Archer v. United States

18 Cl. Ct. 603, 29 Wage & Hour Cas. (BNA) 850, 1989 U.S. Claims LEXIS 195, 1989 WL 139112
CourtUnited States Court of Claims
DecidedOctober 5, 1989
DocketNo. 166-85C
StatusPublished
Cited by4 cases

This text of 18 Cl. Ct. 603 (Archer v. United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Archer v. United States, 18 Cl. Ct. 603, 29 Wage & Hour Cas. (BNA) 850, 1989 U.S. Claims LEXIS 195, 1989 WL 139112 (cc 1989).

Opinion

OPINION

RADER, Judge.

Plaintiffs, twenty individual employees of the Bureau of Engraving and Printing (Bureau), Department of the Treasury [604]*604(Treasury), originally brought this action in the United States District Court for the District of Columbia through their union, the Bank Note Engravers Guild. Plaintiffs claimed that the Bureau unreasonably denied pay increases from 1979 to 1984. On March 26, 1985, the district court transferred this action to the United States Claims Court. Plaintiffs allege that the Director of the Bureau did not fully implement pay raises and exercise pay-fixing responsibilities mandated by 5 U.S.C. § 5349(a) (1982) and Treasury regulations. Defendant argues that the Government’s actions were proper.

This case is before the Claims Court on plaintiffs’ motion for partial summary judgment and defendant’s cross-motion for summary judgment. This court grants plaintiffs’ motion.

FACTS

Plaintiffs are picture, letter, and sculptural engravers for the Bureau. The Bureau has designated them as craft employees. Title 5 U.S.C. § 5349 entitles craft employees, including plaintiffs, to a different pay system than the wage-survey method generally applicable to prevailing rate employees. Title 5 links plaintiffs’ wages to wages paid similar employees in the private sector. Thus, plaintiffs receive salary increases when the salary for similar positions at the American Bank Note Company (ABN) rise.

The Secretary of Treasury (Secretary) has the obligation to administer these pay adjustments. Title 5 states:

The pay of employees [at] the Bureau of Engraving and Printing ... shall be fixed and adjusted from time to time as nearly as is consistent with the public interest in accordance with prevailing rates and in accordance with such provisions of this subchapter, including the provisions of section 5344, relating to retroactive pay, and subchapter VI of this chapter, relating to grade and pay retention, as the pay-fixing authority of each such agency may determine.

5 U.S.C. § 5349(a). Thus, the Secretary must keep the pay of craft employees at the Bureau “as nearly” linked to ABN pay “as is consistent with the public interest.” The Secretary’s obligation to adjust Bureau employees’ pay in tandem with ABN employees is tempered by his discretion to determine whether the public interest requires abandonment of the linkage.

The Secretary has delegated his pay-fixing discretion, in part, to the Director of the Bureau. 5 C.F.R. § 532.105 (1988). According to the Treasury Personnel Manual, the Secretary and the Director must administer rates of pay “within policies and practices of the Federal Wage System____” Treasury Personnel Management Manual (TPMM) at 1-2.

The applicable TPMM provisions state: Employees in the Bureau of Engraving and Printing performing and supervising work as Designer, Engraver, Plate Finisher, Plate Printer, Plate Hardener, Plate Maker, Sculptural Engraver, and Siderographer will be paid rates based on job-to-job comparisons with compafa-ble jobs in the American Bank Note Company, New York, N.Y. The schedule provides single rates adjusted whenever rates for each matched job are adjusted in the American Bank Note Company.

TPMM at IV-2 (emphasis added).

The parties agree that wage increases for Bureau personnel such as plaintiffs usually fall into one of two categories. The first category is general cost-of-living adjustments. The Bureau may grant these increases to plaintiffs without obtaining prior approval from Treasury. These increases are, however, subject to limitations based upon public interest determinations or policies established by the Treasury.

The second category of wage increases consists of those increases provided as differentials or premiums. A differential increase is an adjustment based upon performance of new and additional duties. The Secretary has not delegated his authority to grant these differential increases to the Bureau. The Bureau may recommend, but not approve, such increases. The Director of Personnel at the Treasury must approve these increases.

[605]*605If ABN grants its employees a differential increase, the Secretary must determine that the Bureau’s employees are doing the same extra work for which ABN employees received extra pay. If the Bureau employees are also doing extra work, they are, in the absence of countervailing public interest, entitled to extra pay as well.

In 1979, the Secretary announced anti-inflationary pay caps for all federal employees. In memoranda to department heads, the Treasury limited pay increases to 5.5% for fiscal year 1979 and 7.02% in fiscal year 1980. During fiscal year 1979, wage rates for ABN employees increased by 6%. Initially, Bureau employees also received a matching 6% increase. On June 8, 1980, the Bureau reduced this increase to 5.5% to comply with the pay cap.

During fiscal year 1980, ABN employees received a total of 9.5% in wage increases. The 9.5% increase consisted of a 7% wage increase, a 1% cost of living allowance, and another 1.5% increase. Plaintiffs’ wages, however, were still subject to the pay caps. Accordingly, plaintiffs (and other Treasury employees) received only a 7% wage increase. Two successive years of pay caps created a gap between plaintiffs’ wages and the wages of their counterparts at ABN.

A second discrepancy increased that gap. In 1983, the Bureau implemented weekly raises to keep pace with ABN raises without taking into account the difference in duration of the workweek for ABN and Bureau workers. Twice that year, ABN gave its employees a $17.20 per week raise. This raise amounted to an additional $.50 per hour for ABN employees based on a 34.5 hour workweek. Because its employees performed the same extra duties, the Bureau granted them a comparable weekly raise. The Bureau, however, operates on a 40-hour workweek. Therefore, plaintiffs received an increase of only $.43 per hour. Although Bureau employees received the same weekly increase as ABN employees, the difference in working hours resulted in a $.07 per hour wage differential.

In 1984, plaintiffs observed a gap between their wages and ABN wages. Therefore, in June 1984, plaintiffs informed the Bureau of the gap between hourly wages for ABN and Bureau engravers. The Bureau reviewed only the 1978 and 1980 salary actions. On August 16, 1984, the Director of the Bureau, Mr. Ellenber-ger, reported to the local union by letter:

I reviewed the Bureau’s records of the pay increase granted the Engravers and find no basis for the discrepancy. The question has been referred to the Department of Treasury who is the pay fixing authority for review.

At that time, the Bureau could not explain the reason for the discrepancy. Simultaneously, the Bureau by letter reported the wage discrepancy to the Treasury:

The divergence began in 1979, prior to the imposition of the current round of pay caps, and the difference continues to grow each year. The amount of the difference exceeds that which can be explained by the pay caps.

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18 Cl. Ct. 603, 29 Wage & Hour Cas. (BNA) 850, 1989 U.S. Claims LEXIS 195, 1989 WL 139112, Counsel Stack Legal Research, https://law.counselstack.com/opinion/archer-v-united-states-cc-1989.