Treasury, Union Reach Accord on Review Process That Will Likely Lead to Pay Cuts

A newly formed component of the Treasury Department is looking to ensure all of its employees are necessary and properly compensated, and the union representing its employees is fighting to ensure they receive adequate protections throughout the process.

The Bureau of the Fiscal Service began a Position Management Review in October, but on Wednesday for the first time reached an agreement with the National Treasury Employees Union on the communication and negotiation requirements throughout the process. The memorandum of understanding will give NTEU the opportunity to provide input on future phases of the review, require the agency to give the union monthly updates and allow employees to provide feedback on their position descriptions to the agency.

Treasury created BFS when it consolidated the Bureau of the Public Debt and the Financial Management Service in 2012. It launched the PMR to “align the bureau’s position descriptions with evolving technologies, job processes, functions, reorganizations and government-wide standards,” according to a July audit by the Treasury inspector general. PMRs help agencies ensure positions are classified properly on the general schedule or wage grade, and can lead to downgrades.

“Position management review is a good management practice for all federal agencies,” said a BFS spokesman. He added the agency is conducting the review “consistent with the Office of Personnel Management standards.”

BFS has butted heads with NTEU since it announced the review, however, with the union telling members last week the PMR was part of a reduction in force plan. Treasury estimated it would save $96 million over five years when it merged existing components to create the bureau, primarily by “eliminating duplicative positions” and relocating workers based in Maryland to offices in Missouri and West Virginia. Those savings were delayed after Maryland lawmakers convinced the agency to push back the relocations until 2019.

Prior to reaching the recent agreement, NTEU filed an unfair labor practice complaint with the Federal Labor Relations Authority over a claim that the agency misled employees about their rights to challenge decisions stemming from the review.  Even after NTEU signed the memo of understanding with BFS, the union said it would continue to pursue its FLRA claim.

In a message to members Wednesday, NTEU President Tony Reardon said the union has bargained with BFS management since the position review was announced “in order to minimize any negative impact on bargaining unit employees.” Reardon said after reaching the agreement with the union that BFS has committed to “restructuring work” where it can to avoid downgrades. The agreement will allow employees to appeal downgrades that are implemented, and to receive priority placement in order to apply for higher graded positions. NTEU will continue to bargain if any downgrades are planned, Reardon said. Any employee subject to a lower grade due to reclassification, he added, may be entitled to grade and pay retention.

Just last week, NTEU accused BFS of failing to communicate with its employees and obscuring the true purpose of the review. A BFS spokesman disputed those claims, saying the agency has regularly provided details of the PMR with its workforce for nearly a year.

“We have been diligent in communicating the review with our employees,” the spokesman said. “We have worked closely with the National Treasury Employees Union to minimize the impact on employees and will continue to work in partnership with the NTEU, as we value this relationship.”

The agency has said it will take three to four years to complete its review.