Henderson v. United States

17 Cl. Ct. 180, 29 Wage & Hour Cas. (BNA) 548, 1989 U.S. Claims LEXIS 105, 1989 WL 60199
CourtUnited States Court of Claims
DecidedJune 7, 1989
DocketNos. 477-85 C, 407-86 C
StatusPublished
Cited by1 cases

This text of 17 Cl. Ct. 180 (Henderson 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
Henderson v. United States, 17 Cl. Ct. 180, 29 Wage & Hour Cas. (BNA) 548, 1989 U.S. Claims LEXIS 105, 1989 WL 60199 (cc 1989).

Opinion

OPINION

WIESE, Judge.

Title 5 of the United States Code, section 5349(a), as amended, pertains in general to the pay of employees in the Federal Government who are engaged in positions having trade, craft or laboring experience and knowledge as a principal requirement. The statute provides that the pay of such employees “shall be fixed and adjusted from time to time as nearly as is consistent with the public interest in accordance with prevailing rates____” The purpose of the statute is “to keep reasonable parity between public and private employees.” National Maritime Union of America v. [181]*181United States, 231 Ct.Cl. 59, 74, 682 F.2d 944, 954 (1982).

The questions we encounter in this consolidated action are whether the administrative agency involved here, the United States Department of the Treasury (“Treasury Department”), abused the pay-fixing authority granted by the statute when it (i) declined to allow eligible employees (plaintiffs herein) a “catch-up” pay increase and (ii) revoked a previously granted pay adjustment. The issues are before the court on cross-motions for summary judgment. Having considered the parties’ briefs and oral arguments, we conclude that plaintiffs are entitled to judgment on the first issue and the Government is entitled to judgment on the second issue.

FACTS

Plaintiffs are employees of the Bureau of Printing and Engraving (the “Bureau”), a component of the Treasury Department. They are engaged in a specialized craft, siderography,1 the basic pay rates of which are subject to the requirements of 5 U.S.C. A. § 5349(a) (West Supp.1989), that is, the rates are administratively determined by reference to prevailing wages for comparable positions in the private sector.

The Treasury Department, which is the administrative authority responsible for establishing the policies and formulas governing the siderographers’ wage rates, has specified in its regulations that the siderog-raphers “will be paid rates based on job-to-job comparison with comparable jobs in the American Bank Note Company, New York, N.Y.” Treasury Personnel Management Manual (“TPMM”) ch. 532, IV-2, H3b (1984). Responsibility for implementation of the pay formula and policies thus established by the Treasury Department has been delegated to the Director of the Bureau of Printing and Engraving (the “Director”). TPMM ch. 532, V-2, II3.

Reliance on the American Bank Note Company’s positions as the point of reference for determining the pay of the Bureau’s siderographers (referred to as a “tandem pay relationship”) has been the authorized practice of the Treasury Department for at least the last twenty years. For much of that time wage rates between the two groups remained in parity notwithstanding the introduction of annual pay caps on most federal civilian salaries beginning in fiscal year 1979. That is to say, the Bureau's siderographers were either granted end-of-year “catch-up” wage increases (this was the case in 1979 and 1980) or they were deemed exempt from the pay caps applicable to other federal workers (this was the case in 1981 and 1982). Thus, until 1983, the annual percentage increases in the wages of the siderographers of the American Bank Note Company led to matching increases for the siderographers of the Bureau of Printing and Engraving.

A change set in in 1983. In that year, the siderographers at the American Bank Note Company received a seven percent basic wage rate increase together with a separate one dollar per hour wage adjustment, the latter designated (by the terms of the collective bargaining under which it originated) as a “special” adjustment for increased production and quality. The siderographers at the Bureau were not granted a matching increase. Rather, in a wage adjustment announced on August 12, 1983 (and made retroactive to May 16, 1983) the Director limited the siderogra-phers to a four percent rate increase — an adjustment which the wage bulletin explained “reflects the same ceiling imposed by the Treasury Department [on other members of that agency’s workforce]”. Thus, the pay cap imposed on the plaintiffs was in keeping with a four percent ceiling on pay increases for most Federal civilian workers including those under the General Schedule and related pay systems and most Federal wage employees.

Notwithstanding the policy of aligning plaintiffs’ wage increases with those of other Government employees, in October of 1983 the Director decided that the addition[182]*182al one dollar per hour pay increase which the American Bank Note Company employees had received should also be granted to plaintiffs. This change, also made retroactive to May 16, 1983, was identified in the Director’s wage bulletin as a “correction” to the siderographers’ basic pay rates. This pay “correction” remained in place for several years. However, in 1985 the validity of the Director’s action was called into question and then, in 1986, following further evaluation of the matter, the Treasury Department decided to revoke the one dollar pay increase. The bases for this action were, first, the Treasury Department’s conclusion that the one dollar increase violated the four percent pay cap in effect in 1983 (the year in which it first was granted) and, second, that it ran afoul of the administrative rule endorsed in Amell v. United States, 182 Ct.Cl. 604, 390 F.2d 880, cert. denied, 393 U.S. 852, 89 S.Ct. 88, 21 L.Ed.2d 122 (1968), that private sector fringe benefits are not wages for purposes of comparability pay adjustments under “prevailing wage” statutes. The correctness of the Treasury Department’s decision to revoke the 1983 wage correction is one of the two issues we encounter in this case. The Government, we should add, has filed a counterclaim to recapture the monies involved.

The other matter in question also has its roots in 1983. As previously noted, side-rographers at the American Bank Note Company had received a seven percent pay increase in 1983 while their counterparts at the Bureau of Printing and Engraving were held to the government-wide pay adjustment of four percent. In the following year, 1984, the siderographers at the American Bank Note Company did not receive a pay increase; neither did the plaintiffs. However, other prevailing wage employees at the Bureau did'receive pay adjustments as authorized under the tandem pay relationship applicable to their particular crafts (but again capped, as in 1983, by a government-wide maximum of four percent). Consequently, the Director requested permission from the Treasury Department to grant plaintiffs a wage increase — notwithstanding the absence of any corresponding adjustment in the private sector — because the 1983 pay cap had prevented their participating to the full extent of that year’s prevailing wage increase.

The matter was presented to the Treasury Department in the form of a proposed “catch-up” wage adjustment, i.e., a request for an increase of three percent in 1984 (less than that year’s pay cap) to recapture the like amount relinquished in 1983 and thereby to restore plaintiffs to a position of parity with their industry counterparts.

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17 Cl. Ct. 180, 29 Wage & Hour Cas. (BNA) 548, 1989 U.S. Claims LEXIS 105, 1989 WL 60199, Counsel Stack Legal Research, https://law.counselstack.com/opinion/henderson-v-united-states-cc-1989.