Bonuses for senior executives at Transportation in jeopardy

The Transportation Department may withhold performance awards and bonuses from eligible employees if fiscal 2003 funds aren't enough to cover both pay raises and bonuses.

In a Dec. 9 memo obtained by Government Executive, Secretary Norman Mineta told department heads that while the agency's employees had "worked harder than ever before to meet the challenges brought about by the horrific terrorist attacks of Sept. 11, 2001," the constraints of the current continuing resolution made it impossible to award executive bonuses or awards.

Adding that he did not "take this action lightly," Mineta went on to say that awards and bonuses would only be disbursed if the fiscal 2003 budget allocation is large enough to fund both pay raises and the bonuses.

"We are hoping to be in a position to make executive awards and bonuses if or when we get an appropriation that will accommodate both these well-deserved awards and any pay raise," Mineta wrote. The awards are for employees' work performance in 2002.

President Bush issued an executive order Tuesday evening formally implementing a 3.1 percent pay increase in 2003 for General Schedule employees and members of the Senior Executive Service. Several Washington-area lawmakers are pushing for a 4.1 percent average pay increase in the 2003 Treasury-Postal Appropriations bill.

According to a department spokesman, there is no predetermined amount above or below which bonuses will or will not be paid, but "once we receive an appropriation we will have to assess what we get against our overall obligations at that time and then make our decision on whether bonuses will be paid and how much they will be."

Congress adjourned in December without acting on 11 of the 2003 spending bills, including the Transportation Appropriations bill. Agencies are now operating under a continuing resolution that expires Jan. 11. The new congressional session begins on Jan. 7.

The move by Mineta caused Carol Bonosaro, president of the Senior Executives Association, to question the Bush administration's commitment to pay-for-performance measures.

"The administration professes to support pay-for-performance, but if this is how pay-for-performance works, I think it would do very little to inspire any rational person," Bonosaro said. "I think if the administration is serious about pay-for-performance, it's going to have to get serious about making that real."

If fiscal 2002 bonuses for Transportation senior executives are eventually eliminated, it will be the second time senior managers at the Federal Aviation Administration, which is part of Transportation, have been denied the rewards. In 2001, former FAA Administrator Jane Garvey withheld bonuses because the terrorist attacks caused the agency to fall short of their performance goals. John Fisher, president of the FAA Managers Association, said the move further limits the agency's ability to keep good leaders.

"It is sad to see our senior executives in the FAA work so very hard to do the right thing for the agency and the taxpayer with little to no reward for their hard work," Fisher said. "It is hard enough to attract and retain these leaders at the salaries offered in federal service. This is just another reason for them to apply their expertise in the private sector," he said.