[Federal Register Volume 60, Number 18 (Friday, January 27, 1995)]
[Rules and Regulations]
[Pages 5309-5312]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-2013]



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 Rules and Regulations
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  Federal Register / Vol. 60, No. 18 / Friday, January 27, 1995 / Rules 
and Regulations  
[[Page 5309]]

OFFICE OF PERSONNEL MANAGEMENT

5 CFR Part 532

RIN 3206-AG12


Prevailing Rate Systems; Special Wage Schedules for Supervisors 
of Negotiated Rate Bureau of Reclamation Employees

AGENCY: Office of Personnel Management.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Office of Personnel Management is issuing a final rule to 
establish special wage schedules for the supervisors of certain Bureau 
of Reclamation, Department of the Interior, employees who negotiate 
their wage rates.

EFFECTIVE DATE: February 27, 1995.

FOR FURTHER INFORMATION CONTACT:
Paul Shields, (202) 606-2848.

SUPPLEMENTARY INFORMATION: On September 7, 1994, at 59 FR 46201, the 
Office of Personnel Management (OPM) published a proposed rule to 
establish special wage schedules for the supervisors of certain Bureau 
of Reclamation, Department of the Interior, employees who negotiate 
their wage rates, with a 30-day comment period. During the comment 
period, which ended October 7, 1994, OPM received comments from a local 
union officer and six employees.

Discussion of Comments

    1. The local union officer and two employees said they thought the 
new special schedule system would be expensive and recommended that the 
current process of linking the pay of supervisors with bargaining unit 
rates of pay be continued or modified.
    We do not agree with these comments. This new special schedule 
proposal was developed by the Bureau of Reclamation working in 
partnership with the covered supervisors and reflects agreements 
reached in those discussions. When the agency removed the supervisors 
from the bargaining units in 1990, the only pay system available was 
the Federal Wage System (FWS) under the provisions of title 5, United 
States Code. The agency received authority to temporarily continue (as 
an agency ``set-aside'' practice) the historical pay differentials at 
each location, subject to the statutory pay limitations of the FWS. Pay 
setting for these supervisors is complicated by the combined factors of 
wage negotiations for bargaining unit employees, delays in those 
negotiations, pay limitation statutes, and FWS locality pay rates. The 
purpose of this special schedule is to eliminate, in the pay-setting 
process for these supervisors, the dependence on negotiated rates for 
the bargaining unit and the associated complications of delays in 
negotiations.
    Based on the information currently available, the proposed special 
schedule will not result in a significant increase in operating costs. 
Under the new survey process, the special wage survey for supervisors 
will be timed to coincide with the annual survey that is done for 
bargaining unit employees. The surveys will be done at the same time 
with many of the same firms being surveyed for both purposes. The 
special wage survey committees and data collector personnel will be the 
same, with a few additions for the supervisory survey.
    2. Several questions were raised about how special wage area 
boundaries were set up. Special wage area boundaries were generally 
established to correspond to the boundaries currently being used for 
the wage surveys for bargaining unit employees. However, in some cases, 
areas were consolidated either because of the desire to simplify the 
survey and wage setting process, the geographic location of the Bureau 
of Reclamation projects, the desire to permit use of the same survey 
company in more than one project, or the similarity of the rates being 
paid to the Bureau of Reclamation supervisors in consolidated areas.
    Three employees recommended that the survey area for the Hungry 
Horse Project Office be extended to include Pend Oreille County, 
Washington, which would include Boundary Dam, a facility of Seattle 
City Light Company. As a city government facility, Boundary Dam does 
not meet the statutory FWS requirement that only private industry 
companies be surveyed. However, since Pend Oreille County is within the 
survey area used for the bargaining unit employees, and the Bureau of 
Reclamation is attempting to coordinate surveys for the supervisors 
with those of the bargaining unit, we have added Pend Oreille County to 
the Hungry Horse Project Office survey area. This will also facilitate 
the process in the future should the local area survey committee need 
to add private industry survey companies in that county.
    3. The local union officer and three employees commented on the 
industries and companies to be included in the special surveys. The 
union suggested that only unionized companies be surveyed. We do not 
agree with this suggestion because under statutes and regulations, FWS 
pay-setting is based on a determination of private industry prevailing 
rates, regardless of union organization. The three employees expressed 
concern that private industry electric utility and hydro-electric 
companies would not be included in the surveys. No changes in the 
regulation are needed. These industries are expressly included by the 
regulation at Sec. 532.285(c)(1) (Standard Industrial Classification 
Major Group 49--Electric, Gas, and Sanitary Services).
    4. Two employees expressed concern that the survey jobs being used 
in the special surveys would not cover jobs in large hydro-electric 
facilities with multi-crafts. We do not feel a change is necessary. 
This special schedule process takes into account the number of crafts 
supervised and the range of work supervised through application of the 
classification criteria found in Factor 1 and Subfactor IIIA of the FWS 
Job Grading Standard for Supervisors. These job aspects are covered by 
Subfactor IIIA, Scope of Assigned Work Function and Organizational 
Authority, which addresses aspects reflecting the variety of crafts and 
the range of work. For example, at Level A-4, the scope and diversity 
of work supervised is addressed. Similarly, one of the elements used in 
distinguishing the difference among situations in Factor 1, Nature of 
Supervisory Responsibility, is the number of levels of supervision 
through which work activities are [[Page 5310]] controlled. More levels 
of supervision tend to be associated with a greater number of crafts 
supervised.
    One employee asked how the four levels for Supervisors I-IV fit 
into the survey process. As explained in Sec. 532.285 (b) and (c)(3) of 
the final regulation, survey jobs representing positions at up to four 
levels will be tailored to correspond to the positions of each covered 
supervisor in that area. They will be matched to private industry jobs 
in each special wage area. Special schedule rates for each position 
will be based on prevailing rates for that particular job in private 
industry. The special survey and wage schedule for a given area 
includes only those occupations and levels having employees in that 
area. The regulation was not changed in this respect.
    5. An employee expressed concern that current supervisors would not 
be adequately compensated for their experience upon conversion to the 
new special schedule as compared to newly hired supervisors. The new 
special schedule provides special consideration to current supervisors 
in the first year of implementation. Under Sec. 532.285(f)(2), current 
supervisors are placed in step 2 of the new special schedule, unless 
their rate of pay exceeds step 2, in which case they will be placed in 
step 3. Pay retention benefits will apply to any employee whose current 
rate of pay exceeds step 3. New employees will enter at step 1 of the 
grade, unless a higher rate is established in accordance with the 
advanced in-hire rate procedure. The new special schedule provides 
added compensation for the experience of current employees, and no 
changes are necessary.
    6. Two employees recommended that the definition of compensation 
measured in industry surveys be expanded to include other company 
benefits, such as a company vehicle with gas provided to get to and 
from work, paid insurance coverage, company housing, and company stock 
purchase options. The regulation will not be modified in this regard. 
Under FWS statutes and practices, surveyed wages do include certain 
bonuses, incentive rates, and cost of living allowances. Surveying the 
additional benefits suggested would require a change in the law.
    7. Finally, one employee commented that while the beginning month 
of the survey for each special area is specified in the rule, 
implementation or effective dates for the new schedules are not 
specified. No change is necessary because, as with the regular FWS, 
beginning dates for the special surveys are specified in the 
regulation, and by statute (5 U.S.C. 5344(a)) increases in rates of pay 
are effective not later than the first day of the first pay period 
beginning on or after the 45th day following the date the survey is 
ordered to be made.

Other Changes

    The special schedule survey cycle in this rule has been changed 
from 3 years to 2 years because it has been determined that the 3-year 
proposal exceeded OPM's regulatory flexibility. The prevailing rate law 
grants OPM great flexibility to establish special schedules that differ 
from regular schedules in terms of wage area boundaries; industrial, 
geographic, and occupational survey coverage; step rate structures; and 
wage rate progressions. However, the regulatory flexibility to adjust 
the normal 2-year survey cycle allows only for more frequent, not less 
frequent full-scale surveys.
    In Sec. 532.285(f)(1), the reference to ``fiscal year 1995'' has 
been deleted because this final rule will not be effective until well 
into the fiscal year.

Regulatory Flexibility Act

    I certify that these regulations will not have a significant 
economic impact on a substantial number of small entities because they 
will affect only Federal agencies and employees.

List of Subjects in 5 CFR Part 532

    Administrative practice and procedure, Freedom of information, 
Government employees, Reporting and recordkeeping requirements, Wages.

Office of Personnel Management.
Lorraine A. Green,
Deputy Director.
    Accordingly, OPM is amending 5 CFR part 532 as follows:

PART 532--PREVAILING RATE SYSTEMS

    1. The authority citation for part 532 continues to read as 
follows:

    Authority: 5 U.S.C. 5343, 5346; Sec. 532.707 also issued under 5 
U.S.C. 552.

    2. Subpart B is amended by adding Sec. 532.285 to read as follows:


Sec. 532.285  Special wage schedules for supervisors of negotiated rate 
Bureau of Reclamation employees.

    (a) The Department of the Interior shall establish and issue 
special wage schedules for wage supervisors of negotiated rate wage 
employees in the Bureau of Reclamation. These schedules shall be based 
on annual special wage surveys conducted by the Bureau of Reclamation 
in each special wage area. Survey jobs representing Bureau of 
Reclamation positions at up to four levels will be matched to private 
industry jobs in each special wage area. Special schedule rates for 
each position will be based on prevailing rates for that particular job 
in private industry.
    (b) Each supervisory job shall be described at one of four levels 
corresponding to the four supervisory situations described in Factor I 
and four levels of Subfactor IIIA of the FWS Job Grading Standard for 
Supervisors. They shall be titled in accordance with regular FWS 
practices, with the added designation of level I, II, III, or IV. The 
special survey and wage schedule for a given special wage area includes 
only those occupations and levels having employees in that area. For 
each position on the special schedule, there shall be three step rates. 
Step 2 is the prevailing rate as determined by the survey; step 1 is 96 
percent of the prevailing rate; and step 3 is 104 percent of the 
prevailing rate.
    (c) For each special wage area, the Bureau of Reclamation shall 
designate and appoint a special wage survey committee, including a 
chairperson and two other members (at least one of whom shall be a 
supervisor paid from the special wage schedule), and one or more two-
person data collection teams (each of which shall include at least one 
supervisor paid from the special wage schedule). The local wage survey 
committee shall determine the prevailing rate for each survey job as a 
weighted average. Survey specifications are as follows for all surveys:
    (1) Tailored to the Bureau of Reclamation activities and types of 
supervisory positions in the special wage area, private industry 
companies to be surveyed shall be selected from among the following 
Standard Industrial Classification Major Groups: 12 coal mining; 13 oil 
and gas extraction; 14 mining and quarrying of nonmettalic minerals, 
except fuels; 35 manufacturing industrial and commercial machinery and 
computer equipment; 36 manufacturing electronic and other electrical 
equipment and components, except computer equipment; 42 motor freight 
transportation and warehousing; 48 communications; 49 electric, gas, 
and sanitary services; and 76 miscellaneous repair services. No minimum 
employment size is required for surveyed establishments.
    (2) Each local wage survey committee shall compile lists of all 
companies in the survey area known to have potential job matches. For 
the first survey, all companies on the list will be surveyed. 
Subsequently, companies shall be removed from the survey list if they 
[[Page 5311]] prove not to have job matches, and new companies will be 
added if they are expected to have job matches. Survey data will be 
shared with other local wage survey committees when the data from any 
one company is applicable to more than one special wage area.
    (3) For each area, survey job descriptions shall be tailored to 
correspond to the position of each covered supervisor in that area. 
They will be described at one of four levels (I, II, III, or IV) 
corresponding to the definitions of the four supervisory situations 
described in Factor I and four levels of Subfactor IIIA of the FWS Job 
Grading Standard for Supervisors. A description of the craft, trade, or 
labor work supervised will be included in each supervisory survey job 
description.
    (d) Special wage area boundaries shall be identical to the survey 
areas covered by the special wage surveys. The areas of application in 
which the special schedules will be paid are generally smaller than the 
survey areas, reflecting actual Bureau of Reclamation worksites and the 
often scattered location of surveyable private sector jobs. Special 
wage schedules shall be established in the following areas:

The Great Plains Region

Special Wage Survey Area (Counties)

Montana: All counties except Lincoln, Sanders,Lake, Flathead, 
Mineral, Missoula, Powell, Granite, and Ravalli
Wyoming: All counties except Lincoln, Teton, sublette, Uinta, and 
Sweetwater
Colorado: All counties except Moffat, Rio Blanco, Garfield, Mesa, 
Delta, Montrose, San Miguel, Ouray, Delores, San Juan, Montezuma, La 
Plata, and Archuleta
North Dakota: All counties
South Dakota: All counties

Special Wage Area of Application (Counties)

Montana: Broadwater, Jefferson,Lewis and Clark, Yellowstone, and 
Bighorn Counties
Wyoming: All counties except Lincoln, Teton, Sublette, Uinta, and 
Sweetwater
Colorado: Boulder, Chaffee, Clear Creek, Eagle, Fremont, Gilpin, 
Grand, Lake, Larimer, Park, Pitkin, Pueblo, and Summitt
Beginning month of survey: August

The Mid-Pacific Region

Special Wage Survey Area (Counties)

California: Shasta, Sacramento, Butte, San Francisco, Merced, 
Stanislaus

Special Wage Area of Application (Counties)

California: Shasta, Sacramento, Fresno, Alameda, Tehoma, Tuolumne, 
Merced
Beginning month of survey: October

Green Springs Power Field Station

Special Wage Survey Area (Counties)

Oregon: Jackson

Special Wage Area of Application (Counties)

Oregon: Jackson
Beginning month of survey: April

Pacific NW. Region Drill Crew

Special Wage Survey Area (Counties)

Montana: Flathead, Missoula
Oregon: Lane, Bend, Medford, Umatilla, Multnomah
Utah: Salt Lake
Idaho: Ada, Canyon, Adams
Washington: Spokane, Grant, Lincoln, Okanogan

Special Wage Area of Application (Counties)

Oregon: Deschutes, Jackson, Umatilla
Montana: Missoula
Idaho: Ada
Washington: Grant, Lincoln, Douglas, Okanogan, Yakima
Beginning month of survey: April

Snake River Area Office (Central Snake/Minidoka)

Special Wage Survey Area (Counties)

Idaho: Ada, Caribou, Bingham, Bannock

Special Wage Area of Application (Counties)

Idaho: Gem, Elmore, Bonneville, Minidoka, Boise, Valley, Power
Beginning month of survey: April

Hungry Horse Project Office

Special Wage Survey Area (Counties)

Montana: Flathead, Missoula, Cascade, Sanders, Lake
Idaho: Bonner
Washington: Pend Oreille

Special Wage Area of Application (Counties)

Montana: Flathead
Beginning month of survey: March

Grand Coulee Power Office (Grand Coulee Project Office)

Special Wage Survey Area (Counties)

Oregon: Multnomah
Washington: Spokane, King


Special Wage Area of Application (Counties)

Washington: Grant, Douglas, Lincoln, Okanogan
Beginning month of survey: April

Upper Columbia Area Office (Yakima)

Special Wage Survey Area (Counties)

Washington: King, Yakima
Oregon: Multnomah

Special Wage Area of Application (Counties)

Washington: Yakima
Oregon: Umatilla
Beginning Month of Survey: September

Colorado River Storage Project Area

Special Wage Survey Area (Counties)

Arizona: Apache, Coconino, Navajo
Colorado: Moffat, Montrose, Routt, Gunnison, Rio Blanco, Mesa, 
Garfield, Eagle, Delta, Pitkin, San Miguel, Delores, Montezuma, La 
Plata, San Juan, Ouray, Archuleta, Hindale, Mineral
Wyoming: Unita, Sweetwater, Carbon, Albany, Laramie, Goshen, Platte, 
Niobrara, Converse, Natrona, Fremont, Sublette, Lincoln
Utah: Beaver, Box Elder, Cache, Carbon, Daggett, Davis, Duchesne, 
Emery, Garfield, Grand, Iron, Juab, Kane, Millard, Morgan, Piute, 
Rich, Salt Lake, San Juan, Sanpete, Sevier, Summit, Tooele, Uintah, 
Utah, Wasatch, Washington, Wayne, Weber

Special Survey Area of Application (Counties)

Arizona: Coconino
Colorado: Montrose, Gunnison, Mesa
Wyoming: Lincoln
Utah: Daggett
Beginning month of survey: March

Elephant Butte Area

Special Wage Survey Area (Counties)

New Mexico: Grant, Hidalgo, Luna, Dona Ana, Otero, Eddy, Lea, 
Roosevelt, Chaves, Lincoln, Sierra, Socorro, Catron, Cibola, 
Valencia, Bernalillo, Torrance, Guadalupe, De Baca, Curry, Quay
Texas: El Paso, Hudspeth, Culberson, Jeff Davis, Presido, Brewster, 
Pecos, Reeves, Loving, Ward, Winkler
Arizona: Apache, Greenlee, Graham, Cochise

Special Wage Area of Application (Counties)

New Mexico: Sierra
Beginning month of survey: June

Lower Colorado Dams Area

Special Wage Survey Area (Counties)

Nevada: Clark
California: Los Angeles
Arizona: Maricopa

Special Wage Area of Application (Counties)

Nevada: Clark
California: San Bernardino
Arizona: Mohave
Beginning month of survey: August

Yuma Projects Area

Special Wage Survey Area (Counties)

California: San Diego
Arizona: Maricopa, Yuma

    (Note: Bureau of Reclamation may add other survey counties for 
dredge operator supervisors because of the uniqueness of the 
occupation and difficulty in finding job matches.)

Special Wage Area of Application (Counties)

Arizona: Yuma
Beginning month of survey: November (Maintenance) and April 
(Dredging)

Bureau of Reclamation, Denver, CO, Area

Special Wage Survey Area (Counties)

Colorado: Jefferson, Denver, Adams, Arapahoe, Boulder, Larimer

Special Wage Survey Area of Application (Counties)

Colorado: Jefferson
Beginning month of survey: February

    (e) These special schedule positions will be identified by pay plan 
code XE, grade 00, and the Federal Wage System occupational codes will 
be used. New employees shall be hired at step 1 of the 
[[Page 5312]] position. With satisfactory or higher performance, 
advancement between steps shall be automatic after 52 weeks of service.
    (f) (1) In the first year of implementation, all special areas will 
have full-scale surveys.
    (2) Current employees shall be placed in step 2 of the new special 
schedule, or, if their current rate of pay exceeds the rate for step 2, 
they shall be placed in step 3. Pay retention shall apply to any 
employee whose rate of basic pay would otherwise be reduced as a result 
of placement in these new special wage schedules.
    (3) The waiting period for within-grade increases shall begin on 
the employee's first day under the new special schedule.

[FR Doc. 95-2013 Filed 1-26-95; 8:45 am]
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