Issue Position: Federal Employees - National Security Personnel System

Issue Position

Issue Position: Federal Employees - National Security Personnel System

The National Defense Authorization Act for fiscal year (FY) 2004 granted the Secretary of Defense and the Director of the Office for Personnel Management (OPM) the authority to establish a new Department of Defense (DOD) civilian personnel management system, which would determine how the Department's employees are paid, promoted, and disciplined. Because of the novel and potentially sweeping nature of this conveyed authority, legislators recognized, and continue to recognize, that such a process of change requires the very closest of congressional scrutiny. Congress has monitored every step of this process on both formal and informal levels to ensure that all interested parties, including union representatives, have contributed their input in a meaningful manner.

I have met numerous times with constituents who work at DOD, representatives of the Office of Personnel Management and DOD, and my colleagues on both the Senate Homeland Security and Governmental Affairs and House Government Reform Committees to collect as much input as possible and to facilitate constructive dialog. In these meetings, concerns have been raised regarding the treatment of certain civil service coverage and collective bargaining rights extended to DOD personnel. Please be assured of my continued involvement in this important issue. As the Senior Republican member of the Senate Armed Services Committee, and also as a former Secretary of the Navy, I am sensitive to the highly complex and contentious nature of this matter.

Following the publication of the final regulations for the National Security Personnel System on November 17, 2005, the Senate Homeland Security and Governmental Affairs Committee held a hearing to evaluate the final regulations before their implementation. Please be assured that Congress will continue to exercise its oversight authority to ensure that the new system will be fair and equitable to DOD's 700,000 civilian employees.

A coalition of federal unions filed a lawsuit in federal district court challenging the final regulations implementing the National Security Personnel System at the Department of Defense. On February 27, 2006, Federal District Judge Emmit G. Sullivan issued a ruling that blocked the implementation of its labor-relations system and the streamlined procedures for handling disciplinary actions and appeals of such actions by employees of the Department of Defense. On May 18, 2007, the U.S. Court of Appeals for the District of Columbia Circuit reversed Judge Sullivan's ruling, holding that the law creating NSPS granted the Department temporary authority to curtail collective bargaining rights of employees through November 2009. After that date, the Department must restore collective bargaining rights that are consistent with the Civil Service Reform Act of 1978. Additional consideration of this matter by the courts is possible.

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