On Wednesday, the
House of Representatives will vote on fiscal responsibility and the
integrity of the existing federal statutes that bind and guide
them. At issue is legislation (H.R. 5449) from a bipartisan group
of Members to change federal law to boost the salaries and benefits
of the Federal Aviation Administration's (FAA) air traffic
controllers. The controllers seek a new contract that will further
increase their already substantial salaries and benefits, but have
rejected the FAA's final offer. According to the FAA, controllers
now average $173,000 per year in pay and benefits, and under the
agency's final and best offer the average wage and benefit package
would rise to $187,000 within five years.
The controllers'
generous compensation package stems from legislation passed in 1996
that gave them the privilege to negotiate pay, benefits, and work
rules - a privilege few other federal workers (including
congressional staff) possess. In response, the controllers
negotiated a new contract in 1998 that made them some of the best
paid workers in America. That contract expired on September 5,
2005, and subsequent negotiations between the controllers' union
and the FAA failed to reach an agreement on a new contract. On
April 5, 2006, the FAA declared an impasse.
Under the 1996
federal law, this declaration sent the dispute to Congress, which
had 60 days to act on the issue. If Congress did not act, the FAA
could implement its final and best offer. And Congress did not act
during this 60-day period - indeed, a discharge petition in the
House failed to get the necessary 218 signatures needed to force
the issue to the floor - and so the FAA begins implement of the new
contract on June 5.
Although all
participants in the negotiations scrupulously followed the law's
requirements in reaching this outcome, the union's congressional
supporters are now attempting to change the rules, after the fact,
to force both sides back to the bargaining table and prevent the
FAA from implementing its contract. In response, House leadership
has agreed to place H.R. 5449, a bill "to modify bargaining
requirements for proposed changes to the personnel management
systems of the Federal Aviation Administration" on the suspension
calendar for a vote this Wednesday. Under the "suspension of
rules," H.R. 5449 must receive a two-thirds vote to pass.
While supporters
of this legislation contend that the issue is one of fairness and
that the FAA's unionized employees should be allowed the
negotiation privileges (which Congress has denied its own staffers)
that some other unions possess, the bill would force an indefinite
delay that would allow for continued increases in controller
pay.
For the
controllers, this delay would be better than even their own final
and best offer, which the FAA rejected last spring. Thanks to an
"evergreen" clause, the expiration of the 1998 contract in late
2005 did not mean an end to salary and benefit increases because
the contract's automatic compensation escalators remain in place.
The FAA cites a union press release from March 31, 2006, that
explains the union's strategy:
There is
absolutely no reason for NATCA to end talks. The current contract
is better than our last concession-laden contract proposal at the
bargaining table, and stays in effect until there is a new
contract. We could literally talk forever…
Another reason for
the union to seek a delay is the chance that this November's
election could change the composition of the House of
Representatives to one more accommodative of the controllers'
interests.
Legislators, in
turn, are concerned that they may face union opposition in their
reelection efforts if they are not sufficiently supportive of the
controllers. Conveniently for Congress, if both sides are forced
back to the negotiating table, final action would be postponed
until after the November 2006 election. In response to these delay
tactics, Rep. John Mica (R-FL), Chairman of the Aviation
Subcommittee of the House Committee on Transportation and
Infrastructure and a supporter of the FAA position, said, "This
bill is not only a budget buster, nor is it about quality air
traffic control services, but a costly attempt to influence the
outcome of November's election."
And costly it will
be. Because of the "evergreen" clause in the current contract, any
delay in settlement will cause controller compensation to continue
to rise and postpone adopting the revised salary schedule for new
hires. As a consequence, any suspension of the June 5 deadline will
cost U.S. taxpayers a bundle. Based upon FAA's estimate of a $1.9
billion savings over the five-year life of the new contract, a
six-month delay in its implementation could add a cumulative $190
million to current and future budgets. America can ill afford
such a lapse in fiscal discipline.
Ronald D.
Utt, Ph.D., is Herbert and Joyce Morgan Senior Research Fellow
in the Thomas A. Roe Institute for Economic Policy Studies at The
Heritage Foundation.