Federal Manager's Daily Report

After exchanging final pay proposals on April 4, the Federal

Aviation Administration walked out of talks with the

National Air Traffic Controllers Association over a new

labor contract, and unless Congress intervenes within 60

days after FAA submits its final proposal for review, the

agency’s offer will take effect.

Lawmakers have demonstrated a willingness to intervene.

Over 150 Representatives have signed on to a House bill

introduced by Sue Kelley, R-N.Y. — identical to one

introduced in the Senate in January — that could force

FAA to resolve labor disputes with unions through binding

arbitration as a last resort. Sen. Barack Obama, D-Ill.,

introduced the Senate version on, which now has about 30

Democratic supporters and no Senate Republicans.

The agency and the NATCA, which represents about 20,000

controllers, among the highest paid workers in the

federal government, have been locked in a struggle since

last July over a new contract. The prior contract

expired in September, but remains in effect until a

new one can be reached. FAA controllers are one of the

few groups in the executive branch allowed to bargain

over pay.

The union said the final talks only lasted a few minutes

and were not meaningful. It said its final offer

maintained $1.4 billion in savings, and that it offered

to continue talks through federal mediation but the

agency — which sought $2 billion in savings — turned

it down.

According to the FAA, the union rejected a proposal that

would preserve current salaries and benefits for the

existing workforce, implement a new pay scale and

eliminate two types of premium pay — controller

incentive pay and controller in charge premium pay —

which the agency says have contributed to a 75 percent

increase in the average salary and benefits package for

controllers from 1998-2006 to about $170,000 per year.

FAA said the union sought to guarantee increases and

keep pay scales close to their current levels for all

controllers, something it called “an excessive pay

structure for the long term.”