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December 22, 2014
Budget Proposal Would Freeze Federal Pay Through 2015
Updated On: Mar 20, 2012

The GOP Budget Proposal Would Freeze Federal Pay Through 2015
By Ian Smith

Tuesday, March 20, 2012 

 below link is from FedSmith

http://www.fedsmith.com/article/3351/gop-budget-proposal-would-freeze-federal.html

 The GOP's 2013 federal budget blueprint released today contains a number of proposed cuts for federal workers including a 10% reduction in the federal workforce and an extended pay freeze through 2015.

The proposed cuts in the budget should not come as a shock. We reported last week that federal employees could expect some form of proposed cuts in the budget, plus given the plethora of proposals that would scale back on the federal workforce ranging from workforce cuts through attrition to freezing step increases that have been suggested since the pay freeze was first proposed by President Obama in 2010, it stands to reason some form of cost cutting via public sector workers would be utilized.

The Proposed Cuts

The budget proposes the following:

  • A 10% workforce reduction over the next three years through attrition
  • Extending the current pay freeze through 2015

It is estimated that these cuts would save taxpayers approximately $368 billion over ten years.

The impetus for these cuts is to slow the rapid growth of the public sector which has been crowding out growth in the private sector. According to the proposal, "The federal government has added 147,000 new workers since the President took office. It is no coincidence that private-­?sector employment continues to grow only sluggishly while the government expands: To pay for the public-­? sector’s growth, Washington must immediately tax the private sector or else borrow and impose taxes later to pay down the debt."

The budget proposal notes, however, that the duties of the federal government do require a strong federal workforce. So while the GOP intends to make cuts, they don't want to take them too far. Hence, the proposal says that "Pay increases and fringe benefits [of the federal workforce] should be reformed to better align with those of their private-sector counterparts."

This statement is referring to the CBO's recent study which shows that public sector wages and benefits continue to outpace those of the private sector, noting that the CBO showed that federal workers receive, on average, 16% higher pay and benefits to comparable workers in the private sector.

"The reforms called for in this budget aim to slow the federal government’s unsustainable growth and reflect the growing frustration of workers across the country at the privileged rules enjoyed by government employees. They reduce the public-­?sector bureaucracy, not through layoffs, but via a gradual, sensible attrition policy," concludes the Budget Committee.

The 2013 budget proposal is nearly identical to the one put forth by the House Budget Committee last year in terms of its approach to reducing the federal workforce. A statement from last year's proposal reads, "[The proposed budget would] boost private-sector employment by slowing the explosive growth of the public sector, achieving a 10 percent reduction over the next three years in the federal workforce through attrition, coupled with a pay freeze for the next five years and reforms to government workers' generous benefit packages."

The Path to Prosperty: FY 2013 Budget Resolution 


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This Week in Labor History

T

This Week in Labor History

December 22

Twenty-one Chicago firefighters, including the chief, died when a building collapsed as they were fighting a huge blaze at the Union Stock Yards.  By the time the fire was extinguished, 26 hours after the first alarm, 50 engine companies and seven hook-and-ladder companies had been called to the scene. Until September 11, 2001, it was the deadliest building collapse in American history in terms of firefighter fatalities – 1910

Amid a widespread strike for union recognition by 395,000 steelworkers, approximately 250 alleged “anarchists,” “communists,” and “labor agitators” were deported to Russia, marking the beginning of the so-called “Red Scare” – 1919

December 23

AFL officers are found in contempt of court for urging a labor boycott of Buck's Stove and Range Co. in St Louis, where the Metal Polishers were striking for a 9-hour day - 1908

Construction workers top out the North Tower of the World Trade Center at 1,368 feet, making it the tallest building in the world - 1970

December 24

Seventy-two copper miners’ children die in panic caused by a company stooge at Calumet, Mich., who shouted “fire” up the stairs into a crowded hall where the children had gathered.  They were crushed against closed doors when they tried to flee - 1913

December 25

A dynamite bomb destroys a portion of the Llewellyn Ironworks in Los Angeles, where a bitter strike was in progress – 1910

Fourteen servicemen from military bases across the U.S., led by Pvt. Andrew Stapp, form The American Servicemen’s Union (ASU). The union, which never came close to being recognized by the government, in its heyday during the Viet Nam war claimed tens of thousands of members and had chapters at bases, on ships and in Viet Nam. ASU demands included the right to elect officers - 1967

December 26  

Knights of Labor founded. Constitution bars from membership “parasites,” including stockbrokers and lawyers - 1869

Workingmen’s Party is reorganized as the Socialist Labor Party - 1877

December 27

President Roosevelt seizes the railroads to avert a nationwide strike. His decision to temporarily place the railroads under the “supervision” of the War Department prompts the five railroad brotherhoods to agree to his offer to arbitrate the wage dispute - 1943

December 28

The coffee percolator is patented by James H. Mason of Franklin, Mass., placing himself forever in the debt of millions of caffeine-dependent working people – 1865

Country music legend Hank Williams attends what is to be his last musicians’ union meeting, at the Elite (pronounced E-light) café in Montgomery, Ala. He died of apparent heart failure three days later in the back seat of a car driving north.  He was 29 - 1952

— Compiled and edited by David Prosten, Union Communication Services

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