Nonunion employees need a voice in NSPS, observers say

Regulations for new Defense personnel system do not require recognition of managers’ associations.

As labor unions vocally criticize the Pentagon for diminishing their role under the National Security Personnel System, at least two other observers are questioning whether nonunion employees will have enough of a say.

David Walker, comptroller general of the Government Accountability Office, told a Senate committee last week that participation of nonunion employees is one of his three main areas of concern about the system. Walker's own agency has led the way on personnel reform and has been closely monitoring NSPS' progress.

"Although the regulations do provide for continuing collaboration with employee representatives, they do not identify a process for the continuing involvement of individual employees in the implementation of NSPS," Walker said at a hearing before the Senate Homeland Security and Governmental Affairs Subcommittee on Oversight of Government Management.

The hearing was called after the Defense Department issued final regulations on NSPS in the Federal Register. The new personnel system is designed to replace automatic across-the-board and within-grade pay increases with performance-based raises, collapse the General Schedule grades into broad pay bands with increased pay flexibility and streamline collective bargaining.

An NSPS spokesperson said about 60 percent of Defense's civilian employees are represented by labor unions - leaving 40 percent of civilian employees out of the loop.

"We're very concerned about the employees who are not represented by unions," said GAO's Derek Stewart, director of defense capabilities and management. "GAO cannot overemphasize the importance of getting input from every employee … not just those represented by the unions."

Stewart said GAO recommended in July that the Pentagon develop a communications strategy that caters to individual concerns, not just those of unions. That strategy would include posting every implementing issuance on a Web site and allowing 30 days of comment, and taking feedback surveys for each issuance.

The final regulations do not meet this recommendation, Stewart said.

Federal Managers Association president Michael Styles testified at the same hearing that he is concerned his group will not be formally recognized by the secretary of Defense under the new rules, and will be locked out of dialogue.

NSPS final regulations state that the department "may request views and comments from representatives of other employee groups, such as a managers' association."

FMA is a nonprofit group representing managers and supervisors in the government. It does not bargain on behalf of its membership, but it advocates for them and is included in some discussions on workplace issues.

Styles called for the department to insert language into the NSPS regulations mirroring existing requirements from which Defense is exempt under the new personnel system. Those requirements would make the Pentagon formally recognize FMA. He also asked department leadership to set up regular monthly or bimonthly meetings with his group.

"The recognition of management organizations such as FMA is a fundamental part of maintaining a collaborative and congenial work environment," Styles said. Under the current personnel system, FMA can "come to the table with DoD leadership and discuss issues that affect managers, supervisors and executives," he said.

"While this process is not binding arbitration, the ability for managers and supervisors to have a voice in the policy development within the department is crucial to its long-term vitality," Styles added.

FMA has been included in numerous discussions on the creation of the NSPS, and if the group submits a formal request for regular meetings, officials will consider it, said Joyce Frank, a spokeswoman. She also emphasized that Defense officials have reached out to nonunion employees through town hall meetings, focus groups, surveys and web contacts, as well as through veterans' and other groups.

Styles called for the Pentagon to adopt five provisions of the United States Code, Title 5, which governs personnel management at most executive branch agencies but does not cover NSPS. These would require:

  • Organizations such as FMA to be able to provide information, views and services to aid in agency operations.
  • Supervisors and managers to be included in decision-making and notified of executive-level decisions on a timely basis.
  • The department to maintain a system for intramanagement communication and consultation.
  • The department to develop a consultative relationship with groups such as FMA.
  • The department to provide support services to nonlabor managerial associations when it determines it is warranted.

Acting Deputy Defense Secretary Gordon England, who is leading NSPS development and implementation, said in his testimony that, in addition to unions, "employees, managers and supervisors" were consulted in the creation of the system.

As for ongoing communication with employees, England said information will be passed down the chain via supervisors and through NSPS Web sites and printed materials.

Styles said that after a bumpy start, NSPS staff has so far included FMA in the process.

"We were initially discouraged by the lack of outreach that the DoD was conducting to management and employee groups as well as OPM," Styles said. However, once communication efforts were increased, "the NSPS staff has availed themselves to our membership."

Styles said FMA leaders met with NSPS officials several times during the development of the regulations.