ALEXANDRIA, Va. (1/5/11)--The National Credit Union Administration (NCUA) said yesterday it will apply President Barach Obama's recent executive-ordered federal pay freeze to those agency employees whose salary increases were not negotiated under existing union contracts. These employees' salaries will be frozen, NCUA Chairman Debbie Matz said, "and we will reduce our budget accordingly." The NCUA said that the cost savings from the pay freeze will be disclosed when the NCUA Board conducts its mid-year budget review in July. The pay freeze would not apply to any increases that are based on collective bargaining agreements between employee unions and their management that were executed before the Presidential order. The NCUA pay increase is one of these agreements. The NCUA on Tuesday told News Now that 217 of its employees will be subject to the pay freeze. A total of 894 union employees will not be subject to the terms of the pay freeze, according to the agency. The freeze, which was approved by the Congress in late December, is aimed at all civilian federal employees that are not military personnel. After reviewing the President's mandate, however, NCUA concluded that as a matter of law it could not apply the pay freeze to any increase required by a collective bargaining agreement that had already been executed and in effect at the time of the President's announcement, as was the case with its employees' bargaining agreement. “NCUA’s decision to apply the freeze to those employees not under the collective bargaining agreement will somewhat ease the cost impact on credit unions that are responsible for funding the agency’s budget, and we view that as a helpful step,” noted Credit Union National Association President and CEO Bill Cheney. “But we continue to share credit unions’ deep concerns over the level of agency expenditures at a time when so many in our industry are under extreme pressure to reduce their own expenses to bring their budgets into line. We can understand the legal constraints that limit the agency’s action with respect to freezing its unionized employees’ salaries, but we also believe the Board should have taken action early on to strike a more reasonable agreement to begin with,” Cheney said.