Memorandums on the Need for Coordinating the Practices of Federal Wage Boards

Memorandum for Chairman Macy, U.S. Civil Service Commission

Subject: Coordination of wage board activities

I am deeply concerned by the differences in the systems and .practices used by the departments and agencies to fix the pay for Federal wage board employees and by the extent to which resulting wage rates differ for similar work within a community. These wage board pay fixing programs affect more than 617,000 Federal employees in trade, craft, and manual labor occupations. They involve payroll expenditures in excess of $4 billion annually.

From the facts available it seems dear that the pay disparities are inequitable, and result primarily from differences among the agencies in basic principles, policies, and practices under which wage board 'pay is fixed.

Accordingly, I have addressed the attached memorandum to the heads of the executive departments and agencies.

You will note that this memorandum assigns to you, as Chairman of the Civil Service Commission, three responsibilities: (1) leadership in coordination of the collective effort, including consultation with appropriate employee organizations; (2) keeping me informed of significant developments; and (3) reporting to me not later than July 1, 1966, on the corrective actions adopted.

LYNDON B. JOHNSON

Attachment

Memorandum for the Heads of Executive Departments and Agencies

Subject: Coordination of wage board activities

It has come to my attention that different executive departments and agencies follow different practices, and continue to pay different wage rates for the same trades and labor jobs in the same locality. Such differences constitute inequities which I believe can and should be corrected by cooperative action,

In its report of April 15, 1965, the Special Panel on Federal Salaries recommended that steps should be taken to eliminate the pay differences and to bring about equitable coordination of wage board practices. I agree with this recommendation.

I ask you, accordingly, to join with the heads of other executive departments and agencies in the development of common job standards and wage policies and practices which will insure interagency equity in wage rates based upon statistically valid wage surveys.

The policies and practices should be based upon the principles that (1) wages shall be fixed and adjusted from time to time as nearly as is consistent with the public interest in accordance with prevailing rates, and (2) there shall be equal pay for substantially equal work, and pay distinctions shall be maintained in keeping with work distinctions.

At appropriate stages in the development of the system, there should be consultation with representatives of employee organizations whose members are paid under the wage system.

I have asked Chairman Macy of the Civil Service Commission to take leadership in coordinating this collective action to develop a common Federal wages system, including consultation with appropriate employee organizations; to keep me currently informed of significant developments, and to report to me not later than July 1, 1966, on the actions adopted.

LYNDON B. JOHNSON