OCC Bargaining Update - May 13, 2016

   O CC B argaining Upd ate   

News from the National Treasury Employees Union


May 13, 2016

 NTEU Secures Positive Changes to Merit Pay System

As you know, the Federal Service Impasses Panel (FSIP) issued a decision resolving NTEU’s dispute over Article 39 (Compensation) of the collective bargaining agreement. Here is a closer look at the changes to merit and geo pay ordered in the decision:

The arbitrator ordered changes to the OCC Merit Pay system, eliminating the “range penetration factor and also streamlining merit pay levels by providing additional merit pay only for employees rated as “4s and “high 3s.

The decision addresses NTEU’s primary goals entering negotiations: to make the merit pay system fairer and the geo pay system more equitable and comparable to other agencies. When viewed in comparison to what OCC management originally proposed at the start of negotiations, the final out- come reflects significant gains for OCC bargaining unit employees in the chart below.

NTEU has achieved many improvements for OCC employees since the union was first elected as your exclusive representative in 2001, and even more so since NTEU secured the right to negotiate compensation through the passage of Dodd-Frank.

The union will continue to pursue improvements in the performance appraisal process through its participation in the Performance Management Working Group so that objectives are clear and attainable, and ratings are assigned fairly and equitably. NTEU will need your continued support and involvement throughout this process in order to identify the aspects of the system that need to be fixed and whether the proposed solutions adequately address the problems.

Therefore, if you are contacted to participate in a focus group seeking employee input on performance management changes, NTEU urges you to take advantage of this opportunity. All employees have also been given the opportunity to provide comments on performance management or to answer the same questions posed to the focus groups, so you should also do this.

OCC management has 30 days to conduct a legal review of the decision, during which time NTEU will be addressing its implementation.

If you are not already a member of NTEU, now is the time to join to demonstrate your support for what the union has achieved and to have a voice in the further improvements that we will continue to work toward.



What OCC Management Initially Proposed

What You Get Under the NTEU-Negotiated Agreement

Merit Pay

No changes to the current system

  • Elimination of the “Range Penetration” factor which reduced merit pay for more experienced employees
  • Streamlining the system to eliminate differences between low 3s and mid 3s

Geo Pay

  • 2 percent increase for New York, San Francisco, Boston and Pittsburgh
  • 1 percent increase for Washington, D.C.
  • No other increases and no geo pay for many locations
  • 5 percent increase for New York, San Francisco and Boston/Providence
  • 4 percent increase for Pittsburgh
  • 2 percent increase for Washington, D.C.
  • 1 percent increase for all other locations, including locations not currently receiving geo pay

Pay Band Cap

Increase 1 percent each year

Increase 2 percent each year

Total Compensation Cap

Increase 2 percent

Increase 2 percent each year

Frequent Travel

No changes:

  • $40/night for nights 55-80
  • $50/night for nights 81+


  • $40/night for nights 51-70
  • $50/night for nights 71+

Life Cycle

$1,000 per year

$1,250 per year

Annual Leave Buy Back