board. New procedures are set forth
for performance appraisal, reward, and removal of employees, and the
bill establishes the merit pay system and, on an experimental basis,
the Senior Executive Service. The bill also revises the "Hatch Act"
and working Hours of Federal firefighters.
5. Cost estimate:.
[in millions of dollars]
-
Title ------------------------------
- 4.6
5.1
5.4
5.8
6.1
Title III______________________________
-9.7
-10.4
-11.2
-11.9
-12.7
Title IV______________________________
13.0
14.4
15.3
5.6
.5
Tit VI ------------------------------
3.1
3.4
3.8
3.9
3.9
Title VII_____________________________
.3
.5
.6
.6
.7
TitleVlll----------------------------
8.5
39.0 _
72.8
109.1
148.0
Title X______________________________
20.2
28.2
32.0
35.1
36.9
Other administrative costs_____________
' 2.0
.4
.4
.5
.5
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This estimate does not include the potential costs of the early retire-
ment provisions of section 308, and the unlimited accrual of leave per-
mitted by section 410. These costs, which could be substantial, cannot
1w estimated at the present time. In addition, the net cost of the retrain-
ing program authorized in section 306 (including potenntial savings
in severance pay) could not be estimated in the time available.
6. Basis of. estimate: For the purpose of this cost estimate, it is
assumed that this bill will be enacted on or about October 1, 1978. All
costs have been adjusted for inflation min future years based on CBO
economic assumptions. All sections of the bill with a significant cost
impact are discussed below.
Section 201: O fjice of Personnel Management
This section defines the functions of the OPM, and establishes the
positions of director, deputy director, and associate directors.
OPM
:
Estimated costs-
Fiscal year : Millions
1979
--------------------------------------------------------
$0.5
1980
--------------------------------------------------------
.7
1981
--------------------------------------------------------
.8
1982
--------------------------------------------------------
.8
1983
------------------------------------------------ ------
.9
It has been assumed that additional costs will be incurred only for
the director, deputy director, and five associate directors, at the au-
thorized salary levels, along with clerical support for each. All other
employees of the OPM are assumed to come from the Civil Service
Commission (CSC), and the cost of the functions they perform at the
OPM would be the same as if performed by the CSC.
Section 202: Merit Systems Protection Board and Special Counsel
The MSPB, to be composed of three members, a special counsel, and
such other employees as deemed necessary, is to be responsible for the
investigation, hearing or adjudication of adverse or prohibited person-
nel actions, for conducting studies relating to the civil service and
other merit systems, and for establishing rules and regulations per-
taining to its activities.
Estimated costs-11PSB :
Fiscal year Millions
1979
--------------------------
-----------------------------
$0.4
1980
---------------------------------------------------------
.5
1981
--------------------------------------------------------
.5
1982
--------------------------------------------------------
.6
1983
--------------------------------------------------------
.6
The estimated costs for this section are comprised of the difference
between the specifically authorized salaries for the members and offi-
cers of the CSC and the MSPB. In addition, based on estimates sup-
plied by the CSC, costs for 25 additional persons at an average fiscal
year 1978 salary of $17,500 have been-added for investigation of com-
plaints regarding prohibited personnel actions and possible cases of
violations of law or mismanagement based on information obtained by
employee disclosures. All other personnel are assumed to come from-
the CSC.
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Section 203: Performance appraisal
Each agency is responsible for developing performance policies and
regulations for periodic appraisal of job performance of employees.
Based on CSC date, it is estimated that costs will be $3.4 million in
aggregate in 1979. It is projected that the administration of the merit
pay plan will continue to be an integral part of personnel operations,
with costs increasing to $4.2 million in fiscal year 1983.
Fiscal year: Millions
1979
---------------------------------------------------------
$3.4
1980
---------------------------------------------------------
3.6
1981
---------------------------------------------------------
3.8
1982
---------------------------------------------------------
4.0
1983
---------------------------------------------------------
4.2
Section ?2j05: Appeals
The MSPB may require an agency to pay attorney. fees incurred by
an employee in cases where the Board determines that the agency acted
in bad faith, and at all times when the employee is the prevailing party
and the decision is based on finding of discrimination. Based on an
estimated annual caseload of 4,900, it is projected that there will be
approximately 100 cases each year in which the employee prevails and
it is also determined that the agency acted in bad faith, and that each
year approximately 300 cases of discrimination will result in the em-
ployee prevailing. Assuming a cost of '$750 per case (at 1979 cost
levels), the estimated costs for payment of attorney fees are as follows :
Estimated costs-Attorney fees
Fiscal year : Millions
1979 --------------------------------------------------------- $0.3
1980 ----------- ----- .3
1981 ----------- .3
1982 --------------------------------------------------------- .4
1983 --------------------------------------------------------- .5
While this section makes other procedural or definitional changes
affecting the appeals process, these are not expected. to have a signifi-
cant cost impact.
Section 301: Volunteer services.
This section provides a general authorization to agencies to accept
voluntary services performed by students. The volunteers are not to be
considered federal employees except for purposes relating to injury
compensation and tort claims. Although the government could incur
some costs as a result of claims by volunteers, no additional costs of
this kind have been included in this estimate.
Section 306: Training
Under this section, federal employees who face separation from an
agency and would otherwise be entitled to severance pay would be elig-
ible to be trained for jobs in other agencies. It is likely that training
costs would increase as a result of this provision; however, many of
these employees would have been eligible for severance pay or unem-
ployment compensation. It is not possible at this time to estimate the
net cost or savings that may result from this provision.
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Section 308: Retirement
The section allows early retirement for employees whose agencies
are undergoing a major reorganization, reduction-in-force, or transfer
of function. The total number of eligible employees, as well as the
number of those who would elect early retirement, cannot be estimated
at this time. However, the potential cost of this provision could be
significant.
Section 311: Dual pay for retired members of the uniformed services
This section estabilshes a new limitation on the salary of retired
officers of the armed forces" at the rate of pay for level V, currently
$47,500.
Based on personnel data as of June 30, 1975, this provision is esti-
mated to produce a savings of approximately $9.2 million at fiscal
year 1978 salary levels, increasing as the basic federal salaries increase
over the projection period.
Estimated savings :
Fiscal year : Millions
$9.7
10.4
11.2
11.9
12.7
Title IV, assumed to be implemented on/or about January 1, 1979, is
to remain in effect until early in 1982 and to be applied to only three
agencies. Therefore, the costs shown below for section 403, 405, 406,
407, 409, and 410 reflect only 50 percent of the cost of implementing
the provision of title IV in all agencies. These costs could vary sub-
stantially, depending on which three agencies are chosen.
Title IV: Senior Executive Service
1979
--------------------------------------------------------
1980
--------------------- ----------- -------------------------
1981
--------------------------------------------
1982
-------------------------------------------------=------
1983
--------------------------------------------------------
Section 403: Examination, certification, and appointment
This section 'establishes the procedures and requirements for ap-
pointment of personnel in the Senior Executive Service (SES). It pro-
vides for skill development programs and authorizes up to 11 months
leave with pay, plus travel and per diem expenses for training of eli-
gible persons.
Estimated cost--Personnel d
l
t
eve
opmen
:
Fiscal year: Millions
1979
---------------------------------------------------------
$1.4
.1980
--------------------------------------------------------
1.9
1981
---------------------------------------------------------
2.0
1982
---------------------------- --------------------------
.7
1983
--------------------------------------------------------
Based on information from the CSC, it is assumed that approxi-
mately 25 to 30 persons would take the 11 month sabbatical at an
average cost of $50.000 per employee. An additional $0.5 million is
assumed to be spent by the OPM for setting up training programs and
establishing the requirements and procedures for SES personnel.
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Section 405: Performance rating
Agencies are required to develop senior executive service perform-
ance appraisal systems. Costs for developing criteria and ratings for
executive performance appraisal have been included in the costs shown,
for Section 203.
Section 406: Awarding of ranks
It is estimated that approximately 4,600 federal employees will be
eligible for the Senior Executive Service (SES) in fiscal year 1979,
and that the number of eligible employees, as well as the amount of the
stipend, will remain stable throughout the projection period. It is
assumed that the maximum of 5 percent of the SES will be designated
as meritorious executives each year, and will receive the maximum
payment of $2,500. It is also assumed that the specified- maximum of
1 percent of the SES members will be appointed as distinguished ex-
ecutives, which offers a stipend of $5,000. Estimated costs for these
awards are shown below :
Estimated cost-Incentive awards :
Fiscal year : Millions
1979
--------------------------------------------------------
$0.8
1980
--------------------------------------------------------
.8
1981
-------------------------------------------- ------------
.8
1982
--------------------------------------------------------
.2
1983
--------------------------------------------------------
-----
Section 4127: Pay rates anal s ystems
Each member of the SES will receive a base rate of pay not less than
the minimum rate for GS-16 of the general schedule (now $42,423)
and not higher than the rate for level IV of the executive schedule
(now $50,000). In addition, up to 50 percent of the executives in an
agency may receive performance awards not to exceed 20 percent, of
the executive's rate of base pay. It is estimated that when fully opera-
tional, approximately 2,000 merit, pay awards at an average size of
$5,600 will be distributed in fiscal year 1979, with the average size
increasing with inflation. The costs of these merit awards would in-
crease if the size of the SES or the average award size were to increase.
The increased cost of merit pay awards will be partially offset by the
elimination of the present system of step increases. Assuming that the
present $47,500 pay ceiling is increased with annual comparability
adjustments after fiscal year 1979, the estimated savings in normal step
increases will be approximately $0.5 million per year. (If the ceiling
were totally removed, this offset would be substantially larger). .
As a result of these performance awards, the unfunded liability of
the Civil Service Retirement and Disability Fund will increase. The
impact of this provision has been estimated based on CSC projections
and the following assumptions: an average of 2,000 SES members
receiving performance awards each year; an average salary at retire-
ment of $50,000; the typical executive receiving five performance
awards during his career; annuities calculated at 21/2 percent of the
average employee's three highest years' salaries; and the present value
of the added benefits at the time of retirement equal to 12 times the
added benefit. The estimated increase in the unfunded liability will be
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$30 million with annual installments derived from annuity tables
equal to $2 million annually.
Estimated net costs :
Performance awards:.
Fiscal year : Millions
1979 --------------------------------------------------- $10.7
1980 --------------------------------------------------- 11.5
1981 ---------------- 12.3
1982 ----------------- 4.4
1983 --------------------------------------------------- ----
Retirement costs :
Fiscal year:
1979 --------------------------------------------------- ----
1980 0.1
1981 --------------------------------------------------- 0.1
1982 --------------------------------------------------- 0.3
1983 --------------------------------------------------- 0.5
Section If09 : Travel, transportation and subsistence
This section authorizes the payment of travel expenses for potential
SES candidates who interview with the Federal Government.
Estimated cost-Travel :
Fiscal year: Millions
1979 ----------------------------------------------- --------- $0.1
1980 -------------------------------------------------------- 0.1
1981 -------------------------------------------------------- 0.1
1982 ---------------------------------------------------------
1983 -------------------------------------------------------- ---
Based on information obtained from the CSC, it is assumed that
travel expenses will be approximately $70,000 a year (at 1979 cost
levels).
Section 410: Leave
This section would remove the current limit of six weeks annual
leave carryover for SES personnel, allowing them to accumulate as
much leave as they wish. Even though this could result in significant
increases in costs when employees leave the federal government, it is
not possible to estimate how much additional leave would be accrued.
Section 501: Merit pay
This section establishes a merit pay system for federal employees in
grades 13 through 15 of the general schedule, effective October 1,
1981. Within-grade salary increases will be replaced by merit in-
creases, which will be awarded only in recognition of superior per-
formance. The bill specifies that the amount of money available for
merit pay will be determined by the OPM, and set so as to equal those
estimated amounts which are not being paid through regular step in-
creases. It is assumed, based on CSC data, that the net effect of these
changes is neither an increase nor decrease in total personnel com-
pensation,-but rather a redistribution of these resources.
Section 601: Research and demonstration projects
Section 601 establishes a program to encourage research and demon-
stration projects in the area of personnel and public management. It.
is estimated that approximately, four to eight projects, costing ap -
proximately $100,000 to $300,000 each, will be required to develop
these new theories and approaches to personnel management problems.
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Estimated cost-Research :
Fiscal year : Miiiiona
1979
--------------------------------------------------------
$0.8
1980
--------------------------------------------------------
1.0
1981
--------------------------------------------------------
1.2
1982
-------
--------------------------------------------------------
1.2
--------------------------------------------------------
1.0
Section. 603: Amendments to the mobility program
This section authorizes the Federal Government to make up any
differences in salary when a Federal employee is assigned to a state
or local government, or a State or local employee is assigned to the
Federal Government.
Estimated cost-mobility program :
Fiscal year: M%iuons
1979
-------------------------------------------------------
$2.3
1980
-------------------------------------------------------
2.8
1981
-------------------------------------------------------
2.6
1982
-------------------------------------------------------
2.7
1983
-------------------------------------------------------
2.9
There are currently approximately 1,100 people in the mobility
program, divided fairly evenly between Federal and State and local
employees. The Federal employees would receive approximately
$3,000 from the Federal Government per year in salary as a result of
this section, since state and local salaries are generally lower than
Federal. Although travel costs are already paid, this pay compar-
ability provision is expected to stimulate -the transfer of employees,
thereby increasing travel costs, estimated to be approximately $1,500
per person.
Section 701: Labor-management relations
Under this section, the Federal Labor Relations Authority and an
Office of the General Counsel would be established in order to formu-
late and implement management policies in the field of management-
labor relations. The estimated costs for this section are comprised
of salaries specifically. authorized for the chairman and two members,
plus support staff, as well as four technical consultants. This is in
addition to existing staff transferred from other agencies to this
function. The estimated costs are as follows :
Estimated cost-Labor-management relations :
Fiscal year : Millions
1979
---------------------------------------------------------
$0.3
1980
---------------------------------------------------------
.5
1981
--------------------------------------------- -----------
.6
1982
---------------------------------------------------------
.6
1983
.7
Section 801: Grade and pay retention
This section of the bill is intended to facilitate a potentally sig-
nificant number of reclassifications and reductions in the numbers of
Federal jobs without, insofar as possible, adversely affecting incum-
bent employees. The bill provides indefinite grade retention for an
incumbent employee whose position is reduced in grade due to reclassi-
fication. An individual whose grade is reduced due to a reduction-in-
force process is provided indefinite salary retention but receives only
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50 percent of comparability pay increases. The provisions of the bill
are retroactive to January 1, 1977, and are intended to facilitate
reorganization proposals submitted by the President. -
It is assumed that (1) individuals affected by downgrading under
current law- would not remain in the downgraded position for more
that 2 years, and (2) employees affected by the grade retention and
salary retention benefits of H.R..11280 would continue to receive Fed-
eral benefits for at least 6 years. Since current law provides for 2 years
of salary retention for most downgraded Federal employees and since
the bill is retroactive to January 1, 1977, the budgetary impact of H.R.
. 11280 would first appear in January 1979. The critical variables in
estimating the 5-year cost impact of H.R. 11280 are the number of in-
dividuals affected by the salary retention provisions and the average
cost reduction resulting from downgrading or terminating a position.
Data necessary for the determination of these variables were provided
by the Civil Service Commission at, the request of CBO.
Estimated costs :
Fiscal year: minions
1979
--------------------------------------------------------
$8.5
1980
--------------------------------------------------------
39.0
1981
--------------------------------------------------------
72.8
1982
---- ------------- ---------- -
109.1
1983
----=---------------------------------------------------
148.0
Enactment of H.R. 11280 could eventually result in cost savings if
a significant number of reclassifications and reductions occur. Such
savings would be realized beyond the projection. period of this
estimate.
Section 1001: Basic workweek of firefighters
The purpose of this section is to reduce the basic workweek of
Federal firefighters., It establishes' a 56-hour average workweek for
firefighters within 60 days of enactment, and directs that firefighters
be paid their basic'-pay (based on 56 hours) plus premium pay for
standby duty at 25 percent of their.basic pay. For any additional
work over 56 hours firefighters will be paid according to present civil
service regulations regarding overtime pay. -
[in millions of dollars]
Estimated cost (new firefighters)--
Estimated salary reduction (current fire-
fighters) ______________ _____________
1979
1980
1981
1982
1983
30.5
41.8
47.0
51.6
55.1
-10.3
-13.6
-15.0
-16.5
-18.2
Generally, firefighters work a regularly scheduled administrative
workweek of 72 hours. For this tour of duty, they receive a basic rate
of pay and premium pay calculated as 25 percent of basic pay. In-addi-
tion, under the, Fair Labor Standards Act of 1975. (FLSA), fire-
fighters are also entitled to overtime compensation for all hours over
54 per week. A decision made by the Comptroller General states that
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firefighters should be compensated for this overtime at one-half their
regular rate of pay, since they have already been paid the regular over-
time rate according to civil service regulations. Presently, there are
approximately 11,559 civilian firefighters employed by the federal gov-
ernment. The Department of Defense employs approximately 90 per-
cent of these firefighters, and the remainder are employed at various
federal installations. This section does not-affect firefighters who are
presently working a 40-hour week. It is estimated that 7,714 firefighters
will be directly, affected by this section. For this estimate, it was as-
sumed that the federal agencies will retain the present level of fire pro-
tection. Because of the reduction in average work hours of current
firefighters will have to be hired to maintain this level of service. Based
on the reduction of hours covered by current firefighters, approximately
2,200 additional firefighters will have to be hired. (Current civilian
manpower ceiling projections do not allow for these additional per-
sonnel; consequently an increase in-the ceiling would be necessary.)
Costs associated with this increase in personnel include salaries, bene-
fits payments and administrative overhead. These costs are somewhat
mitigated by the reduction in pay to current firefighters due to the re-
duction in hours. (Costs in fiscal year 1979 reflect the assumption that
the bill will be enacted on October 1, and therefore will be in effect
for ten months of the year.) Costs are projected to increase in future
years due to inflation and expected grade increases of new firefighters.
Other costs
There are a number of sections of this legislation which authorize
require the development of rules and regulations, require the submis-
sion of various new reports, and require personnel studies but for which
no sp ceific costs have been attributed. It has been assumed that these
new requirements will cost an additional $1 million in the first year.
Regulation development costs are expected to decrease over the projec-
tion period, and reporting costs to remain constant. The actual physical
moving costs resulting from the reorganization have been estimated
to be $1 million in fiscal year 1979.
Estimated costs-General :
Fiscal year : Millions
1979 ------------------------------------------------------- $2.0
1980 -------------------------------------------------------- 0.4
1981 --------------------------------------------------------- 0.4
1982 --------------------------------------------------------- 0.5
.1983 -------------------------------------------------------- 0.5
7. Estimate comparison : None.
8. Previous CBO estimate : CBO has prepared a number of cost esti-
mates for bills containing provisions similar to or the same as those
in H.R. 11280. These bills include the following: S. 2640, the Civil
Service Reform Act of 1978, as reported by the Senate Committee on
Governmental Affairs (estimate dated July 11, 1978) ; H.R. 9279, as
ordered reported with amendments by the House Committee on Post
Office and Civil Service. (estimate dated April 10, 1978)_ ; H.R. 10, as
reported by the House Committee on Post Office and Civil Service
(estimate dated March 10, 1977) ;,and H.R. 3161, as ordered reported
by the Senate Committee on Governmental Affairs (estimate dated
May.11, 1978).
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The estimates for H.R. 9279, H.R. 10, and H.R. 3161 are incor-
porated without significant change in this estimate for tit}es VIII,
IX, and. X respectively. The costs of the remaining titles of the bill
are similar to those of S. 2640, except for reductions resulting from
the limited, experimental nature of the Senior Executive Service, and
from the limitation on the total amount of dual compensation that can
be paid to federal employees.
9. Estimate prepared by: Mary Maginniss, Kathy Weiss, Mark
Berkman, and Dave Delquadro.
10. Estimate approved by :
C. G. NUCBGI.S
(For James L. Blum,
Assistant Director for Budget Analysis).
OVERSIGHT
Under the rules of the House, the Committee on Post Office and Civil
Service is vested with legislative and oversight jurisdiction over the
subject matter of this legislation. As a result of its hearings and in-
vestigations, the committee concluded that there is ample justification
for enacting this legislation.
The committee received no report of oversight findings or recom-
mendations from the Committee on Government Operations pursuant
to clause 4(c) (2) of House Rule X.
Pursuant to clause (2) (1) (4) of House.Rule XI, the committee has
concluded that the enactment of H.R. 11280 will have no inflationary
impact on the national economy.
Set .forth below is the President's message on civil service reform
which was transmitted to the Congress on March 2,1978.
MARCH 2, 1978.
To the Congress of the United States:
I am transmitting to the Congress today a comprehensive program
to reform the Federal Civil Service system. My proposals are intended
to increase the government's efficiency by placing new emphasis on
the quality of performance of Federal workers. At the same time,
my recommendations will ensure that employees and the public are
protected against political abuse of the system.
Nearly a century has passed since enactment of the first Civil Serv-
ice Act-the Pendleton Act of 1883. That Act established the U.S. Civil
Service Commission and the merit. system it administers. These in-
stitutions have served our Nation well in fostering development of a
Federal work force which is basically honest, competent, and dedicated
to constitutional ideals and the public interest.
But the system has serious defects. It has become a bureaucratic
maze which neglects merit, tolerates poor performance, permits abuse
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of legitimate employee rights, and mires every personnel action in
red tape, delay and confusion.
Civil service reform will be the centerpiece of government reor-
ganization during my term in office.
I have seen at first hand the frustration among those who work
within the bureaucracy. No one is more concerned at the inability of
government to deliver on its promises than the worker who is try-
ing to do a good job.
Most civil service employees perform with spirit and integrity.
Nevertheless, there is still widespread criticism of Federal Govern-
ment performance. The public suspects that there are too many gov-
ernment workers, that they are underworked, overpaid, and insulated
from the consequences of incompetence.
Such sweeping criticisms are unfair to dedicated Federal work-
ers who are conscientiously trying to do their best, but we have to
recognize that the only way to restore public confidence in the vast
majority who work well is to deal effectively and firmly with the few
who do not.
For the past 7 months, a task force of more than 100 career civil
servants has analyzed the Civil Service explored its weaknesses and
strengths and suggested how it can be improved.
The objectives of the Civil Service reform proposals I am trans-
mitting today are :
To strengthen the protection of legitimate employee rights;
To provide incentives and opportunities for managers to
improve the efficiency and responsiveness of the. Federal
Government;
To reduce the red tape and costly delay in the-present personnel
system ;
To promote equal employment opportunity;
To improve labor-management relations.
My specific proposals are these :
1. Replacing the Civil Service Commission with an Office of Per-
sonnel Management and a Merit Protection Board
Originally established to conduct Civil Service examinations, the
Civil Service Commission has, over the years, assumed additional and
inherently conflicting responsibilities. It serves simultaneously both
as the protector of employee rights and as the promoter of efficient
personnel management policy. It is a manager, rulemaker, prosecu-
tor and judge. Consequently, none of these jobs are being done as effec-
tively as they should be.
Acting under my existing reorganization authority, I propose to
correct the inherent conflict of interest within the Civil Service Com-
mission by abolishing the Commission and replacing it with a Merit
Protection Board and Office of Personnel Management.
The Office of Personnel Management will be the centerfor personnel
administration (including` examination, training, and administra-
tion of pay and benefits) ; it will- not have any prosecutorial or adjudi-
cative powers against individuals. Its Director will be appointed by
the President and confirmed by the Senate. The Director will be the
government's management spokesman on Federal employee labor
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relations and will coordinate Federal personnel matters, except
for Presidential appointments.
The Merit Protection Board will be the adjudicatory arm of the new
personnel system. It will beheaded by a bipartisan board of three
members, appointed for 7 years, serving non-renewable overlapping
terms, and removable only for cause. This structure will guarantee
independent and impartial protection to employees. I also propose to
create a Special Counsel to the Board, appointed by the President
and confirmed by the Senate, who will investigate and prosecute poli-
tical abuses and merit system violations. This will help safeguard
the rights of Federal employees who "blow the whistle" on violations
of laws or regulations by other employees, including their supervisors.
In addition, these proposals will write into law for the first time the
fundamental principles of the merit system and enumerate prohibited
personnel practices.
2. A senior executive service
A critical factor in determining whether Federal programs succeed
or fail is the ability of the. senior managers who run them. Through-
out the executive branch, these 9,200 top administrators carry respon-
sibilities that are often more challenging than comparable work in
private industry. But under the civil service system, they lack the
incentives for first-rate performance that managers in private indus-
try have. The civil, service system treats top managers just like the
2.1 million employees whose activities they direct.. They are equally
insulated' from the risks of poor performance, and equally, deprived.
of tangible rewards for excellence.
To help solve these problems I am proposing legislation to create
a Senior Executive Service affecting managers in grades GS-16
through non-Presidentially appointed Executive Level IV or its equiv-
alent. It would allow :
Transfer of executives among senior positions on the basis of
government need;
Authority for agency heads to adjust salaries within a range
set by law with the result that top managers would no longer
*receive automatic pay increases based on longevity;
Annual performance reviews, with inadequate performance
resulting in removal from the Senior Executive Service (back to
GS-15) without any right of appeal to the Merit Protection
Board.
Agency heads would be authorized to distribute bonuses for superior
performance to not more than 50 percent of the senior executives each
year. These would be allocated according to criteria prescribed by the
Office of Personnel Management, and should average less than 5 per-
cent of base salary per year. They would not constitute an increase in
salary but rather a one-time payment. The Office of Personnel Man-
agement also would be empowered to award an additional stipend
directly to a select group of senior executives, approximately 5 percent
of the total of the Senior Executive Service, who have especially, dis-
tinguished themselves in their work. The total of base salary, bonus,
a.nd honorary stipend should in no case exceed 95 percent of the salary
level for an Executive Level II position.
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No one now serving in the "supergra.de" managerial positions would
be required to join the Senior Executive Service. But all would have
the opportunity to join. And the current percentage of non-career
supergrade managers-approximately 10 percent-would be written
into law for the-first time, so that the Office of Personnel Management
would not retain the existing authority of the Civil Service Commis-
sion to expand the proportion of political appointees.
. This new Senior Executive .Service will provide a highly qualified
corps of top managers with strong incentives and opportunities to
improve the management of the Federal Government.
3. Incentive pay for lower level Federal managers and supervisors
The current Federal pay system provides virtually automatic "step"
pay increases as well as further increases to keep Federal salaries com-
parable to those in private business. This may be appropriate for most
Federal employees, but performance-not merely endurance-should
determine the compensation of Federal managers and supervisors. I
am proposing legislation to let the Office of Personnel Management
establish an incentive pay system for government managers, starting
with those in grades GS-13 through GS-15. Approximately 72,000
managers and supervisors would be affected by such a system which
could later be extended by Congress to other managers and supervisors.
These managers and supervisors would no longer receive automatic
"step" increases in pay and would receive only 50 percent of their an-
nual comparability pay increase. They would, however, be eligible for.
"performance" pay increases of up to 12 percent of their existing
salary. Such a change would not increase payroll costs, and it should
be insulated against improprieties through the use of strong audit and
performance reviews by the Office of Personnel Management.
4. A fairer and speedier disciplinary system
The simple concept of a "merit system" has grown into a tangled web
of complicated rules and regulations.
Managers are weakened in their ability to reward the best and most
talented people-and to fire those few who are unwilling to work.
The sad fact is that it is easier to promote and transfer incompetent
employees than to get rid of them.
It may take as long as three years merely to fire someone for just
cause, and at the same time the protection of legitimate rights is a
costly and time-consuming process for the employee.
A speedier and fairer disciplinary system will create a climate in
which managers may discharge nonperforming employees-using due
process-with reasonable assurance that their judgment., if valid, will
prevail.
At the same time, employees will receive a more rapid hearing for
their grievances.
The procedures that exist to protect employee rights are absolutely
essential.
But employee appeals must now go through the Civil Service Com-
mission, which has a built-in conflict of interest. by serving simultane-
ously as rulemaker. Prosecutor, iudge, and employee advocate.
The legislation I am proposing today would give all competitive
employees a statutory right of appeal. It would spell out fair and sen-
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739
sible standards for the Merit Protection Board to apply in hearing
appeals. Employees would be provided with attorneys' fees if they pre-
vail and the agency's action were found to have been wholly without
basis. Both employees and managers would have, for the first time,
subpoena power to ensure witness participation and document submis-
sion. The supoena power would expedite the appeals process, as would
new provisions for prehearing discovery. One of the three existing
appeal levels would be eliminated.
These changes would provide both employees and managers with
speedier and fairer judgments on the appeal of disciplinary actions.
5. Improved labor-management relations
In 1962, President John F. Kennedy issued Executive Order 10988,
establishing a labor-management relations program in the executive
branch. The Executive order has demonstrated its value through five
Administrations. However, I believe that the time has come to increase
its effectiveness by abolishing the Federal Labor Relations Council
created by Executive Order 10988 and transferring its functions, along
with related functions of the Assistant Secretary of Labor for Labor
Relations, to a newly established Federal Labor Relations Authority.
The Authority will be composed of three full-time members appointed
by the President with the advice and consent of the Senate.
I have also directed members of my administration to develop, as
part of civil service reform, a Labor-Management Relations legislative
proposal by working with the appropriate congressional committees,
Federal employees and their representatives. The goal of this legisla-
tion will be to make executive branch labor relations more comparable
to those of private business, while recognizing the special requirements
of the Federal Government and the paramount public interest in the
effective conduct of the public's business. This will facilitate civil serv-
ice reform of the managerial and supervisory elements of the executive
branch, free of union involvement, and, at the same time, improve the
collective bargaining process as an integral part of the personnel sys-
tem for Federal workers.
It will permit the establishment through collective bargaining of
grievance and arbitration systems, the cost of which will be borne
largely by the parties to the dispute. Such procedures will largely dis-
place the multiple appeals systems which now exist and which are
unanimously perceived as too costly, too cumbersome and ineffective.
6. Decentralized personnel decisionmaking
Examining candidates for jobs in the career service is now done
almost exclusively by the Civil Service Commission, which now may
take us as long as 6 or 8 months to fill important agency positions.
In addition, many routine personnel management actions must be
submitted to the Civil Service Commission for prior approval. Much
red tape and delay are generated by these requirements; the public
benefits little, if at all. My legislative proposals would authorize the
Office of Personnel Management to delegate personnel authority to
departments and agencies.
The .risk of abuse would be minimized by performance agreements
between agencies and the Office-of Personnel Management, by require-
ments for reporting, and by follow-up evaluations.
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7. Changes in the veterans preference law
Granting preference in Federal employment to veterans of military
service has long been an important and worthwhile national policy. It
will remain our policy because of the debt we owe those who have served
our Nation. It is especially essential for disabled veterans, and there
should be no change in current law which would adversely affect them.
But the Veterans Preference Act of 1944 also conferred a lifetime bene-
fit upon the nondisabled veteran, far beyond anything provided by
other veterans readjustment laws like the GI bill, the benefits of which
are limited to 10 years following discharge from the. service. Current
law also severely limits agency ability to consider qualified applicants
by forbidding consideration of all except the three highest-scoring ap-
plicants-the so-called rule of three. As a result of the 5-point lifetime
preference and the "rule of three", women, minorities and other quali-
fied nonveteran candidates often face insuperable obstacles in their
quest for Federal jobs.
Similarly, when a manager believes a program would benefit from
fewer employees, the veterans preference provides an absolute lifetime
benefit to veterans. In any reduction in force, all veterans may "bump"
all nonveterans, even those with far greater seniority. Thus women and
minorities who have recently acquired middle management positions
are more likely to lose their jobs in any cutback.
Therefore I propose :
Limiting the 5-point veterans preference to the 10 year period
following their discharge from the service, beginning 2 years after
legislation is enacted;
Expanding the number of applicants who may be considered by
a hiring agency from three to seven, unless the Office of Personnel
Management should determine that another number or category
ranking is more appropriate;
Eliminating the veterans preference for retired military officers
of field grade rank or above and limiting its availability for other
military personnel who have retired after at least 20 years in serv-
ice to 3 years following their retirement;
Restricting the absolute preference now accorded veterans in
reductions in force to their first 3 years of Federal employment,
after which time they would be granted 5 extra years of seniority
for purposes of determining their rights when reduction in force
occurs.
These changes would focus the veterans preference more sharply to
help disabled veterans and veterans of the Vietnam conflict. I have
already proposed a 2-year extension of the Veterans Readjustment
Appointment Authority to give these veterans easier entry into the
Federal workforce; I support amendments to waive the educational
limitation for disabled veterans and to extend Federal job openings
for certain veterans in grades GS-5 to GS-7 under this authority. I
propose that veterans with 50 percent or higher disability be eligible
for non-competitive appointments.
These changes are intended to let the Federal Government meet the
needs of the American people more effectively. At the same time, they
would make the Federal work place a better environment for Federal
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741
employees. I ask the Congress to act promptly on Civil Service Reform
and the Reorganization Plan which I will shortly submit.
JIMMY CARTER.
THE WHITE HousE, March 2, 1978.
VIEWS OF THE COMPTROLLER GENERAL -
Set forth below is the report of the Comptroller General of the
United States on H.R. 11280.
COMPTROLLER GENERAL OF THE UNITED STATES,
Washington, D.C., May 19,1978.
B-40342.
FPC-78-85. .
Hon. ROBERT N. C. Nix,
Chairman, Committee on Post Office and Civil Service,
House of Representatives.
DEAR MR. CHAIRMAN : We are pleased to respond to your request.
for our comments on H.R. 11280, the Civil Service Reform Act of
1978.
As a preface to our comments, I believe you will agree that it is
appropriate to recognize that as the role of the Federal government
increases and affects more and more the lives of all citizens, it is in-
evitable that attention will be drawn to the level of competency of
Federal employees, their compensation, incentives, and other condi-
tions of their employment. Discussion of these issues has gone on for
many years and intensified since the growth of the Federal govern-
ment in the depression days of the 1930's and World War II. Civil
Service reforms are necessary but that issue should not cloud the
essential point that most civil service employees are able, highly moti-
vated, and dedicated to their work.
We believe that the Civil Service system can be improved. During.
the past several years we have studied many of the issues with which
H.R. 11280 is concerned. We have made a number of specific recom-
mendations and have highlighted conflicting policies and objectives
that needed to be addressed. These have included :
The conflicting roles of the Civil Service Commission as policy-
maker, prosecutor, judge and employee protector; (June, 1977) ;
The need for simplifying the appeals systems; (February,
1977);
The adverse impact of veterans' preference on equal employ-
ment objectives; (September, 1977) ;
The need to improve performance appraisals and ratings;
(March, 1978) ; -
The need for more flexible hiring procedures; (July, 1974)
The need for a new salary system. for federal executives;
(February, 1977)
The need to relate pay to performance; (October 1975; March
1978) ; and
The need for an overall Federal retirement policy. (August,
1977)
H.R. 11280 attempts to deal with the above issues as well as others
and we -strongly support those objectives.
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H.R. 11280 should be considered in conjunction with the proposed
Reorganization Plan No. 2 of 1978. The Civil Service Commission
(CSC) now serves simultaneously as the protector of employee rights
and the promoter of efficient personnel management policy. The reor-
ganization plan divides those two roles between two separate agencies,
the Merit Systems Protection Board (MSPB) and the Office of Per-
sonnel Management (OPM). H.R. 11280 would provide additional
legislative authority for those two agencies.
The Reorganization Plan would also create a Federal Labor Rela-
tions Authority which would consolidate the third-party function in
the Federal labor-management relations program by assuming the
functions of the Federal Labor Relations Council and certain responsi-
bilities of the Assistant Secretary of Labor for Labor-Management
Relations. In addition, Reorganization Plan No. 1 of 1978, would
transfer CSC's current equal employment opportunity and discrimina-
tion complaint authority to the Equal Employment Opportunity Com-
mission (EEOC).
Office of Personnel Managenwn.t
The Office of Personnel Management would be the primary agent
advising the President and helping him carry out his responsibilities
to manage the Federal work force. It would develop personnel policies,
provide personnel leadership to agencies, and administer central per-
sonnel programs. It would be headed by a director and a deputy direc-
tor, both appointed by the President and confirmed by the Senate.
We are aware of the concern which has been expressed that a single
director of personnel, serving at the pleasure of the President and
replacing a bipartisan commission, could be accused of partisan polit-
ical motivations in actions which, by their very nature, are contro-
versial. The argument is made that the Merit System Protection Board,
important as its role would be, would not be, in a position to influence
substantially policies, rules and regulations, including positions on
legislative matters, in the same manner as a bipartisan commission. On
the other hand, a commission form of organization tends to be cumber-
some and divides responsibility and accountability. It is of some inter-
est to note. that President Roosevelt's Committee on Administrative
Management recommended in 1937 a single-headed director of per-
sonnel for the Federal Government. While this proposal was not
adopted, the idea of a strong Director of Personnel Management has
continued to be discussed and proposed and, in fact, has been exten-
sively adopted at the State and local level. On balance, we favor the
President's proposal and believe that this part of the reorganization
plan should be adopted.
It should be pointed out, however, that under the plan and H.R.
.11280 the Director of OPM would be concerned entirely with the civil
service and would not have advisory or other responsibilities with
respect to other personnel systems within the Federal Government.
GAO has repeatedly pointed' to the need for a stronger focal point
within the executive branch to concern itself with consistent and com-
mon policies and procedures which are relevant to all or several of the
personnel systems within the Government. This responsibility today
is clouded by the lack of certainty with respect to the roles of the Civil
Service Commission and the Office of Management and Budget.
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To remedy this situation and to strengthen the case for the proposed
pay level for the Director of OPM, we believe that the Director should
have responsibility for advising, assisting and coordinating with the
President with respect to common policies and practices in the per-
sonnel management area throughout the executive branch of the Fed-
eral Government. He could share the responsibility for pay systems
with the Director of the OMB but it seems to us that the President and
the Congress need a focal point which can address itself to the com-
mon problems and concerns. This responsibility could be dealt with in
the legislation, either by developing a specific statutory charter for the
Director of the OPM, or a strong statement of intent of the Congress
could be developed, leaving to the President'the development of a more
detailed charter.
Merit Systems Protection Board (MSPB)
The MSPB would have three members appointed by the President
for 7-year terms removable only for misconduct, inefficiency, neglect
of duty, or malfeasance in office. Not more than two of the members
could be from the same political party. One member would be desig-
nated Chairman and one member Vice-Chairman. A special Counsel
would also be appointed for a 7-year term. The independence and
authority of MSPB and its ability to protect the legitimate concerns
of employees is the overriding factor on how much flexibility can be
provided to managers.
We believe it would be desirable for MSPB to provide both the
agencies and employees information on matters that have been re-
solved by MSPB. We also believe that the special studies to be con-
ducted by MSPB and reported to the President and the Congress
should be made available to the public.
Federal Labor Relations Authority
The reorganization plan would establish an independent Federal
Labor Relations Authority to assume the third party functions cur-
rently fragmented among the Federal Labor Relations Council and
Assistant Secretary of Labor for Labor Management Relations. The
establishment of the Authority is intended to overcome the criticism of
the structure and administration for the existing Federal labor rela-
tions program.
The Authority and the labor relations provisions are not now in-
corporated in the Reform bill. We understand that on April 25, 1978,
the Administration informed the cognizant committees of Congress of
the decision to incorporate further improvements in the labor relations
program as part of the Civil Service reform legislative package.
The concept of an independent labor relations authority or board
has been included in proposed legislation, introduced in recent ses-
sions of Congress, to provide a statutory basis for the Federal labor
management relations program. In commenting on these legislative
proposals on May 24, 1977, GAO supported the establishment of a
central labor relations body to consolidate the third party functions
in the Federal labor management relations program. We believed
then, as we do now, that such a central body is needed and would be
perceived by both labor organizations and agency management as a
credible and viable third party mechanism.
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The proposed reorganization plan provides that decisions of the
Authority on any matter within its jurisdiction shall be final and not
subject to judicial review. We believe a provision should be added to
the legislation to: make it clear that the existing right of agency heads
and certifying officers to obtain a decision from the Comptroller Gen-
eral of the United States on the propriety of payments from appro-
priated funds are not modified. Also, we question whether the right
to judicial review of the Authority's decision should be prohibited.
Equal Employment Opportunity Commission
EEOC's role is not discussed in either Reorganization Plan No. 2
or H.R. 11280. However,. we believe we should address the relation-
ship between EEOC and MSPB in view of the proposed transfer of
EEO enforcement and discrimination appeals authority from CSC to
EEOC under Reorganization Plan No. 1 of 1978.
Under the Plan all discrimination appeals relating solely to dis-
crimination will be filed directly with EEOC, and processed by it.
Under delegation from EEOC, all appeals involving both title V and
title VII matters will be filed with and acted upon by MSPB. The
decision of MSPB will be final unless the employee requests EEOC
to review the elements of the case involving title VII. EEOC may
examine the-matter on the record, grant a de novo hearing or remand
the case to MSPB for further hearings at its option.
. A clear distinction between an equal employment and merit princi-.
ple complaint is difficult, if not impossible, and employees frequently
perceive their problems to be both. We believe that placing the adjudi-
cation of these complaints in different organizations will invite dupli-
cate or two track appeals on the same issues simultaneously, or sequen-
tially, to EEOC and. MSPB. In addition to wasting time, effort and
money, this situation poses a very real potential for differing defini-
tions of issues, inconsistent interpretations of laws, regulations and
irreconcilable decisions.
An additional problem in having EEOC responsible for receipt and
processing appeals is that it establishes the same kind of role conflict
that the Civil Service reform proposals seek to correct. EEOC would
in effect be the enforcement as well as the adjudicative agency. We are
inclined to favor the approach taken in H.R. 11280 which provides :
"Notwithstanding any other provision of law, an employee who has
been affected by an action appealable to the Board (Merit System Pro-
tection Board) and who alleges that discrimination prohibited by
Section 2302 (b) (1) of this title was a basis for the action should
have both the issue of discrimination and the appealable action de-
cided by the Board in the appeal decision under the Board's appel-
late procedures."
Additionally, we believe EEOC should be given the authority to in-
tervene, on title VII matters, with all the rights of a party in all the
adjudicatory proceedings of MSPB and in any subsequent appeals to
the courts. This alternative would avoid many of the problems we
have mentioned and save considerable time by having all issues of a
complaint decided by the same adjudicative body.
H.R. `11280 proposes changes to : performance appraisals, adverse
action appeals, veterans preference, retirement, selection methods, man-
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745
agement and compensation of senior executives, merit pay, and per-
sonnel research. We have made. recommendations to the Congress and
to the executive branch concerning the need for improvement in most
of these areas. H.R. 11280 provides the vehicle for making. necessary
changes .and we support that objective: We do have concerns about the
specifics of some of the proposals and believe they can be improved
upon.
Performance appraisals
We believe the current system of performance appraisals should be
improved. We recommended that performance appraisal systems
should include four basic principles.
First that work objectives be clearly spelled out at the beginning
of the. appraisal period so that. employees will know what is ex-
pected of them.
Second, that employees participate in the process of establish-
ing work objectives thereby taking advantage of their job knowl-
edge as well as re-enforcing the understanding of what is expected,
and
Third that there be clear feed back on employee performance
against the preset objectives.
Fourth that the results of performance appraisals be linked
to such personnel actions as promotion, assignment, reassignment,
and to discipline.
The proposed legislation generally conforms to our recommenda-
tions.
Adverse actions and employee appeals
One of the major purposes of H.R. 11280 is to make it easier to re-
move employees for misconduct, inefficiency, and incompetence. It pro-
vides for new procedures based on unacceptable performance. In so
doing, the bill proposes major changes in the rights now afforded Fed-
eral employees. We believe the bill contains many provisions which
would improve the present processes by which Federal employees are
removed, demoted, and disciplined. However, we have, concerns that
certain of the proposed changes in adverse action and appellate proce-
dures would not provide a proper balance between the interest of the
Federal Government and the rights and protection of Federal
employees.
For example, in an appeal, the decision of the agency must be sus-
tained by MSPB unless the employee shows an error in procedure
which substantially impairs his or her rights, discrimination, or an
arbitrary or capricious decision. We suggest a fourth basis, that is, the
absence of substantial evidence in the administrative record to support
the decision of the agency.
Veterans' preference
We believe that changes can be made to veterans' preference legisla-
tion so that the system for examining and selecting for Federal em-
ployment can be improved and employment assistance can be better
provided to those veterans who most need it. We believe the adminis-
tration's proposals are designed to balance the Government's obliga-
tion to its veterans for their sacrifices, its obligation to provide equal
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employment opportunity, and its commitment to improve Federal
staffing operations.
We favor amending the rule-of-three selection requirement of the
Veterans' Preference Act of 1944. Examinations are not precise
enough to judge the potential job success of persons with identical or
nearly the same scores. As a result, the rule-of-three unfairly denies to
many applicants who have equal qualifications the opportunity to be
considered for Federal employment. We have previously recommended
that the Congress amend the rule-of-three requirement similar to the
way in which the proposed legislation authorizes OPM to prescribe
alternate referral and selection methods.
The present statutory prohibition against passing over a veteran on
a list of eligibles to select a nonveteran would be retained under the
proposed legislation. In our opinion, the flexibility to be gained by
eliminating the rule-of-three and using alternate examining and selec-
tion. methods will be seriously diminished by retaining this pass-over
The bill authorizes agencies to make non-competitive appointments
of certain compensably disabled veterans-those with service con-
nected disabilities of 50 percent or more and those who take job-related
training prescribed by the Veterans Administration. We believe em-
ployment assistance to those veterans with special employment prob-
lems-such as disabled and Vietnam-era veterans-is appropriate.
Retention preference
The bill proposes changes to the preference given veterans in reten-
tion rights in a reduction-in-force. Only a disabled veteran (or. certain
relatives of a veteran) would retain permanent retention preference.
Other veterans would retain absolute retention preference for a 3 year
period. Once the 3-year period has been completed, non-disabled vet-
erans:will be entitled to 5 years service credit in computing length' of
service for retention determinations.
As a general rule, veterans have retention rights over nonveterans
regardless of length of, service. Since veterans are predominantly male
and non-minority, absolute preference works to the disadvantage of
women and minorities. The proposed changes should help to remedy
this situation.
Retirement
The bill would greatly expand the provisions allowing employees to
retire before reaching normal retirement eligibility. Presently, the
civil service retirement system generally allows employees to retire at
age 55 with 30 years of service. Employees who are separated involun-
tarily, except for reasons of misconduct. or delinquency, may receive
an immediate annuity if they are 50 with ? 20 years of service or at
any age with 25 years. Current law allows employees to volunteer
for early retirement when their employing agency is undergoing a
major reduction-in-force, even if they are not directly affected by the
reduction. Under H.R. 11280, the early retirement option would also be
made available to employees if their agency is undergoing a major
reorganization or a major transfer of function.
We cannot support the liberalization of the. early retirement provi-
sions proposed by H.R. 11280. As you are undoubtedly aware, GAO
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has long been concerned about the civil service and other Federal re-
tirement systems. As we disclosed in an August 3, 1977, report on re-
tirement matters, the civil service system already costs much more than
is being recognized and covered by agency and employee contributions.
As of June 30, 1976, the system's unfunded liability was $107 billion
and is estimated to grow to $169 billion by 1986. Any additional early
retirements resulting from H.R. 11280 would add to this tremendous
liability.
Senior Executive Service
Some excellent Government managers have been provided by the
present system. However, we think that more managers of this calibre
would result from a Senior Executive Service.
We agree with the objectives of H.R. 11280 to establish a Senior
Executive Service which would cover about 9,000 positions above Gen-
eral Schedule 15 and below Executive Level III. The proposed Senior
Executive Service would establish at least five executive salary levels,
from the sixth step of GS-15 ($42,200) to an Executive Level IV sal-
ary level $50,000). Under the proposal executives could increase their
compensation through performance awards, to 95 percent of a level II
salary, 'or $54,625 at the present pay levels.
There is a problem of compression at the senior levels of the General
Schedule. Because the salary rate for Level V of the Executive Sched-
ule is the ceiling for salary rates of most other Federal pay systems,
all GS-18s and 17s, and some GS-16s now receive the same salary-
$47,500. This creates a situation where many levels of responsibility
receive the same pay and is not consistent with basic Federal pay prin-
ciples of :
Comparability with private enterprise, and
Distinctions in keeping with work and performance levels.
Such a situation creates inequities and can have adverse effects on
the recruitment, retention, and incentives for advancement to senior
positions throughout the Federal service.
We believe that changes are needed to give management greater
flexibility in :assigning pay and establishing responsibility levels. In
February 1975, we reported on the need for a better system for ad-
justing salaries on top Federal officials. One of our main concerns at
that time, and which. still exists, was the compression of salary rates
which result in distorted pay relationships in the Federal pay sys-
tems. Our recommendation was for the Congress to insure that execu-
tive salaries are adjusted annually-either based on the annual change
in the cost-of-living index or the average percentage increase in GS
salaries. The law now provides for automatic adjustment of Executive
Schedule pay rates equal to the average General Schedule increase.
We believe there is a need to establish a new salary system for Fed-
eral executives. We do have some concerns, however, that the provi-
sions of the proposed Senior Executive Service do not go far enough
in this regard. We are not sure, for example, that the proposed salary
range including performance awards-$42.200 to $54,625= provides
sufficient flexibility. Most of the employees that will be covered are al-
ready at the $47,500 ceiling, and could reach the proposed $54,625
ceiling by receiving less than the maximum 20 percent pay increase for
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performance allowed by the Bill. Therefore, there may not be enough
of a pay differential to provide an incentive for executives to join
the new Service or for the Service to be successful.
We also question the advisability of limiting incentive awards and
ranks, as well as performance pay, to an arbitrarily selected per-
centage of employees.
Proposals have been made by GAO and others to provide more
flexibility in the pay-setting processes for top Federal officials. We
favor a salary system with a broad salary band; compensating within
this broad band, on the basis of an individual's capability or contribu-
tions to the job, with congressional control over the average salary
level for the Service, by agency.
In summary, we question whether there is enough pay incentive to,
make the Senior Executive Service a success. We believe it would be
more acceptable to senior executives if the salary ranges were sub-
stantially increased or if performance awards were not subject to the
proposed $54,625 ceiling. To do this, however, would require break-
ing the linkage between executive and congressional salaries. In its
December 1975 report, the President's Panel on Federal Compensa-
tion pointed out that the "existing linkage between level II of the Ex-
ecutive Schedule and Congressional salaries should not be permitted
to continue to distort or improperly depress executive salaries."
Two features of the proposed Service affect the civil service retire-
ment system. An executive who is separated for less than fully suc-
cessful performance would be entitled to an immediate annuity if he
or she is at least 50 years of age with 20 years of service or at any age
with 25 years. In addition, each year of service in which an executive
receives a performance award will include a retirement factor of 2.5
percent in lieu of the lesser percentage (1.5, 1.75, or 2 percent) that
would otherwise be applied. We cannot support either of these pro-
visions. They would add to the system's unfunded liability, and, in
our opinion, would be inappropriate uses of the Retirement Program.
Merit Pay .
The concept of basing pay increases on employee performance is
not new. GAO and other groups have recognized that a need exists to
recognize employee performance rather than longevity in awarding
within-grade salary increases. In October 1975, we recommended that
the Chairman, CSC, in coordination wth the Director of OMB de-
velop a method of granting within-grade salary increases which is
integrated with a performance appraisal system.
In December 1975, the President's Panel on Federal Compensation,
chaired by the Vice President., reviewed within-grade increases as part
of its study of Federal compensation issues. The Panel concluded that
for employees in occupations which provide significant opportunity
for individual initiative and impact on the job, a new procedure was
needed to provide a connection between performance and within-grade
advancement. The Panel, recommended a method of within-grade
advancement for these employees that would be based on performance.
The Panel noted, however, that.the system should take into considera-
tion the experience of the private sector with such plans and that
the system should be thoroughly tested prior to implementation. In
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its December 1977 final staff report the Personnel Management Project
similarly recommended using merit pay to improve and reward per-
formance of managers below the levels included in the Senior Execu-
tive Service. That report also noted that the new approach should be
carefully tested and evaluated before full scale application.
While we endorse the principle of performance pay incentives, we
have some concern over the equity of the proposed system. We believe
it would be more equitable if it were limited to within-grade increases,
covered employees in other GS grades, and included all employees in
affected grades rather than just managers and supervisors.
Personnel Research and Demonstration Projects
The cost of personnel resources in the Federal Government is
enormous. In,fiscal year 1978, the Government will pay an estimated
$75 billion in direct compensation and personnel benefits to its civilian
employees and active-duty military personnel. In view.of these expend-
itures, it is vital that we develop and use the most effective methods
and techniques to manage personnel resources. An aggressive personnel
research and demonstration program is a key link in doing this. Fur-
ther, if Government is to effectively deal with the recent decline in
productivity growth, it must support a research base directed toward
developing and applying new techniques and ways to better manage
its human resources.
With this in mind, we support the need for an aggressive personnel
research and development program. We do not believe, however, that
adequate controls and safeguards are provided in H.R. 11280 to
,protect the employees affected by .the demonstration projects and to
assure that the most effective and efficient use is made of research
funds. As a minimum, we recommend that Congress be informed
of projects which may be inconsistent with existing laws or regula-
tions before they are begun. Congress should have an opportunity to
satisfy itself as to the seriousness of such infractions. We also be-
lieve that Congress should be informed of research and development
actual accomplishments for which it has provided authorization and
funding.
Resonsibility of the General Accounting Office
One other matter of concern to us is the proposed language con-
cerning GAO's role in auditing personnel practices and policies. The
proposed new section 2303 of title 5, U.S.C. may be susceptible of
misinterpretation in its present form which is as follows :
"If requested by either House of the Congress (or any Member or
committee thereof), or if deemed necessary by the Comptroller Gen
eral, the General Accounting Office shall conduct, on a continuing
basis, audits and reviews to assure compliance with the laws, rules,
and regulations governing employment in the Executive Branch and
in the competitive service and to assess the effectiveness and sound-
ness of Federal personnel management."
It should be made clear that the function of GAO is to assist in
congressional oversight and that the Executive Branch is not in any
way relieved of its responsibility for reviewing, evaluating, and im-
proving personnel management or for investigating and correcting
deficiencies therein. As elsewhere, GAO's role is more properly one of
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overseeing the working of the program rather than intervening on
a case-by-case basis. We suggest that the language be amended to
conform, in substance, to that used in the Legislative Reorganization
Act of 1970 (84 Stat. 140, 1168), as follows :
"When ordered, by either House of Congress or upon his own
initiative, or when requested by any committee of the House of Repre-
sentatives or the Senate, or any joint committee of the two Houses
having jurisdiction over Federal personnel programs and activities,
the Comptroller General shall conduct audits and reviews to determine
compliance with the laws, rules, and regulations governing employ-
ment in the Executive Branch and in the competitive service and to
assess the effectiveness and soundness of Federal personnel manage-
ment."
I trust that this letter and enclosure recommending technical amend-
ments will meet your needs.
Sincerely yours,
ELMER B. STAATS,
Comptroller General of the United States.
CHANGES IN EXISTING LAW MADE BY THE BILL, As REPORTED
In compliance with clause 3 of rule XIII of the Rules of the House
of Representatives, changes in existing law made by the bill, as
reported, are shown as follows (existing law proposed to be omitted
is enclosed in black brackets, new matter is printed in italics, existing
law in which no change is proposed is shown in roman) :
TITLE 5, UNITED STATES CODE
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SUPPLEMENTAL VIEWS TO H.R. 11280
As members who have worked to improve both the Federal civil
service system in general, and the Federal labor-management relations
program in particular, we want to make it clear that, although we
support title VIII the labor-management section of H.R. 11280-
thait title is deficient in some important areas.
Our record of service on the Committee on Post' Office and Civil
Service is ample evidence that we share the President's belief that the
Federal personnel system is in serious need of reform. We share the
President's belief that the Federal personnel system has become overly
bureaucratized, inefficient, and complex in the resolution of disputes.
Indeed, it. was for these very reasons that we actively supported the
provisions of this bill which provide for greater flexibility and respon-
siveness in the Federal personnel management system-the creation
of the Office of Personnel Management, the modifications in the merit
pay system, the establishment of a Senior Executive Service, and the
authorization to conduct new and innovative demonstration projects.
However, simple justice and equity require the new managerial initi-
atives which have been introduced in H.R. 11280 must be balanced by
affording reasonable protections for the rights of employees. Regret-
fully, title VII of H.R. 11280 does not fully meet this challenge.
Those of our colleagues who are concerned that this bill will sig-
nificantly expand the collective bargaining rights of Federal employees
need not worry. It does not. Enactment of the committee approved
labor-management title will continue to deny to Federal employees
most of the collective bargaining rights which their counterparts in
the private sector have enjoyed for over 40 years. Among the collective
bargaining rights not included in the bill are:
(1) The right to engage in strikes, work stoppages and
slowdowns;
(2) The right to bargain collectively over pay and money-re-
lated fringe benefits such as retirement benefits and life and health
insurance; and,
(3) The right to negotiate an agency shop or to require federal
employees to pay membership dues or representational fees to any
labor union.
In addition, H.R. 11280 contains an unusually strong management
rights clause which removes from the negotiation process terms and
conditions of employment which, in the private sector, would be sub-
ject to collective bargaining.
Given these constraints upon employee representatives, one might
wonder why we support this legislation. Our support is based on the
improvements that, notwithstanding its deficiencies, this hill makes
in the Federal labor relations program.
These improvements would, first, authorize the negotiations of a
grievance procedure, including binding arbitration, for the resolution
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of personnel disputes. These procedures will provide for a fairer and
more expeditions means for the resolution of personnel disputes than
at present.
Second, broaden the scope of bargaining. beyond existing practice.
Governmentwide regulations are no longer automatically excluded
from collective bargaining. Under title VII, only those issues in which
the Government has deanonstarted 'a "compelling need" for uniformity
are excluded from collective bargaining.
Third, provide for the creation of a truly independent, neutral and
full-time Federal Labor Relations Authority (FLRA) to administer
the federal labor-management program and subject the decisions and
actions of the FLRA to judicial review. Currently, the Federal labor-
management program is administered by the part-time, management-
oriented Federal Labor Relations Council whose decisions and actions
are not subject to judicial review.
Finally, the committee overwhelmingly rejected proposals, spon-
sored by the administration, which would have-in effect-preserved
the status quo in labor-management relations and merely codified the
Executive order under which the existing labor-management program
has operated. This, despite the fact that extensive public hearings on
this legislation produced overwhelming testimony that the current
program was overly biased in favor of management, narrow in its
scope, and ineffective in meeting the needs of agency managers and
employees alike.
We were disappointed, nevertheless, by the action of the committee
in weakening two,important areas of this bill-scope of bargaining
and union security.
The committee narrowed the scope of issues over which Federal
employees could bargain to exclude contracting out; work assignment
and duties; and, limitations on the use of military, supervisors and
other nonbargaining unit employes for work performed by members of
the bargaining unit. Having already excluded pay and major money-
related fringe benefits from the bargaining table, we feel that the bill
limits negotiations to issues of secondary importance.
The committee also deleted the bill's provision for an agency shop
if, after election of an exclusive representative, a majority of the em-
ployees vote in favor of such an arrangement. We strongly believe
that-since an employee organization is required to represent all emn-
ployees in a bargaining unit-all of those employees should assume
some share of the costs involved in this representation. The additional
costs involved in binding arbitration for the resolution of grievances--
which both the administration and the committee propose-will place
an additional financial burden upon employee organizations. With-
out adequate resources, employee organizations will be hard-pressed
to meet their new and expanded representation responsibilities.
Further, title VII was weakened by the committee in narrowing
the matters which would be subject to the grievance appeals proce-
dures and by denying employee representatives official time for the
processing of employee's grievances and appeals.
In supporting title VII we also recognized the said reality that the
issue of collective bargaining for Federal employees has been clouded
by an hysterical atmosphere. We realize that many of our colleagues
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753
erroneously associate any increase in collective bargaining rights for
Federal employees with an attendant decrease in the efficiency of Fed-
eral service. We strongly disagree with that view. Effective labor
unions can and do play a positive role in improving productivity in
public service. It is our hope that the positive experiences which'will
result from this bill's modest expansion of collective bargaining rights
will assuage the concerns of our colleagues and lead to a more progres-
sive labor-management program in the future.
In the meantime, we ask.our colleagues to support the incremental
approach which H.R. 11280 takes to.labor-management relations,and
to oppose any further weakening amendments. To do so would seri-
ously undermine the careful balance between management and em-
ployee interests that the committee has sought to attain.
WILLIAM L. CLAY.
WILLIAM D. FORD.
CECIL HE=L.
MICHAEL 0. MYERS.
PATRICIA SCHROEDER.
STEPHEN J. . SOLARZ.
CHARLES H. WILSON.
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754
REP. JAMES M. HANLEY'S SUPPLEMENTAL VIEWS ON
VETERANS PREFERENCE
I am disturbed that the committee accepted Representative Schroe-
der's amendment to H.R. 11280, significantly modifying veterans'
preference. I believe that this amendment, offered as an administration
"compromise," dealt a possibly fatal blow to final passage of this leg-
.islation. I am pleased that the President has placed a high priority on
revamping our rather antiquated civil service system. However, much
of this "reform" is to the detriment of the veteran. This is, at best, a
dubious tack for the administration to take.
During full committee consideration of this bill, I offered an amend-
ment that would have essentially retained present veterans prefer-
ence laws. Unfortunately the administration's views prevailed and my
amendment was defeated.
As presently drafted, H.R. 11280 would allow veterans to use their
preference rights one time within 15 years following discharge and
would limit the retention preference to the first 8 years after appoint-
ment to a. position in the competitive service.
This bill takes a tremendous step backward from this Government's
long-standing commitment to veterans relating to the preference in
hiring in the Federal Government.
Congress first addressed this problem in 1865 when it passed legis-
lation giving special consideration to disabled war veterans. In 1944;
the Veterans Preference Act passed Congress with one dissenting vote
and has since been the basic Federal law regarding veterans preference
in Federal employment.
I think that President Franklin Delano Roosevelt best explained
the rationale for veterans preference when he stated :
I believe that the federal government, functioning in its
capacity as an employer, should take the lead in assuring
those who are in the armed forces that when they return
special consideration will be given them in their efforts to
obtain employment. It is absolutely impossible to take mil-
lions of young men out of their normal pursuits for the pur-
pose of.fighting to preserve the Nation, and then expect them
to resume their normal activities without having any special
consideration shown them.
During the debate on this issue the point was continually raised
that veterans preference does great damage to women and minorities
seeking Federal employment. This is the kind of argument that is
bound to generate instant support for change, and if in fact this were
the case. I would be the first to offer such a change. However, the
empirical evidence does not support this argument.
I think we must carefully evaluate the General Accounting Office re-
port Veterans Preference and Apportionment v. Equal Employment
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Opportunity, issued on September 29, 1977. A General Accounting
Office official, testifying before the Subcommittee on Civil Service on
his agency's recent study of the impact of veterans preference on the
hiring of minorities and women, commented as follows:
In eight of the 44 registers we examined, the potential for
minority job candidates to be certified increased when prefer-
ence was excluded. On 15 registers there was a decrease.
Twenty-one registers showed no change in minority represen-
tation when preference was excluded. In 32 of the registers
the change involved only one individual. So, we found it diffi-
cult to come to a conclusion about the impact of veterans pref-
erence on minority employment.
It is safe to say that, after careful examination of registers, the
General Accounting Office was unable to support the claim that vet-
erans preference is a significant obstacle to minorities, and in fact
shows that veterans preference helps minority candidates twice as
often as it harms them. -
I am pleased that a provision relating to the disabled veteran, that
was included within my amendment and in the administration's
amendment was adopted by the committee. This provision would per-
mit a disabled veteran, with a 30 percent compensable service-con-
nected disability to be eligible for a noncompetitive appointment.
Presently a disabled veteran would have a disability of 50 percent or
more. This will ease the path for many veterans, with significant
disabilities who are seeking Federal e-niployment. .
However, even with this provision for the disabled veteran, it must
be noted that these revisions in veterans preference will have a drastic
effect on Vietnam era veterans beginning in 1980.
I am providing the following table which shows a year by year
breakdown of the number of nondisabled Vietnam era veterans who
would lose all rights to veterans' preference upon enactment of H.R.
11280.
Year discharged from service:
1965------------------- ------------------------------------
1966-----------------------------------------------------
1967------- -------------------------------
1968-------------------------- ---------------------------
1969--------------------------------------------------------
1970 ---------------------- ----- -------
1971--------------------------------------------
1972------------- --------------------------
1980 496,000 8,000
1981 550,000 48,000
1982 576,000 144,000
1983 788,000 321,000
1984 972,000 485,000
1985 1,043,000 560,000
1986 995,000 504,000
1987 870,000 300,000
As you can clearly see, by 1987, 6,290,000 Vietnam era veterans, of
whom 2,370.000 served in the Vietnam Combat Theater, will lose all
veterans' preference opportunities currently provided in Federal em-
ployment. This constitutes 70 percent of all such veterans and approx-
imately 82 percent of those who actually served in the Vietnam Com-
bat Theater.
Number of
Vietnam era Number who
Year veterans los- served in
preference ing pref- Vietnam
terminates erence theater
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I would like to call your attention to another dramatic impact of
H.R. 11280 on nondisabled Vietnam era veterans who obtain Federal
employment. I refer to the limitation of preference in retention dur-
ing reduction-in-force actions to 8 years from the date of initial
appointment. To demonstrate this consequence, let us assume that two
individuals graduated from high school in 1970. One individual enters
military service and the other obtains Federal employment. Follow-
ing honorable service in Vietnam, the veteran is discharged in 1972
and returns home and obtains Federal employment in the same
agency doing similar work as the other individual. In 1981, due to
a reduction-in-force, the nondisabled Vietnam era veteran is not re-
tained because his high school contemporary has 2 years seniority on
the job.
Many of these reservations were also brought to my attention by
Representative Ray Roberts, Chairman of the House Committee on
Veterans' Affairs and by Representative John Paul Hamrnersch.midt,
the ranking minority member. In a letter sent to me on June 7, 1978
they stated :
At a time when we are doing everything possible to bring
about more jobs for Vietnam veterans, it is most unwise to
now attempt to take away or severely limit the job prefer-
ence to which they are now entitled. Earlier this year some
Members of our Committee submitted statements to the Sub-
committee on Civil Service in opposition to the administra-
tion's proposed plan to limit veterans preference. We do not
favor a change in the current law.
We are in complete support of your effort on behalf of all
veterans, especially Vietnam veterans who will be most ad-
versely affected by the proposed amendments to the Veterans
Preference Act.
It is also important to note that a similar administration amend-
ment on veterans preference was defeated during Senate Committee
consideration of its version of the Civil Service reform bill. The
Senate bill, therefore, retains veterans preference as it is now in the
law.
In conclusion, I want to emphasize that the committee had the
opportunity to uphold the integrity of the government by reaffirm-
ing our commitment to give well-qualified veterans,a preference in
hiring. One cannot deny that this is a volatile issue and I feel that
emotions rather than reason prevailed when the full committee con-
sidered this issue. We all heard how veterans preference hurt women
and minorities, but the hard data to support that claim has yet to
be produced. In view of this crucial void of information, I think it
would have been far wiser for the committee to have adopted my
amendment and retained current veterans preference laws.
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SEPARATE VIEWS OF-PAT SCHROEDER ON LABOR
MANAGEMENT
It is not often politic for officers in the executive and legislative
branches to mention it, but there are millions of workers in the private
sector (ranging from $200 per hour consultants to $3 per hour custo-
dians) who, but for the Federal Government contracting work out,
would be Federal employees. These private employees are, of course, in
jobs which have and are being created to perform work the Federal
Government needs performed without "creating more bureaucrats."
Nobody talks about the horrible things which would happen if such
people were allowed to participate in political activities or engage in
full collective 'bargaining. They already have such opportunities. I
have yet to see anyone propose that such opportunities be abolished.
Things have not been so horrible.
The executive branch, which claims it needs so much management
"flexibility" in labor-management when it comes to its own employees,
is perfectly happy day in and day out not only to contract with private
companies which don't have such management "flexibility" and face
situations in which employees in such companies have opportunities
for all sorts of labor actions. The executive branch also enforces
through its various agencies this same so called labor-management "in-
flexibility." So much for the horrors of collective bargaining.
This same executive branch has been known, at times, to deal with
more accommodation with companies headed by people active in its
own political party than with those with other views and, indeed, to
appoint people from firms which contract with the Government to po-
sitions in the Government. So much for there not being politics in the
executive branch.
So much for equity.
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ADDITIONAL VIEWS TO H.R. 11280
I support and endorse H.R. 11280 as approved by the committee. I
voted in support of reporting the bill to the House. I reluctantly ac-
cepted certain provisions which weakened the labor-management sec-
tion of the bill, and-I was constrained to propose the inclusion of a
new title IV to the bill reforming the Hatch Act. My colleagues on the
committee indicated their support for my views by a roll call vote of
13 to 10.
In my judgment, there is no greater priority for Federal employees
than broadening the extent to which they may participate in political
activities while strengthening protections to both the public and em-
ployees against coercion and improper political activities.
Although both the Committee on Post Office and Civil Service and
the House have already approved this legislation, I took this unusual
action because it is becoming increasingly unlikely that the other body
will act upon this legislation this year. House approval of title IX will
thereby insure that Hatch Act reform is at least considered by con-
ferees-should this legislation reach that point.
Many Members of Congress and other interested parties expended
considerable energy in meeting the concerns of employee organizations
as well as the administration in moving this important legislation
through the House last year.
The adm?inistra.t.ion unwisely opposes the inclusion of this title with-
in the context of civil service reform; I believe that the issue of full
political participation for Federal employees and protection of the
public interest should be addressed here and now.
Inclusion of Hatch Act Reform in civil service reform does not make
the federal civil service subject to politicization. This argument was
rejected overwhelmingly by the House twice-during the 94th and
95th Congresses.
Inclusion of Hatch Act Reform does not constitute a "burden" on
civil service reform legislation. Civil service "reform" and Hatch Act
Reform are inextricably interrelated. Each insures that, the people's
business-the business of our Government-is conducted in a fair and
impartial manner.
Inclusion of Hatch Act reform in this bill is not as untimely as the
administration would like the Congress to believe. There can be noth-
ing more "timely" than providing Federal employees with the right to
-full participation in the political process of our Nation.
I urge my colleagues to demonstrate their support for Hatch Act
reform in the context of this legislation as they have on earlier occa-
sions-to strike a blow for justice, equity, and good government-by
joining me in resisting the efforts of those who would further deny the
unfulfilled dream of first class citizenship to Federal employees. The
time for reforming the Hatch Act is now.
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SUPPLEMENTAL VIEWS BY HON. PATRICIA
SCHROEDER
Our committee has just gone through one of the longest markups
in its history in producing H.R. 11280. The administration's plan and
dozens of amendments representing the expertise of my colleagues
have been considered. Nearly every issue in civil service law has been
discussed, if not beaten to death, by us. The bill is well directed and
on the right track.
I introduced three amendments which were accepted. by the com-
mittee and upon which I would like to add comment. These amend-
ments modify veterans preference, enlarge whistleblowing protec-
tions, and modify present dual compensation laws.
My amendment makes three changes in the administration's pro-
posed changes in present veterans preference law. The amendment
was approved by a 16 to 9 vote, as a substitute for Congressman
Hanley's amendment to retain most of the present law..
My amendment first alters the administration's proposal to reduce
present lifetime veterans preference to 10 years following discharge
by permitting one time use of veterans preference in successful com-
petition for a permanent job in the 15-year period after discharge.
This change will include all veterans discharged since the Vietnam
era began (August 5, 1964) under the new veterans preference policy.
Vietnam era veterans will have a better crack at Federal jobs under.
this amendment. We know for a fact that veterans preference has
worked well in assisting veterans in obtaining Federal jobs; 50 per-
cent of the Federal work force, versus 25 percent of the national work
force, is veterans. But lifetime veterans preference has not worked
well: The 8 million Vietnam era veterans-nearly one-third of the
27 million total veterans-only hold 9.6 percent of the. Federal jobs
which veterans overall have obtained. This isn't because Vietnam era
veterans don't. want Federal jobs, it is because, even with preference,
they cannot compete with the more experienced, older veteran with
lifetime preference of his own.
The one time use aspect of this part of my amendment is an idea
that has been adopted by some states, including Colorado, New York,
and Oregon, with little repercussion. Only one-third of veterans ever
seek to use preference more than once. Moreover, multiple preference
can only be used again by a veteran who seeks a job on an another regis-
ter, rather than for promotion in his own agency. This thwarts those
who are working their way up the promotion ladder of such agency..
The second part of my amendment replaces the administration pro-
posed protection against layoffs (retention preference)-three years
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plus a time equal to length of military service-by a flat 8-year period
after beginning a permanent Federal job. Following that period the
veteran would have job retention equal to that of non-veteran co-
workers : that is, on basis of length of service and quality of perform-
ance. Under present law veterans have lifetime retention preference
and "bumping rights" over non-veteran employees.
Lifetime veterans preference cuts against younger veterans, too. The
older veteran with more time in service always has a higher preference.
Young veterans get bumped (although not as fast as non-veterans)`in
any major reduction in force.
Moreover, a supervisor doing hiring is not going to hire a veteran
with a higher amount of preference than himself, if it can at all be
helped. For the rest of his career he faces the possibility that he, rather
than his subordinate, will be out in the street after a reduction in force.
Present law permits veterans with a 50 percent or more disability
eligible for non-competitive appointment to Federal jobs. My amend-
ment reduces this requirement to 30 percent. This doubles this disabled
veterans pool to 996,000. Along with the provisions of the administra-
tion bill which retain present lifetime 10-point veterans preference for
our 2.2 million disabled veterans, and the reduction of numbers of gen-
eral 5-point veterans pool, far greater opportunities for Federal em-
ployment for those who have suffered the most in serving our Nation
will be present than are now.
If the intention of veterans preference-to provide readjustment
and to provide special assistance to disabled veterans-are to once
again thrive, my amendments must stay in this bill.
WHISTLEBLOWING PROTECTION
Right now, a Federal employee who "blows the whistle" (sometimes
even to a congressional committee) on activities at his agency which
are a violation of law, mismanagement, abuse of authority, waste of
funds or a danger to the public may be more likely to bet harassed or
fired than praised or rewarded. There is no effective means other than
drawn out administrative and court proceedings for a whistleblower
to set things right. We all lose when reasonable and constructive criti-
cism of agencies by those who know them best is stifled.
My amendment to H.R,. 11280 enhances the ability of the Special
Counsel at the Merit Systems Protection Board to protect whistle-
blowers from -reprisals by other agency personnel. It also increases the
clout the Special Counsel has to assure that proper corrective actions
are taken to prevent further reprisals.
My amendment also enlarges the scope of matters which may be dis-
closed. The administration proposal only permitted public disclosure
by a whistleblower of violations of laws or regulations. My amendment
permits, with the proviso that all matters of national security or pri-
vacy be pursued within Government, that a whistleblower may disclose
mismanagement, abuse of authority, waste of funds, and danger to
public health or safety. Matters in such categories (for example, an
agency's purchase of 10 cent bolts for $8 a piece) may not violate any
laws, but certainly the public should have an opportunity to hear about.
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If we in Congress are going to act as effective checks on excesses in
the executive branch, we have to hear about such matters. .
I want to thank Congressmen Hanley, Lehman, and Gilman for
their assistance in its development, and especially thank Congressman
Hanley for his amendment to it during committee markup which adds
to the effectiveness of the Special Counsel in assuring that in whistle-
blower situation proper corrective actions are taken by agencies.
DUAL COMPENSATION OF RETIRED MILITARY PERSONNEL WORKING FOR THE
FEDERAL GOVERNMENT
My amendment to limit the total compensation for future retired
-(non-wartime disabled) military personnel holding Federal jobs to
Executive Level V (now, $47,500 per year) was adopted by the com-
mittee by voice vote.
There are now an estimated 2,000 retired military officers working in
the Federal Government who draw combinations of military retired
pay and Federal salaries amounting to $50,000 to $80,000 per year. Such
people have created the bad connotation of the term "double dipper",
and the vast majority of retired military personnel, with $200 to $300
per month pensions, low level civil service jobs, and total incomes at
about the U.S. average have suffered by this connotation. Military offi-
cers who stay in the military also are affected by those who do not :
Those who stay have their pay capped at Executive Level V.
The present dual compensation law, with its exceptions and its dis-
tinctions, makes any debate on this matter a burdensome task. The
President's Commission on Dual Compensation earlier this year sug-
gested many changes in the present military retirement system. Al-
though these suggestions have. yet to be proposed to Congress, when
they are, I believe that my amendment, which eliminates many of the
problems we have faced reaching the real issues, will help us have the
considered debate these issues deserve.
PAT SCHROEDER.
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SUPPLEMENTAL VIEWS OF MR. SOLARZ
H.R. 11280 as reported out of the Post Office and Civil Service Com-
mittee is a major step toward the enactment of significant civil service
reform. The bill is proof that the administration and the Congress are
seriously addressing the problem of the public's perception that the
Federal Government is being staffed by underworked and overpaid
employees who are insulated from the consequences of incompetence.
While H.R. 11280 is not perfect, it goes a long way toward address-
ing this problem. Although I do not agree with every action taken by
the committee, there is no flaw in the reported billVwhich cannot be
remedied by a, simple floor amendment.
While I realize that some of the minority have attempted to label the
committee's action as a gutting of the President's bill, I believe that
characterization is motivated more by partisan politics than by respon-
sible. analysis. A comparison of the provisions contained in the re-
ported bill, with those found in the administration's bill, will show that
the committee has preserved the thrust of the President's proposal and,
on most of the major issues, has followed his recommendations. The
following discussion of the major provisions of the bill should prove
this point.
PRESIDENT'S PROPOSAL
1. Reorganization of the Civil Service Commission
The committee accepted almost all of the President's recommenda-
tions on this issue. Like the President's proposal, the committee bill
abolishes the Civil Service Commission and replaces it with two Fed-
eral agencies. The Office of Personnel Management is to take over the
administrative responsibilities of the Commission and the Merit Sys-
tem Protection Board is to assume its adjudicative functions. In addi-
tion, the committee bill paralleled the President's proposal in that it
establishes the Office of Special Counsel to protect whistleblowers and
other employees who may be the victims of prohibited personnel prac-
tices. Although the committee vested the Special Counsel with more
power than the President proposed, this was done in a spirit of coop-
eration, and only to further the common aim of restoring complete
public confidence in the civil service system.
2. Disciplining and removal of employees
The administration proposal would have shifted the burden of proof
on the employee in appeals from suspensions and dismissals and low-
ered the evidentiary standard needed to sustain an agency action in
such an appeal. The committee rejected these proposals on the grounds
that they could lead to political abuses and the unjustified dismissals
of some employees.
However, the committee did adopt the President's proposal to objec-
tify the standards for dismissal based on incompetence. The committee
bill establishes a new performance appraisal system which provides
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that an employee whose performance is determined to be unacceptable
in a specified critical area of his or her job can be more easily ter-
minated. The committee also agreed with the administration that
existing adverse action appeals for "reduction in rank" was too vague
a concept to be properly enforced. The committee, therefore, followed
the administration's recommendation and eliminated this appeal right
which has limited the flexibility of agencies to assign employees to
positions and duties for which they are best suited and most needed.
6. Veterans Preference
In this area, which is considered vital by the President, the commit-
tee adopted an amendment, sponsored by Congresswoman Schroeder
and supported by the administration, which would modify the existing
veterans preference to target the benefit on those who need it the most:
disabled vetearans and Vietnam Veterans. The amendment, which
would eliminate the lifetime preference now given.to non-disabled
veterans and remove one of the major obstacles to the recruitment of
women to senior positions in the civil service, passed despite the over-
whelming opposition of the minority members of the committee.
4. Merit pay
. The committee agreed with the President's proposal but modified
it somewhat.. The administration bill called for the establishment of a
new pay system for employees in grades GS-13 through grades GS-15.
Under the administration's proposal, these employees would not be
.entitled to annual pay comparability increases and would no longer
receive automatic step increases based on longevity of service. The
committee agreed with the principle behind the President's proposal
and eliminated step increases for Federal supervisors and managers
and provided that such periodic adjustments be made solely on the
basis of performance. However, the committee refused to eliminate
the comparability increase for these Federal employees. It was felt
that comparability was one of the cornerstones of the Federal pay sys-
tem and that it should not be tampered with until there was more
evidence that merit pay would contribute substantially to the efficient
operation of Government..
5. Research and Demonstration
The administration bill would have given the Office of Personnel
Management the authority to carry out demonstration projects during
which specific Federal laws could be waived. The committee agreed
with the administration that more experimentation and research was
needed in public management and gave the OPM the powers it wanted
to conduct demonstration projects. However, the committee felt that,
given the broad powers granted to OPM under the section, there was
a need for congressional oversight to protect the rights of employees
and the integrity of government. The committee, therefore, amended
the proposal so that all plans. for demonstration projects be submitted
to the Congress and be subject to disapproval by either House of Con-
gress if a resolution of disapproval is adopted by either House within
60 days. Given the fact that the original administration proposal
would have permited the OPM to waive any Federal law, including
criminal statutes and. those regulating the political activities of Fed-
eral'employees, the safeguard proposed by the comittee is a very-mod-
erate one.
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6. Labor Management
Although much has been said and written on this issue, the com-
mittee bill does not fundamentally differ from the administration pro-
posal. The current major limitations on collective bargaining are
maintained. The statutes making it illegal for Federal employees to en-
gage in strikes, work stoppages and slowdowns were left unchanged.
The committee bill also continued the existing prohibition against the
agency shop and provided that such matters as pay and fringe benefits
be excluded from collective bargaining.
The committee did, however, make some significant changes in the
President's proposal. It provided that the program be administered by
a truly independent Federal Labor Relations Authority (FLRA),
whose members could be removed only for cause, and whose decisions
would be. subject to judicial review. The administration proposed that
the members of the FLRA serve at the pleasure of the President and
that their decision not be subject to judicial review. In addition, the
committee broadened the scope of bargaining to include a limited num-
ber of non-compensation items.
Although the changes made by the committee in the President's
labor-management proposal were significant, nothing the committee
did would drastically change the nature of labor relations for Federal
civil service employees. Such employees would still have substantially
fewer collective bargaining rights than either Postal Service employees
or private sector workers-In the area of labor-management, the com-
mittee adopted the President's incremental approach, but added some.
additional provisions which the President did not want included at
this time. As a result, I believe it is fair to say that the administration
got 85 percent of what it wanted in this area and that there are no pro-
visions in the committee's labor-management section with which the
administration could not live.
7. Senior. Executive Service
This is the one Administration which the committee did drastically
change. The President's proposal would have established a new Senior
Executive Service for managerial positions now classified as GS-16,17.,
or 18 of the General Schedule or level IV or V of the Executive
Schedule. Members of the Senior Executive Service would have less
job security than other Federal employees in that they would have no
right to appeal'their transfers and would be subject to a review system
similar in many ways to the one now used to judge Foreign Service
Officers. Individuals who failed to meet the standards of the review
system would be reassigned to non-Senior Executive Service positions
with no loss of pay. In return for this slight increase in job insecurity,
members of the Senior Executive Service would receive greater promo-
tional 'opportunities and be eligible for professional and monetary
awards.
The Senior Executive Service enjoyed substantial support from the
majority members of the committee. However, during the considera-
tion. of this section of the bill, the committee adopted a crippling
amendment offered by Congresswoman Spellman and supported by
some members of the majority and all of the minority members voting.
Under the Spellman Amendment, the Senior Executive Service pro-
gram would be converted into a two year experiment to be conducted
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in three agencies. If, after the two years, neither House of Congress
disapproved the program, the Senior Executive Service would become
permanent and governmentwide.
Despite my respect for the Congresswoman from Maryland, I believe
the adoption of her amendment was unfortunate action. It is unwise to
introduce major government programs as experiments. The extension
of this concept to other programs would transform the Federal govern-
ment into one big social science laboratory more concerned with ex-
periment evaluation than with the delivery of service.
In addition, the introduction of the Senior Executive Service as an
experimental program would doom the fate of the program. To a large
extent the success of the Senior Executive Service will be determined
by the ability of the program to induce Federal executives to volun-
tarily convert their civil service positions to less secure Senior Execu-
tive Service. positions. If the insecurity of those positions will be fur-
ther increased by the possibility that the program will be entirely
eliminated in two years, it is extremely doubtful if enough civil serv-
ants will join the program to permit its effective implementation.
Furthermore, the main motivation behind the Spellman amend-
ment is the groundless fear that the Senior Executive Service will po-
liticize the civil service. Anyone who reads the provision of the bill
establishing the Senior Executive Service will realize that there are
sufficient protections in the bill to prevent the Service from becoming
a political arm of the President. The President's original proposal
provided that no more than 10 percent of all Senior Executive Service
positions may be filled by non-career employees. To this provision, the
committee added the requirement that the percentage of employees in
the Senior Executive Service within an agency may not exceed the
higher of 25 percent or the percent of such positions in the agency as of
date, of enactment of this legislation. Finally, to completely eliminate
the possibility of political purges within the Senior Executive Service,
the committee agreed to an amendment offered by myself which re-
quires that at least 70 percent of all employees in the Senior Executive
Service.at any one time must have at least 5 years of Federal service. I
_am convinced that these provisions combined with continuing congres-
sional oversight will be sufficient to prevent the politicization of the
Senior Executive Service.
In summary, it is my belief that the Senior Executive Service is a
sound and sensible proposal which carefully balances the need to bet-
ter enable the democratically elected political leadership of this coun-
try to implement its programs and policies while insuring the fair and
non-partisan administration of our laws. The Service would increase
the flexibility of the President and his appointees in making personnel
assignments so as to make sure that their initiatives are not stifled by
incompetent or unsympathetic high level personnel. However, while
increasing the administrative power of the President, as drafted by the
committee bill; the Senior Executive Service would maintain sufficient
safeguards to protect the career members of the Service from political
coercion or manipulation. It is therefore, my hope that when the bill
reaches the floor of the House the Spellman amendment will be deleted
and. the President's proposal for a Senior Executive Service be rein-
stated with the few strengthening amendments adopted in committee.
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As has been reported extensively in the press, the committee dur-
ing consideration of the President's proposal attached to the bill the
provisions of two bills which had already passed. Although the com-
mittee's action has been publicly -interpreted in various ways, I do not
see the attaching of either the Clay bill to reform the Hatch Act, or the
Firefighters bill, as an attempt to embarrass the President. Instead, I
believe that both actions should be viewed as part of the time honored
legislative strategy of forcing a vote on a controversial issue by attach-
ing it to a bill which is likely to pass.
It is also important to note that as far as the substance of the issue
is concerned, the committee has no real differences with the President.
The reform provisions which were attached to H.R. 11280 are fully
supported by the President who has repeatedly called for their
enactment.
The committee's dispute on this issue is with the Senate and not with
the President. For over a year the Senate. has refused to act on H.R. 10
which passed the House overwhelmingly by a vote of 244-164. In
placing the Hatch Act reform provisions in H.R. 11280. the committee
is attempting to insure that they will at least be considered by the
Senate. If the House sustains the committee's action on this issue, it is
my hope that the Senate will at least schedule a vote on this vital leg-
islation. However, if the Senate remains intransigent on this issue, the
House is not bound by its position. Rule 28, clause 28(b) of the Rules
of the House of Representatives permits the House to instruct its con-
ferees, should they fail to reach an agreement. Thus, even if the House
includes the Hatch Act in H.R. 11280, it can later bow to the will of
the Senate, over the objections of its conferees, should it choose to do so.
As for the committee's action on the Firefighter's bill, it should be
noted that this legislation has passed both the Senate and the House
twice. The bill reduces the number. of work hours for. Federal fire-
fighters to bring them in line with municipal firefighters and reduces
their pay by an appropriate amount. I believe the President was mis-
taken in vetoing this bill and should reconsider his position. However,
even if the President remains adamant in his opposition to the bill, I
believe he would consider the enactment of this legislation which only
affects 11,500 employees to be a small price to pay for comprehensive
civil service reform.
In summary, I believe that the committee bill represents a victory
for the President. With the exception of the Spellman amendment,
which I hope will be deleted on the floor, the President has received
substantially most of what he wanted on civil service reform. The com-
mittee also attached two bills which it considers priority items to the
President's bill, but neither addition need endanger the ultimate pas-
sage of the President's proposal. It is, therefore, unfortunate that some
members of the minority, in a predictable display of partisanship,
have attempted to characterize the committee's action as a defeat for
the President. Feigning support for the administration, they have
exaggerated disagreements and created the illusion of divisions where
none really existed. It is my hope when my colleagues look past the
political rhetoric to the substance of the bill, they will realize that they
and the President were well served by the committee's actions.
STEPHEN J. SOLARZ.
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DISSENTING VIEWS BY MR. HARRIS
H.R. 11280 is a comprehensive bill with a noble objective, to "re-
form" the civil service system. It presented to the committee and to me
a serious challenge which I was prepared to meet when the bill was
submitted on March 3, 1978.
Yet I was compelled to vote against the bill because I believe it is
fatally flawed: it will open the door to politicization.
Cleaning up and streamlining the operations of the Federal Govern-
ment is a worthy goal, an effort I support fully. Citizens should not
have to wade through layers of bureaucracy to get their questions
answered, totrack down their social security check, or understand our
tax laws. Government should be understandable; Government should
be accessible. Government should not be a bureaucratic monolith im-
possible to cope with. Government should be responsive with decisions
based on justice, not on political intrique or pressure.
Pursuant to the goal of developing a sound bill, I participated in
15 hearings, 12 in the Congress and 3 in Agency headquarters here in
Washington, and 10 days of markup. Additionally, I personally held
3 "town meetings" in my district to hear the views and suggestions of
the citizens of the Washington area, Federal employees and nonfederal
employees, individuals probably most familiar with the operations of
the Federal Government.
The most persistent thread in the comments we heard from rank-
and-file workers was that various provisions of this bill were a threat
to the morale and structure of a nonpartisan, professional civil service
system.
On February 27, 1978, I introduced H.R. 11165 which contains sev-
eral strong provisions that would make innovation possible but insu-
late the Federal Government against a spoils system. During the com-
mittee markup. after discussing these provisions with Civil Service
Commission officials and other witnesses. during the hearings, I at-
tempted to get the safeguards embodied in my bill into H.R. 11280.
Most were rejected.
I am dismayed that this committee has apparently articulated the
thesis that politicizing the system is essential, in fact, is the centerpiece
of a responsive and revitalized government. In fact, it was said of my
amendments to prevent politicization that some would be a "body-
blow" to the bill.
I am afraid that in the name of "civil service reform" the House
Post Office and Civil Service Committee has developed "civil service
chaos." While the bill has some sound provisions, many elements which
would have made it a true landmark for good government are lacking.
My primary fear is that this bill will begin a slow unraveling of our
merit system, a system that insures the impartial administration of
our laws. This conclusion is inescapable: this bill opens the door for
the politicization of the civil service system.
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AN OPEN DOOR FOR POLITICAL MANIPULATION
SENIOR EXECUTIVE SERVICE
The committee's adoption of an amendment to implement the senior
executive service 'inthree agencies over a 2-year period is an appropri-
ate go-slow approach. However, the senior executive service,- while
meritorious in purpose in many ways, will allow too many career jobs
to 'become political because of a fundamental flaw in the way appoint-
ments can be made. Currently, there are important safeguards and
procedures that keep the designation of career and political positions
at the high levels of Government quite distinct. 'Congress decides which
jobs will be filled by political appointees at executive levels. For those
GS-16, 17 and 18 pay grade levels, the President can designate which
jobs should be political according to clear standards.
I offered a substitute to title IV, the senior executive service, which
would have made the SES a career service only. My substitute failed.
If the President wished to designate certain jobs at these levels to be
filled by political appointees, the duties of the job would have had to
meet certain standards prescribed in law, such as engaging in the ad-
vocacy of Administration programs or serving as a confidential as-
Under this bill, although there is a numerical limit on the number
of jobs that can be filled by political appointees, this limit has no
relationship to the responsibilities of the job. Thus, the head of a
division handling grants, contracts, or tax returns can be a political
appointee. By adopting my substitute, Congress would have been
exercising clear controls over which positions are filled by career in-
dividuals and which by political-appointees. And it would have pro-
vided that the type of appointment-career or political-would be
determined by the responsibilities of the job, not an arbitrary
agency-or government-wide "magic" number.
EXCEPTING POSITIONS FROM THE CAREER SERVICE
Similarly, my amendment to provide clear criteria for excepting
positions from the career competitive service for all general schedule
jobs would have insured against manipulation of jobs. Under the cur-
rent law, which this bill does not change, the President can put a
"competitive service" position in the "excepted service" (individuals
not hired by competitive examinations and appointment) by only
determining that "conditions of good administration warrant" this
action. There are standards in regulations which can be changed any
time. My amendment would have firmly fixed strong standards in
law.
We have heard too many stories of a "buddy system" and end runs
around the merit system, stories of jobs being "moved" from a com-
petitive hiring designation to excepted to accommodate a favored
candidate. There is room and there is a need for non-competitive
positions in the executive branch, but there should be strong controls.
My amendment, which was defeated, would have provided these
controls.
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POLITICAL INFLUENCES IN PERSONNEL ACTIONS
The section of the bill on merit employment would have been
strengthened had the. committee adopted my amendment to clearly
bar unwarranted political recommendations in 'hirings, promotions
and other personnel actions. Under my amendment, political recom-
mendations from Members of Congress, their staff, White House of-
ficials, and political appointees in the executive branch would have
been explicitly prohibited. The notion that elected and other political
officials ought to "determine who gets what jobs" in the career merit
system is simply wrong. Some argue that it is a "fact of life." If so,
it is wrong. It is time to stop winking at it. If we are going to have
true civil service reform, then we must get politics out-once and for
all. It has not been that long since the very foundations of our Gov-
ernment were almost pulled out from under us by inside political
manipulation. My amendment would have greatly improved this bill.
The bill allows the new Office of Personnel Management to delegate
to agencies various personnel functions, such as examining, hiring
and promotions. While allowing agencies to perform personnel func-
tions previously centralized in the Civil Service Commission may
speed up these procedures, I am concerned that here again the flood-
gate may be opened for improper political influences. This is why I
offered an amendment to require that every chief personnel official be
a career employee. I cannot see any reason why a personnel official,
clearly performing an administrative function, should be a political
appointee. This was another effort to keep politics out of the merit
system; yet the committee rejected the inclusion of this provision.
AN IMPARTIAL MERIT SYSTEM PROTECTION BOARD
The bill establishes a new Merit System Protection Board to handle
alleged violations of civil service rules and regulations. I believe the
composition of this Board would have been strengthened by the re-
qquirement that one member be from the career ranks of the Federal
Government as I proposed. As it stands, these three political ap-
pointees, can be the former board chairman of a corporation or the
former head of a campaign. While the bill rightly insures a political
mix, I believe that a career employee could have provided an impor-
tant career employee perspective in the Board's proceedings.
Similarly, the selection of the chairman of, the Board is faulty since
the bill provides that "the President shall from time to time desig-
nate one of the Board members as the Chairman of the Merit .System
Protection Board." My amendment, which was defeated, would have
required the Board members to elect?a chairman every 2 years. Under
the bill, the President can choose one chairman, and the next month
choose another. This, I believe, is a loophole that can lead to political
shuffling and reshuffling.
CLEAR RESPONSIBILITY AT THE TOP FOR THE MERIT SYSTEM
Under the bill submitted by the administration, the delegation of
personnel administration caused me great concern. The 'bill allowed
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the President to delegate responsibilities to the Director of the Office
of Personnel Management who in turn could delegate to agencies.
The General ' Accounting Office could investigate violations of the
merit system if requested by Congress. The special 'counsel could in-
vestigate complaints and the Board could 'hear, them. But the bill
was very fuzzy as to who in 'fact was responsible-where did the
buck stop?
I offered several amendments which were accepted that make it
clear that the Director of the Office of Personnel Management is the
individual responsible for compliance with civil service laws and
procedures. Thus, for example, if an agency adopts a hiring proce-
dure that gives favoritism to certain applicants, OPM cannot "get
off the hook" by saying the agency was in charge.. OPM cannot turn
a blind eye. OPM is responsible for' seeing that merit system prin-
ciples are enforced and that corrective action is taken when violations
occur.
EMPLOYEE RIGHTS AS PRIVATE CITIZENS
I continue to believe that employees should be able to engage in
voluntary political activities as private citizens' and I helped draft
H.R. 10, which would revise the current Hatch Act prohibitions on
those rights. However, I do believe it is wrong to tie those revisions
to a legislative vehicle that opens the door to politics within the
system. The Hatch Act has never protected employees from on-the-
job political pressures; a strong, impartial merit system provides that
protection. But this bill, severely weakens many of those protections.
OPEN AVENUE OF COMMUNICATION FOR OPM AND THE BOARD
I am pleased that the committee adopted my amendments to allow
both the OPM and the Merit System Protection Board to express
their views directly to Congress without clearance by another agency.
Our committee has too often been frustrated by the Office of Man-
agement and Budget's stranglehold on agency statements to Congress.
Under my amendment OMB can make its views known ; there is no
barrier. But these agencies can express their views on policies, answer
questions directly, and present testimony to congressional committees
without first getting their views cleared and laundered by OMB. This
is 'a most important Government reform.
EMPLOYEE PAY : A MIXED PICTURE
The committee adopted my recommendation that supervisory em-
ployees in GS-13-15 grades continue to receive annual comparability
adjustments. Keeping Federal pay rates competitive with those of
private industry is a sound principle, established by the 1970 Federal
Pay Comparability Act. Had we derprived employees in these grades
annual comparability, I believe we would have violated the basic
principle of our Federal pay system.
However, the committee did not accept my amendment that would
have guaranteed true comparability. My amendment would have re-
moved the loophole in the current law that has allowed Presidents
of both parties to deviate from true comparability six times since
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1970. We understand the President will follow this unfortunate prece-
dent again this year. The concept of comparability is negated if
inherent in the law is. an escape hatch allowing the President to
thwart it.
The new merit pay system, . to reward GS-13, 14 and 15 supervisory
employees for performance on the job, is a worthy concept.. How-
ever, it would .be a new system and I believe. Congress needs to know
in the future whether it is actually working, whether it is in fact
improving performance. Thus, I am pleased that the committee ac
cepted my amendment to require the Office of Personnel Management
to report in 3 years on whether it is working and how. My amend-
ment requires OPM to show us in quantitative terms if it is achiev-
ing the purposes set out in this legislation. It is my hope, for example,
that we can determine that because of merit pay incentives, social
security claims processing has been speeded up or decision-making
on grants has been expedited and that such improvements are saving
taxpayer dollars. My amendment also requires OPM. to recommend
changes in the law to improve the new pay system. Instead of letting
a program grind on interminably without close scrutiny, this amend-
ment will provide a proper mechanism for a review in 3 years.
CONTROLLING GOVERNMENT GROWTH
I am pleased that the committee has essentially incorporated my
bill, H.R. 8332, which begins a process of curbing the growth of top,
political appointive positions. There has virtually been no control in
the growth of executive level positions in the Federal Government,
since Congress has created them sporadically without any sense of
overall planning or consistency. In fact, the Civil Service Commission
is unsure of the exact number of executive level positions.
Creating a new Assistant Secretary position at executive level III
or a Deputy at executive level IV may be justifiable. Yet we have the
questionable situation of the Administrator of the National Aeronau-
tics and Space Administration at level II ($57,500) and the Adminis-
trator of the (-Pneral Services Administration at level III ($52,500).
Under my bill and the provisions added to H.R. 11280, the number
of positions becomes fixed and the President is required to send to
Congress a plan in 2 years for bringing some order and coherence to
what is presently a hodgepodge.
Similarly, the committee has incorporated certain provisions of
H.R. 5054 which will bring some sense to the "supergrade sprawl."
This bill reaffirms the concept of a central supergrade pool and re-
peals the many "extraneous" authorities outside the pool that have
been enacted.
Both of these sections represent an attempt to have a Government
that is controlled, orderly and rational.
I am concerned and will continue to oppose an amendment adopted
on a voice vote to require the Office of Personnel Management to con-
duct a study of the location of Federal agencies and a review of the
possibility of relocating agencies out of the Washington, D.C. area.
First, this is an inappropriate mission for the OPM. Second, the
amendment does not provide clear direction for the study by speci-
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772
fying the criteria that should be considered, for example, the effect
on employment or unemployment, the need for access to the President
and Congress, cost tothe'taxpayer, environmental considerations, or
delivery of services. Third, there is no apparent purpose or demon-
strated need for the study. Another useless study will not improve
government inefficiency.
Despite these meritorious changes, the bill adds up to a minus-not
a plus-for the Federal employee and the American taxpayer. This
bill is an unfortunate chapter in the history of an impartial, non-
political Federal Government. It may shake the very foundations of
.our merit system. It suggests that political affiliation is more impor-
tant than competence. By creating cracks for political influence to
seep into the system, it makes the argument more valid that Federal
employees should be denied rights of citizenship in order to protect
them. Should H.R. 11280 be enacted into law, protections for the em-
ployee will be greatly diminished and the merit system will be placed
in great jeopardy.' -
HERBERT E. HARRIS II.
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773
SEPARATE VIEWS ON H.R. 11280
The underlying theme of the Republican members of the committee
throughout the hearings and markup on H.R. 11280 has been the recog-
nition that reform of the Federal civil service merit system is a desir-
able and achieveable goal.
. In transmitting his civil service reform legislation to the Congress,
President Carter correctly pointed out that the system has serious
defects. "It has become a bureaucratic maze," he said, "which neglects
merit, tolerates poor performance, permits abuse of legitimate em-
ployee rights, and mires every personnel action in redtape, delay, and
confusion."
These-are logical reasons for seeking civil service reform. We share
the President's concern for he is speaking. not only for 'his own ad-
ministration but -for administrations, both, Republicans and Demo-
crat, before him..
If true and honest civil service reform can be written it must be
done in a bitpartisan. manner: Politicization of the Federal merit
system is not in the public interest and any such. effort under the guise
of reform should be resisted and rejected.
We each reserve the right to differ on the various components of
this legislation, and these individual comments will be found else-
where in this report.
EDWARD J. DERWINSKI.
GENE TAYLOR.
TRENT LOTT.
BENJAMIN A..GILMAN.
JOHN H. ROUSSELOT.
JAMES A. S. LEACH.
JAMES M. COLLINS.
TOM CORCORAN.,,
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SUPPLEMENTAL VIEWS ON H.R. 11280
This legislation offers the Members of the House an opportunity
to objectively reform and reinvigorate a Federal civil service merit
system that, during its 95-year lifespan, has begun to show signs of
immunity toeffective management.
It needs to be emphasized that civil service reform is a non-
partisan issue. Simply stated, civil service reform is good government.
Honest civil service. reform, however, can only be accomplished by
rising above the demands of those who would use this legislation only
in their special interest.
Unfortunately, the committee did not follow the righ road. The
legislation wheeled off track and out of control. What started out as
a bipartisan effort to write effective legislation degenerated into a
blatant gutting of the bill by a majority of the majority who seemed
bent on destroying the legislative centerpiece of their own President.
With studied deliberateness, these fractious Democrats made it clear
they would march in stiff cadence to a divide-and-conquer beat. They
displayed no interest in participating-in reasonable and' responsible
discussion of the legislation. Evidence of that attitude unfolded when
they -lined up to oppose a routine' motion to permit Civil Service
Commission experts to comment and respond to committee questions on
highly technical provisions of the bill. Fortunately, the motion'to give
all of our Committee Members the benefit of expertise utilized by
other Committees of the House during the markup sessions carried by
a single vote. ' '
Undaunted by` that temporary setback, members of the majority
laid down a barrage of crippling amendments which placed responsi-
bility for salvaging Civil Service reform squarely on Republican
shoulders. It was a responsibility we welcomed.
With clear disregard for the administration's strategy, the provi-
sions of H.R. 10, the Hatch Act emasculation, were grafted to the
bill. This power play from the Democratic side to curry the favor of
Federal labor union leadership was a test of wills that graphically
showed the split between congressional Democrats and the White
House.
Contipuing to salt the wound, this rebellious band then attached to
the bill the.provisions of H.R. 3161, reducing the basic workweek
of Federal firefighters-a bill which President Carter had vetoed only
a month earlier and returned to the Congress with a strong message of
rejection.
In a further show of disregard for the administration proposal, the
committee Democrats used as the original text for the labor-manage-
ment relations title not the language offered by the President but a
Clay-Ford-Solari version of labor-management relations tailored to
meet the special interest of the union hierarchy.
(400)
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775
In this title of the bill, the committee Democrats were just slightly
,less destructive. While the Republicans were the swing votes in
eliminating the agency shop provision from the bill, the prolabor
forces again took over.
The administration proposal was to codify the language of the ex-
isting Executive order governing labor-management relations in the
Federal sector. It has been an effective tool for good management
under each administration since President Kennedy. When offered
piecemeal during mark up, the President's proposals were trampled
in the rush of the committee Democrats to satisfy labor leaders to the
detriment of both Federal rank and' file employees and management.
Similarly, the title dealing with the senior executive service was
diluted to the point where it was left meaningless. There.is little in-
centive or opportunity for the utilization of talented personnel in
challenging job assignments when the application of the SES is limited
to three agencies for. a 2-year period.
The package that finally emerged from committee is a legislative
fiasco. But beneath its burden of special interest fat it contains the
muscle of sound civil service reform. We believe it can be salvaged
if responsible action and leadership is displayed in the House.
Therefore, we urge each Member of the House to approach this
legislation objectively and with the public interest in mind.
Whatever is enacted will be administered by both Democratic and
Republican Presidents in the future. Shortsighted concessions to the
voices of special interest is not serving the public. .
The American public, through proposition 13 and a host of other
indicators, strongly favors a Government more efficient and responsive
to its needs. The taxpayers want Government reform.
EDWARD J. DERWINSHI.
TOM CORCORAN.
JIM LEACH.
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ADDITIONAL VIEWS
Criticism of the civil service, is nothing new. But today it is growing
as more and more Americans become disenchanted with the cost, size,
and inefficiency of bureaucracy, whether Federal,: state, or municipal.
Citizens doubt, with good reason, Government's ability to deal effec-
tively with the issues of inflation, unemployment., housing, energy, and
other areas. Increasingly skeptical of government's claims to have the
answers and resources to solve the problems.facing our country, voters
have rejected bond proposals and other initiatives to raise funds for
local school systems, and water projects, for example.. They have
strongly indicated -a desire for less government, a trimmer bureaucracy,
in other. a> R3 ?_, ~~~m
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