Mark McDonald, President AFGE Local 2040

As most of you know, the House and Senate have voted overwhelmingly in favor of the DoD 2004 Authorization Conference Report (H1588CR). The Bill is now on its way to the President for signature.

This Bill will change our work lives. However, there are some facts to remember:

Your pay will remain the same until the new pay system is put into place.

You will receive the January pay increase Congress just passed.

You will continue to receive Denver locality pay until the new pay system is put into place.

The labor agreement (MUMA), local agreements and past practices remain at least until March 04. This means:

1. Grievance procedures remain the same.
2. Parking agreement stays in force.
3. Smoking agreement remains the same.
4. Flextime and AWS stay the same.
5. All other local agreements remain in force.

PAY: Changing our pay system from the GS schedule to Pay Banding with only five bands for all employees. Based on what DoD has said to date, they will take an average of pay for those jobs they place in a particular band, add two percent and that is what your pay will become once the new pay system is put into place. Since there will be no locality pay component chances Denver employees will see a pay decrease. Perhaps not.

After your pay is set under pay banding, your pay will increase or decrease as determined by your supervisor or perhaps a management panel. You will no longer get pay increases from Congress. You will no longer have step increases. The Union has been told the pay pot will be closed meaning that in order to increase your pay, someone else has to have a pay decrease.

RIF: Only certain veterans will have any RIF protection.

Timelines: The pace of the changes to come at DoD is yet to be determined. DoD will have to issue implementing regulations or other policies "in collaboration with" the Office of Personnel Management, although OPM's precise role is not defined. In the case of certain changes affecting unions, DoD will have to notify them of its plans, give them 60 days to comment, and give their views "full and fair consideration." The performance management system would have to be phased in through a requirement that such a system meet certain standards before being applied to all employees. In addition, language in the pending Transportation-Treasury appropriations bill for 2004 effectively bars DoD (as well as the Homeland Security department) from cutting into the January 2004 federal raise to free up funds to use for performance pay. Defense officials previously have said that they expect it would take a year or two to put a reformed personnel system in place. We just don’t know.

If you are feeling stressed please use your Employee Advisory Resource benefit. This benefit is available to you and your family. Your health insurance plan may also have benefits of this nature.

E2W: IF you have NEVER used MYPAY you will get a W2 in January 2004. If however, you have used MYPAY and you want a hard copy W2, you MUST go into MYPAY before 30 November 2004 and turn the hard copy on.

Next Membership Meeting: 18 November , 11:00 in the Weber. Lunch will be provided.