Attendees:

Mgt- Lisa Lander, OAPM, Jayne Seidman, OED, and David Pinansky, GC

Labor- Dean Suehiro, CF, John Grzeskiewicz, IM, Pat Copeland, IM,
Michael Piacsek, NTEU, and Jurmell James, NTEU

OLD BUSINESS (All Union Agenda Items)

1. Personnel policy and/or practice concerns (Union Agenda Items):

   Station Place and Wireless Cellular Agreements

   • Cell phones should work in Station Place if employees have Cingular/AT&T, Verizon, T-Mobile and Sprint/Nextel.
     If employees are unable to use their cell phones and their providers are Cingular/AT&T, Verizon, T-Mobile and Sprint/Nextel,
     they should contact the OIT Help Desk @x14357.

   Training (in-house training and external seminars)

   • The new E-Learning system will offer a wider range of courses that provide CPE credits. The Training Branch has
     conducted a training interest survey of employees over the past year to help determine what types of courses employees
     need/want. If employees wish to make suggestions about the training program or courses offered, they should send an email
     to Training Registration.

   • Mgt. stated that they will again discuss with the appropriate official in the Division of Corporation Finance to
     inform employees (via email) about how the employees were selected to attend the external training.

NEW BUSINESS

1. Communications between management and bargaining unit employees (Union Agenda Items):

   Merit Pay

   • There is nothing management is aware of that will change to due date when employees are to be notified of their
     merit pay determination or when the merit pay will be reflected in the employees paycheck.

   2006 Annual Pay Adjustment

   • The Federal Service Impasses Panel's decision on the current Compensation Agreement in dispute between management
     and the NTEU will impact the 2006 annual pay adjustment.

2. Personnel policy and/or practice concerns (Union Agenda Items):

   Training

   • Management is not aware of the amount of the FYE 2007 training budget. Management does not want to inform NTEU
     of the training budget amounts in the previous years.

   • The 2007 training courses to be offered to employees have not yet been developed by the Training Branch.

   • The Training Branch is currently evaluating the ability of the SEC to telecast the AICPA SEC Conference to be
     held on December 11-13 to the Headquarters Auditorium.

   • The Training Branch is evaluating the ability of the SEC to web cast all training sessions at Headquarters.

   • The Meeting Place teleconferencing has 100 ports available for 100 participants via telephone.

   Credit Hours

   • The SEC has no policy that discourages employees to earn credit hours.

   • The employees are not allowed to earn credit hours when working at a registrant's office or at the location of a
     deposition under the Collective Bargaining Agreement.

   Telework

   • Management has a telework policy that makes all employees eligible to telework.

   • There is no telework policy that limits recurring telework to one day a week.

   Honorary Awards

   • Awards winner are announced as soon as they are official.

   • The nominations of the award winners are not posted on the Intranet due to privacy of the award winners.

   Staff Attrition

   • There is no hiring freeze at the SEC. The SEC has only limited the replacement staff.

   • The mailroom has sufficient staff to accomplish it responsibilities. Any turnover of staff has not required their
     replacement. Management wants more details of the mailroom employees concern over this to be able to address their concern.

   Dental and Vision Benefits

   • Management has only received positive feedback concerning its dental and vision plans. When the plan was
     established, management compared proposals from vendors during the bid process. Management currently has no plans to
     revise the current dental and vision plans.

   Government wide Survey on Human Capital

   • OPM directed the SEC to exclude part-time employees from this survey.

   Fare Card Subsidy Distribution

   • The distribution of fare cards every two months allows employees to receive their fare cares more often instead
     of on a quarterly basis. Employees can get the “Smart Card” to allow their transportation subsidies to be automatically
     deposited into the card.

   HQ

   • The emergency evacuation team is aware of the incorrect date on the telephone during a drill held on 6/20/06.
     Corrective measures will be made.

   • Management will look into the status of the employees' membership in the Senate and/or House FCU.

   • Health Unit- the Health Unit contract is being renewed for FY2007. SEC is working with FOH to determine the
     appropriate nurse staffing levels needed. Any comments concerning the Health Unit should be emailed to the SEC Work/Life
     Program.

   • Pantry- management will look into how often the pantry area is cleaned, including the replacement of the filters
     in the refrigerators.

   NERO

   • There is no policy to not allow employees in the Broker-Dealer and Enforcement offices to participate in 5-4/9,
     telework or earn credit hours. Management will contact these offices. As of July 2006, some employees are teleworking
     on a recurring basis one or two days a week and there are more ad hoc telework arrangements than recurring telework
     arrangements.

   PRO

   • There is no policy that prohibits employees to earn credit hours. Management needs specific situation(s) from PRO
     to address it.

   • Article 15 (Career Ladder Promotions)- it is management's position that career ladder promotions are effective
     after the approval process is completed. Career ladder promotions are not applied retroactively.

3. Personnel policy and/or practice concerns (Management Agenda Item):

   • Management wants to revise the "Request for Official Time" form for union matters to comply with the OPM"s
     reporting requirements. Management will work with NTEU to finalize the form.