The SEC has not yet communicated to the Union its final budget for merit pay for FY 2010. This budget will of course determine the “equivalent share” salary increases that employees will receive at the end of this summer.

For the past few years, the SEC has repeatedly slashed its merit pay budget, sending the clear message that senior management does not believe that human capital issues are a priority at the agency. As the Federal Human Capital Survey results recently demonstrated, however, this shortsighted policy has severely damaged employee morale, as well as the agency’s ability to retain its best employees.

This year, the FY 2010 budget submitted by the SEC to Congress once again contained a reduced amount for merit pay. And once again, NTEU has been working successfully with key leaders in Congress to increase that budget, which should enable the agency to increase merit pay.
The House recently approved a $10 million increase over the agency’s budget, which was included by the Appropriations Committee at NTEU’s urging. Shortly thereafter, the Senate Appropriations Committee approved an increase of approximately $100 million over the agency’s request.

If the administration and the SEC believe that the agency needs additional funding for purposes other than increasing compensation, the agency should bring those issues to the attention of Congress during the budget process and request additional funds to deal with them directly. It would be imprudent and unfair for the SEC to use additional funds appropriated by Congress, including those funds that are added at the Union’s urging, without increasing merit pay.

With new leadership at the top, NTEU hopes that the SEC’s shortsighted attitudes on compensation issues will change. NTEU will continue to press for a return to the pre-Cox merit pay budget.