Litigation Update - September 2006

NTEU and FDIC
Forum: Arbitration

ISSUE: Whether the FDIC violated the collective bargaining agreement and the “pay for performance” compensation agreement when it failed to allocate Corporate Success Awards (CSA) to employees in a fair and non-discriminatory manner, and further, whether its subjective decision-making discriminated on the basis of race, color, and age in violation of Title VII of the Civil Rights Act and the Age Discrimination in Employment Act.

STATUS: NTEU filed a grievance on February 9, 2005 and invoked arbitration on June 3, 2005. The first round of hearings was held on July 19–20, 2006. The FDIC will present its case on November 6–7. The rebuttal hearing is scheduled for December 12, 2006. A new grievance challenging the plan that replaced the CSA program in 2005 was filed on May 15, 2006. It is being held in abeyance pending decision on the earlier grievance.