History
Before the FWS, there was no central authority to establish wage equity for Federal trade, craft, and laboring employees. In 1965, President Lyndon B. Johnson ordered the former Civil Service Commission to work with Federal agencies and labor organizations to study the different agency systems and combine them into a single wage system that would be sensible and just. President Johnson called for common job-grading standards and wage policies and practices that would ensure interagency equity in wage rates. He established two basic principles for these policies and practices: Wages will be set according to local prevailing rates, and; there will be equal pay for equal work and pay distinctions in keeping with work distinctions.
Congress established the FWS by law in 1972. It created a joint labor-management Federal Prevailing Rate Advisory Committee (FPRAC) with an independent Chairman. Agencies and labor unions are members of the Committee. FPRAC studies all matters pertaining to prevailing rate determinations and advises the Director of the OPM on appropriate pay policies for FWS employees.
Read more about this topic: Federal Wage System
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