President's Update
We've seen some real swings in the weather lately. Last week we had sub-zero temps and blizzard conditions and this week we'll see the 50s. Likewise, we've seen some big changes in Washington in the last week. We averted a government shutdown, the government will be funded for the remainder of the FY, and we received a pay raise.
Last week, the Senate and the House agreed to an omnibus bill that set overall spending levels and covers all appropriations in a single bill rather than separate appropriations bills. The bill includes a 10% increase in Defense spending and a 9.2% increase for domestic spending. The President will sign the bill this week. Wording excluding the creation of Schedule F employees was not included. The previous adminiastration created Schedule F postions through an executive order (EO) to make it easier to fire Federal employees. The Biden administration vovoked that EO.
Last week, President Biden issued an EO raising federal employee pay by 4.6% (4.1% base pay and 0.5% locality pay). These are the same numbers identified in his FY23 budget. This is the largest pay raise since 2002, although it does not keep up with inflation for the last year that was more than 7%. The EO was required, as Congress did not identify a pay increase in the spending bill. In spite of the raise, the Federal employees’ wages are falling further behind those in the private sector, according to new data from the Federal Salary Council. Federal Employees Pay Comparability Act of 1990 was passed to address the pay gap, but the gap continues to grow. The Council reported that in 2022, federal workers earned 24.09% less in wages (not including benefits) than their private sector counterparts, which is larger than the 2021 pay gap of 22.47%.
Looking forward to 2023, the Senate will be controlled by the Democrats and the House will be controlled by the Republicans. It's expected that legislative activity will be less productive and move more slowly as the two Congressional entities have differing prioriities. The Office of Personnel Management (OPM) will also be looking at workforce transformations. OPM has communicated to federal agencies that employee preference are to continue to work from home. Agengies that require more in-office work may be at risk for losing employees. OPM has already noted that employees are "agency hopping" looking for more flexible workplaces. We have seen this at ACC-RI, where many of their employees have taken jobs at Air Force and Navy Contracting Commands that are offering 100% telework positions.
The Biden administation, through OPM, is also looking at strengthening the federal workforce. This includes things like improving the hiring process, improving employee engagement, reforming pay (based on occupational groups and locality), and addressing diversity. These changes are expected to take place incrementally over several years. Initiatives to strengthen the workforce will be critical as 15% of the current workforce is eligible to retire today, 30% will be eligible to retire in five years, and only 7% of the workforce is under age 30.
That's all for now. Feel free to contact your stewards and officers on any issues, concerns, or ideas you have. Local 15 is interested in input from it's members, as collectively we are always better. Have a safe and enjoyable New Year's weekend.