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Federal Union Wants Contractor Pay Capped


The American Federation of Government Employees wants to cap contractor pay. If the union gets its way, contractors will top out at an annual salary of $200,000.

Last week, AFGE made its case to the Senate Budget Committee. Concerned with budget talks targeting federal employee salaries and workforce, the union argued cuts in federal contracting must also be considered.

Citing high salaries earned by executives at Booz Allen Hamilton as an example, AFGE argued taxpayers should not have to reimburse for salaries set above what the secretary of defense makes.

AFGE said its proposal “…neither micro-manage contractor compensation, nor would it cap contractors’ salaries.”

The letter goes on to say the requested limit on reimbursements would save money and share the financial burden amongst the entire federal workforce, employees and contractors alike.


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