LETTER TO MR. THEODORE J. KAZY (Sanitized)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP81M00980R000700120084-0
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 3
• Document Creation Date: December 16, 2016
• Document Release Date: October 22, 2004
• Sequence Number: 84
• Publication Date: July 10, 1978
• Content Type: LETTER

OLC 78--0487/R
Approved For F7e1eae 141*O/2IW: Cl RD'1 814b4DUUM 0 00120084-0
WASHINGTON, D. C. 20505
10 July 1978
Mr. "Theodore J. Katy
Minority Staff Director
Cornrutf:ee on Post Office and C=ivil Sereicc
House of Representatives
l':ashington, D. C. 20515
In follow-up to our discussion last } riday on provisions in II.R. 1-1280,
the Civil Service Reform legislation, 1 we utd like to provide you With some
additional information on two provisions: proposed subsection 5402(,--1)
(page 173 of the June 15, 1978, Committee Print) and' proposed Title 1.TIT
("Labor-Management Relations") .
1. Proposed subsection 5402(a) _ -"Meri t Pay System." As we d.-i scussed
on 7 July 1978, in our view, the language "as estabLLS}iccl under chapters
51 and 53 of this title" should he iriscertcd at the end of proposed subsection
5402 (a) , in order to make clear that the Merit Pay System is appl -I cable 011_1y
to posit:i.ons tinder the Pay Classification Act. Since both CTA and NSA are
not under the Pay Classification Act, this r r ndment: would solve our concern
that, in being subject to the Merit Pay S) stem, our personnel. system would,
at least in part, become subject to external monitoring and regulation (by
the proposed Office of Personnel Management). This, of course, would.
Change the status quo as regards our present pos:rtion, based on our statutory
authorities, and would therefore be incora intent with our need for exemptions
from I.R. 11280. This amendment could bc! accompanied by Report :l.arrgtuage
making clear that:
As regards those agencies not subject to the Pay
Classification Act, in t:hich pay is fixed by administrative
action, ...hile not wi-thin the mm-it pay system proposod
by chapter 54, it is anticipated that these agencies will.
follow the principles and procedures of the merit: pay
system to the maxinwrr extent cons :i stmt with their
aut.hori ties and responsibilitie!,."
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A different, and in our view less (fesirable, appr'()acll to I.'eso-lv(!
this problem would be to specificall.), c-e1,pt CIA and NSA from ghee scope
of the :+ierit Pay System. This could be done by ilrsertin4gj the following
language at the end of subsection 5402 (t: L) , on line 23 o l page 1.7: of the
Jule 15, 1978, Committee Print:
"; Provided that the merit pay system shall not apply
to the Central Intel.l.ig once A ency or the National
Security Agency. "
This amendment could be acconpanied by Report language alone; the follow .ng lines
"The Central. Intelligence Agency and the National Security
Agency shall not he within the proposed. merit. pay system,
based on the unique nussions and needs of those agencies
pursuant to their operative .Iatu.tes. It is anticipated,
however, that -these agencies will adhere to the principles
and procedures of the me:ri.t pay system to the maximum
extent consistent: with their authorities and responsi-
bilities set forth in the National Security Act of 19/17,
as amended (50 U. S. C. 403) , the Central. Intelligence
Agency Act of 1949, as an aided (50 U.S.C. 403a et seq.) ,
Pub. L. 86 36, 73 '.)tat. 63, as amended, and Pub. I,. $8 290,
78 Stat. 168, as amen clod, "
2. Proposed Title l'II "'f arbor ilr"n zgcn?ent Relati.oils. ft is CSSCIII-:ic! I.
that intelligence agencies not be sub; ec t to this proposed title. We
strongly endorse the provision incl:udv?d in the Administr.al.tion's proposed
Title VII, which would exempt FBI, CIA, NSA, and other intelligence
agencies (proposed subsection 7162(c).), as we discussed on 7 July 1978.
The much narrower intelligence agency exemption provided in para-
graph 7112(b)(6), on page 23 of the Joule 22, 1978, Committee Print of
proposed Title VII, is inadequate. This paragraph would exempt from
`r, oropriate" labor "imits" employees "ongaged in intelligence,
investigative, or security functions of any. agency which directly
affect national security." This formul:tion, in the first in'-'L'ance'
does not specifically exempt ag encie.. from coverage, but only certai rL
employees within agencies. Moreover , only employees engaged in ":i.ntel-
li ence ... functions ... , which clirec:t affect national. security"
(e;:phasis added) are exei,pted. This language would seem to require that
a determination be made as to each ep.loyee, in CIA for example, to
deter-mine whether his duties "directly affect national security." 1,Yhifu
the overall mission of CIA ars.d NS c l.early would fit this cr i Lena,
di-sputes might arise as to whether e:Ic h i ndividual giiployce's functLons.
"'directly affect national security." Because of t h i s potcnti.a I contra--
diCtiC?n betl+een e CIl org#rI1 ! 7. zt:l.on' S oVvr#rl i fund. ons and an individual
el:ployee's functions, applications Of the standard would be difficult -e[1d
could have the contentious and ineq _itable result of l imi. V insg the act i-tvi.i ie
of some employees but not others. I~ioreover, if even some employees wore
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7.
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p r it t ed to lorry In ' appr,`prt