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DOCUNENT FESURE
04314 - [B33946,15]
Department of Defense Pay Practices for German Nationals Should
Be Changed. FPCD-77-86; B-179343. December 2, 1977. 1 pp. +
appendix (14 pp.).
Report to Sen. Uarren G. Magnuson, Acting Chairman, Senate
=*Vt _ - - 7- rations; by Elmer B. Staats, Comptroller
General.
Issue Area: Personnel management ari Compensation (300); Federal
Personnel Management and Compensation: Pay Principles and
Pay Determination Processes (306);Federal Personnel
Management and Compensation: Retirement Policies and
Practices (307).
Contact: Federal Personnel and Compensation Div.
Budget Function: Naticnal Defense: Department of Defense -
Military (except procurement & contracts) (051); Income
Security: Federal Employee Retirement and Disability (602).
Organization Concerned: Department of Defense,
Congressional Relevance: House Committee on Post Office and
Civil Service; Senate Committee on Appropriations.
Authority: Foreign Service Act, sec. 444, as amended.
Classification Act of 1949, as amended. P.L. 92-129, sec.
106.
The Army and the Air Force employ ever 67,000 German
nationals at an annual cost of over $67C million. The Department
ot Defense's (DOD's) employment system in Germany is based on
multilateral and bilateral agreements and years of precedent and
tradition. Although its personnel policies there generally
appear in line with prevailing private practices, some aspects
of compensation setting and administration should be changed.
Recommendations: The Secretary of Defense should: periodically
survey wages in the German private seator in order to strengthen
the U.S. position in negotiations; periodically survey private
sector practices to determine how private industry is reducing
over-tariff supplements and adjust DOD's reductions accordingly;
examine, with the German Government, labor cost sharing
opportunities, such as guaranteeing a minimum exchange rate in
billing payrolls; explore methods to increase American hires by
assuring that ceilings placed on American hires do not reduce
present employment levels, determining the impact on DOD's
payroll costs and employment flexibility of a German proposal
that provides certain dependents and other Americans with the
same compensation as German nationals, and having the Air Force
adopt the Army's dependent hiring Folicy of giving priority to
dependents in filling vacant German national positions; and
initiate a realistic assessment of the estimated severance
liability for both appropriatod and nonappropriated fund
activities in Germany. (Author/SC)](ViewImageLocal?handle=hein.gao/gaobaawir0001&div=1&collection=&method=preview&ext=.png&size=3)