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President's Letter to Congress on the Federal Pay Comparability Alternative Plan, plan attached
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7335901
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President's Letter to Congress on the Federal Pay Comparability Alternative Plan, plan attached
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White House Press Releases (Ford Administration)
Press Releases
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1974-08-31
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1974
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Digitized from Box 1 of the White House Press Releases at the Gerald R. Ford Presidential Library
FOR IMMEDIATE RELEASE
AUGUST 31, 1974
Office of the White House Press Secretary
THE WHITE HOUSE
TO THE CONGRESS OF THE UNITED STATES:
At a time when inflation is the main concern of every
American, the Federal Government has a special obligation
to take those actions which begin to stop inflation.
In this spirit and with the knowledge that the action
I am taking will help to hold down the cost of living for
all Americans, I now recommend a ninety-day deferral in the
pending pay adjustment for Federal employees. At the same
time, I am also ordering the Director of the Office of
Management and Budget to proceed with a reduction of 40,000
Federal civilian positions from those planned for the current
fiscal year.
Therefore, as required by law, I am transmitting to
the Congress a plan to defer Federal pay raises for ninety
days. This is intended to meet both the needs of those who
serve the Government and the common interest of the general
public, all of whom must bear the burden of increased
inflation.
Under this plan, a pay increase for all Federal employees
based upon an appropriate comparability adjustment would
become effective on the first pay period beginning on or
after January 1, 1975. The level of the comparability
adjustment will be determined during the next few weeks.
I regret asking for this postponement of a Federal pay
increase, but I am convinced of its necessity. Federal
employees who I am asking to make a sacrifice are the founda-
tion of sound, effective and efficient Government. I am
more conscious than ever of their contributions to our
country.
Nevertheless, at this critical time in the economic
health of our Nation, I must call on all Americans without
exception to make sacrifices in order to hold down wages
and prices. Federal employees, as one of the largest groups
of workers in the country, have a special role to play in
the fight against inflation because we in Government set the
example. As we seek a noninflationary budget, it is especially
important this year that Federal spending be held to a
minimum.
I urge the Congress to support this action, because it
is in the best interest of all Americans.
The plan to defer Federal pay raises by ninety days is
attached. As required by law, the plan represents an alternative
to the October effective date which would otherwise occur.
In addition, the Office of Management and Budget has
now determined the specific reductions in civilian positions
from those budgeted for the current fiscal year. The agencies
will shortly be informed of these reductions by letters from
OMB. Wherever possible, these reductions will be accomplished
through normal attrition.
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2
It is extremely important that the Federal establish-
ment hold employment to the absolute minimum needed to get
the job done. Effective use of human talents is a wise use
of the tax dollar.
The pay raise deferral and the reduction in civilian
positions together will reduce the 1975 budget by about
$1 billion. Thus, the Federal Government is taking an
essential first step in holding down the Federal budget
and showing the way for restraint by all Americans.
GERALD R. FORD
THE WHITE HOUSE,
August 31, 1974
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FEDERAL PAY COMPARABILITY ALTERNATIVE PLAN
In consideration of the economic conditions affecting
the general welfare, I hereby transmit to the Congress the
following alternative plan, as authorized and required by
section 5305 (c) (1) of title 5, United States Code:
Such adjustments in the rates of pay of each
Federal statutory pay system as may be determined
under the procedures set forth in section 3 (a) of
the Federal Pay Comparability Act of 1970 (5 U.S.C.
5305), shall become effective on the first day of
the first applicable pay period that begins on or
after January 1, 1975.
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