Following an acrimonious battle between the FAA and the National Air Traffic Controllers Association over the recently passed FAA reauthorization bill and a provision to privatize some control towers, the agency and the union signed a two-year contract extension last month that expands pay for performance to air traffic controllers and provides potential savings of several million dollars.
It marks the FAA’s first halting steps to become a performance-based organization (PBO) by modifying or eliminating a number of costly pay rules and other agreements that had been in place over the past five years. Under the extension, a portion of the controllers’ annual salary increases will be based on meeting agency performance targets. Depending on actual hiring needs, the extension could allow the agency to avoid costs of as much as $40 million over the next four years.
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