Pay Banding Step 2 Updates

Not much to update from NTEU's standpoint.  We provided our feedback on this program, which had been in the works for approximately 18 months.  As OCC employees pay and benefits remain a "non-negotiable" item, at least we have non-binding input, as opposed to none at all.    While we are supportive of increased promotional opportunities, the process must be done in a fair and transparent manner.  We expressed several concerns about management's ability to implement the step 2 process. Chief among those concerns was the ability to base step 2 increases upon "positions".  In LBS particularly, almost every position is unique, subject to the complexity, conditions, product mixes, level of governance, etc of each bank. 

Improvements Made to Relocation Benefits

OCC management announced improved relocation benefits ('in lieu of') for three OCC locations, NYC, SF and HQ.  NTEU recommended that "in lieu of" be limited to Bargaining Unit employees, recognizing the need for managers and supervisors to commit themselves to the bank, staff, and community.  OCC management, while acknowledging that was the desired intent, did not want to restrict its ability to use this benefit.  We do acknowledgement that management "backdated" the treatment of this 'in lieu of' to transfers initiated after December 1, 2009.

Collective Bargaining Agreement Mid-term Negotiations

OCC management and NTEU have expressed a mutual desire to "reopen" certain articles of the Collective Bargaining Agreement as allowed under Article 7.  NTEU solicited feedback from bargaining unit employees via Chapter Chatter and other means.  Chapter leaders are meeting to determine which articles will be reopened for bargaining.  Subsequently, chapter leaders will submit their suggested language for these articles.  Both management and NTEU have the right to reopen three articles each.

House Committee Approves TSP, Telework Bills with Positive Developments for Federal Workers

On April 14^th, the House Oversight and Government Reform Committee approved two bipartisan measures, increasing TeleWork opportunities for federal employees and potentially boosting their Thrift Savings Plan (TSP) accounts.  H.R. 1722 is particularly promising in that it would expand TeleWork opportunities for greater numbers of federal workers by ensuring that all those eligible for TeleWork could do so at least 20 of the hours they work in a two-week period.  The other bill, H.R. 4865, provides that federal employees who are retiring or leaving federal service could deposit into their TSP accounts any money received from unused annual leave.  NTEU advanced such a proposal last fall when President Obama raised the idea for private sector workers.

OPM Asks for Proposals to Offer Medicare Pilot Programs as a Voluntary Sub-Option Under Individual FEHBP Insurance Plans

OPM recently sent out its annual letter to insurance carriers who participate in FEHBP and encouraged the development of pilot programs that improve the benefits coordination between FEHBP and Medicare Part B, which covers doctor visits and medical services.  Importantly, the letter states that OPM does not support splitting risk pools for annuitants and active employees, a position NTEU firmly supports.  While this is only a solicitation for proposals and these voluntary pilots do not yet exist, as we understand it, OPM has indicated it would like to see pilot programs in which the insurance carriers will offer a sub-option (under a high, standard, or basic option) for Medicare eligible annuitants as an alternate choice.  From all appearances, it sounds like some enrollees, especially those with lower out-of-pocket costs, could benefit.  NTEU’s main concern is that those who are Medicare eligible continue to be part of FEHBP.

NTEU Comments on Proposed EEOC Age Discrimination Regulations

NTEU has submitted comments to the Equal Employment Opportunity Commission (EEOC) on proposed regulations clarifying the meaning of the “reasonable factors other than age” (RFOA) defense in certain cases brought under the Age Discrimination in Employment Act (ADEA).  Employers use the RFOA defense in disparate impact discrimination cases – employment practices that have the effect of discriminating against employees (in this example, age) whether intentional or not – and attempt to avoid liability by showing that the disproportionately adverse effect on older employees is the result of “reasonable factors other than age.” 

We are particularly interested in the EEOC’s proposed regulations because of  how the RFOA defense may be applied to potential OCC discrimination cases involving our pay-for-performance program.  NTEU has told the EEOC that we believe older employees are often disadvantaged under such subjective systems.  The EEOC has responded favorably to this concern and we support the Commission’s proposed regulations to: (1) develop relevant factors that should be viewed objectively from the perspective of a “reasonable employer”; and, (2) establish a two-pronged test that must be used to determine whether an employment practice is an objectively reasonable one.  First, the employer must demonstrate that the employment practice was reasonably designed to further or achieve a legitimate business purpose.  Second, the employer must show that the means used to achieve that goal are objectively reasonable. 

Further, NTEU applauds the EEOC for additional provisions in the proposed regulation identifying a list of factors relevant in determining whether the subjective means by which an employer achieves the legitimate goals of its system are reasonable. 

NTEU will give periodic updates as developments warrant.

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