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FPCD-78-9 1 (1978-03-01)

handle is hein.gao/gaobaawty0001 and id is 1 raw text is: 11CMU RESUAR 05153 - [B06255291 Posaible Savings in Department of Defense fersonnel Coate ia Italy. FPCD-78-9; B-179343. Earch 1, 1978. 1 pp. # appendix (9 PP.). Report to Sen. arren G. Nagnusong Chairmn, Senate Comittee on Appropriations; by Bler B. Staats, CcpteolleU General. Issue Area: Federal Personnel lanageeat and Coapensation: Pay Principles and Pay Determination Processes (300); Federal Person& 1anaqeeurt and Compensation: Retirement Policies and Practices (306);Personnel lanagenent and Compennation (307). Contact: Federal Personnel and Compensation Div. Budget Function: Income Security: Federal Employee Retiremmt and Disability t051); lational Defense: Deprtaemt 0i Defense - Hilit ry (except procurement 6 contracts) (602). Orqanization ConcerrLed: Department of the Air force; Deportment of the Army; Deartsent of the Navy; Departeent of DefOaae. Congressional aelev-tace: House Committee on Post Office and Civil Service; J;enatoe comittee on Appropriations; Senate Comittee on Aried Uervices. Sen. Varren G. Sagnuson. Authority: Foreign Service Act, as amended. The Foreirn Service act provided that compensation for foreign national e& ployves will be based on locally prevailing vave xates consistel, with the public inx.rcst. Under an aqreement vlt the Glan overnment, the Department of Det ase (DOD) directly enploys Italian nationals# establishes pay and fringe benefits* and sets personnel plicies with little involveaent by the Ite Nan Government. FP.ndings/Conclusions: Using a complicated sjs,,,vm patterned closely after private industry, the Army, favy,, and Air Porce incur payroll costs of about $36 million annually for their fcreign national ork force in Italy., Lnnal wage surveys help assure that DOD ccapensation is in line with prevailing local practice, and recent pay increases appear comparable to those granted in the private economy. However, significant savings appear possikle if certain aspects of the wage setting process are ch,,nged, including hiring o more Americans. Recommendations: The Secretary of Defense should: determine if the payroll costs savings of providing subsidized dining facilities at military installations in Italy would he offset by the faciliti.s- and administrative costs incurred, determine if the extra benchito under the Army and Air Forces health insurance program for Italian employees lustify higher premium costs and whether those employees should be covered under the lavy's less expensive plane, and develop plans and proposals for restructuring the civilian ork force in Italy in coming years as a large namker of foreign national employees retire. (RRS)

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