The Federal Salary Reform Act of 1962, with its emphasis on comparability, should remove much of this uncertainty and disagreement in the future.

I am pleased to note that the President of the United States has met his responsibility in making recommendations to Congress for revising classified and postal pay schedules on the basis of studies by the Department of Labor, Civil Service Commission, and Bureau of the Budget. Thus, in the first year after passage of the Salary Reform Act, we see the principle of comparability at work.

When we approved the salary bill last year, the rates in question were based on data collected by the Bureau of Labor Statistics in 1961. Schedule II in that measure is to become effective January 1964. Another survey was undertaken by the Bureau in 1962. Figures compiled in that study are reflected in bills based on the 1962 review.

However, the Bureau's 1962 survey gathered wage rates from private industry sources in effect in the latter part of 1961 and early

1962.

If the pending legislative proposals resulting from the 1962 BLS study are not revised upward the salary adjustments to be received by postal and classified workers in January 1964 will not meet the test of true comparability. They will be comparable only with private industry wage rates prevailing 2 years ago.

I have been happy to join nine of my House colleagues in introducing identical bills to correct this deficiency. The principal difference between my measure, H.R. 7858, and the other group of bills under consideration by the committee is the question of actual comparability. H.R. 7858 will make Federal and private industry salaries generally comparable on a current basis by including the salary advances in corporations and firms in the 2 years since the last BLS study was begun.

The yearly rate of progress in private industry in recent years has averaged 3 percent. The most important feature of the bills I am supporting is to increase by 6 percent-3 percent for 1962 and 1963 the figures emanating from the most recent BLS review.

Adoption of this approach should make even simpler our consideration of Federal salaries in the future. When pay of classified and postal workers is the subject of deliberation in the years ahead, we will have the advantage of proceeding from a common premise genuine "comparability" in January 1964.

While I have joined my associates in this committee and the House in introducing a bill on this important subject, no pride of authorship is involved. If the committee sees fit to select another bill in this series of salary measures as a vehicle, that is completely satisfactory. The essential point is that we as the Congress take early action to make the salary adjustments so badly needed and so well justified for Federal employees.

Constituents have invited my attention to various deficiencies in the Federal Salary Reform Act-specific provisions which have caused hardship to individual Federal workers. Numerous bills correcting these deficiencies have been referred to the committee. I urge that you extend careful consideration to each of these corrective measures. Where investigation indicates that inequities have resulted from the new salary statute, I am confident the committee will take steps to

include the necessary remedial provisions in the bill it reports to the House.

Finally, all of us must be impressed with the fact that we are not dealing here simply with a theory or a law in the abstract. We are deciding a matter which will affect a million and a half members of the Federal work force-men and women with obligations and responsibilities as heads of families. We are involved also in supplying the most efficient work force a realistic salary structure can attract in completing the gigantic task of having our Federal public services carry out its essential functions for all the citizens of our country.

urge your serious consideration and prompt favorable action on salary increase legislation for Federal classified and postal employees. The CHAIRMAN. We will now hear from Representative Herman Toll, of Pennsylvania.

STATEMENT OF HON. HERMAN TOLL, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF PENNSYLVANIA

Mr. TOLL. Mr. Chairman and members of the committee, I am happy to have the opportunity of appearing here this morning to present my views on pending pay legislation.

The President of the United States, in transmitting his message on pay reform proposals last year, stated: "That we expect much from our employees, that we carefully screen and select the people who will eventually work for the Government, and we set rigorous standards of conduct and ethics for them to follow. We ask much of our civil servants. In turn we must recognize our responsibility as an employer."

I agree with the President. Last year, with only a few dissenting votes, Congress agreed that we should have an orderly procedure in establishing pay rates for our postal and Federal employees.

I am here this morning to testify on behalf of H.R. 8137, a bill that I have sponsored, which is similar to the Morrison-WallhauserOlsen bills. While not a member of the committee, I am very much concerned about the passage of this legislation. I voted for Public Law 87-793, as did most of our colleagues last year, and I feel a strong personal obligation to do everything possible to live up to the provisions of that act. Remember the provisions of that act require the President to submit to the Congress for our consideration a recommendation relative to the comparability of pay of postal and Federal employees with that of employees in private industry.

I did not feel that the bill passed last year afforded full comparability for employees in the lower grades and, accordingly, the adjustment recommended for this year, in my opinion, is still not quite adequate. For that reason I am supporting my own bill and the bills sponsored by other Members.

I do feel that we have a strong obligation to take action on the comparability feature of the law this year. If we do not, the legislation we passed last year is a delusion.

The annual adjustment of pay is both just and prudent. It is fair to our employees and in accord with procedures in outside industry. It is orderly budget procedure and fairer to the Government and the taxpayer.

I do not see any difference between adjusting pay on the basis of the prevailing rate in industry each year and paying for increased costs in other products purchased by the Government. In everything else we are compelled to pay the prevailing rate or the market price of the commodity. When we contract work out to a private contractor, he has to meet the going price on wages. Our employees are entitled to the same consideration.

To enact pay legislation only after long campaigns is unfair to the employees. I believe that an adjustment should be made up or down each year, in keeping with the recommendations of the President as we view them. We are the board of directors, and we are merely considering the recommendations of the administrative branch of Government.

It is unfair to ask the employees to accept comparability 2 years old. In this waiting period the employees lose a great deal of pay. They are compelled to work for substandard pay. In today's world, a 2-year-old pay standard is piteously obsolete.

I sincerely hope that this committee will speedily come forth with an adequate, fair bill.

Thank you.

The CHAIRMAN. The next witness is Hon. William F. Ryan of New York.

STATEMENT OF HON. WILLIAM F. RYAN, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF NEW YORK

Mr. RYAN. Mr. Chairman and members of the committee, I urge that this committee give favorable consideration to two of the Federal pay raise proposals before it, H.R. 7814 and H.R. 4800. The passage of this proposed legislation is of great importance to the classified and postal service employees. It is of great importance to the Federal agencies themselves. Without this much-needed salary increase, the Federal agencies will continue to be handicapped in their efforts to recruit new personnel and to retain the valuable, experienced employees who make up the backbone of the Federal service.

Federal workers have the right to expect fair treatment from Uncle Sam with regard to salaries. We rightfully regard our civil service as the finest and most efficient in the world. We cannot reasonably expect it to remain that way if we are not willing to provide adequate compensation for jobs well done.

Last year Congress wrote into the Salary Reform Act of 1962 a most significant principle to serve as a guide for determining what the level of Federal salaries should be, both now and in the future. The principle of comparability declares that Federal salary rates shall be comparable to private industry salary rates for the same levels of work. The Bureau of Labor Statistics is directed to make annual studies which compare the rates of salary fixed by statute for Federal employees with the rates of salary paid for the same levels of work in private industry. These annual studies are to be used for such revision of existing Federal salary schedules as seems necessary to keep Federal pay in line with that of non-Federal pay.

The new salary schedules suggested in H.R. 7814 are based upon the statistics collected in the first of these annual surveys, conducted

during the period 1961-62. They also take into consideration, and I think that this is a crucial point, the 2-year time differential between the taking of the salary survey and the January 1964 implementation date of the proposed pay increase.

The administration has also introduced a bill calling for Federal salary increases to become effective January 1, 1964, to replace those presently scheduled which were provided for as the second step of last year's pay raise. The increases provided for in the administration bill are also based upon the BLS statistics. I am, of course, in full agreement with the bill's objective, that of raising Federal salaries to make them comparable to salaries in private industry, but I feel that it does not take into account this all important 2-year timelag. I do not feel that making 1963 Federal salaries comparable to 1962 salaries in private industry is carrying out the clearly stated intent of last year's legislation. The spirit of the comparability principle and equity require that the lapse of time be held to the minimum possible.

This year provides the first test of the principle of comparability proclaimed in last year's Salary Reform Act. It is important to demonstrate that we intend to adhere to this principle.

Other considerations in the determination of Federal salary levels are the present cost of living and available indications as to what it will be in the future. At this point, indications are that it will continue to rise. This is especially hard on the lower salaried employee. H.R. 7814 therefore proposes to grant an additional 6-percent increase to employees in the lower grades.

I recommend including the proivsions of H.R. 5800 as a part of the legislation under consideration. It's purpose is to remedy certain inequities created by last year's Salary Reform Act with regard to the compensation of the first six grades in the postal field service. H.R. 4800 provides for automatic promotion to the next step, within grade, after the employee has satisfactorily completed a set period of service at the lower step. The inclusion of this provision would remedy a defect in present law which is very important to the postal employees.

I believe that these proposed salary increases are in the best interests of both Federal employees and employing agencies, and I earnestly urge the committee to give them favorable consideration.

The CHAIRMAN. The next witness is Hon. Joseph P. Addabbo, of New York.

STATEMENT OF HON. JOSEPH P. ADDABBO, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF NEW YORK

Mr. ADDABBO. Mr. Chairman and members of the committee, thank you for this opportunity to give you my views on the need for passage of this pay legislation.

Passage of this legislation is in keeping with the salary legislation passed in 1962 which seeks to keep governmental salaries comparable with private industry. Because of the timelag between the gathering of statistics and the time raises will be put into effect, H.R. 7814 is more realistic and in keeping with the comparability principle than the raises suggested by the administration.

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We must maintain Federal salaries at a level that will encourage these employees to remain with the Government. To do otherwise would be "pennywise and pound foolish." We can ill afford a large turnover in personnel because of the great expense of training new employees, and we shall certainly have the turnover, if we do not keep salaries at a competitive or comparable level with private industry.

Mr. Chairman, as a member of this great committee in the 87th Congress and having taken part in the pay bill of 1962, I know that our civil service workers are the most dedicated and underpaid workers in the country. I believe that our Federal employees have the right to rely on legislation passed by the Congress and that reliance will be greatly undermined unless legislation passed by the 87th Congress is effectuated by the 88th Congress.

Members of the committee, I strongly urge your early and favorable action on this legislation.

The CHAIRMAN. The next witness is Hon. James G. Fulton, of Pennsylvania.

STATEMENT OF HON. JAMES G. FULTON, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF PENNSYLVANIA

Mr. FULTON. Mr. Chairman and members of the committee, my name is James G. Fulton and I am the Representative from the 27th District of Pennsylvania.

Before beginning this statement I want to thank you, Mr. Chairman, and the members of this committee for permitting me to testify today on behalf of the very important and necessary legislation introduced by Representatives Morrison, Duski, Wallhauser, and Olsen calling for a true comparability wage increase for postal and Federal workers. I would call your attention to my own comparability pay increase bill, H.R. 7873, which I introduced on August 1, 1963, to adjust equitably the rates of basic compensation of postal workers and Federal employees in the U.S. Government.

I am fully aware that so much expert testimony has been presented before this committee in recent weeks that there is nothing new or startling that I can add to that great body of evidence. However, coming as I do from an area where living costs are relatively high, I feel that it would be remiss of me if I did not add my voice to the cause of fair treatment for those of my constituents who work in the postal and the Federal establishments.

Mr. Chairman and members of the committee, like so many other Members of the House of Representatives, I felt when I cast my vote last year for the legislation that eventually became Public Law 87-793-that I was contracting a debt of honor. The language of the legislation made it perfectly clear that it was the intent of the Congress that postal and Federal workers would thereafter have their wages adjusted annually to conform with wage increases granted their opposite numbers in private industry. It was clearly the intent of Congress that wage increases for Federal and postal workers would no longer be adjusted on a hit-or-miss basis after the usual expensive, wearing, and inefficient biennial pay crusades. Public Law 87-793 was intended to put the adjustment of postal and Federal salaries on