“This action demonstrates why budget hearings are critical to the transparent and fully accountable operations of the NCUA. While wages constitute the largest line item in the NCUA's budget, the board (or at least my office) was precluded from exercising effective oversight in negotiating the new collective bargaining agreement,” he continued. “At an absolute minimum, the chair should have consulted with the board before consenting to bind the agency for an unprecedented five-year term of the contract. Interestingly, I have not yet received a copy of the final executed agreement.”

In a confidential NCUA document obtained by CU Times, the collective bargaining agreement between the NCUA and NTEU spelled out the long list of negotiating terms. It included reimbursement for all employees for the cost of professional licenses required as part of their position, larger relocation sums for employees moving to Washington and an increase in pay raises.

NCUA Communication Specialist Ben Hardaway said the agreement represented the best interests of the organization as well as the employees, and reiterated the belief that the agreement was fiscally responsible.

“The NCUA's new collective bargaining agreement strikes a balance between fiscal responsibility and attracting and retaining high quality employees, which are essential for the NCUA to fulfill its mission,” Hardaway said. “The savings and costs were projected for every change in the new agreement's language. When all of the changes are factored in, the new collective bargaining agreement is projected to reduce future cost growth by over $17 million, compared to the prior agreement.”

Some worried, however, about the agreement's cost and whether the NCUA was being transparent enough.

“CUNA has consistently called for greater transparency in the NCUA's budget process,” CUNA President/CEO Jim Nussle said. “The credit union system, which funds almost all of the NCUA's activities, has no input into or influence over collective bargaining agreements; therefore, we expect that the NCUA will negotiate a deal in the best interest of credit unions. To the extent that this agreement increases costs at the agency, we encourage and expect the NCUA to look for corresponding expense savings elsewhere.”

The previous collective bargaining agreement, signed in 2011, stated that the “NCUA will adhere to congressional or presidential freezes that apply to statutory pay systems, including applicable locality rates. In any year that a pay freeze is in effect, the merit pay and locality adjustments included in this article will not apply.”

The new agreement removed the pay freeze language completely, as well as removed employees from the GS pay range, instead guaranteeing pay raises would go neither above nor below 1% annually in the first two years and 1.25% each year thereafter.

The bottom of each pay range was increased and current employees were scheduled to be raised to the new minimum of their grade as early as July 6, when the CBA was signed.

The lump sum paid to employees who exceed their base pay cap or total pay cap was changed to a percentage amount that cannot exceed $12,500. In addition, the non-competitive promotion minimum was increased from 8% to 9%, and competitive promotions went from 9% to 10%.

In a statement released July 6, NCUA Chairman Debbie Matz said, “Two of my goals as NCUA Chairman have been to foster labor management cooperation and make the NCUA an employer of choice. It respects and responds to the needs and concerns of management and employees and is a commitment by both to work together to continually improve the working environment.”

The bargaining agreement also appeared to point to future predictions that the federal government would indeed shut down again. It included a provision that all telework employees would continue to telecommute from home when the government closes.

In a small victory for employees, language in the agreement stated that they would be reimbursed for expedited screening services for either TSA Pre-Check or Global Entry up to $85. Employees can now also be reimbursed for nonrefundable airfare when canceling travel due to personal emergencies.

NAFCU cautioned prudence in expanding wages and benefits.

“NAFCU expects the NCUA…to take the utmost care in all elements of its budgeting, including negotiating staff salaries and benefits as part of the collective bargaining agreement,” Carrie Hunt, senior vice president of government affairs/general counsel, said. “As credit unions have no ability to comment or have input on any part of the NCUA's budget process, they are in effect captured by the decisions of the NCUA. NAFCU believes that the NCUA budget requires a line by line scrutiny at all levels, especially since employee salary and benefits makes up such a large portion of its overall expenditures.”

The agreement was also historically significant in that past agreements were negotiated for three years at a time. This five-year agreement will still be in place long after the current chairman, who is nearing the end of her term, has left. In 2020, her successor will also be close to ending his or her six-year term.

The NTEU represents approximately 950 of nearly 1,250 employees at the NCUA.