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FPCD-78-47 1 (1978-05-31)

handle is hein.gao/gaobaaxir0001 and id is 1 raw text is: DOCIUET RESONX 06024 - [91526556] Department of Defense Pay Practices for Japanese Nationals Should Be Changed. FPCD-7T-*7; B-179343. Bay 31, 1978. 1 pp. + appendix (13 pp.). Report to Sen. Warren Q. lagnuson, Chairman, Senate Committee on Appropriations; by Bluer 5. Staats, Comptroller General. Issue Area: Personnel management and Compensation (300); Federal Personnel fmanagement and Compensatiin: Pal Principles and Pay Determination Processes (306);Federal Personnel Eanagement an4 Compensation: ketiremeut Policies and Practices (307). Contact, foderal Personnel aad Compensation Div. budget Function: National Defense- Department of Defense - ilitary (except procurement & contracts) (0511; Income Security: Federal Employee Retirement and Disability (602). Organization Concerned: Department of Defense; Department of the Navy; Department of the Air Force; Department of the Army. Congressional Relevance: House Coamittee on Post Office and Civil Service; Senate Committee on Appropriatioas; Senate Committee on Armed Services. Sen. Warren G. 3agnuon. Authority: foreign Service Act, as amended. As of January 1978* U.S. forces in Japan (0SPJ) employed about 22,360 Japanese nationals; approximately 19,650 were paid from appropriated funds. Appropriated and nonappropriated fund payroll costs totaled aout S243 million and S27 million# respectively, in fiscal lear 1977. Coste per employee have increased in recent years, and waVe costs can be expected to increase further because of the comparatire decline in the value of the dollar against the Japaree yen. Findings/Conclusions: Because of Japanus reluctance to share costs or allow revisions of benefits, Japanese employees are paid well above prevailing local rates. Factors contributing to high payroll costs are the continued use of 0S3J differentLal (a special payment for Japanese employees), language allowances, the computation fordula for premium pay, and wage schedules, based on a 44-hour workweek Severance allowances are also more generous than those in prevailing practice. Hiring Americans locally could be less costly, but constraints to such hit'ng are staffing ceilings, a pending decision on hiring of dependents, and certain advantages of Japanese personnel. Increasing wages and declining dollar value could lead to further reductions in force and a raducei capability to meet U.S. and Japanese mutual defense objectives. Recommendations: The Secretaries of State and Defense should urge the Government of Japan to eliminate or pay excess compensation costs. The Secretary of Defense should explore ways of hiring more Americans in Japan. (HTU)