SEC lawyers move toward unionization

Securities and Exchange Commission employees will likely get a chance to vote for union representation soon, thanks to a recent decision from the Federal Labor Relations Authority.

The FLRA ruled Friday in favor of a single, nationwide bargaining unit for the agency's professional and nonprofessional staff. In its final decision, the board dismissed an appeal by SEC management that the agency should be subdivided into 11 separate bargaining units.

"With this decision of the full FLRA, there can be no doubt now of the proper course, and I urge SEC Chairman Arthur Levitt to move forward with us to let these employees speak their minds," said National Treasury Employees Union President Colleen M. Kelley.

NTEU has been organizing for a unionization vote at the SEC since January 1999.

SEC employees were originally scheduled to vote for union representation last September, but the agency appealed the decision at the last hour, causing a delay of several months. FLRA Regional Director Michael W. Doheny issued the initial decision in favor of a single union at the SEC. Smaller units, he said, might unnecessarily fragment the organization and would escalate negotiation costs.

But SEC management appealed to the full FLRA, arguing against a nationwide unit on several points, including a lack of legal precedence. Among the concerns, the agency said a national union would give field managers less flexibility to deal with local concerns.

The FLRA rejected the SEC's argument and did not grant a review of the regional director's decision. As a result, a vote is expected to be scheduled within days, an NTEU spokesman said.

But the SEC says it still may challenge the FLRA's ruling. "We are reviewing the decision and assessing our options. We remain committed to achieving a solution that deals fairly with the diverse needs and interests of all SEC staff," said SEC spokesman Chris Ullman.

Attorneys, accountants, compliance examiners and support staff at SEC are voting for representation. Professional staff have a choice of joining the nonprofessional bargaining unit or remaining separate.

Union representatives say arbitrary actions by management and a general climate of unfairness are evidence that SEC employees need union representation.

Until NTEU began organizing for a vote, agency managers were quick to dismiss employees' concerns, an SEC staff attorney said. But since NTEU began organizing, management has increased transportation subsidies twice and pleaded with Congress for salary increases for the agency's lawyers, he said.

NTEU would press for a separate pay scale for SEC experts, similar to special scales for professionals at the Federal Deposit Insurance Corp. and the Federal Reserve. Those agencies have independent statutes that allow them to negotiate their own pay scales, which are higher than the General Schedule. NTEU thinks SEC experts, such as attorneys and accountants, should have a similar arrangement.

Overtime pay and flexible work schedules are among other issues the union would likely negotiate. According to the attorney, union representation would also be helpful in clarifying the promotions and bonuses system.

The agency has discretionary funds for bonuses, "but it's always hush-hush. No one knows what the criteria are," he said. "The union would make the whole process much more transparent, so you know where you stand. That would be nice."