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Washington, D.C.—The National Treasury Employees Union (NTEU) has reached tentative agreement on a three-year labor contract with the Securities & Exchange Commission (SEC), NTEU President Colleen M. Kelley said. NTEU represents some 2,000 SEC employees in a nationwide bargaining unit.

The first-ever NTEU-SEC term agreement, which is subject to ratification by the members, required lengthy negotiations, said the union leader, “but is evidence of what we can accomplish together on behalf of employees, the agency and the American people.”

This “is a positive step forward,” Kelley said, “and hopefully it will energize the SEC to resolve our continuing dispute over pay parity” at the SEC. “Pay parity is critical for curbing the serious recruitment and retention problems that have clearly contributed to the agency’s inability to do the job the nation wants and expects in today’s challenging environment,” said Kelley.

Earlier this year, Congress, acting at NTEU’s urging, approved legislation that would provide pay parity for SEC employees with those at other federal financial regulatory agencies. However, the administration’s budget proposal failed to fund what Kelley has described as “this critically important initiative,” and last month the agency unilaterally implemented a pay plan that disproportionately benefits managers, at the expense of the attorneys, examiners, and other front-line employees.

The tentative agreement spells out employee rights and provides for gains in such key areas as work schedules—including telework—overtime and compensatory time, public transportation subsidies, child care tuition assistance, awards, performance appraisals, training, and more.

In addition, it contains what Kelley described as “a well thought out” grievance and arbitration procedure, and provides a mechanism for “a cooperative labor-management relationship.”

Reaching this agreement “required very difficult negotiations over a long period of time,” President Kelley said. “Some of that difficulty may have been born out of the lengthy and adversarial organizing campaign at the SEC” that ran more than 18 months before ending an NTEU victory in 2000, she said, “but now that we have reached agreement on a contract, I look forward to an improving relationship at this agency.”

Moving ahead with substantive talks “on a pay parity plan that benefits all employees” would be another step in the right direction, the union leader said.

NTEU is the largest independent federal union, representing some 150,000 employees in 25 agencies and departments.

Highlights of the NTEU-SEC Term Agreement

Work Schedules:

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As an alternative to the 5-4/9 compressed work schedule, employees may chose to work a flexible work schedule with credit hours. Employees on this schedule may work up to two credit hours on a workday, and up to eight hours on a non-workday, and may carry over up to 24 credit hours from pay period to pay period.

Telework:

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An employee may work at home up to two days per week on a regular schedule, or five consecutive days on a project.

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The decision to grant or deny an employee’s request for a recurring or ad hoc telework arrangement generally will be based on the nature and content of the employee’s job and whether the arrangement interferes with the agency’s ability to meet mission, along with staffing and workload requirements.

Overtime and Compensatory Time:

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The agency “will not expect or require an employee to donate time in lieu of proper compensation for overtime work.” Where approval to work overtime could not be reasonably obtained in advance, the SEC will approve up to two hours of overtime compensation after the hours have been worked if the work would have been ordered or required. If you work overtime, you can receive compensatory time off in lieu of overtime pay.

Public Transportation Subsidies:

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The monthly subsidy will be increased to $85 one month after effective date. NTEU may reopen the agreement if the agency does not increase the subsidy to $100 within one year.

Childcare Subsidies:

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Includes a sliding scale of subsidies for employees, ranging from 20 percent to 50 percent of the employee’s total childcare costs, for families with incomes below $50,000.

Student Loan Repayment Program:

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Each year, the agency may identify target group(s) in a particular job series and or particular division or offices to offer student loan benefits to all eligible employees in the target group(s) based on recruitment or retention issues.

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The agency may also grant a student loan benefit to eligible employees based on established criteria relating to contribution to the agency’s mission, customer service, leadership and/or teamwork.

Awards (Employee Recognition Program):

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The agency will base performance awards on established criteria relating to contribution to the agency’s mission, customer service, leadership, problem solving/creativity/innovation, streamlining and/or teamwork.

Performance Appraisal:

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Performance standards must identify expectations or requirements that must be met for performance to be rated as acceptable in that element, and the standards must be reasonably related to an employee’s position description.

Training:

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The agency will establish criteria for the fair and equitable selection and assignment of employees to training consistent with merit system principles.

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The agency will approve an employee’s written request for annual leave, leave without pay, earned credit hours or earned compensatory time to participate in training, professional meetings, professional development, conferences or continuing education courses unless the employee’s absence would have an adverse effect on staffing, workload or mission requirements. The agency will reasonably consider, and may approve, an employee’s request for duty time for these activities in appropriate circumstances, and will give serious consideration to such requests where the training is directly related to the employee’s official duties.

Grievance Procedure and Arbitration:

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Establishes a broad-scope grievance procedure utilizing an independent, third-party arbitrator. Also, establishes less formal procedures to expedite processing of certain categories of cases, including those concerning a denial of an employee’s work schedule or telework request.

Equal Employment Opportunity:

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Prohibits discrimination based on race, color, religion, sex, national origin, age, sexual orientation, or disability. Further, SEC and NTEU shall establish an EEO committee to discuss relevant EEO employment issues.

Labor-Management Relations Committee:

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Provides for an ongoing, cooperative labor-management relations program.

Duration and Termination:

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Provides that the Agreement will be in effect for three years, with annual rollover unless it is reopened by either party.