Federal Manager's Daily Report

The Federal Aviation Administration and the National Air

Traffic Controllers Association has signed a two-year

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contract extension that increases the percentage of

employees whose compensation is tied to pay-for-performance

from 37 to 75 percent (about 15,000 people), FAA

announced.

The contract provides that a portion of the controllers’

annual salary increases will be based on meeting agency

performance targets, said FAA, which hopes the changes

will help to avoid $40 million in costs over the next

four years.

FAA and the union also agreed that FAA now has the

flexibility to adjust staffing levels based on

workload. http://www2.faa.gov/apa/pr/pr.cfm?id=1811