In October 1978 the national wage stabilization program was implemented. The objective of the program was to restrain wage increases during the first program year (October 1, 1978 - October 1, 1979) to no more than 7%.

In November 1978 the Department of Personnel and Training completed its annual compensation review and subsequently recommended to the Governor and the 1979 General Assembly that a one-step (avg. 4.5%) increase be granted to all State employees. This action was recommended to insure that the state pay plan would provide a sufficiently competitive wage base to attract and retain the qualified personnel needed to conduct the operations of state government.

In July 1979 the Governor and General Assembly, having approved the recommendation, the one-step increase was implemented.

In view of the national wage guidelines now in effect and the public policy of the Commonwealth to comply with such guidelines, the remainder of this report and resulting recommendations will be based on the needs and opportunities for wage adjustments with respect to the guidelines.