diff --git a/NEWS b/NEWS
index af6ab801b6121b8c4c5a67555cdc5d9dd2838c13..574f002354d273f94ab260a1519ef04ff059cca2 100644
--- a/NEWS
+++ b/NEWS
@@ -11,6 +11,8 @@ documents those changes that are of interest to users and admins.
     fails)
  -- Node does not transition from COMPLETING to DOWN state due to 
     not responding. Wait for tasks to complete or admin to set DOWN
+ -- Always chmod SlurmdSpoolDir to 755 (a umask of 007 was resulting 
+    in batch jobs failing)
 
 * Changes in SLURM 0.3.0.0-pre6
 ===============================
diff --git a/src/slurmd/slurmd.c b/src/slurmd/slurmd.c
index c39ed90e45fd878e222b09bc2d662ade2e9ceb3a..246bd7206d2f6e3389b8044e36ebdd3f2eacc841 100644
--- a/src/slurmd/slurmd.c
+++ b/src/slurmd/slurmd.c
@@ -832,14 +832,14 @@ _set_slurmd_spooldir(void)
 			fatal("mkdir(%s): %m", conf->spooldir);
 			return SLURM_ERROR;
 		}
+	}
 
-		/* 
-		 * Ensure spool directory permissions are correct.
-		 */
-		if (chmod(conf->spooldir, 0755) < 0) {
-			error("chmod(%s, 0755): %m", conf->spooldir);
-			return SLURM_ERROR;
-		}
+	/* 
+	 * Ensure spool directory permissions are correct.
+	 */
+	if (chmod(conf->spooldir, 0755) < 0) {
+		error("chmod(%s, 0755): %m", conf->spooldir);
+		return SLURM_ERROR;
 	}
 
 	return SLURM_SUCCESS;