The FAA and the National Air Traffic Controllers Association agreed to extend their current labor contract two years. Essentially the basic contract was extended, however, there were some significant changes toward an incentive payment program or performance based pay. Based on the agreement, any controller pay raises over the next two years will be based on progress in meeting certain goals such as reductions in runway incursions, controller errors (we should be so lucky) and increased airline ontime performance — there will be NO general pay increases. The deal increases the number of FAA employees under performance based pay arrangements to 75 percent – up from 37 percent.
Geoffrey Segal is the director of privatization and government reform at Reason Foundation, a nonprofit think tank advancing free minds and free markets. He is also editor of Reason's Privatization Watch.