25 September 2023

UNITED STATES: Senate undermines PS pay freeze

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UNITED STATES

The United States Senate has defied President Donald Trump’s call for a Public Service pay freeze by passing a spending package that includes a 1.9 per cent pay rise for all Federal employees in 2019.

The Bill was approved 92-6, but observers said it still has a long way to go before the extra money appears in PS pay cheques.

In February’s Budget proposal, the Trump Administration made it clear it wanted to see pay frozen across the Federal Public Service, calling for performance-related pay to be introduced instead.

The stance was reiterated at the end of July in a statement released by the White House in response to the Senate’s planned Bill.

The statement said: “Across-the-board pay increases have long-term fixed costs, yet fail to address existing pay disparities, or target mission critical recruitment and retention goals.”

Last month the House of Representatives approved a spending Bill which made no mention of a pay rise.

Now that the Senate vote has gone through, the next step will be negotiations between the two chambers.

The question is whether the proposed Federal workers pay increase will survive as a deal is brokered on the wider budgetary issues.

The National Treasury Employees Union (NTEU) praised the Senate vote and urged the House to back it.

National President of the NTEU, Tony Reardon said the Federal workforce was made up of middle class families around the country who, just like private sector workers, needed their pay cheques to keep up with the rising cost of living.

“Congress is right to reassert its control over how the Federal workforce is compensated and not allow the White House to disrespect Federal employees,” Mr Reardon said.

Washington, 12 August, 2018

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