Delays in Pay Raises for Blue-Collar Federal Employees: A Deep Dive

Introduction

The current impasse surrounding federal pay increases has significant implications for blue-collar workers within the federal government, particularly those employed by the Department of Defense (DoD). As the situation unfolds, over 60,000 workers are anxiously awaiting their scheduled salary adjustments for 2025—a delay stemming from the recent overhaul of advisory committees initiated by Defense Secretary Pete Hegseth.

The Structure of Federal Pay Increases

For the majority of federal employees, accessing annual pay raises typically involves a straightforward process. The President either proposes an alternative pay plan to circumvent automatic increases based on the Federal Pay Comparability Act, or Congress modifies appropriations budgets to define salary adjustments. Subsequently, the Office of Personnel Management (OPM) publishes updated pay tables at the start of January.

Blue-Collar Wage Determination

For employees under the Federal Wage System—consisting primarily of blue-collar workers—the determination of wage increases takes a different route. These adjustments hinge on:

• Regional Wage Surveys: Conducted by the DoD Wage Committee.
• Committee Votes: Approvals of pay rates regionally, spanning the entire year.

This system ensures that compensation aligns with market conditions, maintaining competitiveness for specialized roles.

Disruption in Advisory Committee Operations

In March, Secretary Hegseth issued a directive that forced all advisory committees within the DoD to cease operations for a mandated 45-day review. The intent was to align advisory efforts with pressing strategic priorities. However, the outcome was a total revamp of committee memberships, effectively halting the functionality of essential committees.

Consequently, the Wage Committee—which is mandated by federal regulations to comprise three agency officers and two union representatives—has been unable to convene. Data from the Defense Civilian Personnel Advisory Service, in conjunction with the American Federation of Government Employees (AFGE), indicates that this disruption has resulted in pay freezes affecting approximately 87 out of 248 local wage areas.

The Impacts of the Administrative Stalemate

Critics, including Jacque Simon, AFGE’s Director of Public Policy, argue that these delays amount to an illegal pay freeze for a vital segment of the federal workforce. The inability to adjust salaries as prescribed by law raises concerns about compliance and accountability.

Temporary Acknowledgment from DoD

In response to inquiries regarding these delays, a DoD official attempted to mitigate concerns, labeling the situation as “temporary.” The official reiterated the necessity of establishing a new committee framework to resume regular operations, underscoring that compliance with statutory requirements is crucial for setting wage increments.

The Broader Implications for the Workforce

Importantly, while the Wage Committee primarily operates within the DoD, its decisions impact Federal Wage System workers across the entire government. According to OPM data, over 30% of the 170,000 blue-collar workers in federal service are employed outside of the Pentagon, including numerous personnel within the Veterans Affairs Department and National Park Service.

Potential Exodus of Skilled Workers

Ron Sanders, a fellow at the National Academy of Public Administration and former chairman of the Federal Salary Council, warns of dire consequences if resolution delays persist. The ongoing pay freeze could lead to the departure of skilled workers essential to national security functions, such as those skilled in nuclear reactor maintenance and naval propulsion.

• Critical Skills at Risk: The loss of specialized expertise could harm operational readiness and technical capabilities critical to the DoD’s mission.

Conclusion

The lingering uncertainty surrounding wage adjustments for blue-collar federal employees represents a significant operational challenge for the federal workforce. As negotiations and committee restructurings unfold, the risk of workforce attrition looms large, raising flags about national security impacts and the viability of the current defense workforce. A swift resolution must be prioritized to ensure that compensation reflects both the contributions and the extraordinary expertise of these essential personnel.