NTEU and FDIC Reach Agreement to Suspend Pay-for-Performance Program


1/24/08: NTEU has won a victory in its long-standing fight against pay-for-performance plans in the federal sector. Under an agreement reached by NTEU, the Federal Deposit Insurance Corporation (FDIC) has agreed to suspend its highly unpopular pay-for-performance system covering employees in the 2007 cycle. NTEU and FDIC are currently reviewing options for a more transparent, credible and fair pay system.

Like SEC employees, FDIC employees have long voiced their dissatisfaction with the pay-for-performance system. A recent FDIC survey revealed only 12 percent of workers believe the now-suspended system fairly rewards their performance and contributions.

The interim pay system eliminates subjective buckets and contribution factors in distributing pay raises. For 2007, all employees with a rating of “meets expectations” will receive an across-the-board 3.75 percent basic pay adjustment, plus 0.75 percent of basic pay in a lump-sum payment.

NTEU will use its experience at the FDIC as the union continues to oppose unfair pay-for-performance systems at other agencies it represents.