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Washington, D.C. — After almost three years of bargaining in a tough negotiations environment, the National Treasury Employees Union (NTEU) and the National Credit Union Administration (NCUA) have agreed to a first-ever collective bargaining agreement.

The initial three-year contract provides NCUA employees with significant merit pay increases for high-performing employees and the institution of critical workplace rights and protections, such as alternative work schedules and grievance procedures. The contract also recognizes the unique nature of the NCUA workforce, many of whom are credit union examiners working out of their homes and at credit unions across the country.

“This contract is long overdue but I am extremely pleased that NTEU’s multi-year efforts at the bargaining table have resulted in solid gains for NCUA employees,” said NTEU President Colleen M. Kelley.

In June of 2004 NCUA employees voted for NTEU representation. NTEU quickly laid out the framework for a term agreement but faced regressive agency proposals that would have reduced pay for employees and rolled back workplace rights.

“Negotiating an initial contract at an agency which is unfamiliar with the benefits of an engaged workforce is always tough but these were particularly difficult negotiations,” President Kelley said. “It took some time, but we now have a concrete agreement that we can build on in the future.”

A key provision in the new contract provides significant merit pay increases to employees who perform well: the top 25 percent will receive increases of 8.25 percent; the middle 50 percent will get a

4.5 percent increase and those rated at least fully successful in the lower 25 percent will receive a 2.75 percent increase.

Additionally, the pay “bands” of employees will be increased by 4 percent the first year of the contract and 2 percent over each of the next two years, which will help to alleviate pay compression issues. About 20 percent of NCUA employees have reached the top of their pay bands.

The contract continues to allow the designation of examiners’ homes as official worksites, which NCUA sought to eliminate, and includes mileage reimbursement payments for examiners who use their private vehicles for agency travel from the home work site to credit unions. These two provisions recognize the unique nature of the examiner workforce and the millions of dollars NCUA saves in overhead costs by having employees work from their homes.

Other benefits included in the new NTEU-NCUA collective bargaining agreement are:

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A fair grievance and arbitration process;

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Protections that allow all employees to seek to work an Alternative Work Schedule (AWS); and

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A travel bonus program for employees who spend significant time away from home.

NTEU is the largest independent federal union, representing 150,000 employees in 31 agencies and departments.