Tags: union | irs | decision | bonuses

Union Challenges IRS Decision to Withhold $70 Million in Bonuses

Friday, 20 Sep 2013 02:08 PM

By Courtney Coren

  Comment  |
   Contact  |
  Print   |
    A   A  
  Copy Shortlink
The union representing Internal Revenue Service employees is appealing a mediator's ruling upholding the agency's decision not to pay out $70 million in scheduled bonuses.

According to Politico, the National Treasury Employees Union is asking the Federal Services Impasses Panel to determine if the IRS is obligated to pay the bonuses based on a collective bargaining agreement with its workers already in place.

Union president Colleen Kelley said the ruling by an unnamed third-party mediator did not address "whether the IRS was legally required to pay the awards."

"Bargaining over the negotiated IRS performance awards for frontline employees reached [an] impasse and the parties have applied to the Federal Service Impasses Panel for a ruling on the bargaining proposals," Kelley said, according to Politico.

Acting IRS Commissioner Danny Werfel said in July that the bonuses were being pulled due to budget cuts related to the government-wide sequester, which also forced the agency to implement employee furlough days. The $70 million, he said at the time, was used to offset two furlough days, Politico noted.

"[These] were not easy decisions to make . . . [and] are the result of the difficult budgetary situation that we, along with the rest of the government, find ourselves in," Werfel said then.

According to Politico, Werfel notified IRS employees on Tuesday that the performance bonuses would not be paid this year.

"After pursuing our collective bargaining obligations and receiving a recommended resolution from a third-party fact finder, we will not pay bargaining unit performance awards this fiscal year," Werfel wrote.

Werfel had initially announced earlier that the IRS would follow through with the agency's obligation to pay the bonuses. But Republican Sen. Chuck Grassley of Iowa caught word of the decision and said the bonuses should be canceled, based on a White House budget office directive actually written by Werfel while he was working there.

"The IRS always claims to be short on resources," Grassley said at the time. "But it appears to have $70 million for union bonuses. And it appears to be making an extra effort to give the bonuses despite opportunities to renegotiate with the union and federal instruction to cease discretionary bonuses during sequestration."


© 2014 Newsmax. All rights reserved.

  Comment  |
   Contact  |
  Print   |
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Wash. Examiner's York: Will Obama Defy Congress on Gitmo?

Monday, 22 Dec 2014 22:33 PM

President Barack Obama is again talking about closing the U.S. terrorist detention facility at Guantanamo Bay Cuba, whic . . .

Jan Brewer on Obama: 'Not Very Nice' and 'Big Disappointment'

Monday, 22 Dec 2014 22:26 PM

Outgoing Arizona Gov. Jan Brewer pointed another finger at President Barack Obama in an interview Monday. Brewer, a Repu . . .

House Oversight Panel to DHS: White House Needs Better Fence

Monday, 22 Dec 2014 20:10 PM

House lawmakers are pressing Homeland Security Secretary Jeh Johnson for details on how his department is going to boost . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved