Conditions in the USA

Cutting the salary of public servants in Japan is a temporary measure in response to the Great East Japan Earthquake. The initiative is led by the government in reaction to critical public opinion towards public servants.

Globally speaking, cutting salary is a rare case. This idea has received almost no discussion in the USA or Germany.

Revising the salary of U.S. federal employees requires Congress to pass a bill and the President to sign. However, regardless of how serious conditions become, it is only possible to lower the revision rate for salary. The assertion that certain legal process must be followed when cutting salary is made by Timothy Curry, Deputy Association Director for Partnership and Labor Relations at the U.S. Office of Personnel Management.

The salary of U.S. public servants is based on the principle of legality. If the government was to ignore laws and decide to cut the salary of public servants, it is almost certain that the labor union would sue the government for unlawful revision of salary. In such a case, it is believed that the government would lose the case.

Instead of cutting salary, the method of freezing salary exists in the U.S.A. This is a policy of restricting raises (setting a revision rate of 0%) for the salary of public servants. This policy has been enacted the last two years in response to a poor economy and an increasing unemployment rate. There is no legal basis for increasing the salary of public servants. Therefore, freezing salary is viewed as a lawful measure and no lawsuits can be filed.

Conditions in Germany

In Germany, public servants are divided into two categories: other public employees and civil servants. The process for deciding salary differs for the two categories.

There are no laws related to the wage system of other public employees. Salary is determined through a labor contract, the same as when deciding salary at private companies. The three basic labor rights are all guaranteed and working conditions are decided through group negotiation.

The salary for civil servants is determined by law in the Federal Convention. Changes to wages, etc. require the revision of law (a vote by the Federal Convention). Civil servants have a duty of faith towards their country which prohibits them from engaging in labor negotiation. In exchange for such restrictions, civil servants are granted a strong tenure.

Although such an idea has received almost no attention in Japanese political circles, as in the case of Germany, there is normally a close connection between the tenure of public servants and basic labor rights. Therefore, there is an argument that any mitigation of protection afforded to public servants should be accompanied by a restoration of basic labor rights for those public servants. This is a particularly popular opinion at the National Personnel Authority.

Although there is controversy regarding compensation for German public servants, there has been no discussion of cutting salary. Daniel Christians, Director of Salary at the Ministry of the Interior (German Confederation) asserts that salary is consideration towards all employment based on the duty of devotion to service which public servants must follow. He also asserts that salary will affect the hiring of future generations of public servants.

On the contrary, the issue of old-age compensation such as pensions and insurance is a greater problem and must be given priority by Germany.

Although the reasons differ, it is apparent that no affirmative discussion is taking place regarding cutting salary in the U.S.A. or Germany.

Public opinion in the U.S.A. and Germany

In Japan, efforts to cut the salary of public servants began from criticism of public servants. Public opinion towards public servants in the U.S.A. and Germany differs from that of Japan.

In the U.S.A., some people insist that the salary of federal employees is too high. However, there are no advances in discussion regarding cutting salary. Discussion is limited to the question of whether or not to extend the salary freezing which is currently being implemented.

Moreover, the U.S.A. has a custom of awarding public servants. Through the media, awards are presented to public servants with outstanding records of service. In such situations, the government is applauding public servants as government employees. This method is effective as an opportunity for creating awareness among citizens for the activities of public servants.

In Germany, public opinion towards public servants is always swaying between positive and negative. As discussed above, there is no talk of cutting salary. Rather, old-age compensation as a result of a declining birthrate and aging population is of greater concern. Although the function of public departments has come under question as a result of the Euro crisis, such criticism is lessened by awarding the performance of public servants through the media. In this respect, Germany is similar to the U.S.A.

As described above, the fierce criticism of public servants in Japan does not exist in the U.S.A. or Germany. In the current situation, even if criticism takes place, it does not advance to the discussion of cutting salary. Both Curry and Christians refer to the appeal of public service. “In today’s society of a declining birthrate and aging population, young people and new ideas are required in public departments,” they assert. “Cutting the salary of public servants will affect future generations and will decrease the appeal of public service. As such, extreme care must be given to the issue of salary cuts.”

(This symposium was held on Chuo University’s Ichigaya-Tamachi Campus on October 3^rd, 2012. The symposium was held by the Graduate School of Public Policy, Chuo University and the National Personnel Authority as a forum for exchanging opinions. The symposium was entitled Process of Determining Public Servant Salary in America and Germany.)

Student Reporter: Rena Kajiwara (Graduate of the Master’s Program in the Graduate School of Public Policy, Chuo University)
Cooperation: Shohei Miyake (Graduate of the Master’s Program in the Graduate School of Public Policy, Chuo University)