2/26/03

President Bush signs 4.1 percent raise for federal employees

Although negotiations with the state are in the early stages, with both sides reviewing the written proposals, the PEF contract team is keeping a watchful eye on current raise patterns.

The following information is from BNA's "Government Employee Relations" Report dated February 25, 2003.

Federal employees will receive a 4.1 percent average pay increase in 2003 retroactive to the beginning of January under a bill signed by President Bush on February 20. The bill was overwhelmingly approved by both houses of Congress on February 13.
In December, 2002 Bush signed an executive order granting 3.1 percent raises to federal civilian employees and 4.1 percent raises for military personnel. The recently signed bill corrects the disparity.

Representative Steny Hoyer who led the House effort to provide the 4.1 percent raise said
"It is important that we provide federal employees with fair pay adjustments if we are to retain quality employees and attract new ones.”

The Bush administration's recent 2004 budget proposal calls for a 2% across the board pay raise for federal employees plus $500 million for performance bonuses.

PEF Contract Chair Ken Brynien said, “When the time comes, information such as this will be a valuable negotiating tool. We understand the fiscal restraints with an anemic budget. When salary increases reach the bargaining table, we will encourage the state to find a way to satisfy our raise demands.”