23:0774(100)CA - Treasury, IRS and IRS Austin District and IRS Houston District and NTEU and NTEU Chapter 52 and NTEU Chapter 222 -- 1986 FLRAdec CA
[ v23 p774 ]
23:0774(100)CA
The decision of the Authority follows:
23 FLRA No. 100 UNITED STATES DEPARTMENT OF THE TREASURY, INTERNAL REVENUE SERVICE AND INTERNAL REVENUE SERVICE, AUSTIN DISTRICT, AND INTERNAL REVENUE SERVICE HOUSTON DISTRICT Respondents and NATIONAL TREASURY EMPLOYEES UNION AND NATIONAL TREASURY EMPLOYEES UNION CHAPTER 52 AND NATIONAL TREASURY EMPLOYEES UNION, CHAPTER 222 Charging Party Case Nos. 6-CA-20127 6-CA-20128 DECISION AND ORDER I. Statement of the Case This consolidated unfair labor practice case is before the Authority as a result of the Regional Director's transfer of the stipulated record directly to the Authority for decision pursuant to section 2429.1(a) of the Authority's Rules and Regulations. The consolidated complaint alleges that the Department of the Treasury, Internal Revenue Service (IRS), the IRS Austin District and the IRS Houston District, referred to jointly as Respondents, violated section 7116(a)(1) and (8) of the Statute by their refusal to pay travel and per diem expenses and allow official time for travel to two employees representing the employees' exclusive representative in negotiations as required by section 7131(a) of the Statute. II. Facts On November 23 and 24, 1981, representatives of the Respondents and the National Treasury Employees Union (the Union), engaged in negotiations concerning procedures and appropriate arrangements for unit employees adversely affected by a reorganization of Respondents' facilities which resulted in the formation of Respondents' Houston District. These negotiations took place in Austin, Texas. Two employee representatives of the Union traveled to Austin, Texas from Houston and San Antonio, Texas. Respondents rejected the employees' requests for reimbursement of travel and per diem expenses and refused to grant official time for travel to and from the negotiations. Respondents did authorize official time for time actually spent by the employees in negotiations. Prior to the negotiations referred to above, IRS and the Union had engaged in negotiatioins for a new national agreement. During these negotiations, the Union introduced certain proposals dealing with official time and the payment of union representatives' travel and per diem expenses. These proposals resulted in an impasse which was submitted to the Federal Service Impasses Panel (the Panel) for resolution. The Panel subsequently issued an order directing the inclusion of the Union's proposals in the parties' agreement. The IRS subsequently declared these proposals to be nonnegotiable and thereafter did not comply with the Panel's Order. The IRS' failure to comply with the Decision and Order of the Panel was the subject of a separate unfair labor practice charge. See Department of the Treasury and Internal Revenue Service, 22 FLRA No. 89 (1986). The Authority specifically notes that there are no facts in the stipulated record of this case which explain the background or the reasons for IRS' determination that the Union's proposals are nonnegotiable or its subsequent decision not to comply with the Panel's Order. Thus the Authority will take administrative notice that in Department of the Treasury and Internal Revenue Servsice cited above, the Authority found that Respondent Treasury violated section 71176(a)(1) and (6) of the Statute when it disapproved contract language directed by the Panel's Order and directed Respondent IRS not to incorporate such language in its collective bargaining agreement. The provisions which the Panel directed the parties to include in their national agreement provide as follows: Section 3 -- Mid-Term Negotiations . . . . . . . C. If the parties enter into mid-contract negotiations during the life of this agreement, the following ground rules will apply: 1. For nationally implemented changes referred to in Section 2A above: . . . . . . . c. a number of bargaining unit employees equal to the number of management's representatives shall be given administrative time and paid travel and per diem to attend all mid-term bargaining sessions; provided, however, the union shall be allowed no more than four bargaining unit employees. . . . . . . . 2. For locally negotiated changes referred to in Section 4B1 above: . . . . . . . b. a number of bargaining unit employees equal to the number of management's representatives shall be given administrative time and paid travel and per diem to attend all mid-term bargaining sessions; provided, however, the union shall be allowed no more than four bargaining unit employees. . . . . . . . In the matter of Department of the Treasury, Internal Revenue Service, Washington, D.C. and National Treasury Employees Union, Case No. 80 FSIP 68 (1980). /1/ III. Positions of the Parties A. The Respondents The Respondents contend that they have not violated section 7116(a)(1) and (8) of the Statute as alleged in the complaint for the following reasons: (1) The Authority's Interpretation and Guidance in 2 FLRA 265 (1979), on which the complaint is based, is without support either in the wording of the Statute or its legislative history; (2) The Respondents are without authority to expend appropriated funds for the payment of employee representatives' travel and per diem expenses; (3) Official time, as defined in section 7131(a) of the Statute, does not cover travel to and from bargaining sessions; and (4) Official time does not include travel and per diem expenses at local negotiations. Respondents' brief was filed prior to the Supreme Court's decision in Bureau of Alcohol, Tobacco and Firearms v. FLRA, 464 U.S. 89 (1983), which rejected the Authority's interpretation of the Statute in its Interpretation and Guidance, 2 FLRA 265. B. The General Counsel The General Counsel contends that Respondents violated section 7116(a)(1) and (8) of the Statute when they refused to pay travel and per diem expenses and allow official time for travel to employees representing the Union in negotiations as provided for in section 7131(a) of the Statute. Essentially the General Counsel argues that the Authority's Interpretation and Guidance in 2 FLRA 265 is applicable to the facts presented in this case. /2/ C. The Charging Party The Charging Party also contends that the Respondents violated section 7131(a) in refusing to provide official time for travel, and in denying travel and per diem expenses, for union representatives engaged in mid-term negotiations. The Charging Party, as part of the remedy, requests that it be awarded attorney fees under the Equal Access to Justice Act, 5 U.S.C. Section 504, and the Back Pay Act, 5 U.S.C. Section 5596, and that the two employees who were denied official time for travel and travel and per diem expenses be made whole and otherwise fully reimbursed for the denial of such expenses. IV. Analysis A. Issues Connected with the Internal Revenue Service's Disapproval of the Panel-Directed Contract Language The Authority has consistently held that an agency's refusal to implement a Decision and Order of the Federal Service Impasses Panel requiring the parties to adopt language in their collective bargaining agreement violates section 7116(a)(1) and (6) of the Statute unless the Authority finds that the failure to comply with the Panel's Order was justified because the provisions are contrary to the Statute or other applicable law, rule or regulation. Department of Defense, National Guard Bureau, Indiana Air National Guard, Indianapolis, Indiana, 17 FLRA 23 (1985) and National Aeronautics and Space Administration, Headquarters, Washington, D.C., 12 FLRA 480 (1983). In its decision in Interpretation and Guidance, 15 FLRA 564 (1984), aff'd. sub nom. American Federation of Government Employees, AFL-CIO v. FLRA, 778 F.2d 850 (D.C. Cir. 1985), the Authority determined that the unfair labor practice mechanism is available for the purpose of obtaining review of an agency head's action in refusing to approve a provision of a collective bargaining agreement imposed on the parties by a final order of the Panel in resolving an impasse. When this occurs, the head of the agency acts at risk and a union challenging the agency head's disapproval may file a charge alleging that such conduct violated the Statute. Since the provisions imposed by the Panel in this case are not materially different from the proposal recently found to be negotiable by the Authority in National Treasury Employees Union and Department of the Treasury, U.S. Customs Service, 21 FLRA No. 2 (1986), petition for review filed sub nom. Department of the Treasury, U.S. Customs Service v. FLRA, No. 86-1198 (D.C. Cir. March 27, 1986), the determination by the IRS not to comply with the lawful order of the Panel constituted a failure or refusal to cooperate in impasse decisions. Since the complaint fails to allege a violation of section 77116(a)(6) of the Statute for failure to cooperate in impasse procedures or decisions, the Authority is limited to finding that conduct of Respondent IRS violated section 7116(a)(1) of the Statute in that such conduct inherently interfered with the exercise by employees of their right under section 7102 of the Statute to engage in collective bargaining through their chosen representatives, which right includes the utilization of the processes of the Federal Service Impasses Panel. It is well established that the impasse resolution procedures of the Panel operate as one aspect of the collective bargaining process. International Brotherhood of Electrical Workers, AFL-CIO, Local 121, 10 FLRA 198, 199 (1982). Under these circumstances, Respondent IRS clearly interfered with employees' rights guaranteed by the Statute. Department of the Treasury and Internal Revenue Service, 22 FLRA No. 89 (1985). In finding that the Respondent IRS violated the Statute in these circumstances, the Authority notes the relationship between this case and the Authority's decision in Department of the Treasury and Internal Revenue Service, 22 FLRA No. 89 (1986). The allegations against the IRS in that case were dismissed because the IRS had merely engaged in the ministerial act of forwarding contractual language directed by the Panel to Treasury for agency head review and thereafter failing to incorporate the Panel directed language because of the determination by Treasury to disapprove such language. Under those circumstances, where the complaint alleged and the Authority found that Treasury had committed an unfair labor practice by disapproving the Panel-directed language and the Authority was able to issue an order against Treasury which effectively remedied the unfair labor practice found, the Authority -- consistent with precedent -- dismissed the complaint against IRS because it would not effectuate the purposes and policies of the Statute to find an additional cumulative violation against subordinate level management. U.S. Department of Justice and Department of Justice, Bureau of Prisons, Washsington, D.C. and Federal Correctional Institution, Danbury, Connecticut, 20 FLRA No. 5 (1985), enf'd, 792 F.2d 25 (2d Cir. 1986). In this case, however, where the complaint did not charge Treasury with a violation but named only IRS and its subordinate activities as Respondents, the Authority concludes that it would effectuate the purposes and policies of the Statute to find a violation against IRS. That is, such a finding here would not be merely cumulative but is essential if the unfair labor practice committed is to be effectively remedied. A conclusion that the complaint against IRS must be dismissed because Treasury was not named as a Respondent would preclude a remedy for the violation of statutory rights which occurred here, a result which we conclude would be inconsistent with Congressional intent. Therefore, we find that Respondent IRS violated section 7116(a)(1) of the Statute and shall order it to remedy the violation found. B. Determinations Regarding the Allegations Against the Austin District and Houston District of the Internal Revenue Service The Authority concludes that the allegations against the Austin and Houston Districts of the Internal Revenue Service should be dismissed since their denial of official time for travel and the refusal to pay travel and per diem expenses for union negotiators was made pursuant to a national policy determination by the Internal Revenue Service. There is no evidence in the record that such offices had the discretion to approve official time for travel purposes or that they were authorized to pay the travel and per diem expenses at issue herein. This result is consistent with the Authority's determination in other cases that subordinate activities do not additionally violate the Statute by their ministerial actions in implementing the directives of higher level management, where higher level management is found to have violated the Statute. Departments of the Army and the Air Force National Guard Bureau and Montana Air National Guard, 10 FLRA 553 (1982), rev'd. on other grounds, sub nom. Montana Air National Guard v. FLRA, 703 F.2d 577 (9th Cir. 1984). C. Issues Regarding the Alleged Violation of Section 7116(a)(1) and (8) of the Statute The Authority turns next to the allegation of the complaint that Respondents violated section 7116(a)(1) and (8) of the Statute by failing to grant official time for travel and to pay travel and per diem expenses to union negotiators because such payments are required by section 7131(a) of the Statute. In its Supplemental Decision and Order in United States Department of the Treasury, Internal Revenue Service and United States Department of the Treasury, Internal Revenue Service Austin District, 14 FLRA 818 (1984), the Authority modified the decision it had issued in that case prior to the United States Supreme Court's decision in Bureau of Alcohol, Tobacco and Firearms v. FLRA, 464 U.S. 89 (1983). Based on the Supreme Court's decision, the Authority dismissed the allegations of the complaint pertaining to the Respondent's failure and refusal to reimburse its employees for their travel and per diem expenses. However, the Authority left intact those portions of the decision finding that the entitlement to official time by employees involved in representing the exclusive representative included necessary travel time to and from negotiations as occurred during the employees' regular work hours and when they would otherwise have been in a work or paid leave status. The Authority's order directed the agency to make such employees whole for any annual leave utilized. Respondent IRS herein likewise violated section 7116(a)(1) land (8) of the Statute when it denied employees official time for travel in violation of section 7131(a) of the Statute. Nothing in the Supreme Court's decision overturned the Authority's determination that an employee's right to official time to participate in negotiations under section 7131(a) of the Statute includes official time for travel to and from such negotiations. V. Remedy To remedy the unfair labor practice conduct, the Authority will order the Respondent IRS to comply with the Panel's Opinion and Decision, and to give it retroactive effect. See Interpretation and Guidance, 15 FLRA 564 (1984), affirmed sub nom. American Federation of Government Employees, AFL-CIO v. FLRA, 778 F.2d 850 (D.C. Cir. 1985). Consistent with the Authority's decisions in Department of the Treasury, Internal Revenue Service, Columbia District, Columbia, South Carolina, 22 FLRA No. 28 (1986) and Office of the General Counsel, National Labor Relations Board, 22 FLRA No. 25 (1986), the Authority will further order the Respondent IRS to make whole the Charging Party for the expenses it incurred, if any, in paying the travel and per diem expenses of those bargaining unit employees who attended mid-term bargaining sessions during the period at issue, which payments otherwise would have been made by the Respondent IRS under the Panel-imposed agreement provisions. Additionally, if there are any bargaining unit employees who either did not receive payments to which they were entitled or were not compensated fully for such expenses, the Respondent IRS also will be ordered to reimburse them for the travel and per diem expenses they incurred upon their submission of properly documented claims for such payments. In ordering such payments, the Authority notes that by not complying with the Panel's decision, the Respondent IRS assumed a risk that, if its position did not prevail, it would be found to have committed an unfair labor practice and be subject to such a remedy. /3/ Of course, the payments that are here being ordered must be consistent with law and regulations, including the Federal Travel Regulations. VI. Payment of Attorney Fees In its brief to the Authority, the Charging Party requests that it be granted attorney fees under the Equal Access to Justice Act and the Back Pay Act. These requests are denied. With regard to the granting of attorney's fees under the Equal Access to Justice Act (EAJA), the Authority's regulations provide that awards under the EAJA are available only to a respondent, other than the United States, who prevails against the General Counsel in an unfair labor practice proceeding. /4/ Therefore, the Union, as a charging party, is not entitled to an award of attorney fees under that Act. Internal Revenue Service (District, Region, National Office Units), 16 FLRA 904 (1984). The Authority also concludes that the Charging Party's request for attorney fees under the Back Pay Act is ill-founded. It is well established that an award of attorney fees under the Back Pay Act must be based upon a finding that an unjustified or unwarranted personnel action has been committed which has deprived an aggrieved employee of "pay, allowances, or differentials" that the employee would have earned or received if that action had not occurred. In other words, the award of fees must be in conjunction with an award of backpay to the employee(s) on correction of the unwarranted personnel action. See, for example, Naval Air Development Center, Department of the Navy and American Federation of Government Employees, Local 1928, AFL-CIO, 21 FLRA No. 25 (1986) and cases cited therein. While the refusal of Respondent IRS to comply with a lawful Panel order may have constituted an unwarranted personnel action which resulted in the denial of travel and per diem expenses to certain employees, travel and per diem expenses are not "pay, allowances, or differentials" within the meaning of the Back Pay Act and therefore an order requiring reimbursement of those expenses does not amount to an award of backpay. Rather, as the Authority has previously held, the "pay, allowances, or differentials" encompassed by the Back Pay Act constitute "normal legitimate employee benefits" in the nature of employee compensation or emoluments which do not extend to reimbursement payments such as per diem. Community Services Administration and National Council of CSA Locals, AFGE, AFL-CIO, 7 FLRA 206, 208-209 (1981). In the Authority's view, the reimbursement of travel expenses in this context similarly cannot be equated with backpay so as to justify an award of attorney fees. VII. Conclusion Based on the stipulated record, the analysis of the facts and the precedent cited above, the Authority concludes that Respondent Internal Revenue Service violated section 7116(a)(1) and (8) of the Statute when it failed to provide official time for travel purposes to union representatives and when it failed to include in its national agreement and thereafter implement Panel-imposed provisions which provided for the granting of official time for travel, and travel and per diem expenses to employees participating on behalf of the employees' exclusive representative in collective bargaining negotiations. ORDER Pursuant to section 2423.29 of the Rules and Regulations of the Federal Labor Relations Authority and section 7118 of the Federal Service Labor-Management Relations Statute, the Authority hereby orders that the Internal Revenue Service shall: 1. Cease and desist from: (a) Interfering with, restraining, or coercing employees in the exercise of their rights assured by the Statute by failing and refusing to cooperate in and comply with the Decision and Order of the Federal Service Impasses Panel issued on December 24, 1980, Case No. 80 FSIP 68, by failing to implement the provisions directed by the Panel. (b) Failing and refusing to provide official time, including necessary travel time as occurs during the employees' regular work hours and when the employees would otherwise be in a work or paid leave status, to Antonio Ovalle and Frank Robinson, or any other bargaining unit employees, while engaged in representing the National Trerasury Employees Union, the employees' exclusive representative, in collective bargaining negotiations. (c) In any like or related manner interfering with, restraining, or coercing employees in the exercise of their rights assured by the Statute. 2. Take the following affirmative action in order to effectuate the purposes and policies of the Federal Service Labor-Management Relations Statute: (a) Comply with the Decision and Order of the Federal Service Impasses Panel issued in December 24, 1980, in Case No. 80 FSIP 68, which contained contractual provisions to be included in the negotiated agreement between the Internal Revenue Service and the National Treasury Employees Union, and notify the Union of such compliance in writing. (b) Make the National Treasury Employees Union whole for the cost, if any, incurred in paying travedl expenses and per diem allowances to all bargaining unit employees who have submitted appropriate claims for such payments under the terms of the contract provisions which the Federal Service Impasses Panel ordered incorporated into the parties' agreement, for which the employees otherwise would have been reimbursed by the Internal Revenue Service. (c) Pay travel expenses and per diem allowances consistent with law and regulation, including the Federal Travel Regulations, to all bargaining unit employees who submit or previously submitted appropriate claims for such payments under the terms of the contract provisions which the Federal Service Impasses Panel ordered incorporated into the parties' agreement, to the extent that such expenses have not been reimbursed by the National Treasury Employees Union. (d) Provide Union representatives Antonio Ovalle and Frank Robinson official time while they were engaged in representing the National Treasury Employees Union, the employees' exclusive representative, in collective bargaining negotiations between November 23 and 24, 1981, including necessary travel time as occurred during the employees' regular work hours and when they would otherwise have been in a work or paid leave status, and make them whole for any annual leave they may have utilized for this purpose. (e) Post at its Austin and Houston District Offices a copy of the attached Notice on forms to be furnished by the Federal Labor Relations Authority. Upon receipt of such forms, they shall be signed by the Commissioner of the Internal Revenue Service, or Deputy Commissioner, and shall be posted and maintained for 60 consecutive days thereafter in conspicuous places, including all bulletin boards and other places where notices to employees are customarily posted. Reasonable steps shall be taken to ensure that said Notices are not altered, defaced, or covered by any other material. (f) Pursuant to section 2423.30 of the Authority's Rules and Regulations, notify the Regional Director, Region VI, Federal Labor Relations Authority, in writing, within 30 days from the date of this Order, as to what steps have been taken to comply with the Order. IT IS FURTHER ORDERED that the complaint, insofar as it alleges a violation of section 7716(a)(1) and (8) by the Internal Revenue Service for denying travel and per diem expenses under section 7131(a) of the Statute, be, and it hereby is, dismissed. IT IS FURTHER ORDERED that the complaint, insofar as it alleges a violation of section 7116(a)(1) and (8) of the Statute by the Austin and Houston District Offices of the Internal Revenue Service, be, and it hereby is, dismissed. Issued, Washington, D.C. October 31, 1986. /s/ Jerry L. Calhoun, Chairman /s/ Henry B. Frazier III, Member /s/ Jean McKee, Member FEDERAL LABOR RELATIONS AUTHORITY --------------- FOOTNOTES$ --------------- (1) The Authority has taken administrative notice of the Decision and Order of the Panel cited above since the parties' stipulation failed to incorporate the language of the Panel's Order. (2) As was true of Respondents, the General Counsel's brief was submitted before the Authority's interpretation of the Statute was rejected by the Supreme Court in Bureau of Alcohol, Tobacco and Firearms v. FLRA, 464 U.S. 89 (1983). (3) If the Respondent Internal Revenue Service's position ultimately had been sustained, however, it would not have been found in violation of the Statute. See Office of Personnel Management, Washington, D.C., 17 FLRA 302 (1985). (4) Section 2430.2(b) of the Authority's Rules and Regulations provides: (b) A respondent in an unfair labor proceeding which has prevailed in the proceeding, or in a significant and discrete portion of the proceeding, and who otherwise meets the eligibility requirements of this section, is eligible to apply for an award of attorneys fees and other expenses allowable under the provisions of Section 2430.4 of these rules. APPENDIX NOTICE TO ALL EMPLOYEES PURSUANT TO A DECISION AND ORDER OF THE FEDERAL LABOR RELATIONS AUTHORITY AND IN ORDER TO EFFECTUATE THE POLICIES OF CHAPTER 71 OF TITLE 5 OF THE UNITED STATES CODE FEDERAL SERVICE LABOR-MANAGEMENT RELATIONS WE HEREBY NOTIFY OUR EMPLOYEES THAT; WE WILL NOT interfere with, restrain, or coerce our employees in the exercise of their rights assured by the Statute by failing and refusing to cooperate in and comply with the Decision and Order of the Federal Service Impasses Panel issued on December 24, 1980, Case No. 80 FSIP 68, by failing to implement the provisions directed by the Panel. WE WILL NOT fail and refuse to provide official time, including necessary travel time as occurs during the employees' regular work hours and when the employees would otherwise be in a work or paid leave status, to Antonio Ovalle and Frank Robinson, or any other bargaining unit employees, while engaged in representing the National Treasury Employees Union, the employees' exclusive representative, in collective bargaining negotiations. WE WILL NOT in any like or related manner interfere with, restrain, or coerce our employees in the exercise of their rights assured by the Statute. WE WILL comply with the Decision and Order of the Federal Service Impasses Panel issued on December 24, 1980, in Case No. 80 FSIP 68, which contained contractual provisions to be included in our negotiated agreement with the National Treasury Employees Union, and will notify the Union of such compliance in writing. WE WILL make the National Treasury Employees Union whole for the cost, if any, incurred in paying travel expenses and per diem allowances to all bargaining unit employees who have submitted appropriate claims for such payments under the terms of the contract provisions which the Federal Service Impasses Panel ordered incorporated into the parties' agreement for which the employees otherwise would have been reimbursed by the Internal Revenue Service. WE WILL pay travel expenses and per diem allowances consistent with law and regulation, including the Federal Travel Regulations, to all bargaining unit employees who submit or previously submitted appropriate claims for such payments under the terms of the contract provisions which the Federal Service Impasses Panel ordered incorporated into the parties' agreement, to the extent that such expenses have not been reimbursed by the National Treasury Employees Union. WE WILL provide Union representatives Antonio Ovalle and Frank Robinson official time while they were engaged in representing the National Treasury Employees Union, the employees' exclusive representative, in collective bargaining negotiations between November 23 and 24, 1981, including necessary travel time as occurred during the employees' regular work hours and when they would otherwise have been in a work or paid leave status, and make them whole for any annual leave they may have utilized for this purpose. (Activity) Dated: . . . By: (Signature) (Title) This Notice must remain posted for 60 consecutive days from the date of posting, and must not be altered, defaced, or covered by any other material. If employees have any questions concerning this Notice or compliance with its provisions, they may communicate directly with the Regional Director, Region VI, Federal Labor Relations Authority, whose address is: 525 Griffin Street, Suite 926, Dallas, TX 75202, and whose telephone number is: (214) 767-4996.