CFSC-HR-P  13 NOV 90


MEMORANDUM FOR SEE DISTRIBUTION

SUBJECT: DEPARTMENT OF DEFENSE (DOD) NONAPPROPRIATED FUND (NAF) PAY BAND SYSTEM

1. THE RECENTLY APPROVED DOD NAF PAY BAND SYSTEM PROVIDES LATITUDE TO EACH MILITARY DEPARTMENT TO ESTABLISH RULES UNDER WHICH THE SYSTEM WILL OPERATE. THE BASIC STRUCTURE OF THE PAY LEVELS, THE DETERMINATION OF THE RATES OF PAY ASSIGNED TO EACH LEVEL, THE GENERAL OUTLINE OF THE CHARACTERISTICS OF EACH LEVEL, AND THE METHOD OF DETERMINING INCREASES TO THE PAY LEVELS HAVE ALL BEEN ESTABLISHED BY DOD. DETERMINATIONS ON PAY FIXING, PREMIUM PAY ENTITLEMENT, AND THE APPLICATION OF NEW PAY RATES ARE WITHIN ARMY AUTHORITY TO ESTABLISH GOVERNING POLICY.

2. ENCLOSED ARE PROPOSED POLICIES PERTAINING TO THESE ITEMS. THE BASIC INTENT IS TO PROVIDE THE INSTALLATION/COMMUNITY COMMANDER MAXIMUM FLEXIBILITY IN MEETING THE DEMANDS OF THE LOCAL LABOR MARKET. THIS FLEXIBILITY IS A SIGNIFICANT DEPARTURE FROM THE EXISTING PAY SYSTEM AND REQUIRES THAT THE NAF BUDGET BE FULLY INTEGRATED WITH PERSONNEL MANAGEMENT DECISIONS. PLEASE KEEP IN MIND THAT INCREASED FLEXIBILITY USUALLY EQUATES TO COLLECTIVE BARGAINING OBLIGATIONS IN A UNIONIZED ENVIRONMENT. RECENT DECISIONS OF THE FEDERAL LABOR RELATIONS AUTHORITY AND THE COURTS, INCLUDING THE SUPREME COURT, HAVE UPHELD THE NEGOTIABILITY OF PAY AND FRINGE BENEFITS NEGOTIATING COMMITTEE THAT WILL REVIEW UNION CONTRACT PROPOSALS TO ENSURE CONSISTENCY ACROSS THE MILITARY DEPARTMENTS. ARMY WILL ALSO DEVELOP TRAINING TO ASSIST LOCAL NEGOTIATING TEAMS IN THE COLLECTIVE BARGAINING PROCESS.

3. AFTER REVIEW OF MACOM COMMENTS AND FINALIZATION OF POLICY, A LETTER OF INSTRUCTION INCORPORATING ALL PAY HAND SYSTEM PROCEDURES WILL BE ISSUED. OUR TARGET DATE IS 15 JANUARY 1991. PLEASE FORWARD YOUR COMMENTS ON THE PROPOSED POLICY TO CFSC-HR-P, BY 28 DECEMBER 1990. POC IS BILL MCMULLEN, AV 221-7762, COMM 703-325-7762.



// signed //
FRED F. MARTY
Major General, USA
Commander,
Community and Family
Support Center
// signed //
RAYMOND J. SUMSER
Director of Civilian
Personnel


Enclosures