NTEU and EPA Reach Agreement on Implementation of Furloughs

April 19, 2013

M E M O R A N D U M

TO:      EPA Chapter Presidents

RE:      MOU Regarding the Implementation of the Employee Administrative Furloughs

SUMMARY:  NTEU and EPA have reached agreement regarding the implementation of employee administrative furloughs.

NTEU and EPA have executed an agreement regarding the implementation of the employee administrative furloughs as a result of sequestration.  The parties’ April 18, 2013 Memorandum of Understanding (MOU) is attached.

Pursuant to the parties’ MOU, the EPA will implement administrative furloughs in two phases during fiscal year 2013 beginning on April 21, 2013.  Although the EPA has stated that it does not anticipate that the number of furlough hours that employees will be required to take during Phase I and Phase II below will exceed 104 hours or 13, eight-hour workdays cumulatively, Acting Administrator, Bob Perciasepe, issued a statement on April 9, 2013, that the “total number of furlough hours for each employee will be less than 10 days and is reduced to no more than 79 hours for fiscal year 2013.”  In early March 2013, management issued a notice to employees proposing that they be furloughed no sooner than 30 days after receiving the notice.  The notices were sent via e-mail, hand-delivered by supervisors or their designees (with employee signature), or by certified mail.  These employees have now received, or will soon be receiving, decision letters from the deciding officials.

This MOU applies to all NTEU bargaining unit employees of the EPA.  Some highlights of the MOU include:

·         The Parties agree to a two-phase plan for implementing employee administrative furloughs:

o   Phase I will take place from April 21, 2013 to June 15, 2013.  Full-time employees are required to take 32 furlough hours within Phase I.  May 24, 2013, will be a designated furlough day wherein all employees are furloughed with few exceptions (e.g., emergency personnel). 

o   Following Phase I there will be a Reassessment Period from June 16–29, 2013, in which the Office of the Chief Financial Officer (OCFO) will assess the savings that were incurred during Phase I, as well as the Agency’s current budget levels,

to determine if the number of furlough days can be reduced, and how many, if any, additional furlough days employees will be required to take in Phase II.  By mutual agreement, this MOU may be reopened after the Reassessment Period.

o   Phase II will take place from June 30, 2013 to September 30, 2013.  If the OCFO has determined that employees are required to take additional furlough hours, then management will convey this information to employees through a  mass mailer (or similar method), specifying the number of additional furlough hours required. July 5, 2013 and August 30, 2013, will be designated furlough days wherein all employees are furloughed with few exceptions (e.g., emergency personnel).

·         Supervisors are encouraged to give every consideration to employees’ voluntary leave without pay (LWOP) requests, consistent with existing policy.  An employee’s LWOP will not count towards the employee’s furlough requirement, but will factor into additional budget savings which may reduce the number of additional furlough days for all employees. 

·         The Agency will include, as part of Questions and Answers available to employees on EPA’s intranet, information regarding employee entitlement to holiday pay so long as he or she is in a pay status (working that day, taking annual or sick leave, or compensatory time) on either the workday before a holiday or the workday after a holiday.

·         For the purpose of performance evaluations, furloughs will be considered “assumptions” over which the employee has no control and will not negatively impact an employee’s performance evaluation.  If necessary, the supervisor shall review the employee’s performance plan and adjust any deadlines that may occur during, or are impacted by, an employee’s furlough.

·         In the event that any current law or future legislation or other legal developments permit the Agency the discretion to allow employees to convert any previously-taken furlough hours to annual leave, compensatory time off, or time-off-award leave, to the extent that the employee has accrued such leave, the Agency shall allow employee to do so, budget permitting.

·         The Agency will provide a link to the OPM website containing information about Administrative furloughs, including a list of frequently asked questions to be used as a resource for employees and managers in answering questions regarding issues such as use of furlough hours and use of LWOP.

NTEU understands that this is a very challenging time for federal government employees. NTEU will continue to work hard to encourage the EPA to reduce the number of furlough days and seek additional savings. 

The NTEU bargaining team consisted of Chapter Presidents Michael Ottlinger
(Chapter 279), Amer Al-Mudallal (Chapter 280), Stephanie Doolan (Chapter 294), and Patrick Chan (Chapter 295), and Chapter Vice President Diane Lynne and National Negotiator Eve Epstein. 

If you have any questions or comments regarding this MOU or the initiative generally, please contact Eve Epstein via e-mail at Eve.Epstein@nteu.org.

                                                                       

Colleen M. Kelley
National President

Attachment

EPA NEGMOU

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MEMORANDUM OF UNDERSTANDING

                                                             

In accordance with Executive Order 13522, this Memorandum of Understanding (MOU) is entered into by EPA management (“the Agency”) and the National Treasury Employees Union (“NTEU” or “the Union”), collectively known as “the Parties”, in the spirit of predecisional involvement (PDI) in response to impending employee administrative furloughs as a result of sequestration caused by the Balanced Budget and Emergency Deficit Control Act of 1985, as amended. 

                                                                       TERMS

1.      This MOU applies to all NTEU bargaining unit employees of the EPA.

2.      Pursuant to this MOU, the Parties agree to a two-phase plan for implementing employee furloughs during Fiscal Year 2013.  Management does not anticipate that the number of furlough hours that employees will be required to take during Phase I and Phase II below will exceed 104 hours or 13 eight (8) hour workdays cumulatively.  Part-time employees will be furloughed on a pro-rated basis depending on how many hours the employees work. If additional furlough days are required, the Agency will follow all procedures pursuant to federal law, the Collective Bargaining Agreement between U.S. Environmental Protection Agency and the National Treasury Employees Union, and this MOU.

3.      During Phase I, supervisors are encouraged to give every consideration to employees’ voluntary leave without pay requests, consistent with existing policy.  An employee’s LWOP will not count towards the employee’s furlough requirement, but will factor into additional budget savings which may reduce the number of additional furlough days for all employees. 

a.       In early March 2013 management issued a notice to employees proposing they be furloughed no sooner than 30 days after receiving the notice.  The notices were sent via email, hand-delivered by supervisors or their designees (with employee signature), or by certified mail.  The employees have 15 calendar days from their receipt of the proposal in which they may respond to the notice, and management will consider the employees’ responses before issuing decision letters.  Furloughs may begin as of April 21, 2013 or no sooner than 30 days after the employee received the proposal notice, whichever is later.

b.      In the regions, the Assistant Regional Administrators (ARAs) for management served as proposing officials and the Deputy Regional Administrators (DRAs) will serve as deciding officials.  In Headquarters, the Deputy Assistant Administrators (DAAs) served as proposing officials, and the AAs or other official(s) designated by the Deputy Administrator will serve as deciding officials.

c.       The deciding official will make a determination as to whether to sustain the Agency’s proposal to furlough the employee.  The decision letters will be sent via email (with return receipt), hand-delivered by supervisors or their designees (with employee signature), or by certified mail.  Accompanying the decision will be a copy of the furlough schedule which outlines Phase I, the Reassessment Period, and Phase II below.  Employee appeal rights are determined in accordance with federal law, EPA Administrative Grievance procedures and Master Collective Bargaining Agreements, as applicable. 

4.      Phase I – April 21, 2013 to June 15, 2013  (PP 10-13)

a.       Full-time employees are required to take 32 furlough hours within Phase I.  May 24, 2013 will be a designated furlough day wherein all employees are furloughed with few exceptions (e.g., emergency personnel). On May 24, 2013, employees will take the appropriate number of furlough hours commensurate with their work schedule. Furlough hours on May 24, 2013 will be included in the 32 furlough hours employees are required to take during Phase I.  Employees will have the flexibility to temporarily modify their work schedules during Pay Period 12 (PP 12) (May 19-June 1) in order to ensure that they may use part of their required furlough hours on May 24, 2013. Employees on compressed work schedules may modify their schedules during any pay periods in which they take furlough hours in order to reduce the number of furlough hours taken in any pay period. Since these changes are due to sequestration, the Collective Bargaining Agreement’s limitation on employees only changing their work schedules once per quarter does not apply. Employees will work with their supervisors to determine how their remaining furlough hours will be taken during Phase I.

b.      The Agency will include, as part of Questions and Answers available to employees on EPA’s intranet, information regarding employee entitlement to holiday pay so long as he or she is in a pay status (working that day, taking annual or sick leave, or compensatory time) on either the workday before a holiday or the workday after a holiday.

c.       For furlough hours taken by employees during Phase I on days other than May 24, 2013, employees will have the right to request these hours consecutively or on a discontinuous basis, and in increments of at least fifteen minutes.  Supervisors are strongly encouraged to be flexible in working with employees to approve furlough hours commensurate with employee requests subject to workload, office coverage and other operational needs similar to the provisions for annual leave found in Article 19. Any denial of selected dates must be provided in writing to the employee on a timely basis. Employees are encouraged to schedule hours as they would annual leave; however, employees may also use furlough hours in lieu of sick leave for unexpected absences.

d.      If by the end of PP 11 (ending May 18, 2013), an employee’s required furlough hours for Phase I have not been taken or scheduled, then that employee’s supervisor will schedule any remaining required furlough hours to be taken by that employee during PP 12 and 13 (ending June 15).  Supervisors will consider employee input in scheduling these furlough hours.

e.       The Agency will provide customary assistance to those employees eligible to file for unemployment compensation for furlough day.

5.      Reassessment Period - June 16-29, 2013 (PP 14)

a.       The Office of the Chief Financial Officer (OCFO) will assess the savings that were incurred during Phase I, as well as the Agency’s current budget levels, to determine if the number of furlough days can be reduced, and how many, if any, additional furlough days employees will be required to take in Phase II. 

By mutual agreement, this MOU may be reopened after the Reassessment Period.

6.      Phase II – June 30, 2013 to September 30, 2013  (PP 15-21)

a.       At the conclusion of the reassessment period, if OCFO has determined that employees are required to take additional furlough hours, then management will convey this information to employees through a  mass mailer (or similar method), specifying the number of additional furlough hours required.  Employees will be required to take all remaining furlough hours between June 30, 2013 (PP 15) and September 30, 2013 (PP 21).

b.      July 5, 2013 and August 30, 2013 will be designated furlough days wherein all employees are furloughed with few exceptions (e.g., emergency personnel).  On these two days, employees will take the appropriate number of furlough hours commensurate with their work schedule.  Employees will have the flexibility to temporarily modify their work schedules in order to ensure that they may use part of their required furlough hours on July 5, 2013 and August 30, 2013.  Furlough hours taken on July 5, 2013 and August 30, 2013 will be included in the furlough hours employees are required to take during Phase II. Employees on compressed work schedules may modify their schedules during any pay periods in which they take furlough hours in order to reduce the number of furlough hours taken in any pay period. Since these changes are due to sequestration, the Collective Bargaining Agreement’s limitation on employees only changing their work schedules once per quarter does not apply.

c.       The Agency will include, as part of Questions and Answers available to employees on EPA’s intranet, information regarding employee entitlement to holiday pay so long as he or she is in a pay status (working that day, taking annual or sick leave, or compensatory time) on either the workday before a holiday or the workday after a holiday.

d.      For furlough hours taken by employees during Phase II on days other than July 5, 2013 and August 30, 2013, employees will have the right to request these hours consecutively or on a discontinuous basis and in increments of at least fifteen minutes. Supervisors are strongly encouraged to be flexible in working with employees to approve furlough hours commensurate with employee requests subject to workload, office coverage and other operational needs similar to the provisions for annual leave found in Article 19. Any denial of selected dates must be provided in writing to the employee on a timely basis. Employees are encouraged to schedule hours as they would annual leave; however, employees may also use furlough hours in lieu of sick leave for unexpected absences.

e.       If by September 3, 2013, an employee’s furlough hours have not been taken or scheduled, then that employee’s supervisor will schedule any remaining required furlough hours to be taken by that employee during PP 20 and 21. Supervisors will consider employee input in scheduling these furlough hours. 

7.      For the purpose of performance evaluation, furloughs will be considered “assumptions” over which the employee has no control and will not negatively impact an employee’s performance evaluation. If necessary, the supervisor shall review the employee’s performance plan and adjust any deadlines that may occur during, or are impacted by, an employee’s furlough.

8.        The Agency will include, as part of Questions and Answers available to employees on EPA’s intranet, information regarding employee eligibility for credit hours during the furlough period. 

9.        In the event that any current law or future legislation or other legal developments permit the Agency the discretion to allow employees to convert any previously-taken furlough hours to annual leave, compensatory time off, or time-off-award leave, to the extent that the employee has accrued such leave, the Agency shall allow employee to do so, budget permitting.

10.  The Agency will provide a link to the OPM website containing information about Administrative furloughs, including a list of frequently asked questions to be used as a resource for employees and managers in answering questions regarding issues such as use of furlough hours and use of LWOP.

11.        The Agency will comply with 41 U.S.C. § 1710 on the conversions of functions from performance by Federal employees to performance by contractors.

12.        Eligible EPA employees will continue to receive the Transit Subsidy in accordance with existing policies and procedures.

13.        The parties agree that this MOU satisfies all Agency bargaining obligations relating to the matter of employee administrative furloughs as a result of sequestration caused by the Balanced Budget and Emergency Deficit Control Act of 1985, as amended. By signing this MOU, neither party surrenders any statutory rights.  The agreement also does not preclude any bargaining unit employees from exercising any of their available rights in connection with the furlough actions referenced in this MOU.

14.  This MOU will become effective upon Agency Head review or on the thirty-first (31^st) calendar day after execution, whichever comes first, and shall run through September 30, 2013, or until such time as it is determined that employee furloughs are no longer needed for FY 2013.

15.  In signing this MOU, the Agency and Union agree that they have received all necessary approval to enter this agreement and have the full authority to execute the agreement. This MOU is subject to Agency Head review, which the Agency will make every attempt to expedite.  In the event that any provision (section, paragraph, sentence, etc.) of this MOU is held invalid by a third party with competent jurisdiction or found to conflict with regulation, rule or statute, the remaining provisions of this MOU shall remain in full force and effect. The Parties shall promptly meet and attempt to reach agreement on any provision found invalid.

For EPA: ___________________________________ Craig Hooks                                         Date Assistant Administrator OARM

For NTEU: ______________________________________ Eve Epstein                                               Date National Negotiator NTEU