[Federal Register Volume 60, Number 18 (Friday, January 27, 1995)]
[Rules and Regulations]
[Pages 5309-5312]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-2013]
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Rules and Regulations
Federal Register
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This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
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Federal Register / Vol. 60, No. 18 / Friday, January 27, 1995 / Rules
and Regulations
[[Page 5309]]
OFFICE OF PERSONNEL MANAGEMENT
5 CFR Part 532
RIN 3206-AG12
Prevailing Rate Systems; Special Wage Schedules for Supervisors
of Negotiated Rate Bureau of Reclamation Employees
AGENCY: Office of Personnel Management.
ACTION: Final rule.
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SUMMARY: The Office of Personnel Management is issuing a final rule to
establish special wage schedules for the supervisors of certain Bureau
of Reclamation, Department of the Interior, employees who negotiate
their wage rates.
EFFECTIVE DATE: February 27, 1995.
FOR FURTHER INFORMATION CONTACT:
Paul Shields, (202) 606-2848.
SUPPLEMENTARY INFORMATION: On September 7, 1994, at 59 FR 46201, the
Office of Personnel Management (OPM) published a proposed rule to
establish special wage schedules for the supervisors of certain Bureau
of Reclamation, Department of the Interior, employees who negotiate
their wage rates, with a 30-day comment period. During the comment
period, which ended October 7, 1994, OPM received comments from a local
union officer and six employees.
Discussion of Comments
1. The local union officer and two employees said they thought the
new special schedule system would be expensive and recommended that the
current process of linking the pay of supervisors with bargaining unit
rates of pay be continued or modified.
We do not agree with these comments. This new special schedule
proposal was developed by the Bureau of Reclamation working in
partnership with the covered supervisors and reflects agreements
reached in those discussions. When the agency removed the supervisors
from the bargaining units in 1990, the only pay system available was
the Federal Wage System (FWS) under the provisions of title 5, United
States Code. The agency received authority to temporarily continue (as
an agency ``set-aside'' practice) the historical pay differentials at
each location, subject to the statutory pay limitations of the FWS. Pay
setting for these supervisors is complicated by the combined factors of
wage negotiations for bargaining unit employees, delays in those
negotiations, pay limitation statutes, and FWS locality pay rates. The
purpose of this special schedule is to eliminate, in the pay-setting
process for these supervisors, the dependence on negotiated rates for
the bargaining unit and the associated complications of delays in
negotiations.
Based on the information currently available, the proposed special
schedule will not result in a significant increase in operating costs.
Under the new survey process, the special wage survey for supervisors
will be timed to coincide with the annual survey that is done for
bargaining unit employees. The surveys will be done at the same time
with many of the same firms being surveyed for both purposes. The
special wage survey committees and data collector personnel will be the
same, with a few additions for the supervisory survey.
2. Several questions were raised about how special wage area
boundaries were set up. Special wage area boundaries were generally
established to correspond to the boundaries currently being used for
the wage surveys for bargaining unit employees. However, in some cases,
areas were consolidated either because of the desire to simplify the
survey and wage setting process, the geographic location of the Bureau
of Reclamation projects, the desire to permit use of the same survey
company in more than one project, or the similarity of the rates being
paid to the Bureau of Reclamation supervisors in consolidated areas.
Three employees recommended that the survey area for the Hungry
Horse Project Office be extended to include Pend Oreille County,
Washington, which would include Boundary Dam, a facility of Seattle
City Light Company. As a city government facility, Boundary Dam does
not meet the statutory FWS requirement that only private industry
companies be surveyed. However, since Pend Oreille County is within the
survey area used for the bargaining unit employees, and the Bureau of
Reclamation is attempting to coordinate surveys for the supervisors
with those of the bargaining unit, we have added Pend Oreille County to
the Hungry Horse Project Office survey area. This will also facilitate
the process in the future should the local area survey committee need
to add private industry survey companies in that county.
3. The local union officer and three employees commented on the
industries and companies to be included in the special surveys. The
union suggested that only unionized companies be surveyed. We do not
agree with this suggestion because under statutes and regulations, FWS
pay-setting is based on a determination of private industry prevailing
rates, regardless of union organization. The three employees expressed
concern that private industry electric utility and hydro-electric
companies would not be included in the surveys. No changes in the
regulation are needed. These industries are expressly included by the
regulation at Sec. 532.285(c)(1) (Standard Industrial Classification
Major Group 49--Electric, Gas, and Sanitary Services).
4. Two employees expressed concern that the survey jobs being used
in the special surveys would not cover jobs in large hydro-electric
facilities with multi-crafts. We do not feel a change is necessary.
This special schedule process takes into account the number of crafts
supervised and the range of work supervised through application of the
classification criteria found in Factor 1 and Subfactor IIIA of the FWS
Job Grading Standard for Supervisors. These job aspects are covered by
Subfactor IIIA, Scope of Assigned Work Function and Organizational
Authority, which addresses aspects reflecting the variety of crafts and
the range of work. For example, at Level A-4, the scope and diversity
of work supervised is addressed. Similarly, one of the elements used in
distinguishing the difference among situations in Factor 1, Nature of
Supervisory Responsibility, is the number of levels of supervision
through which work activities are [[Page 5310]] controlled. More levels
of supervision tend to be associated with a greater number of crafts
supervised.
One employee asked how the four levels for Supervisors I-IV fit
into the survey process. As explained in Sec. 532.285 (b) and (c)(3) of
the final regulation, survey jobs representing positions at up to four
levels will be tailored to correspond to the positions of each covered
supervisor in that area. They will be matched to private industry jobs
in each special wage area. Special schedule rates for each position
will be based on prevailing rates for that particular job in private
industry. The special survey and wage schedule for a given area
includes only those occupations and levels having employees in that
area. The regulation was not changed in this respect.
5. An employee expressed concern that current supervisors would not
be adequately compensated for their experience upon conversion to the
new special schedule as compared to newly hired supervisors. The new
special schedule provides special consideration to current supervisors
in the first year of implementation. Under Sec. 532.285(f)(2), current
supervisors are placed in step 2 of the new special schedule, unless
their rate of pay exceeds step 2, in which case they will be placed in
step 3. Pay retention benefits will apply to any employee whose current
rate of pay exceeds step 3. New employees will enter at step 1 of the
grade, unless a higher rate is established in accordance with the
advanced in-hire rate procedure. The new special schedule provides
added compensation for the experience of current employees, and no
changes are necessary.
6. Two employees recommended that the definition of compensation
measured in industry surveys be expanded to include other company
benefits, such as a company vehicle with gas provided to get to and
from work, paid insurance coverage, company housing, and company stock
purchase options. The regulation will not be modified in this regard.
Under FWS statutes and practices, surveyed wages do include certain
bonuses, incentive rates, and cost of living allowances. Surveying the
additional benefits suggested would require a change in the law.
7. Finally, one employee commented that while the beginning month
of the survey for each special area is specified in the rule,
implementation or effective dates for the new schedules are not
specified. No change is necessary because, as with the regular FWS,
beginning dates for the special surveys are specified in the
regulation, and by statute (5 U.S.C. 5344(a)) increases in rates of pay
are effective not later than the first day of the first pay period
beginning on or after the 45th day following the date the survey is
ordered to be made.
Other Changes
The special schedule survey cycle in this rule has been changed
from 3 years to 2 years because it has been determined that the 3-year
proposal exceeded OPM's regulatory flexibility. The prevailing rate law
grants OPM great flexibility to establish special schedules that differ
from regular schedules in terms of wage area boundaries; industrial,
geographic, and occupational survey coverage; step rate structures; and
wage rate progressions. However, the regulatory flexibility to adjust
the normal 2-year survey cycle allows only for more frequent, not less
frequent full-scale surveys.
In Sec. 532.285(f)(1), the reference to ``fiscal year 1995'' has
been deleted because this final rule will not be effective until well
into the fiscal year.
Regulatory Flexibility Act
I certify that these regulations will not have a significant
economic impact on a substantial number of small entities because they
will affect only Federal agencies and employees.
List of Subjects in 5 CFR Part 532
Administrative practice and procedure, Freedom of information,
Government employees, Reporting and recordkeeping requirements, Wages.
Office of Personnel Management.
Lorraine A. Green,
Deputy Director.
Accordingly, OPM is amending 5 CFR part 532 as follows:
PART 532--PREVAILING RATE SYSTEMS
1. The authority citation for part 532 continues to read as
follows:
Authority: 5 U.S.C. 5343, 5346; Sec. 532.707 also issued under 5
U.S.C. 552.
2. Subpart B is amended by adding Sec. 532.285 to read as follows:
Sec. 532.285 Special wage schedules for supervisors of negotiated rate
Bureau of Reclamation employees.
(a) The Department of the Interior shall establish and issue
special wage schedules for wage supervisors of negotiated rate wage
employees in the Bureau of Reclamation. These schedules shall be based
on annual special wage surveys conducted by the Bureau of Reclamation
in each special wage area. Survey jobs representing Bureau of
Reclamation positions at up to four levels will be matched to private
industry jobs in each special wage area. Special schedule rates for
each position will be based on prevailing rates for that particular job
in private industry.
(b) Each supervisory job shall be described at one of four levels
corresponding to the four supervisory situations described in Factor I
and four levels of Subfactor IIIA of the FWS Job Grading Standard for
Supervisors. They shall be titled in accordance with regular FWS
practices, with the added designation of level I, II, III, or IV. The
special survey and wage schedule for a given special wage area includes
only those occupations and levels having employees in that area. For
each position on the special schedule, there shall be three step rates.
Step 2 is the prevailing rate as determined by the survey; step 1 is 96
percent of the prevailing rate; and step 3 is 104 percent of the
prevailing rate.
(c) For each special wage area, the Bureau of Reclamation shall
designate and appoint a special wage survey committee, including a
chairperson and two other members (at least one of whom shall be a
supervisor paid from the special wage schedule), and one or more two-
person data collection teams (each of which shall include at least one
supervisor paid from the special wage schedule). The local wage survey
committee shall determine the prevailing rate for each survey job as a
weighted average. Survey specifications are as follows for all surveys:
(1) Tailored to the Bureau of Reclamation activities and types of
supervisory positions in the special wage area, private industry
companies to be surveyed shall be selected from among the following
Standard Industrial Classification Major Groups: 12 coal mining; 13 oil
and gas extraction; 14 mining and quarrying of nonmettalic minerals,
except fuels; 35 manufacturing industrial and commercial machinery and
computer equipment; 36 manufacturing electronic and other electrical
equipment and components, except computer equipment; 42 motor freight
transportation and warehousing; 48 communications; 49 electric, gas,
and sanitary services; and 76 miscellaneous repair services. No minimum
employment size is required for surveyed establishments.
(2) Each local wage survey committee shall compile lists of all
companies in the survey area known to have potential job matches. For
the first survey, all companies on the list will be surveyed.
Subsequently, companies shall be removed from the survey list if they
[[Page 5311]] prove not to have job matches, and new companies will be
added if they are expected to have job matches. Survey data will be
shared with other local wage survey committees when the data from any
one company is applicable to more than one special wage area.
(3) For each area, survey job descriptions shall be tailored to
correspond to the position of each covered supervisor in that area.
They will be described at one of four levels (I, II, III, or IV)
corresponding to the definitions of the four supervisory situations
described in Factor I and four levels of Subfactor IIIA of the FWS Job
Grading Standard for Supervisors. A description of the craft, trade, or
labor work supervised will be included in each supervisory survey job
description.
(d) Special wage area boundaries shall be identical to the survey
areas covered by the special wage surveys. The areas of application in
which the special schedules will be paid are generally smaller than the
survey areas, reflecting actual Bureau of Reclamation worksites and the
often scattered location of surveyable private sector jobs. Special
wage schedules shall be established in the following areas:
The Great Plains Region
Special Wage Survey Area (Counties)
Montana: All counties except Lincoln, Sanders,Lake, Flathead,
Mineral, Missoula, Powell, Granite, and Ravalli
Wyoming: All counties except Lincoln, Teton, sublette, Uinta, and
Sweetwater
Colorado: All counties except Moffat, Rio Blanco, Garfield, Mesa,
Delta, Montrose, San Miguel, Ouray, Delores, San Juan, Montezuma, La
Plata, and Archuleta
North Dakota: All counties
South Dakota: All counties
Special Wage Area of Application (Counties)
Montana: Broadwater, Jefferson,Lewis and Clark, Yellowstone, and
Bighorn Counties
Wyoming: All counties except Lincoln, Teton, Sublette, Uinta, and
Sweetwater
Colorado: Boulder, Chaffee, Clear Creek, Eagle, Fremont, Gilpin,
Grand, Lake, Larimer, Park, Pitkin, Pueblo, and Summitt
Beginning month of survey: August
The Mid-Pacific Region
Special Wage Survey Area (Counties)
California: Shasta, Sacramento, Butte, San Francisco, Merced,
Stanislaus
Special Wage Area of Application (Counties)
California: Shasta, Sacramento, Fresno, Alameda, Tehoma, Tuolumne,
Merced
Beginning month of survey: October
Green Springs Power Field Station
Special Wage Survey Area (Counties)
Oregon: Jackson
Special Wage Area of Application (Counties)
Oregon: Jackson
Beginning month of survey: April
Pacific NW. Region Drill Crew
Special Wage Survey Area (Counties)
Montana: Flathead, Missoula
Oregon: Lane, Bend, Medford, Umatilla, Multnomah
Utah: Salt Lake
Idaho: Ada, Canyon, Adams
Washington: Spokane, Grant, Lincoln, Okanogan
Special Wage Area of Application (Counties)
Oregon: Deschutes, Jackson, Umatilla
Montana: Missoula
Idaho: Ada
Washington: Grant, Lincoln, Douglas, Okanogan, Yakima
Beginning month of survey: April
Snake River Area Office (Central Snake/Minidoka)
Special Wage Survey Area (Counties)
Idaho: Ada, Caribou, Bingham, Bannock
Special Wage Area of Application (Counties)
Idaho: Gem, Elmore, Bonneville, Minidoka, Boise, Valley, Power
Beginning month of survey: April
Hungry Horse Project Office
Special Wage Survey Area (Counties)
Montana: Flathead, Missoula, Cascade, Sanders, Lake
Idaho: Bonner
Washington: Pend Oreille
Special Wage Area of Application (Counties)
Montana: Flathead
Beginning month of survey: March
Grand Coulee Power Office (Grand Coulee Project Office)
Special Wage Survey Area (Counties)
Oregon: Multnomah
Washington: Spokane, King
Special Wage Area of Application (Counties)
Washington: Grant, Douglas, Lincoln, Okanogan
Beginning month of survey: April
Upper Columbia Area Office (Yakima)
Special Wage Survey Area (Counties)
Washington: King, Yakima
Oregon: Multnomah
Special Wage Area of Application (Counties)
Washington: Yakima
Oregon: Umatilla
Beginning Month of Survey: September
Colorado River Storage Project Area
Special Wage Survey Area (Counties)
Arizona: Apache, Coconino, Navajo
Colorado: Moffat, Montrose, Routt, Gunnison, Rio Blanco, Mesa,
Garfield, Eagle, Delta, Pitkin, San Miguel, Delores, Montezuma, La
Plata, San Juan, Ouray, Archuleta, Hindale, Mineral
Wyoming: Unita, Sweetwater, Carbon, Albany, Laramie, Goshen, Platte,
Niobrara, Converse, Natrona, Fremont, Sublette, Lincoln
Utah: Beaver, Box Elder, Cache, Carbon, Daggett, Davis, Duchesne,
Emery, Garfield, Grand, Iron, Juab, Kane, Millard, Morgan, Piute,
Rich, Salt Lake, San Juan, Sanpete, Sevier, Summit, Tooele, Uintah,
Utah, Wasatch, Washington, Wayne, Weber
Special Survey Area of Application (Counties)
Arizona: Coconino
Colorado: Montrose, Gunnison, Mesa
Wyoming: Lincoln
Utah: Daggett
Beginning month of survey: March
Elephant Butte Area
Special Wage Survey Area (Counties)
New Mexico: Grant, Hidalgo, Luna, Dona Ana, Otero, Eddy, Lea,
Roosevelt, Chaves, Lincoln, Sierra, Socorro, Catron, Cibola,
Valencia, Bernalillo, Torrance, Guadalupe, De Baca, Curry, Quay
Texas: El Paso, Hudspeth, Culberson, Jeff Davis, Presido, Brewster,
Pecos, Reeves, Loving, Ward, Winkler
Arizona: Apache, Greenlee, Graham, Cochise
Special Wage Area of Application (Counties)
New Mexico: Sierra
Beginning month of survey: June
Lower Colorado Dams Area
Special Wage Survey Area (Counties)
Nevada: Clark
California: Los Angeles
Arizona: Maricopa
Special Wage Area of Application (Counties)
Nevada: Clark
California: San Bernardino
Arizona: Mohave
Beginning month of survey: August
Yuma Projects Area
Special Wage Survey Area (Counties)
California: San Diego
Arizona: Maricopa, Yuma
(Note: Bureau of Reclamation may add other survey counties for
dredge operator supervisors because of the uniqueness of the
occupation and difficulty in finding job matches.)
Special Wage Area of Application (Counties)
Arizona: Yuma
Beginning month of survey: November (Maintenance) and April
(Dredging)
Bureau of Reclamation, Denver, CO, Area
Special Wage Survey Area (Counties)
Colorado: Jefferson, Denver, Adams, Arapahoe, Boulder, Larimer
Special Wage Survey Area of Application (Counties)
Colorado: Jefferson
Beginning month of survey: February
(e) These special schedule positions will be identified by pay plan
code XE, grade 00, and the Federal Wage System occupational codes will
be used. New employees shall be hired at step 1 of the
[[Page 5312]] position. With satisfactory or higher performance,
advancement between steps shall be automatic after 52 weeks of service.
(f) (1) In the first year of implementation, all special areas will
have full-scale surveys.
(2) Current employees shall be placed in step 2 of the new special
schedule, or, if their current rate of pay exceeds the rate for step 2,
they shall be placed in step 3. Pay retention shall apply to any
employee whose rate of basic pay would otherwise be reduced as a result
of placement in these new special wage schedules.
(3) The waiting period for within-grade increases shall begin on
the employee's first day under the new special schedule.
[FR Doc. 95-2013 Filed 1-26-95; 8:45 am]
BILLING CODE 6325-01-M
