diff --git a/spring-batch-core/.settings/com.springsource.sts.config.flow.prefs b/spring-batch-core/.settings/com.springsource.sts.config.flow.prefs
index b0ce728e1..b9cbc174d 100644
--- a/spring-batch-core/.settings/com.springsource.sts.config.flow.prefs
+++ b/spring-batch-core/.settings/com.springsource.sts.config.flow.prefs
@@ -1,8 +1,9 @@
-#Mon Jan 31 13:34:48 GMT 2011
+#Tue Feb 01 21:15:00 GMT 2011
 //com.springsource.sts.config.flow.coordinates\:http\://www.springframework.org/schema/batch\:/spring-batch-core/src/test/resources/org/springframework/batch/core/configuration/xml/JobExecutionListenerMethodAttributeParserTests-context.xml=<?xml version\="1.0" encoding\="UTF-8"?>\n<graph>\n<element type\="job">\n<structure end\="995" endstart\="989" start\="511" startend\="586"/>\n<bounds height\="118" width\="77" x\="15" y\="17"/>\n</element>\n</graph>
 //com.springsource.sts.config.flow.coordinates\:http\://www.springframework.org/schema/batch\:/spring-batch-core/src/test/resources/org/springframework/batch/core/configuration/xml/JobRepositoryDefaultParserTests-context.xml=<?xml version\="1.0" encoding\="UTF-8"?>\n<graph/>
 //com.springsource.sts.config.flow.coordinates\:http\://www.springframework.org/schema/batch\:/spring-batch-core/src/test/resources/org/springframework/batch/core/configuration/xml/StepListenerInStepParserTests-context.xml=<?xml version\="1.0" encoding\="UTF-8"?>\n<graph>\n<element clazz\="JobModelElement" type\="job">\n<structure end\="1832" endstart\="1826" start\="510" startend\="524"/>\n<bounds height\="268" width\="77" x\="15" y\="17"/>\n</element>\n</graph>
 //com.springsource.sts.config.flow.coordinates\:http\://www.springframework.org/schema/batch\:/spring-batch-core/src/test/resources/org/springframework/batch/core/configuration/xml/StepListenerMethodAttributeParserTests-context.xml=<?xml version\="1.0" encoding\="UTF-8"?>\n<graph>\n<element type\="job">\n<structure end\="854" endstart\="848" start\="511" startend\="525"/>\n<bounds height\="118" width\="77" x\="15" y\="17"/>\n</element>\n</graph>
+//com.springsource.sts.config.flow.coordinates\:http\://www.springframework.org/schema/batch\:/spring-batch-core/src/test/resources/org/springframework/batch/core/configuration/xml/StepListenerParserTests-context.xml=<?xml version\="1.0" encoding\="UTF-8"?>\n<graph>\n<element clazz\="JobModelElement" type\="job">\n<structure end\="1650" endstart\="1644" start\="510" startend\="524"/>\n<bounds height\="218" width\="77" x\="15" y\="17"/>\n</element>\n</graph>
 //com.springsource.sts.config.flow.coordinates\:http\://www.springframework.org/schema/batch\:/spring-batch-core/src/test/resources/org/springframework/batch/core/configuration/xml/StepWithPojoListenerJobParserTests-context.xml=<?xml version\="1.0" encoding\="UTF-8"?>\n<graph>\n<element type\="job">\n<structure end\="769" endstart\="763" start\="510" startend\="524"/>\n<bounds height\="118" width\="79" x\="15" y\="17"/>\n</element>\n</graph>
 //com.springsource.sts.config.flow.coordinates\:http\://www.springframework.org/schema/batch\:/spring-batch-core/src/test/resources/org/springframework/batch/core/configuration/xml/TaskletParserAdapterTests-context.xml=<?xml version\="1.0" encoding\="UTF-8"?>\n<graph>\n<element type\="job">\n<structure end\="556" endstart\="550" start\="461" startend\="476"/>\n<bounds height\="118" width\="86" x\="15" y\="17"/>\n</element>\n<element type\="job">\n<structure end\="740" endstart\="734" start\="559" startend\="574"/>\n<bounds height\="118" width\="86" x\="113" y\="17"/>\n</element>\n</graph>
 //com.springsource.sts.config.flow.coordinates\:http\://www.springframework.org/schema/batch\:/spring-batch-core/src/test/resources/org/springframework/batch/core/configuration/xml/TaskletParserBeanPropertiesTests-context.xml=<?xml version\="1.0" encoding\="UTF-8"?>\n<graph>\n<element type\="job">\n<structure end\="594" endstart\="588" start\="513" startend\="528"/>\n<bounds height\="118" width\="86" x\="15" y\="17"/>\n</element>\n<element type\="job">\n<structure end\="777" endstart\="771" start\="597" startend\="612"/>\n<bounds height\="118" width\="86" x\="113" y\="17"/>\n</element>\n</graph>
diff --git a/spring-batch-core/src/test/java/org/springframework/batch/core/configuration/xml/StepListenerParserTests.java b/spring-batch-core/src/test/java/org/springframework/batch/core/configuration/xml/StepListenerParserTests.java
index 57db07e06..8297bed5b 100644
--- a/spring-batch-core/src/test/java/org/springframework/batch/core/configuration/xml/StepListenerParserTests.java
+++ b/spring-batch-core/src/test/java/org/springframework/batch/core/configuration/xml/StepListenerParserTests.java
@@ -27,6 +27,7 @@ import org.springframework.aop.framework.Advised;
 import org.springframework.batch.core.Step;
 import org.springframework.batch.core.StepExecutionListener;
 import org.springframework.batch.core.listener.CompositeStepExecutionListener;
+import org.springframework.batch.core.listener.ItemListenerSupport;
 import org.springframework.batch.core.listener.StepExecutionListenerSupport;
 import org.springframework.batch.core.step.tasklet.TaskletStep;
 import org.springframework.beans.factory.annotation.Autowired;
@@ -51,6 +52,10 @@ public class StepListenerParserTests {
 	@Qualifier("s2")
 	private Step step2;
 
+	@Autowired
+	@Qualifier("s3")
+	private Step step3;
+
 	@Test
 	public void testInheritListeners() throws Exception {
 
@@ -96,6 +101,26 @@ public class StepListenerParserTests {
 		assertTrue(b);
 	}
 
+	@Test
+	public void testInheritListenersNoMergeFaultTolerant() throws Exception {
+
+		List<?> list = getListeners(step3);
+
+		assertEquals(2, list.size());
+		boolean a = false;
+		boolean b = false;
+		for (Object listener : list) {
+			if (listener instanceof DummyAnnotationStepExecutionListener) {
+				a = true;
+			}
+			else if (listener instanceof ItemListenerSupport) {
+				b = true;
+			}
+		}
+		assertTrue(a);
+		assertTrue(b);
+	}
+
 	@SuppressWarnings("unchecked")
 	private List<?> getListeners(Step step) throws Exception {
 		assertTrue(step instanceof TaskletStep);
@@ -111,6 +136,32 @@ public class StepListenerParserTests {
 			}
 			r.add(listener);
 		}
+		compositeListener = ReflectionTestUtils.getField(step, "chunkListener");
+		composite = ReflectionTestUtils.getField(compositeListener, "listeners");
+		proxiedListeners = (List<StepExecutionListener>) ReflectionTestUtils.getField(composite, "list");
+		for (Object listener : proxiedListeners) {
+			while (listener instanceof Advised) {
+				listener = ((Advised) listener).getTargetSource().getTarget();
+			}
+			r.add(listener);
+		}
+		try {
+			compositeListener = ReflectionTestUtils.getField(
+					ReflectionTestUtils.getField(ReflectionTestUtils.getField(
+							ReflectionTestUtils.getField(step, "tasklet"), "chunkProvider"), "listener"),
+					"itemReadListener");
+			composite = ReflectionTestUtils.getField(compositeListener, "listeners");
+			proxiedListeners = (List<StepExecutionListener>) ReflectionTestUtils.getField(composite, "list");
+			for (Object listener : proxiedListeners) {
+				while (listener instanceof Advised) {
+					listener = ((Advised) listener).getTargetSource().getTarget();
+				}
+				r.add(listener);
+			}
+		}
+		catch (IllegalArgumentException e) {
+			// ignore (not a chunk oriented step)
+		}
 		return r;
 	}
 
diff --git a/spring-batch-core/src/test/resources/org/springframework/batch/core/configuration/xml/StepListenerParserTests-context.xml b/spring-batch-core/src/test/resources/org/springframework/batch/core/configuration/xml/StepListenerParserTests-context.xml
index 4dc934cd1..7896a9e0d 100644
--- a/spring-batch-core/src/test/resources/org/springframework/batch/core/configuration/xml/StepListenerParserTests-context.xml
+++ b/spring-batch-core/src/test/resources/org/springframework/batch/core/configuration/xml/StepListenerParserTests-context.xml
@@ -5,43 +5,61 @@
 	http://www.springframework.org/schema/beans http://www.springframework.org/schema/beans/spring-beans-2.5.xsd">
 
 	<beans:import resource="common-context.xml" />
-	
+
 	<job id="job">
 		<step id="s1" parent="baseStep" next="s2">
 			<tasklet ref="dummyTasklet">
 				<listeners merge="true">
 					<listener>
-						<beans:bean class="org.springframework.batch.core.configuration.xml.DummyAnnotationStepExecutionListener"/>
+						<beans:bean class="org.springframework.batch.core.configuration.xml.DummyAnnotationStepExecutionListener" />
 					</listener>
-					<listener ref="toplevel1"/>
+					<listener ref="toplevel1" />
 				</listeners>
 			</tasklet>
 		</step>
 
-		<step id="s2" parent="baseStep">
+		<step id="s2" parent="baseStep" next="s3">
 			<tasklet ref="dummyTasklet">
 				<listeners>
 					<listener>
-						<beans:bean class="org.springframework.batch.core.listener.StepExecutionListenerSupport"/>
+						<beans:bean class="org.springframework.batch.core.listener.StepExecutionListenerSupport" />
 					</listener>
-					<listener ref="toplevel2"/>
+					<listener ref="toplevel2" />
+				</listeners>
+			</tasklet>
+		</step>
+
+		<step id="s3" parent="baseStep">
+			<tasklet>
+				<chunk reader="reader" writer="writer" skip-limit="1">
+					<skippable-exception-classes>
+						<include class="java.lang.Exception" />
+					</skippable-exception-classes>
+					<listeners>
+						<listener>
+							<beans:bean class="org.springframework.batch.core.listener.ItemListenerSupport" />
+						</listener>
+					</listeners>
+				</chunk>
+				<listeners>
+					<listener ref="toplevel2" />
 				</listeners>
 			</tasklet>
 		</step>
 	</job>
-	
+
 	<step-listener id="toplevel1">
-		<beans:bean class="org.springframework.batch.core.listener.StepExecutionListenerSupport"/>
+		<beans:bean class="org.springframework.batch.core.listener.StepExecutionListenerSupport" />
 	</step-listener>
 	<step-listener id="toplevel2">
-		<beans:bean class="org.springframework.batch.core.configuration.xml.DummyAnnotationStepExecutionListener"/>
+		<beans:bean class="org.springframework.batch.core.configuration.xml.DummyAnnotationStepExecutionListener" />
 	</step-listener>
 
 	<beans:bean id="baseStep" abstract="true">
 		<beans:property name="listeners">
 			<beans:list>
 				<step-listener>
-					<beans:bean class="org.springframework.batch.core.listener.CompositeStepExecutionListener"/>
+					<beans:bean class="org.springframework.batch.core.listener.CompositeStepExecutionListener" />
 				</step-listener>
 			</beans:list>
 		</beans:property>