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Michigan Credit Union League Home » Information Services » Publications » News Articles  

NCUA Freezes Pay for Nonunion Employees   (Misc News: January 5, 2011)

The NCUA said Tuesday that it would abide by the two-year federal pay freeze for all nonmilitary government employees.

The agency’s budget would be reduced accordingly.

Those workers whose pay increases were negotiated previously as part of union contracts are not affected, the NCUA said.

NCUA told CUNA News Now that 217 employees are subject to the pay freeze while 894 are not.

 “As President Obama said, ‘Federal workers are not just a line in a budget. They are public servants who, like their private sector counterparts, may be struggling in these difficult economic times,” NCUA Chair Debbie Matz said.

CUNA President and CEO Bill Cheney said the NCUA’s announcement somewhat eases the sting of the 12 percent budget increase the agency announced in November.

"NCUA's decision to apply the freeze to those employees not under the collective bargaining agreement will somewhat ease the cost impact on credit unions that are responsible for funding the agency's budget, and we view that as a helpful step," CUNA President and CEO Bill Cheney said.

"But we continue to share credit unions' deep concerns over the level of agency expenditures at a time when so many in our industry are under extreme pressure to reduce their own expenses to bring their budgets into line. We can understand the legal constraints that limit the agency's action with respect to freezing its unionized employees' salaries, but we also believe the Board should have taken action early on to strike a more reasonable agreement to begin with," he said.

The NCUA board approved a 2011 budget increase of $24.5 million, bringing the agency’s budget to $225 million. It included raises of up to 8 percent for some employees.
Also included in the budget were 78 new staff positions, many of them added to bolster the agency’s annual examination program.

Industry experts, including MCUL & Affiliates CEO David Adams, have criticized the budget increase at a time when credit unions are dealing with a stubborn economy and rising assessments to pay for the failure of five corporate credit unions.

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