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The Senate followed through on its compromise with House negotiators last week and voted 95 to 3 on Wednesday to give broad new authorities to Defense Secretary Donald Rumsfeld to redesign the civil service system governing the Defense Department's 700,000 civilian employees. The personnel reforms were part of a much larger bill authorizing Defense programs.

The House passed identical legislation last week, and the measure will now go to President Bush, who is expected to sign it. It will give Rumsfeld authority to throw out the half-century old General Schedule classification system and replace it with a new pay-for-performance system. It will also give Rumsfeld new authority to hire highly skilled workers more quickly, to promote top employees, and to fire poor ones. Defense officials will also be able to rewrite the rules governing collective bargaining with agency unions and establish a new internal appeals system for employees protesting disciplinary decisions.

Senate Governmental Affairs Committee Chairman Susan Collins, R-Maine, who brokered the compromise agreement with House negotiators, said the final bill, "while by no means perfect, is a reasonable compromise to the challenge of modernizing an outdated system while protecting employees' rights."

Top Senate Democrats criticized the personnel reforms.

"By giving the Secretary of Defense the authority to decide who reviews disputes, the issues to be reviewed and the standard of review, this bill appears to hand one party the final say on all labor and management issues," said Sen. Daniel Akaka, D-Hawaii. "This language is inconsistent with the concept of good faith bargaining between equals."

Union leaders were even more critical. "Rumsfeld's plan effectively discards critical civil service laws designed to put an end to a federal spoils system where patronage is rewarded and merit principles are a thing of the past," said American Federation of Government Employees President John Gage.

The bill, which is widely seen as a precursor to broader governmentwide civil service reforms, is already having implications beyond the Defense Department. The Merit Systems Protection Board, an independent agency that adjudicates disciplinary appeals, is considering the closure of its Seattle and Boston field offices in anticipation of Defense creating its own internal appeals system. Between 15 and 18 MSPB judges could lose their jobs if the offices are closed. A final decision on the closures is slated for next week.

COMMENTS

• As a DOD employee 54 years old and 34 years of federal service, I must say that over the past 10 years or so I have seen the erosion of the team effort in defending our country. Mr. Rumsfeld has obviously had some problems in the past with some civilian workers (possibly when he was a military member) and wished he could just fire these people and get some YES people. Well it looks as if he will get his revenge. This is the only logical reason I can think of for a person to treat others in this fashion, pure and total revenge. His attitude has to be civil service workers are the slaves and he wants to be lord and master. Mr. Bush wake up and make some decisions for yourself and fire Rumsfeld before he brings you completely down. I have a regret of my own, I voted for you. Won't happen again. Loyal Worker and Dedicated American Roger Hunt Posted December 19, 2003 2:39 PM
• Pay-for-performance is just a clever name for another O&M manpower cost-saving initiative, which builds upon the previous locality pay cost-saving initiative. A select few chosen people get paid a fraction more due to their political backing or selected geographic location while the majority will have their pay cut back to finance the perks for the few. When the analysts do the math the overall result will be a reduction in across-the-board payroll costs and those who will suffer the pay cut will be told that it is their own fault. A brilliant concept in which the stage was set by Department of the Navy's introduction of the pass/fail mediocre performance rating system five years ago in preparation for the new performance management system. Clearly since all DoN personnel are now rated mediocre by policy, no Navy employees by definition are eligible for "pay for performance". Even more savings! GovExec.com reader Posted November 14, 2003 9:34 PM
• Hey Rummy, why don't you have pay-for-performance for the military? Where I work, 99 percent of them are useless. This is just another military versus civilian fight. And it's another cheap way to pay for their unnecessary war in Iraq. When a base closes, he will fire everyone and we will lose our retirement so DoD won't have to pay for it. And it will all be political, especially for those of us who aren't Washington bureaucrats (who have gotten protection in the bill). No one, but, no one will want to work for the feds anymore. Good luck Rummy and thanks for the reward for my dedicated service! GovExec.com reader Posted November 14, 2003 6:27 PM