IMPORTANT INFORMATION
August 19, 2004
MEMORANDUM
TO: FDIC Chapter Presidents
RE: Meeting on National Grievance on FDIC CSAs
SUMMARY: On August 16th, NTEU met with the FDIC on the national
grievance on Corporate Success Awards (CSAs) and presented evidence in
support of our allegations of adverse impact on various demographic groups.
As I reported by memorandum on August 4, 2004, NTEU has filed a national grievance
alleging violations of law, the Compensation Agreement and the CSA Memorandum of
Understanding (MOU) in the unfair and inequitable distribution of CSAs to employees age 40
and above, African-Americans, Hispanics, and employees below Grade 12. A meeting was held
with agency representatives on August 16th to discuss this grievance, and NTEU presented the
following evidence:
1. Age-based differences — employees age 40 and above:
A. Corporate-wide statistics: While almost 40% of employees below age 40
received CSAs, the rate for employees age 40 and above was only 30.5%.
This distribution falls outside the standards of the EEOC’s Uniform
Guidelines on Employee Selection Procedures, as well as the parameters
set forth in the negotiated MOU governing implementation of the CSA
program. NTEU also presented a report providing statistical analysis of
this data, indicating that there is a less than one percent chance that these
results would have been obtained absent any form of bias.
B. Results for 570 series (examiners): NTEU also provided separate
breakdowns of the data on CSA distributions for employees over and
under age 40 within the 570 job series (which comprises about one-half of
the bargaining unit). Overall, slightly more than 40% of examiners under
age 40 received CSAs, while only about 28.5% of examiners age 40 and
above received CSAs. However, given the fact that less than 10% of all
examiners in Grades 5, 7, 9 and 11 received CSAs (a problem unto itself),
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the aged-based disparities are even greater when looking at examiners
Grade 12 and above:
CG 12–15
Under 40: 329/705 = 46.67%
40+: 327/1091 = 29.97%
CG 12
Under 40: 211/494 = 42.71%
40+: 117/507 = 23.08%
CG 13–15
Under 40: 118/211 = 55.92%
40+: 210/584 = 35.96%
NTEU also presented additional reports with statistical analyses that these distributions
fall outside the standards established in the Uniform Guidelines and the CSA MOU, and
indicating that there is a less than one percent chance that these results would have been obtained
absent any form of bias.
2. Race-based differences — African-American and Hispanic employees:
The CSA statistics reveal that while over 35% of non-minority employees
received CSAs, the rate for African-American employees was less than 28%,
and the rate for Hispanic employees was less than 24%.
CSA Distribution Data by Race/National Origin:
Whites: 997/2832 = 35.20%
Asians: 42/119 = 35.29%
African-Americans: 166/606 = 27.39%
Hispanics: 32/134 = 23.88%
NTEU also presented additional reports with statistical analyses demonstrating
that these distributions fall outside the standards established in the Uniform Guidelines
and the CSA MOU, and indicating that there is a less than one percent chance that these
results would have been obtained absent any form of bias.
3. Grade-based differences — impact on employees Grade 12 and below:
While over 38% of employees in Grades 13–15 received CSAs, the rate
for employees Grade 12 and below was only 29%. As noted above, the
grade-based distribution was particularly skewed in DSC, where less than
10% of employees in the 570 series at Grades 11 and below received
CSAs, and where there were significant differences in how even Grade
12s were treated as compared to Grades 13-15. However, even the
corporate-wide data exclusive of the 570 series revealed some significant
grade-based differences. When we negotiated the terms of the MOU and
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policy circular governing the CSA program, NTEU was very concerned
about the possibility that the FDIC might tend to distribute CSAs to
higher-graded employees, as we thought that it might decide that these
employees had made ―more significant contributions.‖ Of course, higher
graded employees are paid higher salaries in large part to recognize these
greater ―contributions.‖ For this reason, NTEU made sure that there was
language in the circular and the MOU requiring that job-based CSA
contributions ―must reflect initiative, effort or achievement beyond that
normally expected from an employee in that position and grade.‖
However, it is clear that this requirement was ignored by the FDIC. Once
again, NTEU presented additional reports with statistical analyses
demonstrating that this distribution falls outside the parameters established
in the CSA MOU, and indicating that there is a less than one percent
chance that these results would have been obtained absent any form of
bias.
Among the remedies that NTEU is seeking are retroactive CSAs (back pay plus interest)
for adversely affected employees and attorneys’ fees for NTEU, as well as changes to the
CSA/pay-for-performance program to end any future bias or discrimination.
The FDIC has indicated that they will carefully consider the evidence and arguments
presented by NTEU. I will let you know as soon as we receive any response.
Colleen M. Kelley
National President