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FederalDaily - May 24, 2005

NTEU Requests FSA Extension for Feds
Unions Fight for Bargaining Rights at DHS
AFGE Wants VA Laundry Outsourcing Stopped
Permanent TRICARE for Reservists Dropped

NTEU Requests FSA Extension for Feds

The National Treasury Employees Union (NTEU) called on the government last week to provide federal employees the same improvement in Flexible Spending Accounts (FSAs) it recently gave private sector employees. The Treasury Department announced last week that employers could extend the deadline for use of their FSA programs to pay health and dependent care expenses by 2 ½ months after the end of the plan year. FSAs have a “use-it-or-lose-it” policy, meaning any money left in the accounts at the end of the year is forfeited. The new rule gives employees a little longer to use up the money. In a letter to Office of Personnel Management Acting Director Dan Blair, NTEU President Colleen Kelley wrote, “NTEU would respectfully request that the federal government immediately and fully apply this to its own employees.”

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Unions Fight for Bargaining Rights at DHS

The National Treasury Employees Union (NTEU) and four other unions filed papers on May 20 with the U.S. District Court for the District of Columbia saying that new Department of Homeland Security (DHS) personnel regulations would illegally restrict collective bargaining for DHS employees. The unions have filed a lawsuit against DHS and the Office of Personnel Management, which aims at stopping the agency from implementing the new regulations. DHS made a motion to dismiss the lawsuit. In response, the unions filed the above-mentioned papers. NTEU President Colleen Kelley said the regulations “establish a sham system of collective bargaining” and would give DHS management unrestricted authority on all conditions of employment.

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AFGE Wants VA Laundry Outsourcing Stopped

An American Federation of Government Employees (AFGE) statement said the Department of Veterans Affairs (VA) should stop its effort to contract out the laundry services at the Pittsburgh Veterans Affairs Medical Center because “directly converting federal jobs to contractor jobs is a violation of both federal law and federal policy.” In a letter to VA Secretary James Nicholson, AFGE said Office of Management and Budget (OMB) Circular A-76 states that agencies are not allowed to privatize federal jobs without performing a formal cost comparison study. AFGE has alleged that the Pittsburgh VA made the decision to contract out the laundry services based on results from an illegal and informal cost comparison study. Forty-four employees would be affected.

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Permanent TRICARE for Reservists Dropped

Rep. Gene Taylor, D-Miss., said House Armed Services Committee Chairman Duncan Hunter, R-Calif., stripped an amendment to provide permanent TRICARE coverage for all Reserve personnel from the FY06 National Defense Authorization Act. In a letter to members of the committee last week, Hunter said extending TRICARE coverage to all Reservists would increase mandatory spending in FY 2006, a violation of the Congressional Budget Act. An accompanying letter from the Congressional Budget Office expressed concerns that federally-employed Reservists would drop their coverage under the Federal Employees Health Benefits program and switch to coverage under TRICARE, driving up premiums for other federal workers and increasing corresponding costs to the federal government.  “To say that I’m disappointed is an amazing understatement,” said Taylor .

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