A Message from the NTEU National President

This is a followup to my previous communication on the 2009 pay increases. A recent communication from Chairman Bair outlined possibile additional pay increases for 2009 for meeting certain Corporate-wide “stretch objectives.” In addition, a recent
e-mail from COO John Bovenzi to FDIC managers and supervisors discussed NTEU’s
June message to employees.

With respect to the Chairman’s message, NTEU will, of course, seek to reach agreement as soon as possible in response to the Chairman’s proposal. I firmly believe that the Chairman’s decision to make these additional funds available is in direct response to the numerous complaints from employees throughout the FDIC, as well as from NTEU, that the 3.45 percent base pay increase provided under the interim PFP program for 2009 was insufficient, especially in light of current economic conditions and the heightened workload that is currently facing employees.  
 
With regard to Mr. Bovenzi’s communication, it is clear that FDIC management missed the central point of my message to employees, which was to explain the basis for the 2009 interim PFP agreement, and more specifically, to explain the reason for the 3.45 percent base pay increase. Although the interim agreement does provide some additional “new” funds, these were exclusively for lump sum payments for performance for 2007; the payouts for 2008 performance under the interim agreement were, as stated by NTEU, “budget neutral” at management’s insistence, particularly the 3.45 percent base pay increase.
 
It is also clear that the FDIC’s approach is to combine the cost of lump sum payments with base pay increases and announce the higher resulting increase amount. It is in this way that Mr. Bovenzi tried to characterize management’s offer for 2008 pay increases as “more lucrative.” However, there is, of course, a huge difference between a base pay increase, a permanent increase which compounds with future increases, and a lump sum payment, which is a one-time event. Although the total one-year cost in the management offer was slightly higher, NTEU’s proposal, and the final package, contained higher base pay increases for all employees, and was therefore more beneficial to employees on the whole.  
 
As I have noted above, I am glad that the Chairman has decided to heed the concerns expressed by NTEU and employees and is now offering to make additional funds available for base pay increases for 2009. I look forward to working with the Chairman to make this a reality, so that employees can be fairly compensated for their extraordinary efforts to accomplish the FDIC’s important mission.
 
As always, please direct any questions or comments to your chapter leaders.

Colleen M. Kelley
NTEU National President