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FPCD-77-69 1 (1977-09-30)

handle is hein.gao/gaobaawcn0001 and id is 1 raw text is: DCCUMENT FESUME 03774 - rA27940231 Department of oefense Should Change Pay Setting for Korean Nationals. FPCD-77-69; B-179343. September 3C, 1977. 2 pp. + appendix (12 pp.). Report to Sen. John L. McClellan, Chairman, Serate Committee on Appropriations; by Robert F. Keller, Acting Ccoptroller General. Issue Area: Personnel Management and Compensation (300); Federal Personnel Management ard Compensation: Pay Principler and Pay Determinaticn Processes (3C6);Federal Personnel Management and Comensation: Retirement Policies and Practices (30?). Contact: Federal Personnel and Comensation Div. Budget Function: National Defense. Department cf Defense - Military (axcept procurement & ccntracts) (051); Income Security: Federal Employee Retirement and Disability (602). Organizaticn Conce~--ed: Department of Defense. Congressional Relevance: House Committee on Pcst Office and Civil Service; Senate Committee on Appropriations; Senate Committee cn Armed Services. Authority: Foreign Service Act, sec. 444, as azended. The United States Department of Defense employs about 23,000 Korean nationals in Korea who are paid more than the local wages. Findirgs/Conclusions: The Departsent of Defense puts considerable effort into establ.shing employment practices in Korea that are fair to both our Government and the Korean national euployees. However, there are certain aspects of compensation setting and administration in Korea that should be changed in order to bring wages and benefits paid more into line with local practices, improve procedures, and reduce costs. Because the wages that the United States pays its Korean employees generally exceed local wages, there is considerable savings potential in contracting out services now done by directly hired personnel. However, the manner in which Korean labor legislation is interpreted and applied tc Defense precludes any savings from actually taking place. Recommendations. The Secretary of Defense should direct the U.S. Forces in Korea to identify all contract areas with potential dollar savings and present its case to the Government of Korea with the objective cf eliminating or modifying current contracting restrictions. (Author/SC)