Federal Pay Freeze Defeated, Again

The Senate on Thursday rejected an amendment that would have frozen the 2011 pay increase for federal workers and cut the size of the government workforce.

The Senate voted 57-41 to defeat a Republican amendment to the American Jobs and Closing Tax Loopholes Act that sought to freeze federal employee salaries, eliminate their bonuses and collect their unpaid taxes. It also would have frozen hiring at most federal agencies.

The move marks the latest attempt by Republican lawmakers to attach to legislation language that would limit pay increases for federal workers in 2011. Many argue that federal employees should not be receiving pay increases while many private sector workers face layoffs, pay cuts and reductions in hours and benefits. But federal unions and other critics argue that eliminating the federal pay increase and other incentives would undermine the government's ability to recruit and retain a qualified workforce.

President Obama has proposed a 1.4 percent pay increase for federal workers in 2011. Given that it's an election year, it's likely that we'll see attempts to freeze federal pay surface again. What do you think? Should federal workers be asked to forgo their annual pay raise, and what impact would this have on the government's recruitment and retention efforts?