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MacKay, John W., president, National Postal Union, accompanied

by David Silvergleid, secretary-treasurer, and Walter 0. Noreen,

executive vice president---
Macy, John W., Jr., Chairman, U.S. Civil Service Commission, ac-

companied by Glenn O. Stahl, Bureau of Programs and Standards,

U.S. Civil Service Commission.-
McAvoy, Harold, president, Post Office Mail Handlers, Watchmen,

Messengers, Group Leaders.---
McCart, John, operations director, AFL-CIO, Government Em-

ployees' Council..
Messer, Ross A., legislative representative, National Association of

Post Office & General Service Maintenance Employees.
Miller, Hon. George P., Representative in Congress from the State

of California.-
Minow, Newton N., executive vice president and general counsel,

Encyclopedia Britannica, and formerly Chairman, Federal Com-

munications Commission----
Multer, Hon. Abraham J., Representative in Congress from the State

of New York---
Murphy, John J., president, National Customs Service Association.-
Murphy, Hon. Richard J., Assistant Postmaster General, Bureau of

Personnel, Post Office Department, accompanied by Louis J. Doyle,
General Counsel; Herbert Block, Director, Compensation Division,
Bureau of Personnel; John D. Swygert, Director, Installations
Management Division, Bureau of Operations; Mrs. Anne Flory,
Assistant Director, Compensation Division, Bureau of Personnel ;

and Adam G. Wenchel, Office of the General Counsel -
O’Dwyer, Fred J., president, National Association of Postal Super-

visors, accompanied by Don Ledbetter, secretary, and Dan Jaspan,

legislative representative---
O'Neill, Hon. Thomas P., Jr., Representative in Congress from the

State of Massachusetts..
Owen, Vaux, president, National Federation of Federal Employees.-
Philos, Conrad D., national first vice president, and president-elect,

Federal Bar Association, accompanied by M. Reynolds Sands,
chairman of the Pay and Classification Committee, Council on

Government Lawyers--
Puskar, Charles E., executive secretary-treasurer, National Associa-

tion of Postmasters of the United States, accompanied by Roy M.

North, legislative representative----
Raffensperger, James W., national president, National Society of

Federal Engineers, Scientists & Allied Professionals, accompanied
by Edward G. Batty, executive secretary, and James J. Cliggett,

president-elect----
Regan, James J., president, Engineers' & Scientists' Association of

the U.S. Naval Training Device Center, Port Washington, N.Y.---
Robbins, Paul H., executive director, National Society of Profes-

sional Engineers_-
Ryan, Hon. William F., a Representative in Congress from the State

of New York--
Smith, Ashby, president, National Alliance of Federal Postal Em-

ployees, accompanied by Charles R. Braxton, administrative as-

sistant, National Alliance of Federal Postal Employees---
Staats, Elmer B., Deputy Director, Bureau of the Budget, accom-

panied by William B. Lehman, staff member, Office of Manage-
ment and Organization, and Spencer Platt, chief, Personnel Man-

agement Branch -
Stephens, Russell M., president, American Federation of Technical

Engineers----
Toll, Hon. Herman, Representative in Congress from the State

of Pennsylvania -
Warfel, George L., president, National Association of Special De-

livery Messengers--
Letters referred to the chairman are inserted beginning on page 304.

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FEDERAL EMPLOYEES SALARY ACT OF 1963

TUESDAY, AUGUST 13, 1963

HOUSE OF REPRESENTATIVES,
COMMITTEE ON POST OFFICE AND CIVIL SERVICE,

Washington, D.C.
The committee met at 10 a.m., in room 215, Cannon House Office
Building, Hon. Tom Murray. (chairman) presiding.
The CHAIRMAN. The committee will come to order.

The committee is meeting this morning, in accordance with the majority vote of the members in executive session on August 1, 1963, to begin hearings on pending bills which would authorize general salary increases for postal, classified, and certain other Federal employees.

Á list of the bills before the committee is on each member's desk. These bills fall into two categories. The first, which is typified by H.R. 7552, would carry out the official recommendation of the administration as submitted to the Speaker by the Chairman of the U.S. Civil Service Commission and referred by the Speaker to this committee. H.R. 7814, by Mr. Morrison, is typical of the other bills and contains provisions somewhat at variance with those recommended by the administration.

(The bills referred to follow :)

(H.R. 7552, 88th Cong., 1st sess.] A BILL To adjust the rates of basic compensation of certain officers and employees in the

Federal Government, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Federal Salary Adjustment Act of 1963.”

PART A-CLASSIFICATION ACT EMPLOYEES

COMPENSATION SCHEDULE

SEC. 101. (a) Subsection (a) of section 602 of the Federal Salary Reform Act of 1962 (76 Stat. 843) is amended to read as follows:

(a) Section 603(b) of the Classification Act of 1949, as amended (74 Stat. 298; 5 U.S.C. 1113(b)), is amended to read as follows:

1

“'(b) The compensation schedule for the General Schedule shall be as follows:

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$3, 410 $3, 515 $3, 620 $3,725 $3,830 $3, 935 $4,040
3,725 3, 830

$4, 145
3, 935 4, 040 4, 145 4, 250
4,020

4,355
4, 150

4, 460
4, 280 4, 410 4, 540 4,670
4, 495

4, 800
4, 640

4, 930
4, 785 4, 930 5, 075
5, 015

5, 220
5, 175

5, 365
5. 335

5, 510
5, 495 5, 655 5, 815
5, 580

5, 975
5, 760 5, 940

6, 135
6, 120

6,300 6, 480 6, 600
6, 185 6, 385

6, 840
6, 585 6, 785 6,985
6, 850

7, 185
7,070

7, 385

7,585
7, 290 7, 510 7, 730 7,950
7, 555

8, 170
7,800 8, 045

8, 390
8, 290 8, 535 8, 780
8, 310

9, 025 9, 270
8, 580

8, 850 9, 120 9, 390
9, 145

9, 660 9, 930
9, 440

10, 200
9, 735 10, 030

10, 325 10, 620 10, 915
10,955 11, 310 11, 665

11, 210
12, 020 12, 375 12, 730
12, 995

13, 085
13, 415

13, 440
13, 835 | 14, 255 14, 675 15, 095
15, 260

15, 515 | 15, 935
15, 750 16, 240 16, 730 17, 220 17, 710 18, 200
17, 730 18,300 18, 870

18, 690
19, 440 20, 010 20, 580
20, 390

21, 150
21, 045 21, 700

21, 720
22, 355

23, 01023, 665 24, 320 24, 975
23, 195 23,945 24, 695 25, 445

$4, 250
4,565
5, 060
5, 655
6, 295
7, 020
7, 785
8, 610
9, 515
10, 470
11, 505
13, 795
16, 355
19, 180
22, 290

(b) The first sentence of subsection (c) of such section 602 is amended
by striking out the words “The rates of basic compensation of officers and
employees to whom Compensation Schedule II of the General Schedule set
forth in subsection (a) of this section applies shall be initially adjusted,”
and by inserting in lieu thereof, “Except as provided in subsection (d) of
section 504 of this Act, the rates of basic compensation of officers and em-
ployees to whom the compensation schedule set forth in subsection (a) of
this section applies shall be initially adjusted,”.

SEC. 102. Section 801 of the Classification Act of 1949, as amended (5 U.S.C.
1131), relating to new appointments, is amended to read as follows:

"SEC. 801. All new appointments shall be made at the minimum rate of
the appropriate grade, except that in accordance with regulations prescribed
by the Commission which provide for such considerations as the candidate's
existing salary, unusually high or unique qualifications, or a special need
of the Government for his services, the head of any department may, under
such regulations, appoint individuals to positions in grades 13 and above
of the General Schedule at such rate or rates above the minimum rate of
the appropriate grade as the Commission may authorize for this purpose.".

PART B_POSTAL FIELD SERVICE EMPLOYEES
Sec. 111. Section 1 of title 39, United States Code, is amended by striking
the period at the end of the section and inserting in lieu thereof semi-
colon, and by adding the following: “ 'revenue unit' means that amount of
revenue of a post office from mail and special service transactions which is
equal to the average sum of postal rates and fees received by the Depart-
ment during the fiscal year for 1,000 pieces of originating mail and special
service transactions determined in accordance with section 2331 of this
title.".

SEC. 112. Section 702 of title 39, United States Code, is amended to read
as follows:
“Sec. 702. Classes of Post Offices

“(a) At the beginning of each fiscal year the Postmaster General shall
divide post offices into four classes on the basis of the revenue units of
each office for the second preceding fiscal year. He shall place in the first
class those post offices having 950 or more revenue units. He shall place
in the second class those post offices having 190 or more revenue units, but
less than 950 revenue units. He shall place in the third class those post
offices having 36 or more revenue units, but less than 190 revenue units.
He shall place in the fourth class those post offices having less than 36 revenue
units.

“(b) The Postmaster General shall exclude from the revenue credited to a post office for the purposes of this section money received at that office for

(1) Setting meters for patrons beyond the area served by the office unless authorized by the Department;

“(2) Stamps, stamped envelopes, and postal cards sold in large or unusual quantities to be used in mailing matter at other offices; and

"(3) Stamps, stamped envelopes, and postal cards sold for mailing matter diverted from other offices and mailing of matter so diverted without stamps affixed.

“(C) Whenever unusual conditions prevail at a post office of the fourth class, the Postmaster General may advance such office to the appropriate class based on his estimate of the number of revenue units which the office will have during the succeeding twelve months. Any office so advanced need not be relegated to a lower class before the end of the second complete fical year after the advancement. At that time, the office shall be assigned to the appropriate class in accordance with subsections (a) and (b) of this

section.". SEC. 113. Section 704 of title 39, United States Code, is amended by deleting the words "of the first, second, or third class” appearing therein, and inserting in lieu thereof “other than one for which the postmaster furnishes quarters, equipment, and fixtures on an allowance basis”.

SEC. 114. Subsection (b) (1) of section 2102 of title 39, United States Code, is amended to read as follows:

“(1) for post offices at which the postmaster does not furnish quarters on an allowance basis ;'. SEO. 115. (a) Section 3501 of title 39, United States Code, is amended by

(1) Deleting from the first sentence of subsection (a) the following: “standard positions of postmasters in a fourth-class office and rural carrier" and inserting in lieu thereof "standard position of rural carrier".

(2) Inserting a new subsection (c) following subsection (b) as follows: "(c) At the beginning of the first pay period in each calendar year the Postmaster General shall determine and adjust the rankings of all positions for which the number of annual revenue units of a post office or its class is a relevant factor of the ranking, using the revenue units of the preceding fiscal year and the class in which the office will be placed at the beginning of the next fical year. The Postmaster General may also adjust rankings of such positions at other times of the year based upon substantial changes in service conditions.”.

(b) The following amendments are made to chapter 45 of title 39, United States Code:

(1) In subsection (c) of section 3513—

(A) Change the catch line to read “POST OFFICE CLERK (KP-4)" ; and

(B) Add the following new sentence to the end of paragraph (1):
"This office has less than 190 revenue units annually.".
(2) In subsection (e) of section 3516—

(A) Change the catch line to read “POSTMASTER (KP-18)”;
(B) Delete "third class” in the first sentence of paragraph (1); and

(C) Delete "annual receipts of approximately $1,700” in the second sentence of paragraph (1) and insert in lieu thereof “approximately 40

revenue units annually”.
(3) In subsection (b) of section 3517—

(A) Change the catch line to read “POSTMASTER (KP-20)”;
(B) Delete "third class” in the first sentence of paragraph (1); and

(C) Delete “annual receipts of approximately $4,700” in the second sentence of paragraph (1) and insert in lieu thereof “approximately 110

revenue units annually”.
(4) In subsection (b) of section 3518

(A) Change the catch line to read "POSTMASTER (KP-22)”;
(B) Delete "third class" in the first sentence of paragraph (1); and

(C) Delete "annual receipts of approximately $6,000" in the second sentence of paragraph (1) and insert in lieu thereof "approximately 140

revenue units annually".
(5) In subsection (b) of section 3519---

(A) Change the catch line to read "ASSISTANT POSTMASTER (KP-24)”; and

(B) Delete "annual receipts of approximately $63,000" in the second sentence of paragraph (1) and insert in lieu thereof "approximately

1,490 revenue units annually”. (6) In subsection (c) of section 3519

(A) Change the catch line to read "POSTMASTER (KP-25)”; (B) Delete "second class" in the first sentence of paragraph (1); and

(C) Delete "annual receipts of approximately $16,000" in the second sentence of paragraph (1) and insert in lieu thereof “approximately 380 revenue units annually". (7) In subsection (b) of section 3520

(A) Change the catch line to read "POSTMASTER (KP-27)";
(B) Delete "first class” in the sentence of paragraph (1); and

(C) Delete "annual receipts of approximately $63,000” in the second sentence of paragraph (1) and insert in lieu thereof "approximately

1,490 revenue units anually". (8) In subsection (b) of section 3521

(A) Change the catch line to read "POSTMASTER (KP-29)”;

(B) Delete "first class” appearing in the first sentence of paragraph (1); and

(C) Delete "annual receipts of $129,000” in the second sentence of paragraph (1) and insert in lieu thereof “approximately 3,060 revenue

units annually”. (9) In subsection (b) of section 3522–

(A) Change the catch line to read “POSTMASTER (KP-31)”; (B) Delete "first class" in the first sentence of paragraph (1); and

(C) Delete "annual receipts of $314,000” in the second sentence of paragraph (1) and insert in lieu thereof "approximately 7,450 revenue

units annually”. (10) In subsection (b) of section 3523– (A) Change the catch line to read "POSTMASTER (KP-33)”;

(B) Delete "first class” appearing in the first sentence of paragraph (1); and

(C) Delete the second sentence of paragraph (1) and insert in lieu thereof: "This office has approximately 110 employees, approximately 14,350 revenue units annually, 13 government-owned vehicle units, one classified station and 42 carrier routes within its jurisdiction.". (11) In subsection (b) of section 3524—

(A) Change the catch line to read "ASSISTANT POSTMASTER (KP-35)”; and

(B) Delete "annual receipts of $2,700,000" in the second sentence of paragraph (1) and insert in lieu thereof "approximately 64,000 revenue

units annually”. (12) In subsection (c) of section 3524

(A) Change the catch line to read “POSTMASTER (KP-36)”; (B) Delete "first class” in the first sentence of paragraph (1); and

(C) Delete “annual receipts of $1,000,000" in the second sentence of paragraph (1) and insert in lieu thereof “approximately 23,700 revenue units annually”. (13) In subsection (a) of section 3525_

(A) Change the catch line to read "ASSISTANT POSTMASTER (KP-37)”; and

(B) Delete "annual receipts of $8,460,000" in the second sentence of paragraph (1) and insert in lieu thereof “approximately 200,000 revenue units annually”. (14) In subsection (b) of section 3525

(A) Change the catch line to read “POSTMASTER (KP-38)”; (B) Delete "first class” in the first sentence of paragraph (1); and

(C) Delete "annual receipts of $2,700,000" in the second sentence of paragraph (1) and insert in lieu thereof "approximately 64,000 revenue units annually".

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