Stephen Barr writes in the Washington Post’s Federal Diary that merit-based pay at the Federal Aviation Administration is causing more employees to join labor unions and file lawsuits.  Some employees charge that the new system has reduced their pension projections by thousands of dollars per year.  Others charge excessive secrecy on the part of FAA executives, which may, ironically, be pushing workers to join unions and increase their bargaining power.  Read more.

The U.S. Trustee Program, a division of the Department of Justice, is investigating possible violations by mortgage lenders involved in consumer bankruptcy proceedings, Amir Efrati reports in the Wall Street Journal.  The agency received allegations of violations by mortgage lenders from "multiple sources" to the effect that lenders were underreporting or losing track of payments made by consumers on their property, and moving too fast to foreclose.  Read more.

Julia Preston of the New York Times reports that a new contract for passport processing issued by the State Department will cut wages for some 20% of workers at passport center in Vermont and California.  These cuts target long-term workers as well as recent hires.  The wage cuts come as Citizenship and Immigration Services is facing a backlog of applications.  More here.