Debt deal ultimately could squeeze federal workers

The debt-ceiling agreement struck over the weekend does not directly require cutbacks in the federal workforce or employee benefits — news that added to the relief of government workers Monday. But more angst and anxiety might be up ahead.

Should the agreement be signed into law, its plan for a two-stage cut in the federal budget could have implications for employees at each step.

"I am pleased to see that the deal does not include any immediate cuts to federal pay or pensions," National Treasury Employees Union President Colleen M. Kelley said in a statement Monday. "However, the impact on the federal workforce remains uncertain and agencies are likely to face reductions in their budgets."

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Zachary A. Goldfarb 02 Aug, 2011


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