October 09, 2014

Kilmer Leads Bipartisan Effort to Stop DOD from Enacting Policy That Would Reduce Compensation for Workers

WASHINGTON, D.C. – Representative Derek Kilmer (WA-06) led a bipartisan effort to prevent civilian defense workers from facing extra out-of-pocket expenses for required travel supporting the nation’s military. Kilmer was joined by more than twenty-five members in sending a letter to Paige Hinkle-Bowles, Deputy Assistant Secretary of Defense for Civilian Personnel Policy, questioning a proposal to reduce per diem rates for employees because it would unfairly increase lodging costs when workers are on extended assignment.

The Department of Defense (DOD) proposal would alter the per diem allowance for long-term temporary duty (TDY) workers. DOD is considering a reduction in per diem allowances of 25 percent for TDY periods longer than 30 days and 45 percent for those lasting longer than 180 days.

Implementing this policy would further erode the morale of the workforce and slow the growth of local businesses impacted by TDY across the nation,” the members wrote in the letter sent today. “We have serious concerns that if applied, this policy would result in financial losses to DOD civilians and businesses that are dedicated to supporting our military.”

The members noted in their letter that in 2013 the General Services Administration (GSA) froze per diem rates and made it harder for federal workers on required travel to find lodging. The GSA’s Government-Wide Travel Advisory Committee also found that the current lodging per diem calculation methodology is data-driven, accountable, and transparent.

The letter is supported by a variety of labor and business travel groups including: American Federation of Government Employees (AFGE), American Hotel & Lodging Association (AHLA), Association of Civilian Technicians (ACT), Federal Managers Association (FMA), Hilton Worldwide, International Federation of Professional and Technical Engineers (IFPTE), International Association of Machinists and Aerospace Workers (IAMAW), Marriott, National Federation of Federal Employees (NFFE), Metal Trades Department, and US Travel Association.

The full text of the letter follows.

Dear Secretary Hinkle-Bowles,

We understand that the Department of Defense is considering a change to the per diem allowance for long-term temporary duty (TDY). While we appreciate the pressure to reduce costs and your dedication to doing so, we are concerned that the method proposed would cause undue harm to the civilian workforce and industry partners.

The proposal to reduce per diem allowance by 25 percent for TDY periods longer than 30 days and by 45 percent for TDY periods longer than 180 days would cause an undue burden on a workforce that has already been stricken with furloughs, government shutdowns, and three years of pay freezes and the private sector that is still rebounding from the economic recession. Implementing this policy would further erode the morale of the workforce and slow the growth of local businesses impacted by TDY across the nation.

We have serious concerns that if applied, this policy would result in financial losses to DOD civilians and businesses that are dedicated to supporting our military. In 2013, when the General Services Administration (GSA) froze rates, federal travelers were increasingly challenged to identify affordable lodging in the places they needed to travel, particularly in cities. Furthermore, the proposed policy undermines the findings and recommendations of GSA’s Government-Wide Travel Advisory Committee, which affirmed and preserved the current lodging per diem calculation methodology as data-driven, accountable, and transparent.

The Department should not put its workers in a position where they are required to travel for work but have to pay out of pocket for basic necessities. Furthermore, as rental costs and average daily rates at hotels are trending upward nationally alongside the economic recovery, DOD could very well find itself priced out of certain markets if per diem rates are artificially capped as this policy would establish.

We therefore request that you and representatives of your staff meet with us, and representatives of labor, management, and industry to discuss the proposed changes and any viable alternatives that may exist. Moreover, we request that the proposed changes are not implemented until after this discussion and an acceptable solution is agreed upon.

Thank you very much for your time and consideration of this request.

Sincerely,

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