Evening star., 1933-06-16
NEW LAWS AFFECT
FEDERAL WORKERS
Economy Act Provides Is
Per Cent Pay Cut and Re-
organization of Bureaus.

lation of far-reaching effect on thou
sands Of Government employees here
and throughout the country during the
special session Of the new Congress
| just ended
First, came the new economy act
imposing . pay cut Of 6a5 per cent on
Federal and District workers IN addi-
tion to the s1s per cent reduction al
ready being applied through the COM
pulsory furlough without pay. making
the present cut is per cent The new
law takes the place Of the payless fur
Tough and provides for . straight pay
cut not to exceed Is per cent, the
amount Of the cut to be regulated from
time to time by the President, based on
the cost Of living as ascertained from
| study Of index prices. The Presi-
dent was authorized to investigate hv-
! ing costs during the six months ended
June 80, 1928, q similar study Of the
six months ended last December, and
Of each six months period thereafter.
Under this law for the time being he
has fixed the pay cut ct the IS per
cent limit.
With the repeal Of the legislative
furlough, Is days of annual leave Is re-
stored to the Government workers.
Effective During August.
Acting under an amendment to the
reorganization powers contained in the
| new economy law the President sub
mitted to Congress last Saturday . re-
organization order, abolishing certain
agencies with their functions transferred
and co-ordinated with other agencies.
This order takes effect automatically
81 days from its submission to Con-
gress, or shout the middle Of August.
In the closing hours Of the session
yesterday the Senate passed a joint
resolution seeking to postpone until 90
days after Congress returns in Janu-
ary the operation Of three features Of
the order, namely:
The proposal to abolish the Public
Buildings Commission as q separate
agency and transfer its functions to
the Interior Department.
The proposal to reduce by IS per
cent the activities Of Agricultural ex-
tension work, experimental stations, ag-
r1cultural and mechanical endowment
| SSAAS6S0 okA0 NOCdClOudk CQuCduOu.
The proposal to transfer national
cemeteries from the war Department
| to the Interior Department.
While this does not have binding ef-
feet because the House failed to act
Jointly on 1t, 1t was indicated during
| the Senate debate yesterday that the
President probably would adhere to the
purpose Of the resolution, at least In
regard to the proposed rs per cent in
various cooperative and agricultural
| extension activities in section 18 of the
executive order. The other two items
in the resolution. relating to the Public
/ Buildings Commission and national
cemeteries, were inserted at the last
minute on the floor and no information
was available as to the Presidents at
| titude.
At Liberty to Modify Order.
Senator Robinson, of Arkansas, Demo-
cratic leader, told the Senate 1t was his
understanding that "the President has
SO written his executive order that he
| Is at liberty at any time he chooses to
| modify it,
In urging that the transfer Of the
Public Buildings Commission be post
poned, Senator Connally, Democrat, Of
Texas, chairman, pointed out it has only
one employe and that some Of its mem
bers feel 1t is more in the nature Of q
legislative agency than q part Of the
executive branch. It Is composed Of
members Of the House and Senate and
the architect Of the Capitol.
The reorganization order provides for
separation from the service Of employees
in the abolished or merged agencies, but
with a proviso that the agency taking
over a function may re-employ these
r,orlyoy NTH opyHrnuo1 nf tho "
ecutive within four months without re-
examination or loss of Civil Service
status.
Two new economy rules are about to
become law in the independent offices
appropriation bill, on which final action
was taken early this morning, sending
| the bill to the President. One Is the
new administrative furlough provision,
| in which the essential change from the
old furlough clause Is that furloughs
made necessary by the economy pro-
gram must be applied in rotation to all
the officers and employees Of an of1ce
in order to distribute as far as prac-
ticable the available work. This pro-
vision Is to apply until July l. 1884,
"in cases in which the number OF ofh-
GERS and employees in any particular
| service Is in excess Of the number
/
service" The new furlough clause re-
/ tains the proviso in the old law that
| whenever q furlough is to extend more
than 80 days, the department head
must comply with all the requirements
of the civil service law as In the case
/ Of o dismissal.
Retirement Benefits Provided.
| The other new feature In the inde-
| hill 10 tho rffn0 nj
retirement annuities to Government
workers with 80 or more years OF serv-
ice If they are "involuntarily separated"
from the service during the next two
years through reductions In force.
Under existing law employees have to
reach certain age limits to 60 on the
retired list. Employees who are facing
dismissal are now given retirement
benefits If they have 80 years of serv-
ice, even though they have not reached
the retirement age.
| They must, however continue to pay
| the 31z per cent contribution into the
retirement fund until reaching that age.
The Senate tried to broaden this section
to allow voluntary retirement on this
| basis, but In conference 1t was confined
to those being let out.
, Government employees from the Dis
trict Of Columbia, Maryland and Vir-
ginia were threatened during this ses-
sion by the adoption Of q rule which
would have exposed them to an added
danger OF dismissal by requiring adher-
ence to the State quota provision in
the civil service law. The Senate modi-
fed the original House provision on this
subject in the independent offices bill
to require efficiency as well as State
quotas to be considered in making dis
missals In conference all reference to
the subject Of State quotas was elm
mated.
Civil Service Probe Authorized.
The House adopted q resolution IA
thered by Representative Hastings, DEM
ocrat, Of Oklahoma, member of the
subcommittee drafting the independent
| offices hill which ordered an invesfioa- =