Memorandum About Deferment of Federal Wage Increases.

Memorandum for the Heads of Executive Departments and Agencies:

SUBJECT: Deferment of Federal Wage Increases

On August 15, 1971, I announced a number of new economic initiatives to combat the persistent problems of inflation and unemployment. One of the key aims of Executive Order 11615 is a sustained effort to achieve continuing stabilization of salaries, wages, prices and rents throughout the economy.

One of the actions which I announced to implement the new economic policy is to defer pay raises for Federal workers for a period of six months. Accordingly, in order to comply with the needs of the public interest, as provided in subchapter IV of Chapter 53 of title 5, United States Code, I direct that the schedules for conducting wage surveys be revised so that beginning September 1, 1971, wage adjustments for all Federal wage employees will be delayed for a total period of six months, including the delay occasioned by my action of August 15, 1971. As soon as practicable following the period of delay, the normal survey cycle should be resumed.

I am designating the Chairman of the Civil Service Commission to coordinate the requirements of this directive and to develop similar plans with the heads of executive departments and agencies having negotiated wage schedules and rates or wage schedules which are administratively established so that an equivalent deferment of any wage increases will be achieved for Federal wage employees covered by such plans.

RICHARD NIXON