NASA shuttle contractor cancels merit raises for all employees, Orlando Sentinel

"United Space Alliance, NASA's main shuttle contractor, told employees today that it will be canceling merit pay raises across the company next year in order to keep costs down as it tries to win new business after the agency mothballs the orbiter fleet in 2011. "The annual merit pay increases for 2010 for performance and things like that, we made the decision not to do that," said company spokesman Jeff Carr. "This really about protecting our rates to be competitive for future  follow on work."