§ 200.22 Requests for inspection of records.

(a) Place, time, etc. Requests for inspection and copying of records may be filed, in person or by mail, with the Director of the Office of Public Affairs, Pay Board, 2000 M Street NW., Washington, DC, between 8:30 a.m. and 5 p.m., Monday through Friday, except holidays.

(b) Forms, identification of information. Such requests shall be made on a specified Pay Board form, and should identify with specificity the documents or other information sought. Copies of that form will be available in the Office of Public Affairs.

said person, the requested record to that extent will be made available for inspection. To the extent that the decision is adverse to the request, the reason(s) for the denial will be stated. A decision upon review as provided herein shall constitute the final action of the Board as to the availability of a requested record. § 200.28 Fees.

The Executive Director of the Board will establish such fees and charges for record searching, reproduction, and related expenses incurred with respect to records made available to the public as is deemed reasonable and appropriate. If the Director, or his designee, determines that a record can be furnished without significant disruption of other business activities (and the record may otherwise be disclosed), he may make it available without charge.

PART 201-STABILIZATION OF WAGES AND SALARIES

Sec. 201.1 201.2

If the record is of the nature described in 5 U.S.C. 552 (b) (1)-(9) or is otherwise not available, the requesting party will be informed in writing of the specific reason(s) why the record may not be disclosed.

§ 200.26 Requests for reconsideration of nonavailability.

Any person whose request to inspect a record has been denied because the record was not made available for stated reason(s) may request a reconsideration of the initial denial. Such reconsideration will be made by the Chairman of the Pay Board, and will be based upon the original request, the denial, and any written argument submitted by the person requesting the review. § 200.27

Final determination of availability.

The decision upon review, as provided for in § 200.26, will be promptly made in writing and transmitted to the person requesting such reconsideration. If the decision is wholly or partly in favor of

Appendix C-Definitional Decisions Adopted by the Pay Board.

Appendix D-Procedural Decisions Adopted by the Pay Board.

AUTHORITY: The provisions of this Part 201 issued under Economic Stabilization Act of 1970, as amended (Public Law 91-379, 84 Stat. 799; Public Law 91-558, 84 Stat. 1468; Public Law 92-8, 85 Stat. 13; Public Law 92-15, Stat. 39), Executive Order No. 11627 (36 F.R. 20139, Oct. 16, 1971), and Cost of Living Council Order No. 3 (36 F.R. 20202, Oct. 16, 1971), unless otherwise noted.

SOURCE: The provisions of this Part 201 appear at 36 F.R. 21791, Nov. 13, 1971, unless otherwise noted.

The purpose of these regulations is to establish rules and standards to stabilize wages and salaries, as defined in § 201.3, in accordance with the provisions of Executive Order No. 11627 (3 CFR, 1971 Comp., 36 F.R. 20139), and to provide guidance and procedures for an orderly transition from the 90-day general freeze imposed by Executive Order No. 11615 (3 CFR, 1971 Comp., 36 F.R. 15727). All persons are required by law to comply with the provisions of the Economic Stabilization Act of 1970 as amended, and all Executive orders, regulations (including this regulation), circulars, and orders issued thereunder, and all persons are expected to comply voluntarily with such law, orders, and regulations. The policies governing pay adjustments, adopted by the Pay Board on November 8, 1971, are attached as Appendix A to this part. Appendix B and Appendix C are attached to include Interpretive Decisions and Definitional Decisions, respectively, which have been adopted by the Pay Board.

[36 F.R. 21791, Nov. 13, 1971, as amended at 36 F.R. 21952, Nov. 17, 1971]

For purposes of this part, unless otherwise restricted herein

"Act" means the Economic Stabilization Act of 1970, as amended.

"Appropriate employee unit" includes a group composed of all employees in a bargaining unit or in a recognized employee category. Such bargaining unit or employee category may exist in a plant or other establishment or in a department thereof, or in a company, or in an industry and shall be determined so as to preserve, as nearly as possible, contractual or historical wage and salary relationships.

"Employment contract" includes, but is not limited to, collective bargaining agreements and individual contracts of employment.

"Party at interest" means:

(1) A bargaining representative of employers who could be required to pay the wages and salaries in question, or in the absence of such bargaining representative, an employer who could be required to pay the wages and salaries in question; or

(2) A bargaining representative of employees who could receive payment of wages and salaries in question, or in the absence of such bargaining representative, an employee who could receive payment of wages and salaries in question.

"Person" includes any individual, estate, trust, partnership, association, company, labor organization, State or local governmental unit or instrumentality of such governmental unit, but does not include a foreign corporation in a foreign country, a foreign government, an instrumentality of a foreign government, or an organization that includes within its membership foreign governments or instrumentalities thereof.

"Tandem relationship" means, for purposes of § 201.13(c), a well-established and consistently maintained practice whereby the precise timing, amount, and nature of general increases in wages and salaries of a given appropriate employee

unit have so followed those of another such unit of employees of the same employer or of other employers within a commonly recognized industry (such as standard industrial classification twodigit category) that a general increase, in the normal operation of the practice, would have been put into effect and have been applicable to work performed on or before November 13, 1971, but for the operation of the freeze.

"Wages and salaries” include all forms of direct and indirect remuneration or inducement to employees by their employers for personal services, which are reasonably subject to valuation, including but not limited to: Vacation and holiday payments; bonuses; layoff and severance pay plans; supplemental unemployment benefits; night shift, overtime, and incentive pay; employer contributions for insurance plans (but not including public plans, e.g. old-age, survivors, health, and disability insurance under the Social Security system, Railroad Retirement Acts, Federal Insurance Contributions Acts, Federal Unemployment Tax Acts and Civil Service Retirement Acts); savings, pension, profit sharing, annuity funds, and other deferred compensation and welfare benefits; payments in kind; job prerequisites; housing allowances; uniform and other work clothing allowances (but not including employer-required uniforms and work clothing whether or not for safety purposes); cost-of-living allowances; commision rates, stock options, and other fringe benefits; and benefits which result in more pay per hour or other unit of work or production (e.g. by shortening the workday without a proportionate decrease in pay).

[36 F.R. 21791, Nov. 13, 1971, as amended at 36 F.R. 23219, Dec. 7, 1971; 36 F.R. 25428, Dec. 31, 1971]

Subpart B-Pay Stabilization § 201.10

General wage and salary stand

ard. Effective on and after November 14, 1971, the general wage and salary standard (hereinafter referred to as the "standard") is established as 5.5 percent. The standard shall apply to any wage and salary increase payable with respect to an appropriate employee unit pursuant to an employment contract entered into or modified on or after November 14, 1971, or to a pay practice established, modified or administered with discretion on or after November 14, 1971. Except as

otherwise provided in the Regulations under this title or by decision of the Pay Board, the standard shall be used to compute the maximum permissible annual aggregate wage and salary increase. The appropriateness of the standard will be reviewed periodically by the Pay Board to insure that it is generally fair and equitable, that it calls for generally comparable sacrifice by business and labor as well as other segments of the economy and that it takes into account such factors as changes in productivity and the cost of living as well as other factors consistent with the purposes of the Act.

[36 F.R. 25428, Dec. 31, 1971]

§ 201.11 Criteria for exceptions.

(a) In general. Subject to the provisions in paragraph (c) of this section, on and after November 14, 1971, wage and salary increases in excess of the standard shall be permitted pursuant to the following criteria for exceptions—

(1) Tandem relationships. (i) If a party at interest demonstrates to the Pay Board (or its delegate) that—

(a) the wage and salary increase in the employment contract or pay practice to which a tandem relationship is claimed is in excess of the standard;

(b) such contract or pay practice became effective not more than 6 months prior to the proposed effective date of the wage and salary increase in the tandemclaiming unit;

(c) the amount and nature of the wage and salary increases in the tandem-claiming unit have been generally equal in value to and the timing has been directly related to those of another unit of employees of the same employer or of other employers within a commonly recognized industry or local labor market area; and

(d) the tandem relationship has been established as a past pactice for 5 consecutive years or in the immediately preceding two consecutive collective bargaining agreements.

(ii) The maximum permissible annual aggregate wage and salary increase pursuant to this subparagraph shall not exceed 7 percent.

(iii) The provisions of this subparagraph shall be subject to periodic review by the Board.

(2) Essential employees. (i) If an employer demonstrates to the Pay Board (or its delegate) that

(a) wage and salary increases exceeding the standard are necessary to attract or retain employees essential to the efficient operation of the employer;

(b) he has experienced a significant proportion of vacancies in an appropriate employee unit, despite intensive recruiting activity over a period of at least 3 months;

(c) there has been no significant deterioration or reduction in other conditions of employment; and

(d) there is a reasonable expectation that a wage and salary increase will be effective in recruiting or maintaining a supply of qualified employees.

(ii) The maximum permissible annual aggregate wage and salary increase pursuant to this subparagraph shall not exceed 7 percent.

(3) Catch-up increases. (i) If the aggregate percentage of wage and salary increases in the employment contract expiring prior to the new contract for which an exception is claimed is less than the sum of a percentage increase of 7 percent per year for each year of the prior contract, the difference between such aggregate and such sum shall be added to 5.5 percent to determine the maximum permissible wage and salary increase for the appropriate 12-month period.

(ii) If, in the absence of an employment contract, the aggregate percentage of wage and salary increases in the preceding 3 years is less than the sum of a percentage increase of 7 percent per year for each of the 3 years, the difference between such aggregate and such sum shall be added to 5.5 percent to determine the maximum permissible wage and salary increase for the appropriate 12-month period.

(iii) The exceptions provided in subdivisions (i) and (ii) of this subparagraph shall expire March 31, 1972. Such exceptions may be claimed only in regard to employment contracts entered into or pay practices established prior to April 1, 1972.

(iv) The maximum permissible annual aggregate increase under subdivisions (i) and (ii) of this subparagraph shall not exceed 7 percent.

(4) Cost of living allowance calculation. (i) If a wage and salary increase in a new contract or pay practice is composed of two parts, wages and salaries other than cost of living adjustments and cost of living adjustments pursuant to and justified by a generally accepted

escalator formula, the wage and salary part shall be calculated by the sum of the percentage increases method, and the cost of living part shall be calculated by multiplying each cost of living adjustment by a fraction, the numerator of which shall be the number of months within the appropriate 12-month period such cost of living adjustment is in effect, and the denominator of which shall be 12. These two parts shall be added together to determine the maximum permissible annual aggregate wage and salary increase.

(ii) For purposes of this exception, appropriate 12-month period means a 12month period beginning on the date that the wage and salary increase became effective.

(iii) The maximum permissible annual aggregate increase, calculated pursuant to the method in subdivision (i) of this subparagraph shall not exceed the general wage and salary standard.

(b) Overall limitations on exceptions. Except as provided in paragraph (a) (4) of this section, the maximum permissible annual aggregate wage and salary increase with respect to an appropriate employee unit, whether any or all of the above exceptions are applicable, shall not exceed 7 percent.

(c) Procedures for exceptions. Exceptions pursuant to subparagraphs (1) and (2) of paragraph (a) of this section shall require prior approval by the Pay Board (or its delegate). Exceptions pursuant to subparagraphs (3) and (4) of paragraph (a) of this section shall be self-executing for Category II and III wage and salary increases, but reports of all such wage and salary increases shall be made to the Pay Board or its delegate. Category I wage and salary increases, including those pursuant to subparagraphs (3) and (4) of paragraph (a) of this section, shall require prior approval by the Pay Board.

(d) Additional criteria. When the Board reviews new contracts and pay practices, and in its development of additional criteria for exceptions, it shall consider such factors as on-going collective bargaining and pay practices, the equitable position of the employees involved, and such other factors as are necessary to foster economic growth and to prevent gross inequities, hardships, serious market disruptions, domestic shortages of raw materials, localized shortages of labor, and windfall profits. [36 F.R. 25428, Dec. 31, 1971]

§ 201.12 Reduction of wages and salaries.

No reduction in wages and salaries being paid November 13, 1971, will be required pursuant to this part unless and to the extent that such wages and salaries were increased in violation of the Economic Stabilization Act of 1970, as amended, and orders and regulations issued pursuant thereto.

§ 201.13

Scheduled increases in wages and salaries for services rendered on or after August 15, 1971, and before November 14, 1971.

(a) In general. Scheduled increases in wages and salaries for services rendered by employees on or after August 15, 1971, and before November 14, 1971, which were not paid because prohibited by the freeze, may be made retroactively if permitted by any other paragraph of this section.

(b) Certain conditions for retroactive payment; section 203 (c) (2) of the Act. Payments of wage and salary increases (including any insurance or other fringe benefits offered in connection with employment) may be made if

(1) Such increases were (i) agreed to in an employment contract executed, entered into, or in effect prior to August 15, 1971, or (ii) contained in a pay practice announced, reduced to writing, placed in effect, or otherwise clearly established prior to August 15, 1971;

(2) Such increases were scheduled to take effect prior to November 14, 1971;

(3) Such increases were not paid as a result of orders issued under the Act; and

(4) (i) The aggregate of such increases does not exceed seven percent (7%) and (a) in case of a Category II pay adjustment of a Category III pay adjustment (as defined in §§ 101.23 and 101.25 of this title), the employer certifies by letter to the appropriate district director of Internal Revenue within 20 days subsequent to payment that the requirements of this paragraph have been fulfilled or (b) in case of a Category I pay adjustment (as defined in § 101.21 of this title), the Board has received prenotification of such adjustment and a challenge to determine that the provisions of subparagraphs (1), (2), and (3) of this paragraph have been met or that the increase does not exceed seven percent (7%) has not been made by a party at interest or five or more members of the Board within 14 days of such prenotification or within 14 days of providing any addi

tional proof requested by the Board, or

(ii) The aggregate of such increases does exceed seven percent (7%), and the Board has received prenotification of the proposed payment and there has not been a challenge by a party at interest or five or more members of the Board within 14 days of such prenotification, or within 14 days of providing any additional proof requested by the Board.

For the purposes of determining the percentage of the aggregate increases under this paragraph, the base compensation shall be the average cost of wages, salaries, and benefits per man hour for the appropriate employee unit affected by the increases on the day before the wage and salary increase pursuant to this paragraph was scheduled to take effect.

(c) Certain challenges. With respect to a challenge of proposed payments of wage and salary increases under paragraph (b) (4) of this section, the payments of such increases may be made if the Board determines that such increases are not unreasonably inconsistent with the standards published under §§ 201.10 and 201.11.

(d) Price increases in anticipation of wage and salary increases. Payments of wage and salary increases not otherwise payable under the provisions of § 201.15 may be made if a determination is made by the Internal Revenue Service, with right of appeal to the Pay Board in the event of an adverse determination, that the employer of the employees on whose behalf such payment is being sought raised the prices for his products or services prior to August 16, 1971, in anticipation of wage and salary increases scheduled to be paid to such employees after August 15, 1971.

(e) Consecutive agreements or practices. Payments of wage and salary increases may be made if a determination is made by the Internal Revenue Service, with right of appeal to the Pay Board in the event of an adverse determination, that a wage and salary agreement or pay schedule or practice adopted after August 15, 1971, succeeded an agreement, schedule or practice that expired or terminated prior to August 16, 1971, and retroactivity is demonstrated to be an established past practice of an employer and his employees or retroactivity had been agreed to prior to November 14, 1971.

(f) Tandem relationships. Payments of wage and salary increases may be