The Foreign Service Journal, March 2008

64 F OR E I GN S E R V I C E J OU R N A L / MA R CH 2 0 0 8 A F S A N E W S W ith the stroke of a penon Jan. 3, President Bush approved the 2008 federal payadjustment rais- ing theWashington, D.C., locality pay rate from 18.59 to 20.89 percent. With that adjustment, the Foreign Service overseas pay disparity has crossed a mathematical Rubicon, asForeign Servicemembers now effectively take a pay cut to serve at 20- percent hardship differential posts such as Damascus, Tripoli, Sarajevo, Chisinau, Libreville, Cotonou, La Paz and Ulaan- baatar. All told, Foreign Servicemembers take an effective pay cut to serve at 183 of 268 overseas posts (68 percent). At this rate, withinthreeyears, another42posts—those at the 25-percent hardship level without an additional danger pay supplement—will join the list. (The Senior Foreign Service no longer has this inequity due to the 2004 implementationof pay-for-performance for senior executives governmentwide.) No one joins the Foreign Service to get rich, but thepay gap is taking a toll. AFSA’s recent electronic survey, in which 4,311 StateDepartment ForeignServicemembers participated, shows that only 3 percent do not see this as aproblemneeding tobe fixed. In fact, an overwhelming 70 percent attachhigh important tocorrecting this pay disparity, and another 21 percent attach moderate importance to it. Presentedwith a list of 10 problems facing the Foreign Service, fixing theoverseaspaydisparitywas rankedas thenumber-oneproblemby sur- vey respondents. (Survey results were reported in AFSA News in the January Journal , online at www.afsa.org/fsj. ) This ever-growing financial disincentive to serve abroad is simply not sustainable. The financial “reward” for five years spent abroad is the loss of the equivalent of one year’s salary. That has a serious long-term impact on such things as savings for retire- ment and children’s college funds—espe- cially for the many Foreign Service fami- lieswho also suffer the loss of income from a spouse who cannot find employment overseas. Further delay in fixing the overseas pay disparity would put in jeopardy the long- termhealthof theForeignService and,with it, the future viability of U.S. diplomatic engagement. Theoverseaspaydisparitywill begin to hurt recruitment, if it hasn’t already, and increase attrition. It will lead employees to start biddingonlyondomes- tic positions. Statistical proof that those tipping points have been reached will only come after the damage has already been done. Waiting for such proof would result in a hollowed-out Foreign Service that would take years torebuild. Overseaspaydisparity must be ended this year. That goal canbe reached, but it is far from a sure thing, though AFSA is doing all that it can. (For informationonthese efforts, go to theAFSA president’s update messages at www.afsa. org/president-update.cfm). AFSA welcomes Director General Harry K. Thomas’ engagement on this issue. His Dec. 19, 2007, worldwide mes- sage titled“WhitherEfforts toClose thePay Gap?” outlined his advocacy efforts and plans, alongwith those ofUnder Secretary forManagement PatrickKennedy. AFSA warmly applauds these vital efforts, as we do the efforts by Secretaryof StateRice and other senior officials to maintain White House backing formoving forwardon this issue. Strong advocacy on Capitol Hill by senior StateDepartment officials is crucial to success. AFSAofficers had a very positivemeet- ing with Deputy Secretary John D. Negroponte on Jan. 10. Ambassador Negroponte said that hewas acutely aware of theneed toend theoverseaspaydisparity. He strongly reaffirmed the department’s determination to work to rectify this inequity. U/S Kennedy and DG Thomas joined in that constructive discussion. AFSA Encourages Members to Help To succeed, wewill need all the helpwe can get. Thus, AFSA encourages its members to raise Foreign Service com- pensationwithmembers of Congress and their staff whenyou encounter themover- seas. Write to members of Congress to explain the problem(doing so in your pri- vate capacitywhileoff-duty). Please see the updated two-page question and answer document at www.afsa.org/OCP2008Jan. pdf for helpful information. Individual letters should illustrate how this problem has a direct impact on you. While AFSA deeply appreciates those on theHill whounderstand this problemand are supportive of efforts to fix it,manyoth- ers need to hear about the sacrifices that ForeignServicemembers and familiesmake to serve overseas. We need your help to convince Congress to fix the pay gap and stop increasing the disincentive for mem- bers of the Foreign Service to head over- seas and do what they do best. If you wish to join in this effort, please contact AFSA Legislative Director Ian Houston at houston@afsa.org . He can advise youonwhichmembers ofCongress to contact and give you additional sugges- tions. If you do send a letter, please share a copy with AFSA. NEW D.C. LOCALITY PAY TOPS 20 PERCENT Crossing the Rubicon on the Overseas Pay Gap BY JOHN NALAND, AFSA PRESIDENT This ever-growing financial disincentive to serve abroad is simply not sustainable. The financial “reward” for five years spent abroad is the loss of the equivalent of one year’s salary.