Bargaining Stalls Over Key Issues
NTEU Stands Firm Over Pay, Grievance Process, Home Offices

In late 2006 because NTEU and NCUA were unable to reach agreement on several contract issues, NTEU requested the involvement of the Federal Mediation and Conciliation Service. A federal mediator began assisting us and assumed control over the schedule of negotiations. Pursuant to the mediator’s directive, the parties met for at least one full week every month over the past five months. During that time, we reached agreement on about six articles.

Message from the
NTEU National President

As bargaining unit members in the federal government you are witnessing one of the most difficult periods in labor-management relations I have ever experienced. Throughout the federal government, agency management is difficult and hostile to NTEU and that has been true at NCUA as well. While first contract negotiations are traditionally difficult to bargain, the NTEU-NCUA contract has proven exceptionally difficult.

NCUA negotiators have refused to budge from the regressive proposals on issues such as pay, home offices and certification that they presented when we first sat down at the table. Their steadfast refusal to bargain over these issues has turned negotiations attempts into a stalemate. NTEU will not, however, back down from doing all we can to achieve the best term agreement possible. NCUA employees have been ably represented at the table by Steve Jennings, Heather Hammes, Sharon Holeman, Cynthia Vaughn and Greg Painter, who are committed to seeing this process through.

While we are pursuing a term agreement, NTEU has been busy with other NCUA issues. We have bargained and signed an agreement with the agency over wireless broadband and when NCUA wanted to punish employees who suffered technological glitches caused by the agency’s contractor, we fought that too. Examiners under the pilot program received additional time to complete their work if they were caught in the failure of the broadband network. NTEU made a difference.

NTEU also made a difference when NCUA decided that new examiners would receive their Level I training in the field rather than the central office. A one-page agreement with the agency ensures that these employees will have adequate time to complete the training modules and that their training responsibilities will be considered by their supervisors when work is assigned.

Another area of great concern to examiners is the rising cost of gas. As I did during the post-Katrina fuel fluctuations, I have sent a letter to the Internal Revenue Service seeking a mid-year adjustment to the mileage reimbursement rate. We will work to see a positive adjustment in the IRS rate that will allow the rate for federal employees who drive their own vehicles to be adjusted upward as well. While NCUA does not need to follow the federal standard, it is my hope that management will not continue to harm its own employees who are literally paying fuel costs out of their own pockets.

I want to thank all the NCUA employees who are providing great support to the negotiations team as they try to craft a contract that will improve your working lives. Our voice is strong and NTEU is determined to achieve your first contract and bring it to life.

As the poet and academic Annie Dillard is quoted as saying, “How we spend our days is, of course, how we spend our lives.” NTEU’s goal is to make both of those better for you and your continued support will make that happen.




Colleen M. Kelley
National President

The mediation efforts stalled in May 2007 when bargaining turned again to the issues of compensation, hours of work, travel and reimbursement and examiner certification. While our goal has always been to reach an initial term agreement that will result in employees being treated fairly and equitably and afford them an avenue for having impartial third-party review to vindicate alleged violations of those rights, it is clear that NCUA has absolutely no intention of reaching such a deal. All signs of progress have vanished and management has continued to maintain regressive proposals at the table despite attempts by the mediator to get the agency to make its proposals more reasonable.

Following are the outstanding issues with details on management’s and NTEU’s positions:

Compensation

NCUA continues to propose no increase in compensation for current employees and no expansion of the pay bands, even though an increasing number of employees are now at the top of their pay band. Consequently, those employees receive merit raises as a lump sum rather than as an increase to their base pay. The agency does propose to increase the annual merit pay for the top 75 percent of high performers while at the same time changing locality rates. The locality rate changes would result in an actual decrease for most employees—and even employees in the top 25 percent of the high performers would attain only a minimal pay raise.

Management continues to refuse to consider any annual pay raises, even though the law requires FIRREA agencies to seek “comparability” with each other. NCUA indicated there is no business case for raising the salaries of bargaining unit employees, even though comparable FDIC employees are paid 18 to 23 percent higher in the CU-7 through -14 grades than NCUA bargaining unit employees. The statistics also show that the pay for NCUA management officials, compared to FDIC management officials, is either comparable or higher than FDIC.

Grievance and Arbitration

NCUA wants to bar employees from grieving several important issues, most notably performance appraisals and compensation.

Under NTEU’s proposal, employees may file grievances on any issue that the Federal Service Labor-Management Relations statute permits—including performance appraisals and compensation—and appeal any agency denial of the grievance to a neutral third-party for arbitration if necessary.

Official Work Site and Travel

The agency continues to propose that the examiners’ homes are not their official worksites and would like to restrict the amount of POV mileage for which the examiners will be reimbursed. Currently, employees are reimbursed from their homes.

Previously, NCUA directed examiners to work out of “home offices” but management now proposes that the home will be a worksite at which employees must request and be approved to work—each time they wish to work there.

Under management’s proposals, POV mileage will not be reimbursed for time spent “commuting” to and from an office. NCUA has a broad definition of commuting: field employees who live within the boundaries of their duty station will not be reimbursed for the first 50 miles of travel to their offices and, for field employees who live outside the boundaries of their duty station, the normal commute time “is the distance from their home to the nearest point of the boundary of their duty station plus 50 miles.” This proposal will drastically reduce the payment of POV expenses to examiners even though examiners have essentially permitted the agency to operate rent-free out of their private homes for decades.

Certification and Career Ladder Promotions

NCUA continues to propose that any examiner in a position with a career path up to the CU-12 Principal Examiner (PE) must pass a comprehensive certification examination to become a certified examiner and to be non-competitively promoted from the CU-11 to the CU-12 position. Once certified, PEs would be required to pass a recertification exam every three years. Failure to pass the exam would result in the PE being downgraded to the CU-11 position.

NTEU proposed that management take the proposal off the bargaining table because the agency has not yet obtained required authority from the Office of Personnel Management to maintain such a certification test, thus there is no reason to bargain.

Mobility Requirement

NCUA continues to propose that all future employees be bound by a mobility requirement that would essentially result in the waiving of their right to any type of severance compensation in the event employees are directed to move to a new position in a different geographic area. Under the agency proposal, if the employee refuses the directed reassignment, he or she would be separated by the agency without any severance pay.

If there is no such mobility requirement the employee would be entitled to severance pay upon separation. NCUA claims that the proposal is necessary to save costs, but it has not proffered any evidence that employees currently refuse directed reassignments or that if they were to do so, the costs of severance are high. NTEU has opposed, and continues to oppose, this proposal.

Next Steps

We have now exhausted all options under federal labor law to reach agreement except one—the Federal Service Impasses Panel (FSIP), a body consisting of seven political appointees who consistently rule in favor of management. NTEU has been forced to file a petition with the FSIP where we expect NCUA to ask the Panel to impose its regressive terms and conditions on NCUA employees.

Detailed information about the Panel procedures and its members is available by visiting www.flra.gov but this is generally what will happen next. An investigative meeting likely will be scheduled later this month in Washington, D.C. The case will be presented to the full Panel so it may decide whether to assert jurisdiction over the case. If the Panel asserts jurisdiction over the dispute, it will order a procedure, such as an “Informal Conference” to attempt to resolve it. If that procedure does not result in a full settlement, the parties will then give the Panel their last best offers and the case will be presented to the full Panel when it next meets.

The Panel will then decide the dispute and issue a decision within two or three weeks after meeting. Because the FSIP only meets nine or 10 times a year, and it does not disclose to the parties when it meets, it is difficult to discern when the case may be resolved. But based on our experience with this Panel, we believe the impasse will be resolved in the next four to five months. We will keep you apprised of any developments as they occur.

In the meantime, if you have any questions about the negotiations, contact Negotiating Team Members
Steve Jennings or Heather Hammes.

"...to ensure that every federal employee is treated with dignity and respect."