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B-208715 1 (1984-05-10)

handle is hein.gao/gaobadlro0001 and id is 1 raw text is: THE COMPTROLLER ..NERAL OECISION ,oP THE UNITEo STATES WAUHINGTON. 0. C. 2064U FIL: B-20871 5 OATE: May 10, 1984 MATTER OF: Ginny L. Ater, et al. -- Claims Under Panama Area Wage Base OIGEST: Employees of Department of Defense (DOD) in Panama claim higher pay based on General Schedule rates. Decision of DOD to adopt lower-paying Panama Area Wage Base for U.S. employees in Panama is authorized under Panama Canal Act of 1979. Claim is denied since these employees have no entitlement to pay based on General Schedule rates. ISSUE The issue in this decision concerns the entitlement of United States citizens employed by the Department of Defense in the Republic of Panama to pay based upon General Schedule rates. We hold that these employees may be paid at the lower Panama Area Wage Base rate instead of the General Schedule rate in view of the authority in the Panama Canal Act of 1979 permitting agencies to adopt that lower pay schedule. BACKGROUND This decision is in response to a claim filed by Albert J. Joyce, an attorney who represents approximately 61 employees of the Department of Defense in the Republic of Panama. Mr. Joyce contends that these employees, who are United States citizens employed by the Department of Defense (DOD) in Panama, are entitled to compensation based on General Schedule rates. He states that DOD unilaterally decided to adopt the Panama Area Wage Base, which has a much lower rate of pay for equivalent positions, and this action affects compensation as well as such benefits as life insurance, leave, within-grade increases, and retirement. Mr. Joyce argues that the Panama Area Wage Base was not imposed upon

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