The Carter Administration's proposals to whittle back the federal blue collar pay system (outlined here Monday) will get top priority from union leaders meeting here this week.American Federation of Government Employees has several hundred Defense Department union leaders in town for a three-day education and legislation seminar at the Washington Hilton.

Over half the big union's membership comes from Defense units and other blue collar operations that would be hurt by the Carter plan to revise the present 5-step blue collar pay system and eliminate night differentials for many employees.

The 5-step plan, critics say, results in the government "overpaying" mechancis, carpenters and skilled craftsmen anywhere from 4 per cent to 12 per cent over the going rate in industry.

On Friday afternoon, Air Force contract expert A. Ernest Fitzgerald (of C5A cost overrun fame) will give the union leaders pointers on successful "whistle-blowing" which is the art of telling from an employees-eye-view when and how the government goofs.

Veterans Administration Alumni Club features John McClellan as its Thursday luncheon speaker at the Almas Temple downtown. McClellan is president of the National Association of Retired Federal Employees.

Interior Department celebrates its 128th birthday Thursday which is also the 98th anniversary of its scientific arm, the Geological Survey.