December 2006: The administration has issued an alternative pay plan calling for an average 2.2 percent federal pay raise, but changing the formula for how the locality portion is distributed. This plan is opposed by NTEU President Colleen Kelley and all of her colleagues on the Federal Salary Council. It will give roughly half the federal workforce a raise of only 1.8 percent. Those employees are located in what is called the “Rest of the U.S.” locality area, and will bear the brunt of what is the smallest federal raise in 18 years.

In mid-October the Federal Salary Council joined with President Kelley in rejecting this change in formula because the full range of information from a newly reconstituted survey process on the wage gap done by the Bureau of Labor Statistics is not yet available. Despite the council’s rejection of this method and the small amount of money in the overall raise, the administration nevertheless has opted to push for this change in the formula.

“Yesterday’s action by the White House is a disservice to the talented, dedicated and experienced federal employees who serve the public every day," said NTEU President Colleen Kelley. "When you consider the sacrifices military families are making and the important contributions of the civilian workforce in the fight against terrorism, this 2.2 percent pay raise is simply unacceptable."

The President’s pay plan also ignores congressional action on the federal increase. NTEU’s efforts to secure a higher 2007 increase resulted in approval by both the House of Representatives and the Senate Appropriations Committee of a 2.7 percent raise for federal civilian workers. NTEU will continue to pursue a fair 2007 pay raise for civilian employees and members of the military – who also received only a 2.2 percent increase – when Congress completes its 2007 appropriations work early next year. At that time NTEU will also begin to address the question of federal pay for 2008.