Special Interest Groups

• WHAT IS ITS MISSION?
• HOW IS IT STRUCTURED?
• PRIMARY FUNCTIONS
• PROGRAMS
• BUDGET INFORMATION
• HISTORY
• CURRENT POLITICAL ISSUES
• FUTURE DIRECTIONS
• GROUP RESOURCES
• GROUP PUBLICATIONS
• BIBLIOGRAPHY

ESTABLISHED: August 17, 1932
EMPLOYEES: Undetermined
MEMBERS: 600,000
PAC: AFGE-PAC

Contact Information:
ADDRESS: 80 F St. NW Washington, DC 20001
PHONE: (202) 737-8700
URL: http://www.afge.org
PRESIDENT: Bobby L. Harnage
WOMEN'S/FAIR PRACTICES DIRECTOR: Kitty Peddicord

WHAT IS ITS MISSION?

The object of the American Federation of Government Employees (AFGE), according to the organization's constitution, is "to promote the general welfare of government employees, promote efficiency, advance plans of improvement and promote the full participation of women and minorities in AFGE activities at all levels throughout the Federation." The AFGE holds itself responsible for ensuring fairness, due process, decent and safe working conditions, fair pay and voice on the job for government employees. It advocates creative and positive solutions to shape the government into a model employer. The union protects and expands those rights through legal representation by its general counsel's office, legislative advocacy, and a labor management department that provides technical expertise and informational services.

HOW IS IT STRUCTURED?

The AFGE is comprised of 12 regional district offices which provide support services to some 1,200 local chapters. Each district office is directed by a national vice president. The national vice presidents and the executive officers, such as the president, secretary-treasurer, and women's/fair practices director, make up the union's National Executive Council, the union's policy-making body. Agencywide bargaining councils and locals are the bodies that bargain collectively with the U.S. government.

The AFGE prides itself on representing diverse employee groups. Members include food inspectors, nurses, printers, cartographers, lawyers, police officers, census workers, health and safety inspectors, janitors, truck drivers, secretaries, artists, plumbers, immigration inspectors, scientists, doctors, cowboys, botanists, park rangers, computer programmers, foreign service workers, airplane mechanics, environmentalists, writers, and many more.

The AFGE is a member of the American Federation of Labor-Congress of Industrial Organizations (AFL-CIO), and the AFGE president serves on the AFL-CIO executive council. The AFGE's secretary-treasurer and women's/fair practices director also play major roles in AFL-CIO departments and activities.

PRIMARY FUNCTIONS

As a union, the primary function of the AFGE is to secure good wages and working conditions for its members. The AFGE differs from most unions, however, in that all of its employees are employed by the federal government. Thus, the organization's bargaining is conducted under Title VII of the Civil Service Reform Act, and is subject to a number of restrictions and circumstances unique to government employees. For example, pay and benefits for federal employees are established by Congress through the legislative process, rather than by a company's management. Thus the union lobbies and testifies at length on issues relevant to its members and works collaboratively with government agencies to improve working conditions.

In part because of its limited bargaining capabilities, the AFGE coordinates a full-scale legislative and political action program to keep current on issues affecting its members, and influence government policy. For example, the union maintains a presence during congressional debates on issues such as federal employee health care or funding of government programs involving federal workers. On occasion, the AFGE mounts media campaigns or undertakes lawsuits to ensure the rights of its members.

PROGRAMS

The programs of the AFGE consist mainly of benefits for its members. These include: the Union Secured Credit Card for members with no credit history or a damaged credit history; the Union Member Mortgage and Real Estate Program with special rates for members; the Union Privilege Discount Pharmacy Program; and the Union Driver and Traveler Program. The Privileged Loan Program allows members to take out unsecured loans bearing low interest rates from the union. The union's Legal Services Program includes free consultations and document review, and a discount on further assistance if it proves necessary. The union also offers a dental plan, a college financing program, an auto club, and accidental death and dismemberment insurance.

BUDGET INFORMATION

More than 85 percent of AFGE revenue comes from membership dues. The other 14.5 percent comes from rental and other revenues. For 1996 total revenue was $26,143,327. Most was from dues ($21,881,147); the rest was income from death benefits, buildings and garages, interest, sale of supplies, sale of organizing materials, and miscellaneous sources.

Expenditures totaled $23,680,190 and were led by salaries and employment benefits ($12,919,967). Administrative expenses were $3,706,589, followed by building expenses ($2,863,086) and affiliation fees ($1,605,185). Organizing programs and supplies, travel, and other expenses comprised the remainder.

HISTORY

In December of 1931 the National Federation of Federal Employees (NFFE) split from the American Federation of Labor (AFL) after a leadership conflict over the organization of skilled craft employees. Leaders who sided with the principles and objectives of the AFL formed the Joint Conference on Re-affiliation, which evolved into the American Federation of Government Employees.

Then-AFL president William Green appointed David Glass and Helen McCarty to head up the Joint Conference on Re-affiliation. Glass previously had tried to smooth over differences between NFFE defectors and those wanting to keep ties with the AFL. When that effort failed, the Joint Conference, which represented some 42 lodges, began planning an October founding convention for AFGE. Because so many of the fledgling union's leaders worked in Washington, D.C., the first AFGE office was established in rooms above a bank at 1700 Pennsylvania Avenue.

Several women served in important leadership positions in the union during its early history, making important contributions to the AFGE and paving the way for women to become involved elsewhere in the labor movement. At the AFGE's founding convention in 1932, 14 of the 42 delegates were women, and one, Esther Penn was chosen to serve as a vice president. Helen McCarty became the union's head of organizing activities and led a highly successful membership campaign in the union's early days.

During the Great Depression of the 1930s, the AFGE fought, often unsuccessfully, to protect its member's wages and privileges. In those hard times, forcing government employees into retirement and limiting their pay were easy ways to cut government costs. At the same time, the passage of the Hatch Act strictly limited the ability of government employees to collectively protest against poor working conditions, either through the political process or the traditional weapon of unions, strikes and other work stoppages. The ground-breaking labor legislation of the period, such as the Wagner Act and the Taft-Hartley Act, largely excluded government employees.

As the U.S. economy recovered during World War II (1939–45) private-sector workers saw significant growth in their incomes. While the number of government employees began to increase, their wages remained frozen, resulting in a 15 percent disparity between government- and private-sector wages by the war's end. AFGE lobbying efforts kept the issue before Congress throughout the war, and in 1945 federal employees were granted a 15.9 percent pay raise.

In the 1950s the AFGE began to consolidate after the troubled times of the Depression and World War II. Membership rose steadily throughout the decade from 61,000 to 83,000. AFGE efforts in Congress helped win liberalized retirement benefits, further improvements in the government's payroll system, and federal aid for employee health insurance. In 1962 President John F. Kennedy issued Executive Order 10988, establishing a system under which federal agencies were required to work with the AFGE (or other unions representing government workers) to establish the agencies's working conditions. The union engaged in a massive organizing campaign and by 1972 its membership had soared to 310,000 government employees.

The 1970s were a difficult time for the AFGE due to a poor economy and changes in government philosophy. Many believed that the federal government had grown too large, and throughout the 1970s and 1980s the AFGE lost members due to cuts in government spending. It also saw many jobs formerly filled by government employees contracted out to private businesses. Many more would have been contracted out if not for the AFGE's lobbying efforts in Congress and successful use of the courts to prevent unwarranted elimination of federal jobs. One major gain for the union in the 1970s was the Civil Service Reform Act of 1978. This act expanded the ability of federal workers to organize and collectively bargain with government agencies, and established the Federal Labor Relations Board to govern the relationship between the government and its employees.

During the 1980s the AFGE was hampered by some of the programs enacted by the administration of President Ronald Reagan. For example, 3.5 percent pay raises were imposed at the top of the scale while wages at the bottom were frozen completely. Blue-collar pay became tied to white-collar levels. According to AFGE figures, by 1981 federal employee pay was nearly 26 percent less than in the private sector. The AFGE was, for a time, unable to convince the government to raise wages, and in 1985, federal workers were forced to take a complete pay freeze. The Reagan administration's "War on Drugs" affected the organization in September 1986 by forcing many of its employees to be randomly tested for illegal drug use. Testing continued despite several lawsuits challenging its constitutionality.

The 1990s saw a successful resolution of several long-standing AFGE concerns. In 1991 the passage of the Federal Employees Pay Comparability Act made government pay more in balance with that of nongovernment workers. Two years later the AFGE rejoiced at the passage of the Hatch Reform Act. With these reforms, restrictions on government employee participation in the political process were lifted after more than 50 years of AFGE opposition. Two years later, however, the AFGE mourned the loss of dozens of members in the bombing of the Alfred P. Murrah Federal Building in Oklahoma City, Oklahoma. In response, the union raised hundreds of thousands of dollars to aid the survivors. This fund would evolve into AFGE's permanent disaster relief fund.

In 1994 the Republican party gained control of Congress. The resulting disputes between Congress and President Bill Clinton, a Democrat, over government budgets and spending policies led to two government shutdowns in 1995. Most government employees were unable to work, while others serving in critical jobs, such as hospital employees, were forced to work without any guarantee they would be paid. Over 50 work days were lost during the two shutdowns, and their impact continued to be felt in 1996 as government workers struggled to catch up with the work that had accumulated in their absence.

CURRENT POLITICAL ISSUES

The AFGE has a particularly strong and active political program due to the fact that such things as pay rates, raises, retirement benefits, and health care benefits for federal employees are all determined by Congress through legislation. Thus, the organization works closely with Congress and the president to protect and enhance the rights of government workers. Union representatives meet with legislators, give testimony to Congress, and provide informational materials on issues to politicians. The AFGE also provides information on issues to members and encourages them to contact lawmakers directly. The president of the AFGE is also a member of the National Partnership Council established by President Clinton to help streamline aspects of the federal government that have grown overly bureaucratic. The AFGE president's participation ensures that the rights and roles of government workers are protected in any government reorganization plans.

As a member of the AFL-CIO, the AFGE also participates in efforts to inform legislators on issues affecting all workers. Such issues have included raising the minimum wage and increasing workplace safety. The future of the Social Security system became a top priority for both the AFL-CIO and the AFGE in the late 1990s.

Case Study: Reform of the Social Security System

The U.S. Social Security System is a federal program that provides financial support to retired workers and to the spouses and minor children of deceased workers. Social security funds accumulate through deductions taken from the pay checks of current workers. In 1955 there were 8.6 workers paying into the fund for every one recipient. By 1995 there were only 3.3 workers per recipient. As large numbers of Baby Boomers begin to retire the number of workers contributing to the fund will further decrease, shifting the ration of contributors to recipients. Most experts claim that if things remain as they are, more money will be paid out in benefits than will be coming into the system from taxes. As the point when the number of retirees exceeds the number of workers paying into the social security system comes closer, legislators and workers alike have made fixing the system an important priority.

Since the creation of the program, social security funds have been invested in government bonds. Government bonds are an extremely safe investment, but they do not pay much interest. Some people believed that investing social security funds in the stock market, which posted a higher return on investments than bonds for much of the twentieth century, would increase the funds available for payout. During the 1990s, as the need to reform the social security system became obvious, many people proposed that social security taxes be invested in stocks rather than bonds. Supporters of this proposal even suggested forming private retirement accounts wherein workers could invest all, or a portion, of their social security taxes in the stocks of their choice.

In many ways these stock market and privatization plans were more attractive than other suggestions for saving the social security system. Unlike the proposal for raising the age at which retirees could receive benefits, increasing social security taxes, or decreasing benefits paid out to recipients, the stock market plans claimed that the social security system could be stabilized and maintained without reducing benefits or increasing the cost to taxpayers.

Both the AFL-CIO and the AFGE strongly opposed these proposed solutions to the Social Security problem. The AFGE represents many retirees and soon-to-be retirees who do not want more of their benefits taxed or do not want to have to wait several years longer to begin collecting social security benefits, respectively. The AFGE also rejects the proposal that social security funds be invested in the stock market. Stocks can, and often do, lose money for their investors, and while the stock market has historically performed better than government bonds, there is no guarantee that this would continue. The union has maintained that, as a guaranteed benefit, social security should not be left to chance.

The AFGE supports other ways to resolve the social security issue. These include using surplus government monies to increase social security coffers and raising the cap on the amount of workers' pay subject to social security tax. The federal government was predicted to have budget surpluses totaling over $4 trillion between 2000 and 2014. The AFL-CIO estimated that contributing two-thirds of these surplus funds to social security would ensure that benefits could be paid through 2049. Under the existing system, only the first $72,600 a person earns is taxed for social security. The AFGE feels that this limit should be removed, or raised considerably, as a way of raising additional revenues for the Social Security system.

While many groups discussed possible solutions to the social security problem there were no concrete proposals for government action until President Clinton's State of the Union address in January of 1999. Clinton proposed that most of the budget surplus over the next 15 years be put into social security and that 15 percent of the fund be invested in the stock market. The president's plan was sent to Congress for consideration.

In response, the AFGE joined with other unions and sent a letter to every member of Congress in March of 1999. In the letter the AFGE praised the president for committing budget surpluses to Social Security, but objected to the government investing any funds in the stock market. The AFGE expressed its concerns that investing in the stock market was too risky, that continued economic growth was not a certainty, and that such investments would require that money be paid up front, which could hurt other government programs.

Public Impact

The debate over how to fix the social security system did not end with the president's proposal. Congress was given the task of debating the issue and devising legislation the president would agree to sign. The AFGE and other interested parties planned to continue lobbying lawmakers to draft legislation acceptable to their membership. The impact on the public remains to be seen. Either the system will be repaired or it will continue to be problematic and in danger of failure. Currently, millions of Americans are receiving social security benefits. The benefits of future recipients are at the mercy of politics and unpredictable economic events.

FUTURE DIRECTIONS

One of the AFGE's greatest challenges over the 1980s and 1990s—the loss of federal jobs to the private sector—seems likely to continue. The union will oppose efforts, such as 1998's Freedom from Government Competition Act, to transfer duties from the federal government to private industry through contracting and outsourcing. Not only do such transfers cost some union members their jobs, but the AFGE believes that private industry often provides lower-quality service than government-run operations. At the same time that the AFGE opposes these transfers, however, it will work to ensure that federal employees meet the same productivity standards as private-sector employees.

GROUP RESOURCES

The AFGE maintains a Web site at http://www.afge.org that carries historical and organizational information, along with links for members to various benefits and services. The site also contains news releases and online versions of several union publications. For more information on the AFGE, contact the organization by mail at American Federation of Government Employees, 80 F Street NW, Washington, DC 20001; or by phone at (202) 737-8700.

GROUP PUBLICATIONS

The AFGE publishes two monthly newsletters, the AFGE Bulletin and the Government Standard, as well as the AFGE NetWorker and An Equal Voice. Many AFGE publications can be accessed on the organization's Web site, at http://www.afge.org/pubs1/pubs.htm. For more information on AFGE publications, contact the organization by mail at American Federation of Government Employees, 80 F Street NW, Washington, DC 20001; or by phone at (202) 737-8700.