NTEU E-Bulletin, April 3, 2007

Inside this Issue: April 3, 2007
Top Stories: IAP Again Delays $103 Million IRS Contract
Headlines: House Committee Votes to Cancel Performance Pay Plan at DHS
Get Involved: Bill 'Takes a Bite' Out of Federal Health Care Costs
New on NTEU.org: NTEU Calls on Proud Military Parents to Show Off

Top Stories
Bill 'Takes a Bite' Out Of Health Care Costs
Rep. Steny H. Hoyer (D-Md.) has introduced a bill he says "will help take the bite out of rising health care costs."
The bipartisan House measure, introduced last month by Reps. Hoyer and Frank Wolf (R-Va.), would increase the government's contribution toward federal employee health insurance premiums.
Under the proposal, H.R. 1256, the government would pay an average of 80 percent—instead of the current 72 percent—of the cost of premiums in the Federal Employees Health Benefits Program, saving the typical federal employee about $500 annually. Relief from high health care costs could also be on the way for retirees. Sen. John Warner (R-Va.) introduced a bipartisan bill that would allow civilian and military retirees to pay their health insurance premiums with pre-tax dollars, as active federal employees are already permitted to do. More
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IAP Again Delays $103 Million IRS Contract
The Internal Revenue Service (IRS) announced last week that a five-year, $103 million contract with IAP Worldwide Services to process income tax returns is being delayed for the second time.
Learn more about NTEU's fight against runaway contracting.
IAP first dropped the ball in December when, just days before its start date, the contractor announced it would begin work at only two of the seven IRS sites contracted for takeover.The latest timetable has IAP assuming its obligations in August at only one of the remaining sites, with the other sites slated for staffing on a rolling basis through October.
“If this new schedule holds true, it will be a full 16 months for IAP to assume this work,” NTEU President Colleen M. Kelley said.
Whatever the reason for the delay one thing is for sure—it is the IRS employees who are stepping up to ensure that the work gets done.
For the complete story, click here or visit www.nteu.org/PressKits/PressRelease/PressRelease.aspx?ID=1070.

Kelley Tours Kansas FDA Lab Slated for Closure
President Kelley joined with NTEU Chapter 254 and members of Congress on Friday to tour the Food and Drug Administration's (FDA) lab in Lenexa, Kan., one of seven facilities targeted for closure. "Closing labs like Lenexa will only weaken the agency’s ability to respond to future food-borne emergencies,” Kelley said, noting recent contamination outbreaks impacting pet food, peanut butter and spinach.The Lenexa lab is home to the FDA’s Total Diet and Pesticide Research Center which conducts research and product analysis on food and chemicals, including pharmaceutical products, pet food and pesticide residues.
Following the tour, Kelley promised to work with lawmakers and the community to fight the closings. She was joined by Reps. Dennis Moore (D-Kan.), Emanuel Cleaver (D-Mo.) and Nancy Boyda (D-Kan.), as well as Lenexa Mayor Mike Boehm and members of NTEU Chapter 254, representing FDA employees in the Kansas City area. The FDA's consolidation plan—announced in February to much congressional criticism—not only calls for closing seven of 13 regional labs, but also a complete restructuring of the agency’s field operations.
For the complete story, click here or visit www.nteu.org/PressKits/PressRelease/ PressRelease.aspx?ID=1073.
To read media coverage of Kelley's visit, click here.

NTEU Wins Grievance Over 2005 IRS Performance Awards
Each year, NTEU takes a close look at how the IRS implements the parties agreement on employee awards—and it pays off.
NTEU has won a grievance charging the IRS with improperly structuring its 2005 National Performance Awards (NPAA) pools, underpaying some employees while paying others it should not have. Management tried to argue that the awards system is so complicated that meeting its September deadline for payments was nearly impossible. However, the arbitrator dismissed that argument, saying, “Administering the award system is no more difficult than processing 130 million individual tax returns annually.” Management must now provide NTEU with updated data reflecting payments the IRS made to employees after September, when the union filed a grievance challenging the awards distributions. NTEU will work with chapters to review the information and determine whether the problem has been fixed or if certain employees are still due awards money.
In the past, NTEU has won as much as $5 million in back pay for IRS employees who were underpaid their NPAA awards. Since NTEU started negotiating over the NPAA program, the amount of employee awards has grown from $17 million a year to $61 million last year."NTEU is watching out for our members, even if they don't ask us or are not aware that they received less awards money than they should have," President Kelley said. NTEU is currently challenging the agency's handling of the 2006 awards, arguing that the IRS underfunded the NPAA program, incorrectly applied the formula for calculating the awards, made late payments and other contract violations. The grievance seeks retroactive payments of awards in the correct amount, plus interest.Skepticism Grows Over IRS Private Tax Collection ProgramThe IRS continues to find itself in hot water over the privatization of tax debt collection, as lawmakers and advocacy groups take aggressive action against the initiative.
In the past week, the House Ways and Means Committee announced an investigation into reported contractor abuses and Committee Chair Charles Rangel (D-N.Y.) sent a letter to IRS Commissioner Mark Everson asking that he halt awarding new contracts for collection work. Public interest groups called for an end to the program in a letter to Congress and the Treasury Inspector General for Tax Administration released a report citing security and privacy concerns.Everson did not do much to advance the IRS's cause, as he was once again forced to admit to Congress that agency employees can do collection work at a lower cost. This time, it was in testimony on Thursday before a House appropriations subcommittee, whose chairman, Rep. Jose Serrano (D-N.Y.) pointedly asked why experienced IRS workers are not kept on the rolls to perform the work handed to contractors.For the complete story, click here or visit www.nteu.org/PressKits/PressRelease/PressRelease.aspx?ID=1072.

Headlines
House Committee Votes to Cancel Performance Pay Plan at DHS
Federal Times, March 29, 2007
The House Homeland Security Committee took a step toward dismantling the Homeland Security Department’s embattled performance-based pay system March 28. Lawmakers approved a budget amendment that would strip the department of its authority to establish a new human resources management system. Unions hailed the measure, which they said would mean the end of the controversial system. “This legislation would put the final, and overdue, nail in the coffin of a personnel system that would bring serious harm to DHS employees, and make even worse the serious morale problems that are widespread in DHS,” said National Treasury Employees Union President Colleen Kelley. Homeland Security’s personnel system was meant to pave the way for performance-based pay across the federal government and give managers more power to punish poor performers, move employees around and introduce new technologies. But unions bitterly opposed its limitations on collective bargaining rights and successfully fought major portions of the plan in court. Congress also has systematically stripped funding from the program. For the complete story, click here or visit www.federaltimes.com/index.php?S=2656853.

New on NTEU.org
NTEU Calls on Proud Military Parents to Show OffWe are looking for a few proud NTEU members to tell us about the members of the military in their lives. Over the past several weeks, NTEU has been compiling military profiles and photos submitted by members nationwide and posting them in a special section of NTEU's web site. NTEU received 60 profiles and dozens of photos, but now we're seeking more information for spotlights. NTEU recently highlighted a chapter steward whose three children are serving in the Army, a former college basketball player who saved hundreds of lives clearing mines in Iraq and a CBP Officer who is now a National Guard command sergeant responsible for 680 soldiers. If you would like to share your family members' accomplishments with your fellow NTEU members, e-mail us to arrange for a phone or e-mail interview.

NTEU’s Mission: To organize federal employees to work together to ensure that every federal employee is treated with dignity and respect. The NTEU e-Bulletin is a weekly electronic newsletter published by the National Treasury Employees Union for its members. To sign up for the e-Bulletin, unsubscribe or change your subscription preferences, click here or log on to www.nteu.org/UnionOffice/eBulletin/subscribe.

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