October 11, 2006
M E M O R A N D U M
TO: FDIC Chapter Presidents
RE: Meeting with Chairman Sheila Bair
SUMMARY: Late last month, I met with Sheila Bair and took that opportunity to raise a short list of issues with her, and to establish a working relationship for the future.
When Sheila Bair was confirmed as the Chair of the FDIC, I immediately sent a letter congratulating her, expressing an interest in establishing a productive and cooperative relationship with her, and requesting a meeting to talk about FDIC personnel and the important issues facing employees and the Corporation.
Recently I met with Sheila Bair and found her to be open, thoughtful, and knowledgeable. She made very clear her interest in working with NTEU and her interest in hearing about the issues identified by NTEU and employees. I believe that all of the issues that we bring, with facts, will receive her attention, consideration, and action. With her experience and knowledge of the important work of the FDIC and the employees who do the work, I am optimistic that we will have an open line of communication with her and an opportunity to work with her to improve the workplace for FDIC employees and to help ensure the FDIC’s future success.
Recognizing this was our first meeting, I decided to raise what I called were the “short list” of issues that NTEU wanted to make sure she was aware of, and would like to work with her on. That list follows:
- Examiner issues around quantity versus quality — I reported that I often hear that examiners feel they are under constant pressure to reduce examination hours, and this is having a negative impact on the quality of examinations they perform. I told her they refer to what they do now as “drive by” exams.
- Cross-Training — I told her that employees are very concerned that the plans to cross-train employees to be able to perform many different jobs will reduce experience and expertise, and result in a lower quality of work. Employees see the need for this cross-training due to downsizing that has gone too far. It is clear to me that this is an issue that the Chairman has already given thought to. She sees a need for some cross-training, and I look forward to more specific discussions about this in the future. I am hoping that upon a closer look, we will be able to provide facts, and there will be recognition that the cross-training has gone too far and is diluting the skills and the expertise of employees.
- FDIC Pay-for-Performance System — I laid out NTEU’s criteria for any such system requiring that it be fair, credible, and transparent. I made it clear that employees and NTEU do not see the FDIC system as such. I reported that from an employee’s perspective, the system needs to be fixed. We had a long conversation about the most recent pay-for-performance system versus the new one. Jimmy Lawrence, FDIC Assistant General Counsel, was in the meeting also and he described the system as a major improvement over the prior system, and said he thought that NTEU viewed it that way. I made it very clear that the new system may be a baby step in the right direction, but that it is definitely not seen as a major improvement, and is not seen as a system that is fair or credible or transparent. The FDIC’s continued use of “contributions criteria” that have nothing to do with the performance rating system continues to be a problem. Chairman Bair had a lot of questions about this and clearly has experience from other positions with pay systems, what works and what does not. I am hopeful that this was the beginning of a conversation to recognize the harm that the FDIC’s implementation of the current system is doing to employee morale, which I talked about at great length, and to employees’ perception of the fairness of the system.
- Morale and Lack of Involvement by Employees in Decisions that Affect Their Work-Life — We talked a lot about the dedicated, committed, and talented FDIC workforce, and there was agreement about all of that, which is a good place to start all of these discussions. But I reported that employees feel they have a lot to contribute, but no one in management listens or taps into that. I mentioned the 2001 Organizational Assessment Survey, which was conducted by the FDIC at NTEU’s urging and was done as a joint effort. However, the action plans were never completed or implemented and employees have lost faith that the FDIC is interested in their opinions or their suggestions. Unfortunately, I reported that the FDIC workforce morale is very low and that it will take a lot to turn that around and to convince them that they are viewed by management as the top performing professionals that they are, and valued by the FDIC. I do believe that Chairman Bair is interested in changing that.
- FDIC collaboration with NTEU — It seems like many years ago (which is really only six years ago), when NTEU and the FDIC worked together on important issues that mattered to management and to employees. I talked about the SEC forum that we used to have with senior FDIC management where both parties could raise issues of concern, and we worked them in a collaborative manner. I identified the issuance of the executive order rescinding partnership as the trigger that changed this, but I also made it very clear that NTEU could care less what it is called, it is just good business and makes business sense for us to work together. I made it clear that was NTEU’s interest and from this conversation, I have every indication that is how Chairman Bair would like to work. I talked about creating an opportunity for her to meet with NTEU FDIC chapter presidents while she is traveling, as well as perhaps a conference call with all of us periodically. She seemed to think they were both good ideas. She talked about doing a lot of traveling in the future to the regions, and I fully expect that NTEU chapter presidents will be on her agenda to meet with in those travels. This will be a great opportunity, of course, and I know you will make the most of it in your area.
- Legislation — The legislation that former Chairman Powell was trying to move on the Hill is still there. You will remember that NTEU opposed his legislative proposals that involved changes in the rules for RIFs, hiring of temporary employees versus a career workforce, decreases in employee appeals rights, just to name a few. I told Chairman Bair about this proposal and that it had never been formally withdrawn from the Hill. Chairman Bair, throughout our discussion, made clear her interest in not moving forward with changes like this and in hoping to grow the FDIC workforce in the future rather than shrink it. I asked if she would look into this and if she would consider making it clear that this proposal is no longer on the table by the FDIC. I also asked that should she see the need for any such changes in the future to let us know and to give us the opportunity to work with her to reach agreement before any proposed legislation is sent to the Hill. Again, based on our discussion, I believe her intent is to work with NTEU to solve problems, rather than to create them.
By all measures, I viewed this meeting as a very successful one. I think we have the potential to turn the corner on our relationship with the FDIC. My interest is in forging a new functional, productive, and collaborative relationship with Chairman Sheila Bair. By all indications from this meeting, she shares that interest in working with NTEU. So the future holds a lot of potential for us, and, I know that working together, we will make the most of that.
I will keep you updated on any events or occurrences in Washington, DC, and, as you have the opportunity to meet with Chairman Bair in her travels, I would appreciate hearing from you as to issues discussed, as well as your views of the potential for our relationship with Chairman Bair as we move forward.
Colleen M. Kelley
National President
