Obama cuts pay for federal workers

Invoking the state of “national emergency” declared soon after the September 11, 2001, terrorist attacks, President Barack Obama on Monday issued a letter to congress reducing statutory 2010 pay increases for 1.3 million workers employed by the federal government.

Obama reduced scheduled pay increases to 2 percent across-the-board from a contractually-required minimum increase of 2.4 percent. It will be the lowest cost of living adjustment for federal workers in two decades, and with inflation will mean a significant cut in real income.

...In addition, federal employees are owed increases depending upon a “comparability formula” with local pay conditions called “locality pay,” based on a statute passed by congress in 1990. Since 1990, presidents George H.W. Bush, Bill Clinton, George W. Bush, and now Barack Obama have repeatedly invoked the statute’s emergency clause to block increases in locality pay. The increases have been blocked so many times that this year federal employees would be owed an average 16.5 percent increase in comparability pay in addition to the 2.4 percent cost of living hike.

Obama also cited the current economic crisis as a reason to cut pay for federal workers...Once again, the economic crisis is being used to carry out a far-reaching attack on the working class. The Obama and Bush administrations have handed trillions to Wall Street within the last year. The cost of carrying on the wars in Iraq and Afghanistan for one year are about five times as much.
When it comes to the taxpayer-subsidized, multi-million dollar salaries and bonuses doled out to the top bankers, Obama has repeatedly said he does not “disparage wealth” or “begrudge anybody for achieving success.” The adminitration has repeatedly opposed any caps on executive pay and bonuses. The president’s magnanimity over pay evidently does not extend to his own employees.

It is also noteworthy that Obama did not block much higher scheduled pay hikes for military employees, who will see increases of either 3.4 percent or 2.9 percent in 2010.

Adding gratuitous insult to injury, Obama copied, virtually verbatim, an order issued in the name of George W. Bush in 2007 blocking pay increases for federal workers in 2008...

http://www.wsws.org/articles/2009/sep2009/fede-s03.shtml

Thanks HB.

And I wish people would stop saying any lack of a raise is a cut, it's not honest.

If tomorrows dollar buys less than todays, then without a raise for tomorrows pay, it is a real pay cut no matter its name.

every year the President proposes the small pay increases and then Steny Hoyer, Chris Van Hollen and other local reps intercede the restore the higher pay rate.

"comparability formula”

The traditional deal was that you worked for the government for LESS than you would in private industry. The TRADE OFF was that unlike private industry, you got more comprehensive benefits and a bunch more job security and protections. You can't have it both ways. You can't have "comparable salary" and the other good stuff, because when you do that, it means that the government is the best job in town. And as good a job as they do, and as nice as they are, working for the government is not supposed to be the best job in town. The best job in town is supposed to be the kind that PRODUCES something of value and GENERATES income.

The best job in town is supposed to be every job, or no job at all.

I feel for some government workers in this case, but IMHO they should be happy with a 2% raise. Most working people aren't getting any raise, and many are having their wages cut.

People often complain about government salaries, but in recent years they have increased (while most private sector job pay has remained flat). When you build in retirement benefits, vacation and health care, most government workers I know are a lot better off than private sector workers.

Is this a good thing? I don't know. As liberal as I am, the fact remains that government workers are paid from the taxes of private sector workers. If more and more talented workers flee to the government sector, the private sector becomes less productive, resulting in less revenue for the government, and you have a potential Ponzi scheme situation on your hands.

Suppose you have a GS-11 job in Huron, SD and one in Boston, Ma. The comparability formula is supposed to equalize things so that the two jobs are comparable even though costs of living are much higher in Boston. Otherwise a GS-11 job is awesome in South Dakota and it sucks in Boston, pay-wise.

while the rest of US in the REAL WORLD are taking PAY CUTS like there will never be tomorrow. Hey BO!! How about a wage freeze for the ALREADY overpaid Federal Government employees.:mad:

;)

The rest of US will fall victim to the 'death panels'.:evilgrin:

to contribute even more to their health care plans. Meanwhile the Federal gravy train continues upward with $$$$$$ we just don't have.

contracted colas.

Defense of the working class = defense of all working class wages.

Improving the lot of workers doesn't mean going along with the ruling class meme: "We've all got to tighten our belts, private-sector workers are taking hits so public sector workers should too."

That's what they *want* you to think. In reality, *all* workers are taking hits to funnel money to banksters, capitalists, trust funders.

goldman-sachs bonuses average 1 million/person.

And that says it all.

I am a retired Federal employee. I pay $1512.00 per year for myself for my health insurance. My husband pays an equal amount. I have a $300.00 deductible, a 20.00 co-pay and the insurance company pays only 80% of the allowed bill.

I pay my way, and I am very fortunate I have insurance. For you to make a blanket statement regarding the Federal Government "gravy train" simply shows your ignorance of this issue.

This is what the President is trying to give all of our citizens. It is not free, but it is guaranteed. What keeps the cost down is the negotiation between the Government and the insurance companies in order to be part of the program. The allowed amount to the insurance company is much less than what the insurance company bills. This is where the savings are realized.

A two precent raise is a cut.

A 2% raise is a raise.

It may not be a raise that keeps up with inflation, but it is a raise.

how would you have fared with a 2.0 raise every year?

i'll wait while you do the math.

Not all govt workers are lazy slobs with cushy jobs. The rest of us govt workers have to do our work AND the work of those lazy govt slobs. Not to mention the lazy contractors that we have to work with.

I could get better pay, benefits, and work environment in the private sector, but its the actual work that I do that keeps me a semi-happy govt worker. I prefer to keep my brain active and always thinking, rather than doing some repetitive no thought tasks.

So it sure makes good fiscal sense to borrow even more money so your grandchildren can pay for raises for eternity. Brilliant! No one should ask WHY we are in so much financial trouble. Everyone works their ass off these days or they won't have a job.

i don't know any federal employees who have complained about the size of any raise ever.

and it should be mentioned that another big union for feds, NTEU did not protest the military's greater increase.

who makes a decent living wage.

Your jealousy is an UGLY thing. :puke:

and usually faces a pay cut or layoff. In the Federal Government when revenues are down, money is borrowed to allow for pay increases. Your grandchildren will be paying for your raises forever. Don't confuse jealousy with absolute fiscal insanity.

Which is why I call b.s. on this pay cut.

BTW, is Obama & Congress getting a pay cut too?

nice since my pay has been cut in half. Attack on the working class? I can show what an "attack" really looks like.

if i'm told, in writing & per regulation, i get a 2.4% minimum yearly raise, & then that is decreased after I've contracted on the first basis, it's a CUT. In my contract, in my wages, in my expectations.

calling a WAGE cut is disingenuous at best. I have no problem about criticizing this, I have a problem with calling it a PAY cut.

higher than those of 2009.

And thus calling it a pay cut is dishonest.

That is not to say there are not good reasons to complain about this, but be honest what you are complaining about, deceptive framing is something the Pukes do, we should be better than that.

That said, IMO there is something economically fishy about such kind of institutionalized inflation adjustment in that it, in a sense, creates a psychological expectation of inflation, leading retailers to jack up prices in anticipation of the wage increases, defeating the whole purpose and creating a self-sustaining spiral. What's the solution? I have no clue, I'm no economist. There has got to be some way to prevent wage-push inflation without it becoming an excuse for employers to screw people over, what it is, I don't know. Maybe an inflation-adjusted living wage law would relieve the inflationary pressures, I don;t know.

it's a smaller raise than in the past. In the private sector, we've been taking pay cuts, pension cuts, 401k cuts, benefit cuts, and job cuts.

it's below the current regulation.

& if you figure in inflation, it's probably a cut in buying power too.

And quit rationalizing away your deceptive spin.

Pay cut... :rofl:

I got my pay cut by $4K/year. THAT'S a fucking pay cut. Jesus...

their contracted statutory cola = 2.4%.

it's not "deceptive" to say obama cut their pay, since they'd already been promised a minimum 2.4%.

ps: june cpi inflation = +.7%.

energy index prices rose 7.4% in june.

index for medical up 3.2%, education up 2.8% year to year.

3 mo average for transportation up 22.8%.


For all cpi items less food & energy, year-to-year inflation rate july 09 v. july 08 = +1.5%.

"all items" = -2.1% year to year. The sole reason is the decline in ENERGY prices from their RIGGED SPECULATIVE RISE which PEAKED JULY 2008.

The only people I'm seeing yapping about inflation are libertarian morons and people that are suckers for libertarian nonsense that always claim that stimulus spending causes hyperinflation. It sickens me to see so many fellow left-wingers falling for liberatian Austrian School BS.

most of whom couldn't predict or even recognize the real estate bubble - unlike many ordinary americans.

the workers had a contracted statutory cola of 2.4% coming.

obama cut it.

security recipients aren't getting one because there was no inflation %.

for the same reason either

This isn't the kind of change I can believe in.

:puke:

He takes it out on the workers while rewarding the fat cats in the finance industry. Can I unrec Obama? He is getting worse every day.

Can I unrec Obama? :thumbsup:

and sick leave. Yes I am. Only a 2% increase.....meaning that they ain't a getting 0.4% raise that they planned on. Poor things. Really a shock. Obama must be Hitler! :sarcasm:

:eyes:

Maybe he can outsource some jobs overseas, I mean it is what the private sector does?

:shrug:

and I didn't see you having something to say about anyone else.

Kiss my Grits SammyWinstonjackass.

Typical WSWS bullshit. The Neo-Cons must have gotten their compulsive lying from their fellow Trotskyites.

As you can see this mess was unrec'd long before I got here.

It's all good for you to cheerlead giving the Banksters all the money they wanted-no-DEMANDED WITH THREATS-to the the tune of TRILLIONS OF DOLLARS.

But fuck the Union Workers right?

People like you make me sick and make me wonder why the hell you are even posting on a DEMOCRATIC website. :puke:

:applause:

The "defend Obama at all costs" functionaries are really proving their allegiance on this one.

Not too difficult to see that this cut, only .4% say the defenders of capital, is just another hit on workers and serves not only to cut wages a bit during this episode but represents a trend in the downward spiraling of real wages.

But hey pay no attention to that.

I'm not sure how anyone can miss this and connect it to how the public sector is being privatized which as we know is a race to the bottom for us all. Of course this is no surprise as anyone who hasn't shut off their critical thinking skills knows this is in keeping with The Obama Team as he is and was advised by a bunch of economic hooligans that are wedded to the free market uber alles Chicago school of business mismanagement. But never mind about actually investigating who his economic advisers are and what their philosophies are just immerse yourself in groupthink while the plunder continues.

Though you've posted well in the past Hannah here I must give you an unrec if only to participate in double reverse psychology. No need to understand. We all must get with the program.

You need to take this act on the road!

:rofl: :rofl: :rofl:

Btw, why do you continue to support the slaughter of baby arctic seals for their fur???

Calling this a "pay cut" is a LIE, plain and simple. It's Neo-Con tactics, use spin to incite an emotionally knee-jerk response. If the OP was honest he/she would have posted "the regular wage increase was reduced by 0.4% to 2%", but "OMG, Obama is cutting wages" is guaranteed to incite the Obama-haters into their usual rage. If you want to criticize Obama for this that is fine, but if you LIE about it, that is NOT fine, that is Freeper behavior.

Dems wanted a 10% increase in education, get an 8% and we yelled that bush was cutting funds for education, etc and so on.

It's all politics and framing, and each side does it all too often - then acts upset and surprised when the other does.

by giving them a 2% raise.

Its ashame that everyone cannot enjoy that generosity.

Most people are taking pay cuts.

He CUT it.

If it were Mccain, no doubt he would have cut it to zero or cut their pay.

All it would have taken is a different squiggle line on the paper and they would have received NOTHING.

If these people are not thankful for the raise that Obama is providing then I have no sympathy.

see from the reaction here, it's filthy but effective politics.

which is when it was passed.

i'm not weighing in on it, just saying that every president since then has taken the same position on it.

I was a Federal worker in the late 1960s and then again in the 1970s, and the same thing happened. As I vaguely remember, in those days a board would come up with a suggested raise each year, based on inflation and pay in comparable professions. Then the president would announce that it was important in such troubled times for Civil Service workers to be an example to their fellow citizens and therefore he was holding the increase to some lower figure.

If I was a Federal worker, I would be thanking Obama for a 2% raise.

Here I am, working for a very wealthy company that is earning billions a year, and I get ZERO% this year.

Just like last year.
And the year before.

I'm happy to still be employed. Times are tough, money is tight, a hell of a lot of companies are cutting pay, why should the Federal employees be exempt. Plus they have some of the best benifits out there.
Anyway, they are getting a raise! just not the one they wanted.(or were suppose to get) deal with it.
BooFrigginHoo.

gad, what morons are employed by wsw.

It's language-twisting spin of the Rovian variety.

The uber-lefty True Progressives^TM like to join in... apparently clueless about the fact that they're being co-opted by the right. Sad, really.

don't" = right wing meme.

So is the lazy government workers meme.

And the "workers must sacrifice to save the nation/banking system/capitalists/jobs" = ruling class all the way.

So you can stuff your "cooptation" bullshit.

As for the spin that this is a pay cut... it's just that. Spin.

jan 2009 cpi = 211.143

july 2009 cpi = 215.351

= +4.2 or 1.99% cpi increase from jan.

do *you* know what 2010 will bring?

the fact is, obama reduced the contracted colas of 1.3 million federal employees while retaining the more generous increases for the military, & doling out billions to banksters & military contractors.

The "Democratic" spin here at DU = the ordinary workers must take one for the banksters & imperialists.

They should thank Obama and count their blessing that it isn't MCCAIN looking at their pay.

if inflation holds to 2% in 2010 it will be neither raise or loss in buying power.

but we don't know yet, do we?

average yearly inflation 1990-present = 2.9%.

last year = 3.8%.

who receive pay cuts or 0% raises.

by any measure, these folks are doing better.

we're paying them right now, too.

your logic, apparently, is that if some workers make more than "most," they should take cuts.

so since most workers make $15/hr or less, everyone should.

great way to fuel continuing recession & deflation.

In the meantime, the handful that receive a generous raise from the Obama administration should be thankful instead of whiney cry babies.

their contracted wages = right-wing meme.

btw, the bankers use the same exact bullshit excuse about it being "contracted"

In this harsh environment, that doesn't fly.

We should all be happy that this small group of workers are receiving generous raises.

Next our efforts should be focused on getting that for everyone else who is left out in the cold, instead of beating up the Obama administration for this kind gesture.

blood money.

cutting workers' contracted wages is neither a "raise" nor a "kind gesture".

Obama went on a limb to insure that they received a raise in this environment.

That is why we elected him. What are these people doing? They are backstabbing him. our own President!

If we had gotten a republican, then they would have LOTS of reasons to be upset.

My parents taught me to appreciate the things we get in life, and not focus on what we don't get.


These folks have a fine upstanding President who is looking out for them, a secure job, and a raise.

I am appalled over the backstabbing being done over 0.5%

2% raise, 4% inflation... nothing new here.

Federal workers are fairly well compensated and have excellent benefits. Forgive me if I'm far more concerned about ordinary workers and the working poor. You and your idiot site that you do nothing but parrot, don't give a flying fuck about people. not really. you're concerned with other things. I hate the hypocrisy and lies you spew. hate it.

The COLA for federal workers is vastly outpacing inflation when you include 2008 in your calculations.

it was 220 in aug 2008 because of the manipulated OIL PRICE RUN-UP, which peaked july 2008.

So though prices are down from that, they're up overall since 2007.

Let's do the index for wall streeters, shall we?

...as a gay man, it's kind of nice to know I'm not the only one Obama's fucking over. I'm with ya', federal workers!

that some DUers would rather continue Bush's post 9-11 policies.

I suspect that it would be a -real- cut in pay.

this mumbojumbo spin of turning a nice raise into something bad is unappreciative at best.

I think they should thank their lucky stars that it is Obama evaluating their pay instead of someone from the darkside.

There is a time when people should be thankful.

When the vast majority is taking pay cuts, crying about a generous pay raise is quite poor form.

Thats pretty rich.

enjoy the raise and quit bitching.

Oh, wait...the military "produces" all sorts of really valuable stuff...like bodies.

Have they looked at the CPI numbers lately?

Don't balance the budget on the backs of the rank and file workers, who already get shit on enough.

even though i don't stoop so low myself. as to unrec *your* threads.

blatantly dishonest crap and propaganda. that's the only shit I unrec.

one might be forgiven if they thought you owned shares ....or something.

And I haven't received a raise in years.

about one group getting a slightly smaller pay increase while the rest of us slubs get no pay increase or a pay decrease!

Good socialism!

Yeah, that's gonna make life much more liveable.

:nuke:

This is why I worked for the Dems.

NOT

:grr:

They get raises.

the federal workers are getting are represented in their jobs? Organize for a union! Then you wouldn't be reduced to freeper-mimicking cheap shots at your fellow workers.

A pay allowance that has been negotiated in good faith as part of a contract and then later cut in violation of that contract is a PAY CUT. There's no other way you can define that and still be honest.

Rec and Kick!!

principles of the party of fdr.

Why should govt. workers get any increase, either? No Social Security cost of living increase should mean no increases for ANYBODY.

God, I'm sick of how the elderly, disabled, and ill are treated in this country! :mad: :grr:

Oh, wait, I thought this was Free Republic.

Let me try again.

Fuck anyone who reneges on a contracted raise.

There's enough sour grapes on this thread to make some sort of margarita.

I cannot believe all of the workers here who because of their ill treatment by capitalism feel that it's ok for other workers to be abused.

Solidarity, wft is that?

Seems to be a little too common these days...kick

Bush was saying the same thing.

Unlike Bush, Obama is a smart man. I refuse to believe he thinks that ONLY teachers are part of the education equation...

Then again, it's not like he's said anything specific... (apart from pinning all the problem solely on teachers... - the ones stuck in the middle. No blame for the indolent principals, parents (save for one situation, they have a lot of blame to hold), no bullies, no peer students... just the teachers.)


And that one situation? Having to work multiple jobs because living wage jobs that allow people to have time home to do something like "parenting", "discipline", et al, are harder to come by...

Then everyone wonders why society is in a mess. Right down to church billboards bleating the same thing.

*sigh*

Both are working for the moneyed interests.

"I refuse to believe he thinks that ONLY teachers are part of the education equation"

I doubt very much he thinks this, but it behooves the system for him to place the blame on the teachers. His education agenda is a continuation of the Bush agenda, destroy a truly effective public education that teaches kids to think and replace it with one that creates the best drones and followers.

Nobody likes a cop.... 'Till they need one.

I've read a bunch of the above threads, and see the potential for an essay around the concept of the definition of pay. For wage-earners, it always seems based upon a fixed rate per time period, most often the hour.

Due to the top-of-the-pyramid control over inflation and deflation, through such things as monetary policy as well as market interventions, one's pay over a fixed time period is arguably never equal to any other time period, though it appears to. Thus, while the currency's value fluctuates, ones wages do not, except when one receives a raise or worse.

This touches on executive compensation as well, as they are often not paid based upon a fixed time pay rate, but rather what is called salary, as well as bonuses such as stock options, etc.

Thus, the idea that "hourly pay" represents a "fixed" value is a deception, except of course when there is zero inflation or deflation. I cannot remember a week when that happened.

The question is, is the deception caused by those who post about it, or is the deception rooted higher up the pyramid, and folks lower in the pyramid simply go along with that lie, projecting the label "liar" onto others who may post about the deception.

Perhaps money itself is the biggest deception of all.

Still, when will congress get a cut?

I'm glad the President did NOT block raises for the military. :patriot:

Then again, it IS from the wsws website. Take them with a grain of salt...

Like $20000 more. Is that for real?