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January 5, 2009

 

2009 Pay Adjustment Ratified!

 

The 2009 Annual Pay Adjustment Agreement has been ratified by the Union membership, with 99 percent of the votes cast in favor! The pay adjustments spelled out in the agreement are to be instituted in the first pay period of 2009.

 

According to the agreement, GAO will provide an annual adjustment to our current base salary.  The adjustment will be equivalent to the General Schedule total increase (including locality) for the GS locality pay area in which each field office is located and will be processed in the first pay period of 2009.  The “2009 GS Locality Increases by GAO Office Location” [PDF] can be viewed at our website www.gaoanalysts.org.

 

These increases will be provided without regard to any salary limitation, such as salary caps or the Band IIB “speed bump.”  This agreement applies to all bargaining unit employees, including PDP and CAPP.   GAO has decided to provide the same annual adjustment to employees outside of the bargaining unit.  For example, the Washington DC area GS locality adjustment is 4.78 percent, so all employees at HQ will receive a 4.78 percent increase in their base salary. In another example, San Francisco's GS locality adjustment is 4.31 percent, so all employees in San Francisco will receive a 4.31 percent increase in their salary. Receiving an annual adjustment equivalent to the GS total increase by locality in the first pay period represents a big improvement for many employees.  For developmental employees in particular, many of whom have received an annual adjustment that was  less than the GS locality-adjusted increase for their pay area in recent years, it is a big win.

 

 

Why did we go this way?


During this year and last year’s negotiations, our union worked toward obtaining pay parity with our federal counterparts, at a minimum.  In the past, annual adjustments for most GAO employees were lower than their federal counterparts. The 2009 GAO annual adjustment achieves parity with other federal employees receiving the GS locality-based annual adjustment.

 

 
Why do different locations receive different annual adjustments?


The GS system, under which most of the federal government operates, determines changes in cost of labor by location every year.  By receiving the GS locality-based annual adjustment, GAO employees will get the same annual adjustment rate increase as other federal employees.  Note that last year GAO employees received an annual adjustment equal to the national “average” GS locality-based increase, which was higher than management initially proposed, but was lower than what most GAO employees would have received if the relevant GS locality-based increase for each office had been used.

 


How does the annual adjustment interact with GAO zone differentials?


Although there is no change in the GAO geographic zone differentials, since this year’s agreement applies a different annual adjustment to employees in each locality, it does change the relative rates that current employees are paid in different localities.  For example, although Washington D.C. and Chicago employees are both in GAO geographic zone 3, with the same salary ranges, employees in Washington D.C. will receive a greater annual adjustment rate increase than those in Chicago, reflecting the GS determination that Washington D.C. had a greater increase in the cost of labor than Chicago over the last year.  While the GAO negotiating team felt that the agreement to use GS locality adjustments represented a major step forward toward achieving pay parity with other federal employees, it recognizes that there are incongruities between the GAO zone differential system and the GS locality system, and plans to address locality pay issues for future years as part of master bargaining negotiations.

 


What is the relationship between the annual adjustment and the floor guarantee?


The GAO Act of 2008 includes a guarantee that all employees will receive a total pay increase, from a combination of the annual increase and performance based increase, that is at least equivalent to the GS increase by locality. In effect, GAO employees are receiving the full floor guarantee through this year’s annual adjustment alone!  The additional amount of performance-based compensation that employees receive (to be determined through subsequent negotiations) will all be in excess of the floor guarantee.

 


What about my performance-based compensation adjustment?


The agreement provides that negotiations on performance-based compensation will begin after GAO receives its final FY 2009 appropriation.  The agreement also provides that the performance-based compensation will be retroactive to the first pay period in January. GAO management, Union negotiating team, and you (through your ratification vote) were all in agreement that it was best to provide an annual increase as soon as possible, and follow up with the performance-based increase later.

 

Thank you to all those who voted!  If you have questions or concerns, please send an email ICquestions@gaoanalysts.org.  For more information on joining the Union, please visit the Web site at www.gaoanalysts.org.  Our union is a democratic organization, and so to ensure we represent the interests of all employees, we encourage you to join and have a voice.