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B-176536 1 (1972-10-10)

handle is hein.gao/gaobaddvx0001 and id is 1 raw text is: COMPTROLLER GENERAL OF THE UNITED STATES , WASHINGTON. D.C. 20548 B-176536 r) o October 10, 1972 Dear Governor Parker: Reference is made to letter dated July 11, 1972, from Charles R. Clark, Acting Governor, with enclosures, requesting'our decision con- cerning .increases in compensation which may be prescribed administra- tively for postal employees of the Canal Zone Government. You point out that the employees here involved are not within the purview of the statutes that govern the United States Postal Service (USPS), 39 U.S.C. 101 et seq., but rather are covered by the Canal Zone Code (specifically, 2 C. Z. Code §i 101-149~and-1131-43). In the past the pay rates for the postal employees of the Canal Zone Government were traditionally established and 6ajusted administra- -tively to conform generally with those rates prescribed for the former United States Post Office Department. However, you say that since the establishment of USPS a problem has arisen in attempting to grant the same increases as those granted by USPS because of the wage-price G guidelines set forth by the President and the Pay Board. Although USPS has granted more than one wage increase to its employees since the insti- tution of the wage-price freeze (on August 15, 1971) with the aggregate thereof exceeding 5.5 percent (stated to have ranged from 4.8 percent to 11.5 percent) the Canal Zone Government has limited the increases for its postal employees to 5.5 percent of the pay rates in existence prior to August 15, 1971. Since the Pay Doard has permitted USPS to exceed the 5.5 percent increases as specified by the guidelines you ask whether such limitation likewise may be exceeded for the postal employees of the Canal Zone Government. We first note that determinations with regard to wage rates &nd increases therein for Canal Zone Government employees are a matter of administrative discretion. 2 C. Z. C. 101. In such light (and as pointed out by your letter of July 11, 1972) resolution of the present question would appear to turn on whether the fourth paragraph of a Presidential Memorandum dated January 11, 1972, would be for application to the employees here involved. Thi paragraph stated as follows: 52 Cc:2p. Gem.

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