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parability is what you are striving for. We know whatever comes up will be right. If I could talk as Senator Dirksen did Monday, I would be happy. I think he made a good presentation and anything we could say would be superfluous. We thank you for your courtesy.
The CHAIRMAN. We appreciate your coming and we liked your comments.
Mr. RAFFENSPERGER. Thank you.
The CHAIRMAN. We will now hear from Mr. John G. Brady, chairman of the committee on legislation, from the National Association of Internal Revenue Employees.
Mr. BRADY. Mr. Chairman, I have with me this morning Mr. George Bursach, our executive secretary and treasurer.
The CHAIRMAN. We are glad to have you. Mr. BRADY. Mr. Chairman and members, I would like to read my brief and then I will comment on several points in it and give some examples.
The CHAIRMAN. You may proceed as it best suits you. STATEMENT OF JOHN G. BRADY, CHAIRMAN, COMMITTEE ON LEG
ISLATION, NATIONAL ASSOCIATION OF INTERNAL REVENUE EMPLOYEES; ACCOMPANIED BY GEORGE BURSACH, EXECUTIVE SECRETARY-TREASURER
Mr. BRADY. Mr. Chairman, and members of the committee, I am especially pleased to have this opportunity to appear before you, because all of us here today are well aware of sections 502 through 504 of title I of the Federal Salary Reform Act of 1962 which spells out in detail the contractual agreement the Congress made with Federal careerists.
Since Congress endorsed the comparability feature by its action last year, we believe that this 88th Congress will pass legislation so that Federal salaries will be brought into line and kept in line with general national salary levels.
In the past 30 years, teacher salaries have risen 106 percent. The salaries of all wage earners in America have increased 91 percent, but the salaries of civilian employees of Government have gone up only 73 percent.
The late President Kennedy lamented the fact that good, competent men in this country were frequently kept from Government service because of the low compensation accorded them.
Why should men be denied a fruitful career in public service simply because they cannot earn the same return for effort they receive in industry and the professions? The survival of the American system of Government may well depend upon its ability to attract and to hold the ablest members of our society, and yet the frightening fact is that in top Government service today the average tenure of Government service is very low.
STUDY OF FEDERAL PAY Study of Federal pay conditions explicitly indicate that the reason Government employees' salaries lag so far behind wages in private industry, is that increases in Federal pay come too infrequently. Pay
increases in private industry are usually increased on an annual basis, and are often written into union contracts. These same increases are therefore accomplished automatically and without much, if any, publicity. Studies show that the average wage increase in private industry was about 3 percent last year.
On the other hand, Federal pay increases come far too infrequently. Usually they are only achieved after a long period of strenuous campaigning and by using the maximum of publicity. This arrangement is inefficient, most expensive, uncertain, and time consuming. By the time the President signs a new pay bill into law, the level of Federal wages has already fallen behind wages in outside industry.
In October of 1962, Congress passed the Federal pay reform legislation as part of Public Law 87–793. As a result, Congress is honorbound to act on adjusting Federal pay schedules on a comparability basis with private industry whenever the President, on the basis of annual surveys conducted by the Bureau of Labor Statistics, finds the level of Federal pay has lagged significantly behind the level of pay for comparabale jobs in private industry.
On April 29, 1963, the President recommended such comparability pay increases for Federal employees to become effective January 1, 1964. It is the firm belief of all Înternal Revenue employees that the Congress should now live up to its obligation of last year. If such action is not taken, the important principle of comparability will possibly be lost forever.
Even if the Congress does act favorably on the President's recommendations the proposed increases will lag because the Bureau of Labor Statistics makes its survey at the end of the year, covering conditions existing during the 12 months immediately past. So by the time the employees would be getting their pay increases, they would be lagging 2 years behind true comparability with outside industry.
It seems that everybody is for a comparability pay increase. The President has recommended a comparability increase. The Bureau of the Budget supports the increase and so does the Civil Service Commission. We are certain that a vast majority of the Members of both Houses of Congress are in favor of the increase. The National Association of Internal Revenue Employees recommends and urges the passage of this vitally important legislation.
The brief as submitted here today is keyed strictly to comparability.
Since Congress has already endorsed the comparability feature by its action last year, we in the Internal Revenue Service believe this 88th Congress will pass the necessary legislation to bring Federal salaries into line and keep in line with general national salary levels.
Let me say a few words about the training of new employees for Internal Revenue Service during the past few years. I have had a part in this training and we are securing topflight college graduates, well equipped in knowledge. It has been a pleasure working with these new employees. But I am saddened when we finish with this very expensive and extensive training to have many of them leave the service for employment in industry.
I checked the records of field agents leaving the service during the fiscal year ending June 30, 1963, and find that 504 left the service. I do not have a breakdown for all reasons of leaving—but the number speaks for itself covering upper graded employees. I do hope you
71 acist the salaries on a comparability basis. We need
al trained people to carry on the work of the ne re. And maybe in due time we will, with this 21. Mr "sts and still keep up efficiency. newarii also like to place in the records the comparison
r es und proposed amounts in the current pay bill
- H I will turn over to the reporter shows grades 4 e . vorking grade for field employees is now around
. : 0 r re table will show that employees of grade GS-11 - Irlare che lowest of all-1.66 percent.
- pe miministration employees in the top grades are de* : - Iltanui increases, as are the Members of Congress; Tour e pupiovees in the lower grades are also deserving of .-
- sinuacon for study by this committee. '
Vilows:) renk auries and proposed amounts in current pay bill before
.. : Ducernal Revenue employees are cognizant
net te rrezi or the Congress and well realize the in it only in Washington, D.C.; so today we make . in
s t the salaries of the Congress and their S
a nt la re always been forgotten by people in
'Tiana ou de to add something, Mr. Bursach? intre tantas volt, Jr. Chairman, and your com... 2* i et an opportunity to appear before
'pili ste to know that our association's i po sat to your committee are available
STATEMENT OF ROSS A. MESSER, LEGISLATIVE LLILLEENTHALVE NATIONAL ASSOCIATION OF POST OFFICE AND GLADIAL SERT ICES MAINTENANCE EMPLOYEES
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will be able to adjust the salaries on a comparability basis. We need these well-educated, well-trained people to carry on the work of the Internal Revenue Service. And maybe in due time we will, with this talent, cut down our costs and still keep up efficiency.
At this time I would also like to place in the records the comparison of present salaries and proposed amounts in the current pay bill before the Congress.
The exhibit that I will turn over to the reporter shows grades 4 through 13. The working grade for field employees is now around GS-11. A look at the table will show that employees of grade GS-11 classification will fare the lowest of all-1.66 percent.
Certainly the administration employees in the top grades are deserving of substantial increases, as are the Members of Congress; however, the employees in the lower grades are also deserving of salary based on comparability.
I offer this information for study by this committee.
(The table is as follows:) Comparison of present salaries and proposed amounts in current pay bill before
Mr. BRADY. The 59,000 Internal Revenue employees are cognizant of the great work performed by the Congress and well realize the problem of high cost of living in Washington, D.C.; so today we make a strong plea for adjustments in the salaries of the Congress and their staff. Congress and its staff have always been forgotten by people in pay raises.
Thank you very much. The CHAIRMAN. Would you like to add something, Mr. Bursach? Mr. BURSACH. I want to thank you, Mr. Chairman, and your committee for giving our organization an opportunity to appear before you, and I want you and your committee to know that our association's records and information we can give to your committee are available at your request.
The CHAIRMAN. I want to say that your organization, in my opinion, is doing a good job—a job that has always been a little bit annoying to the public, as you know, even back in the Biblical days. A tax collector was always in disfavor.
Mr. BRADY. Thank you, Mr. Chairman.
The CHAIRMAN. Mr. Ross A. Messer, legislative representative of the National Association of Post Office and General Services Maintenance Employees is our next witness.
We are glad to have you with us this morning, Mr. Messer.