April 3, 1998




MEMORANDUM FOR SEE DISTRIBUTION
Subject: Nonappropriated Fund Labor Agreement Review



REFERENCES:
  1. Chapter 71 of Title 5, United States Code, "Labor Management Relations," Section 7114(c).
  2. DoD 1400.25-M, Section F. Procedures, Paragraph 3. Agreement Review.
  3. Messages:
    1. CDRUSACFSC, ALEX VA//CFSC-HR-P// Oct. 90, Subject, NAF Union Proposals Affecting Wages or Benefits.
    2. CDRUSACFSC, ALEX VA/CFSC-HR-P// Jan. 91, Subject, Procedure to Follow When Negotiating a Labor Contract Affecting Payroll




Procedures or Employee Benefits.
CDRUSACFSC, ALEX VA//CFSC-HR-P// Jun. 92, Subject, Procedure to Follow When Negotiating a NAF Labor Contract.



References provide instruction on procedures to be used when negotiating labor agreements.

This serves as a reminder that there are requirements to have labor agreements reviewed prior to final approval and implementation.

This includes our normal negotiated agreements covering the entire regular items found in these agreements and there is particular emphasis on the areas of benefits and wages. The following synopsis is provided:

Reference a: Agreement Review:

  1. The Defense Civilian Personnel Management Service (CPMS),
    Defense Field Advisory Service (DFAS), 1400 Key Blvd., Ste. B200,
    Arlington, VA 22009-5144, Phone: (703) 696-6301

    #3 Labor Relations) shall review and approve or disapprove agreements pursuant to Section 71 14(c) of reference (b.) which reads:

    1. An agreement between any agency and an exclusive representative shall be subject to approval by the head of the agency.

    2. The head of the agency shall approve the agreement within 30 days from the date the agreement is executed if the agreement is in accordance with the provisions of this chapter and any other applicable law, or regulation (unless the agency has granted an exception to the provision).

    3. If the head of the agency does not approve or disapprove the agreement within the 30-day period, the agreement shall take effect and shall be binding on the agency and the exclusive representative subject to the provisions of this chapter and any applicable law, rule, or regulation."

Note: Please do not confuse the Defense Field Advisory Service (DFAS) with the Defense Finance and Accounting Service (DFAS). For the purpose of this process we are referring to the Defense Field Advisory Service which is a branch within the Civilian Personnel Management Service (CPMS).

Reference a. continued:

  1. Department of Defense (DoD) activities should provide CMS/DFAS with one copy of agreements, or supplements to agreements, once negotiations are completed in order to facilitate the review and provide CMS/DFAS an opportunity to address issues prior to execution of the agreement.

  2. Activities shall forward one copy of executed agreements, or supplements to agreements, to CMS/DFAS immediately upon execution. The transmittal letter shall indicate the specific date the agreement was executed, the name and address of the labor organization's designated representative, and the name and phone number of an activity point of contract.

  3. Immediately upon publication, DoD activities shall provide CMS/DFAS with two copies of published agreements, or supplements to agreements, together with Office of Personnel Management (OPM) Form 913-B. CMS/DFAS will provide one copy to OPM (see paragraph F.10. of this reference). Activities shall also provide a copy to their appropriate Component headquarters.

  4. Local agreements subject to a national or other controlling agreement at a higher organizational level shall be approved under the procedures of the controlling agreement. Where no such procedures exist, a local agreement shall be reviewed under the procedures in this subsection.

  5. DoD activities shall provide CMS/DFAS and there appropriate Component headquarters with OPM Forms 913-B concerning changes in agreement expiration dates. CMS/DFAS will forward this information to OPM (see paragraph F.1O. of this reference).


Reference c: These messages speak specifically to the areas of wages and benefits. Listed are some excerpts from these messages:

- Supreme Court decision in the Fort Stewart case found wages and benefits not based in law to be negotiable. The Army is reviewing all union initiated wage and benefit collective bargaining proposals.

- Copies of all union initiated NAF wage and benefit proposals are to be provided to the NAF Personnel Policy and Program Office, Attention: Russ Coburn as soon as they are received by the management negotiating team.

- Installation management negotiators must have the flexibility to demand "Give Backs" and make proposals offering benefits, which are less than those authorized by Army regulation. However, concern continues to exist that management and union bargainers may, in good faith, agree to inappropriate or even illegal contract provisions.

- To avoid creating ill will or accusations of bad faith bargaining, commanders who anticipate making labor negotiation proposals which are not in conformance with official Army policy will forward requests for exceptions to the NAF Personnel Policy and Program Office, when preparing for labor negotiations. When at the negotiating table, during the heat of negotiations, when proposals are made and agreements reached which require exception, requests will be forwarded expeditiously to insure quick response.

- It is essential that MACOMs and HQDA be provided timely information during labor negotiations involving pay or benefits. When entering negotiations, provide NAF Personnel Policy and Program a copy of all union initiated NAF wage and benefits proposals, preferably within 24 hours of receipt.

- Ensure that supports activities has adequate lead-time to adjust (when possible) to the provisions of the agreement. When the signed agreement is forwarded to the MACOM for review and approval. Provide NAF Personnel Policy and Program office a copy of each clause, which impacts on benefits or payroll administration.

It is recommended that within the agreement the required review should be spoken to so that there is no doubt that this step is a requirement before the agreement can be finalized. This item can be addressed in a variety of ways. An example is:

This agreement shall be subject to review by DoD Civilian Personnel Management Services, Defense Field Advisory Service for legal, regulatory, and negotiability compliance. The review will be completed within 30 days from the date of the agreement execution. Should the review reveal a violation(s), the employer will notify the union of the violation and the two parties will take whatever appropriate corrective action they may agree upon. This agreement is executed 31 calendar days after the agreement approval date by DoD.

Any questions pertaining to this subject that can not be answered locally or at the MACOM level should be addressed to the HQDA, ASA (M&RA), CPP/NAF DIV., (SFCP-NF), 200 STOVALL STREET, SUITE 1N39 ALEXANDRIA, VA 22332-0300, Attn: Russ Coburn, DSN: 221-77631, FAX-DSN 221-2881 (COMMERCIAL (703) 325-7763, FAX 325-2881, E-mail: coburnr@(email address expired)



//original signed//
Sandra G. Curran
Chief, NAF Personnel Policy
and Program Division




DISTRIBUTION:
COMMANDER IN CHIEF
U.S. ARMY EUROPE AND SEVENTH ARMY, ATTN: AEAGA-CN
COMMANDER
U.S. ARMY FORCES COMMAND, ATTN: AFPI-CP
U.S. ARMY MATERIEL COMMAND, ATTN: AMCPE-CE
U.S. ARMY TRAINING AND DOCTRINE COMMAND, ATTN: ATBO-C
U.S. ARMY MILITARY DISTRICT OF WASHINGTON, ATTN: ANCP-ZA
U.S. ARMY MEDICAL COMMAND, ATTN: MCPE-C
U.S. ARMY MILITARY TRAFFIC MGMT COMMAND, ATTN: MTPAL-CP
U.S. ARMY PACIFIC COMMAND, ATTN: APPE-CP
U.S. ARMY SOUTH, ATTN: SOCO-CP
EIGHTH U.S. ARMY, ATTN: FKCP-SES
SUPERINTENDENT, U.S. MILITARY ACADEMY, ATTN: MACP
DIRECTOR
DEFENSE LOGISTICS AGENCY, ATTN: DLA-CAHS
GENERAL MANAGER
DRAGON HILL LODGE
SHADES OF GREEN
HALE KOA HOTEL