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Plan to Raise Staff Salaries Criticized

March 1, 1985

WASHINGTON (AP) _ While the Reagan administration has proposed a 5 per cent pay cut for federal government employees, the Synthetic Fuels Corp. plans to raise salaries for its own staff, a congressional opponent of the government-own ed corporation said Thursday.

The Synfuels board voted last month to increase salary ranges for prospective employees by 6 percent to 8 percent, to set aside 6 percent of the payroll for merit pay raises, and to ″maintain a promotional increase guideline of 9 percent,″ said Rep. Mike Synar, D-Okla..

Synar, speaking on the House floor in support of legislation to abolish the corporation, said, ″Welfare handouts at the Synfuels Corp. are not limited solely to companies with projects asking for assistance.″

There was no immediate comment from the corporation.

Synar and other lawmakers, with support from the Reagan administration, last year sought to rescind the $13 billion remaining of the 1980 grant by Congress to the corporation. In a compromise, Congress took back $5 billion, leaving the corporation with almost $8 billion for future subsidies.

Budget Director David Stockman said in congressional testimony on Wednesday that the administration would stand by the compromise this year.

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