Prevailing Rate Systems; North American Industry Classification System Based Federal Wage System Wage Surveys

OFFICE OF PERSONNEL MANAGEMENT

5 CFR Part 532

RIN 3206-AK94

Prevailing Rate Systems; North American Industry Classification System Based Federal Wage System Wage Surveys

AGENCY:

Office of Personnel Management.

ACTION:

Proposed rule with request for comments.

SUMMARY:

The Office of Personnel Management is issuing a proposed rule that would replace the Standard Industrial Classification codes currently used in Federal Wage System (FWS) regulations with the more recent North American Industry Classification System (NAICS) codes, published by the Office of Management and Budget. The purpose of this change is to update the FWS wage survey industry regulations by adopting the new NAICS system.

DATES:

We must receive comments on or before December 16, 2005.

ADDRESSES:

Send or deliver comments to Donald J. Winstead, Deputy Associate Director for Pay and Performance Policy, Strategic Human Resources Policy Division, Office of Personnel Management, Room 7H31, 1900 E Street, NW., Washington, DC 20415-8200; e-mail

pay-performance-policy@opm.gov;

or FAX: (202) 606-4264.

FOR FURTHER INFORMATION CONTACT:

Madeline Gonzalez, (202) 606-2838; e-mail

pay-performance-policy@opm.gov;

or FAX: (202) 606-4264.

SUPPLEMENTARY INFORMATION:

The goal of the Federal Wage System (FWS) is to pay blue-collar Federal employees according to local prevailing rates. To determine local prevailing rates, the Department of Defense, the lead agency for all regular FWS wage surveys, collects wage data for a prescribed list of industries in each FWS wage area annually. The Office of Personnel Management (OPM) is responsible for prescribing the required industries to be surveyed and the conditions under which required industrial coverage may be augmented for particular surveys. Under the current regulations, the industries surveyed are defined under the Standard Industrial Classification (SIC) system. The Office of Management and Budget developed the North American Industry Classification System (NAICS) to replace the SIC system. NAICS was developed jointly by the United States, Canada, and Mexico to provide comparability in statistics about business activity across North America.

NAICS groups establishments into industries based on the activities in which they are primarily engaged. It is a comprehensive system covering the entire field of economic activities. NAICS groups the economy into 20 broad sectors and uses a 6-digit coding system to identify particular industries. The first two digits of the code designate the sector, the third digit designates the subsector, the fourth digit designates the industry group, the fifth digit designates the NAICS industry, and the sixth digit designates the national industry.

Because NAICS is now the official industry classification system used in the United States, the Federal Prevailing Rate Advisory Committee (FPRAC), the national labor-management committee responsible for advising OPM on matters concerning the pay of FWS employees, established a Wage Survey Methodology Work Group (Work Group) to study the desirability and feasibility of replacing the SIC codes currently used in FWS regulations with NAICS codes and the effect this change would have on industry coverage for FWS wage surveys. The following sections of title 5, Code of Federal Regulations, list the industries included in the FWS wage surveys by SIC codes:

Section 532.213 Industries included in regular appropriated fund wage surveys.

Section 532.221 Industries included in regular nonappropriated fund surveys.

Section 532.267 Special wage schedules for aircraft, electronic, and optical instrument overhaul and repair positions in the Puerto Rico wage area.

Section 532.279 Special wage schedules for printing positions.

Section 532.285 Special wage schedules for supervisors of negotiated rate Bureau of Reclamation employees.

Section 532.313 Private sector industries.

The Work Group recommended to FPRAC that OPM replace all SIC codes in the FWS regulations with the most closely corresponding NAICS codes. In effect, this would update the FWS wage survey industry regulations by adopting the NAICS system, while making as few changes as possible in the types of industrial establishments that are already included in FWS wage surveys under the SIC system. FPRAC agreed with the Work Group's recommendation, and OPM concurs with FPRAC's recommendation.

Regulatory Flexibility Act

I certify that these regulations would not have a significant economic impact on a substantial number of small entities because they would affect only Federal agencies and employees.

E.O. 12866, Regulatory Review

The Office of Management and Budget has reviewed this proposed rule in accordance with Executive Order 12866.

List of Subjects in 5 CFR Part 532

Administrative practice and procedure, Freedom of information, Government employees, Reporting and recordkeeping requirements, Wages.

Office of Personnel Management.

Linda M. Springer,

Director.

Accordingly, the Office of Personnel Management proposes to amend 5 CFR part 532 as follows:

PART 532—PREVAILING RATE SYSTEMS

1. The authority citation for part 532 continues to read as follows:

Authority:

5 U.S.C. 5343, 5346; § 532.707 also issued under 5 U.S.C. 552.

Subpart B—Prevailing Rate Determinations

2. In § 532.213, revise paragraph (a) to read as follows:

§ 532.213

Industries included in regular appropriated fund wage surveys.

(a) The lead agency must include the industries in the following North

American Industry Classification System (NAICS) codes in all regular appropriated fund wage surveys:

Manufacturing

NAICS 311 through 339 (except 323)

All manufacturing classes except printing and related support activities (NAICS 323).

Transportation, Communications, Electric, Gas, and Sanitary Services

NAICS 221

NAICS 481

NAICS 482

NAICS 484

Utilities.

Air transportation.

Rail transportation.

Truck transportation.

NAICS 485 (except 4853)

Transit and ground passenger transportation except taxi and limousine service (NAICS 4853).

NAICS 487 (except 4872)

Scenic and sightseeing transportation except scenic and sightseeing transportation, water (NAICS 4872).

NAICS 488 (except 4883 and 4884)

Support activities for transportation except support activities for water transportation (NAICS 4853) and support activities for road transportation (NAICS 4854).

NAICS 492

NAICS 493

NAICS 515

NAICS 517

NAICS 5621

NAICS 5622

Couriers and messengers.

Warehousing and storage.

Broadcasting (except Internet).

Telecommunications.

Waste collection.

Waste Treatment and Disposal.

Wholesale Trade

NAICS 423

NAICS 424

Merchant wholesalers—durable goods.

Merchant wholesalers—nondurable goods.

3. In § 532.221, revise paragraph (a) to read as follows:

§ 532.221

Industries included in regular nonappropriated fund surveys.

(a) The lead agency must include the following North American Industry Classification System (NAICS) codes in all regular nonappropriated fund wage surveys:

NAICS

Title

Wholesale Trade:

42312

Motor vehicle supplies and new parts.

4232

Furniture and home furnishing.

42362

Electrical and electronic appliance, television, and radio set.

42369

Other electronic parts and equipment.

42371

Hardware.

42391

Sporting and recreational goods and supplies.

42399

Other miscellaneous durable goods.

4241

Paper and paper product.

42421

Drugs and druggists' sundries.

4243

Apparel, piece goods, and notions.

42445

Confectionery.

4247

Petroleum and petroleum products.

4249

Miscellaneous nondurable goods.

Retail:

44132

Tire dealers.

44311

Appliance, television, and other electronic stores.

44411

Home centers.

44611

Pharmacies and drug stores.

4471

Gasoline stations.

44814

Family clothing stores.

4521

Department stores.

45299

All other general merchandise stores.

45321

Office supplies and stationery stores.

4542

Vending machine operators.

Arts, Entertainment, and Recreation:

71391

Golf courses and country clubs.

71395

Bowling centers.

Accommodations and Food Services:

72111

Hotels (except casino hotels) and motels.

7221

Full-service restaurants.

7222

Limited-service eating places.

7224

Drinking places (alcoholic beverages).

4. In § 532.267, revise paragraph (c)(1) to read as follows:

§ 532.267

Special wage schedules for aircraft, electronic, and optical instrument overhaul and repair positions in the Puerto Rico wage area.

(c) * * *

(1) Surveys must, at a minimum, include the air transportation and electronics industries in the following

North American Industry Classification System (NAICS) codes:

NAICS

Title

3341

Computer and peripheral equipment manufacturing.

33422

Radio and television broadcasting and wireless communications equipment manufacturing.

33429

Other communications equipment manufacturing.

3343

Audio and video equipment manufacturing.

334412

Bare printed circuit board manufacturing.

334413

Semiconductor and related device manufacturing.

334418

Printed circuit assembly (electronic assembly) manufacturing.

334419

Other electronic component manufacturing.

334511

Search, detection, navigation, guidance, aeronautical, and nautical system and instrument manufacturing.

334613

Magnetic and optical recording media manufacturing.

42342

Office equipment merchant wholesalers.

42343

Computer and computer peripheral equipment and software merchant wholesalers.

4811

Scheduled air transportation.

4812

Nonscheduled air transportation.

4879

Scenic and sightseeing transportation, other.

4881

Support activities for air transportation.

4921

Couriers.

56172

Janitorial services.

62191

Ambulance services.

81142

Reupholstery and furniture repair.

5. In § 532.279, revise paragraphs (c), introductory text, and (c)(1) to read as follows:

§ 532.279

Special wage schedules for printing positions.

(c) The lead agency must establish survey specifications for the printing survey as follows:

(1) The lead agency must include North American Industry Classification System (NAICS) codes 323110 and 323114 in the printing survey and may add other NAICS codes in subsector 323 to the survey based on its survey experience.

6. In § 532.285, revise paragraph (c)(1) to read as follows:

§ 532.285

Special wage schedules for supervisors of negotiated rate Bureau of Reclamation employees.

(c) * * *

(1) Based on Bureau of Reclamation activities and types of supervisory positions in the special wage area, the Bureau of Reclamation must survey private industry companies, with no minimum employment size requirement for establishments, in the following North American Industry Classification System code subsectors:

Subsector

Industry

211

Oil and gas extraction.

212

Mining (except oil and gas).

213

Support activities for mining.

221

Utilities.

333

Machinery manufacturing.

334

Computer and electronic product manufacturing.

335

Electrical equipment, appliance, and component manufacturing.

484

Truck transportation.

492

Couriers and messengers.

493

Warehousing and storage.

515

Broadcasting (except Internet).

517

Telecommunications.

562

Waste management and remediation services.

811

Repair and maintenance.

7. Revise § 532.313 to read as follows:

§ 532.313

Private sector industries.

(a) For appropriated fund surveys, the lead agency must use the private sector industries in the following North American Industry Classification System (NAICS) codes when it makes its wage schedule determinations for each specialized Federal industry:

Aircraft

NAICS 332912

Fluid power valve and hose fitting manufacturing.

NAICS 336411

Aircraft manufacturing.

NAICS 336412

Aircraft engine and engine parts manufacturing.

NAICS 336413

Other aircraft part and auxiliary equipment manufacturing.

NAICS 336415

Guided missile and space vehicle propulsion unit and propulsion unit parts manufacturing.

NAICS 336419

Other guided missile and space vehicle parts and auxiliary equipment manufacturing.

NAICS 4811

Scheduled air transportation.

NAICS 4812

Nonscheduled air transportation.

NAICS 4879

Scenic and sightseeing transportation, other.

NAICS 4881

Support activities for air transportation.

NAICS 4921

Couriers.

NAICS 54171

Research and development in the physical, engineering, and life sciences.

NAICS 56172

Janitorial services.

NAICS 62191

Ambulance services.

NAICS 81142

Reupholstery and furniture repair.

Ammunition

NAICS 32592

Explosives manufacturing.

NAICS 332992

Small arms ammunition manufacturing.

NAICS 332993

Ammunition (except small arms) manufacturing.

Artillery and combat vehicles

NAICS 2211

Electric power generation, transmission, and distribution.

NAICS 2212

Natural gas distribution.

NAICS 32732

Ready-mix concrete manufacturing.

NAICS 332212

Hand and edge tool manufacturing.

NAICS 332323

Ornamental and architectural metal work manufacturing.

NAICS 332439

Other metal container manufacturing.

NAICS 332995

Other ordnance and accessories manufacturing.

NAICS 332999

All other miscellaneous fabricated metal product manufacturing.

NAICS 33311

Agricultural implement manufacturing.

NAICS 33312

Construction machinery manufacturing.

NAICS 333611

Turbine and turbine generator set unit manufacturing.

NAICS 333618

Other engine equipment manufacturing.

NAICS 333922

Conveyor and conveying equipment manufacturing.

NAICS 333923

Overhead traveling crane, hoist, and monorail system manufacturing.

NAICS 333924

Industrial truck, tractor, trailer, and stacker machinery manufacturing.

NAICS 3361

Motor vehicle manufacturing.

NAICS 336211

Motor vehicle body manufacturing.

NAICS 336212

Truck trailer manufacturing.

NAICS 336312

Gasoline engine and engine parts manufacturing.

NAICS 336322

Other motor vehicle electrical and electronic equipment manufacturing.

NAICS 33633

Motor vehicle steering and suspension components (except spring) manufacturing.

NAICS 33634

Motor vehicle brake system manufacturing.

NAICS 33635

Motor vehicle transmission and power train parts manufacturing.

NAICS 336399

All other motor vehicle parts manufacturing.

NAICS 33651

Railroad rolling stock manufacturing.

NAICS 336992

Military armored vehicle, tank, and tank component manufacturing.

NAICS 4231

Motor vehicle and motor vehicle parts and supplies merchant wholesalers.

NAICS 42381

Construction and mining (except oil well) machinery and equipment merchant wholesalers.

NAICS 42382

Farm and garden machinery and equipment merchant wholesalers.

NAICS 4413

Automotive parts, accessories, and tire stores.

NAICS 44421

Outdoor power equipment stores.

NAICS 484

Truck transportation.

NAICS 4862

Pipeline transportation of natural gas.

NAICS 492

Couriers and messengers.

NAICS 5171

Wired telecommunications carriers.

NAICS 5172

Wireless telecommunications carriers (except satellite).

NAICS 5173

Telecommunications resellers.

NAICS 5621

Waste collection.

NAICS 81299

All other personal services.

Communications

NAICS 33422

Radio and television broadcasting and wireless communications equipment manufacturing.

NAICS 33429

Other communications equipment manufacturing.

NAICS 334511

Search, detection, navigation, guidance, aeronautical and nautical system and instrument manufacturing.

NAICS 334514

Totalizing fluid meter and counting device manufacturing.

NAICS 334515

Instrument manufacturing for measuring and testing electricity and electrical signals.

NAICS 335311

Power, distribution, and specialty transformer manufacturing.

NAICS 48531

Taxi service.

NAICS 5151

Radio and television broadcasting.

NAICS 5152

Cable and other subscription carriers.

NAICS 5171

Wired telecommunications carriers.

NAICS 5172

Wireless telecommunications carriers (except satellite).

NAICS 5173

Telecommunications resellers.

NAICS 5174

Satellite telecommunications.

NAICS 5179

Other telecommunications.

Electronics

NAICS 3341

Computer and peripheral equipment manufacturing.

NAICS 33422

Radio and television broadcasting and wireless communications equipment manufacturing.

NAICS 33429

Other communications equipment manufacturing.

NAICS 33431

Audio and video equipment manufacturing.

NAICS 334412

Bare printed circuit board manufacturing.

NAICS 334413

Semiconductor and related device manufacturing.

NAICS 334414

Electronic capacitor manufacturing.

NAICS 334415

Electronic resistor manufacturing.

NAICS 334416

Electronic coil, transformer, and other inductor manufacturing.

NAICS 334417

Electronic connector manufacturing.

NAICS 334418

Printed circuit assembly (electronic assembly) manufacturing.

NAICS 334419

Other electronic component manufacturing.

NAICS 334511

Search, detection, navigation, guidance, aeronautical and nautical system and instrument manufacturing.

NAICS 334613

Magnetic and optical recording media manufacturing.

NAICS 42342

Office equipment merchant wholesalers.

NAICS 42343

Computer and computer peripheral equipment and software merchant wholesalers.

Guided missiles

NAICS 332912

Fluid power valve and hose fitting manufacturing.

NAICS 3341

Computer and peripheral equipment manufacturing.

NAICS 33422

Radio and television broadcasting and wireless communications equipment manufacturing.

NAICS 33429

Other communications equipment manufacturing.

NAICS 334418

Printed circuit assembly (electronic assembly) manufacturing.

NAICS 334511

Search, detection, navigation, guidance, aeronautical and nautical system and instrument manufacturing.

NAICS 334613

Magnetic and optical recording media manufacturing.

NAICS 3364

Aerospace product and parts manufacturing.

NAICS 54131

Architectural services.

NAICS 54133

Engineering services.

NAICS 54136

Geophysical surveying and mapping services.

NAICS 54137

Surveying and mapping (except geophysical) services.

NAICS 54171

Research and development in the physical, engineering, and life sciences.

Heavy duty equipment

NAICS 332439

Other metal container manufacturing.

NAICS 332999

All other miscellaneous fabricated metal product manufacturing.

NAICS 33312

Construction machinery manufacturing.

NAICS 333923

Overhead traveling crane, hoist, and monorail system manufacturing.

NAICS 333924

Industrial truck, tractor, trailer, and stacker machinery manufacturing.

NAICS 33651

Railroad rolling stock manufacturing.

NAICS 42381

Construction and mining (except oil well) machinery and equipment wholesalers.

Shipbuilding

NAICS 336611

Ship building and repairing.

NAICS 48839

Other support activities for water transportation.

Sighting and fire control equipment

NAICS 333314

Optical instrument and lens manufacturing.

NAICS 3341

Computer and peripheral equipment manufacturing.

NAICS 33422

Radio and television broadcasting and wireless communications equipment manufacturing.

NAICS 33429

Other communications equipment manufacturing.

NAICS 334418

Printed circuit assembly (electronic assembly) manufacturing.

NAICS 334511

Search, detection, navigation, guidance, aeronautical and nautical system and instrument manufacturing.

NAICS 334613

Magnetic and optical recording media manufacturing.

Small arms

NAICS 332994

Small arms manufacturing.

(b) The lead agency must limit special job coverage for industries in NAICS codes 2211, 2212, 32732, 484, 4862, 5621, 492, 5171, 5172, and 5173 to automotive mechanic, diesel engine mechanic, and heavy mobile equipment mechanic.

(c) For nonappropriated fund wage surveys, the lead agency must use NAICS codes 71111, 7221, 7222, 72231, 72232, and 7224 (eating and drinking places) when it determines a wage schedule for a specialized industry.

[FR Doc. 05-22742 Filed 11-15-05; 8:45 am]

BILLING CODE 6325-39-P