Below are the most recent supplements regarding Childcare Subsidy. Supplement 56A was negotiated by Local 476 President Eddie Eitches on behalf of all HUD employees and was signed by management on 29 May 2007.

• Amendment to Supplement on Childcare Subsidy (National Supplement 56A)
• Supplement on Childcare Subsidy (National Supplement 56)

HUD's Child Care Assistance Program: Need to Make Program Permanent

History

TO ALL MEMBERS OF THE BARGAINING UNIT:

As you may have read in the newspaper, Congress has passed legislation making the authorization for agencies to offer a child care subsidy payment permanent. Upon learning of this permanent legislation, AFGE Local 476 immediately filed a demand to bargain in conjunction with the National AFGE Council. Instead of negotiating in good faith with the union, management tried to force us to accept an assistance formula negotiated in December of 2000. Management's formula has been implemented, pending further discussions. We still encourage anyone eligible to apply for the subsidy.

Management refuses to recognize that child care costs continue to rise every year, and further that the December 2000 formula has proven to be inadequate. The assistance payments simply are not generous enough to encourage employees to switch from unlicensed providers to high-quality (and expensive) child care and pre-school programs. At present, only 38 of HUD's 3000 Headquarters employees take advantage of the subsidy.

For example, assistance currently offered by management is limited to $450 a month (for one child) for lower-graded employees earning $25,000 a year or less. This formula can result in lower graded employees paying over half their take-home pay on child care at a federal day care center. In contrast, Local 476 has proposed that management increase the subsidy cap to $700 per month for employees earning $25,000 or less. For the child care subsidy to be useful, it MUST include an inflation factor and it MUST be adequate to permit families to take advantage of high quality child care facilities.

Management has the money to fund this program, but it is not being spent on child care. Unused funds last year were used to purchase new x-ray and scanning security equipment for the lobby.

To change behavior, subsidies must be meaningful. When I decided to run for President of this Local, the transit subsidy was $20/month. It was a nice benefit for those already using the subsidy but did not increase usage. However, once our slate was elected in March 2000, we began negotiations to make the transit subsidy meaningful. In June 2000, I signed an agreement that raised the subsidy to the maximum allowable by law, then $65 and now $100/month. With such a subsidy, many more abandoned their cars and chose public transportation. This is the kind of action we need to do in the child care arena, increase the subsidy thereby giving those a chance to choose quality licensed child care.

Please let us know if you have young children (or grandchildren in your care) and you're not receiving the subsidy but would use the program if the child care assistance formula were incresed per the union's proposal. We need to know so we can let management know.