Agency Administrative Grievance System

SUMMARY: The U.S. Office of Personnel Management (OPM) is proposing to

abolish regulations at 5 CFR Part 771 on the agency administrative

grievance system (AGS). This change would implement a human resources

management recommendation under Vice President Al Gore's National

Performance Review (NPR). This change also would be consistent with

OPM's initiative under the NPR to sunset the Federal Personnel Manual

(FPM), which included abolishing FPM Chapter 771 on the AGS as of

December 31, 1993.

DATES: Comments must be received on or before January 4, 1995.

ADDRESSES: Written comments may be sent or delivered to Marjorie A.

Marks, Chief, Family Programs and Employee Relations Division, Office

of Labor Relations and Workforce Performance, U.S. Office of Personnel

Management, Room 7412, 1900 E Street NW, Washington D.C. 20415.

FOR FURTHER INFORMATION CONTACT:

Gary D. Wahlert (202) 606-2920.

SUPPLEMENTARY INFORMATION: The National Performance Review was issued

on September 7, 1993. Appendix C to the NPR is entitled Major

Recommendations Affecting Governmental Systems and includes a number of

recommendations concerning reinvention of human resources management.

One recommendation, HRM08, stated that agencies should ``improve

processes and procedures established to provide workplace due process

for employees'' and elaborated that ``[a]ll agencies should establish

alternative dispute resolution methods and options for informal

disposition of employment disputes.'' Among other things, the

recommendation specifies that ``[t]he Director of the Office of

Personnel Management (OPM) should eliminate by December 1994, all

regulations governing internal agency grievance and appeal procedures,

thus freeing agencies to tailor ADR [or alternative dispute resolution]

techniques to various situations.''.

The proposed abolishment of the AGS regulations does not preclude

agencies from continuing their AGS procedures established under Part

771 to resolve workplace disputes. It merely means that the mandatory

requirement for such procedures would cease to exist. Thus, agencies

would be free to continue their AGS procedures, modify them, or

eliminate them depending on the needs of their organizations. As

suggested by the NPR, agencies could take the opportunity to use ADR

techniques in helping resolve disputes in the workplace. Tried and

proven techniques such as mediation and facilitation, to name only two

of many possibilities, may be used in this regard. In addition,

elimination of the restrictions contained in the current regulations

affords agencies even more flexibility to design and operate

appropriate workplace dispute resolution procedures. OPM's Office of

Labor Relations and Workforce Performance will be available upon

request to assist agencies in exercising their new flexibility in this

important area of human resources management. In this role, OPM

endorses and is guided by the NPR which states that ``[w]orkplace

problems which are not resolved in a timely and sensitive way impair

productivity and morale and impede mission accomplishment.''

Conforming Amendments

OPM also proposes to delete references to Part 771 as they appear

elsewhere in title 5 of the Code of Federal Regulations. In those

cases, the languages would be modified to refer generically to

``administrative'' grievances or grievance systems to reflect the fact

that agencies may have administrative grievance systems even though

they would no longer technically be established under Part 771, i.e., 5

CFR 300.104(c)(2), 550.803, 752.203(f), 831.204(e)(2), and

842.106(e)(2). Likewise, other current references to ``administrative''

grievances in title 5 (and not also referring to Part 771) would remain

unchanged, i.e., 5 CFR 511.607(a)(1) and 550.804(b)(1).

Executive Order 12866, Regulatory Review

This rule has been reviewed by the Office of Management and Budget

in accordance with Executive Order 12866.

Regulatory Flexibility Act

I certify that this regulation will not have a significant economic

impact on a substantial number of small entities because it applies

only to Federal employees.

List of Subjects

5 CFR Part 300

Freedom of information, Government employees, Reporting and

recordkeeping requirements, Selective Service System.

5 CFR Part 550

Administrative practice and procedure, Claims, Government

employees, Wages.

5 CFR Part 752

Administrative practice and procedure, Government employees.

5 CFR Part 771

Administrative practice and procedure, Government employees.

5 CFR Part 831

Administrative practice and procedure, Alimony, Claims, Disability

benefits, Firefighters, Government employees, Income taxes,

Intergovernmental relations, Law enforcement officers, Pensions,

Reporting and recordkeeping requirements, Retirement.

5 CFR Part 842

Air traffic controllers, Alimony, Firefighters, Government

employees, Law enforcement officers, Pensions, Retirement.

U.S. Office of Personnel Management.

James B. King,

Director.

Accordingly, OPM proposes to amend title 5 of the Code of Federal

Regulations as follows:

PART 300--EMPLOYMENT (GENERAL)

1. The Authority citation for part 300 continues to read as

follows:

Authority: 5 U.S.C. 552, 3301, and 3302; E.O. 10577, 3 CFR 1954-

1958 Comp., page 218, unless otherwise noted.

Secs. 300.101 through 300.104 also issued under 5 U.S.C. 7201,

7204, and 7701; E.O. 11478, 3 CFR 1966-1970 Comp., page 803.

Secs. 300.401 through 300.408 also issued under 5 U.S.C.

1302(c), 2301, and 2302.

Secs. 300.501 through 300.507 also issued under 5 U.S.C.

1103(a)(5).

Sec. 300.603 also issued under 5 U.S.C. 1104.

2. In Sec. 300.104, paragraph (c)(2) is revised to read as follows:

Sec. 300.104 Appeals, grievances and complaints.

* * * * *

(c) * * *

(2) Except as provided in paragraph (c)(1) of this section, an

employee may file a grievance with an agency when he or she believes

that an employment practice which was applied to him or her and which

is administered or required by the agency violates a basic requirement

in Sec. 300.103. The grievance shall be filed and processed under an

agency grievance system, if applicable, or a negotiated grievance

system as applicable.

PART 550--PAY ADMINISTRATION (GENERAL)

Subpart H--Back Pay

3. The authority citation for subpart H of part 550 continues to

read as follows:

Authority: 5 U.S.C. 5596(c); Pub. L. 100-202.

4. In section 550.803, the definition of ``grievance'' is revised

to read as follows:

Sec. 550.803 Definitions

* * * * *

Grievance has the meaning given that term in section 7103(a)(9) of

title 5, United States Code, and (with respect to members of the

Foreign Service) in section 1101 of the Foreign Service Act of 1980 (22

U.S.C. 4131). Such a grievance includes a grievance processed under an

agency administrative grievance system, if applicable.

* * * * *

PART 752--ADVERSE ACTIONS

5. The authority citation for part 752 continues to read as

follows:

Authority: 5 U.S.C. 7504, 7514, and 7543.

6. In section 752.203, paragraph (f) is revised to read as follows:

Sec. 752.203 Procedures

* * * * *

(f) Grievances. The employee may file a grievance through an agency

administrative grievance system (if applicable) or, if the suspension

falls within the coverage of an applicable negotiated grievance

procedure, an employee in an exclusive bargaining unit may file a

grievance only under that procedure. Sections 7114(a)(5) and 7121(b)(3)

of title 5 U.S.C., and the terms of any collective bargaining

agreement, govern representation for employees in an exclusive

bargaining unit who grieve a suspension under this subpart through the

negotiated grievance procedure.

* * * * *

PART 771--AGENCY ADMINISTRATIVE GRIEVANCE SYSTEM [Removed]

7. Part 771, consisting of Secs. 771.101 through 771.205, is

removed.

PART 831--RETIREMENT

8. The authority citation for part 831 continues to read as

follows:

Authority: 5 U.S.C. 8347: Sec. 831.102 also issued under 5

U.S.C. 8334; Sec. 831.106 also issued under 5 U.S.C. 552a;

Sec. 831.108 also issued under 5 U.S.C. 8336(d)(2);

Sec. 831.201(b)(6) also issued under 5 U.S.C. 7701(b)(2);

Sec. 831.204 also issued under section 7201(m)(2) of the Omnibus

Budget Reconciliation Act of 1990, Pub. L. 105-508, 104 Stat. 1388-

339; Sec. 831.303 also issued under 5 U.S.C. 8334(d)(2);

Sec. 831.502 also issued under 5 U.S.C. 8337; Sec. 831.502 also

issued under section 1(3), E.O. 11228, 3 CFR 1964-1965 Comp.;

Sec. 831.663 also issued under 5 U.S.C. 8339(j) and (k)(2);

Secs. 831.664 also issued under section 11004(c)(2) of the Omnibus

Budget Reconciliation Act of 1993, Pub. L. 103-66; Sec. 831.682 also

issued under section 201(d) of the Federal Employees Benefits

Improvement Act of 1986, Pub. L. 99-251, 100 Stat. 23; subpart S

also issued under 5 U.S.C. 8345(k); subpart V also issued under 5

U.S.C. 8343a and section 6001 of the Omnibus Budget Reconciliation

Act of 1987, Pub. L. 100-203, 101 Stat. 1330-275; Sec. 831.2203 also

issued under section 7001(a)(4) of the Omnibus Budget Reconciliation

Act of Pub. L. 101-508; 104 Stat. 1388-328.

9. In Sec. 831.204, paragraph (e)(2) is revised to read as follows:

Sec. 831.204 Elections of retirment coverage under the Portability of

Benefits for Nonappropriated Fund Employees Act of 1990.

* * * * *

(e) * * *

(2) The procedures must not allow review under any employee

grievance procedures, including those established by chapter 71 of

title 5, United States Code.

* * * * *

PART 842--FEDERAL EMPLOYEES RETIREMENT SYSTEM--BASIC ANNUITY

10. The authority citation for part 842 continues to read as

follows:

Authority: 5 U.S.C. 8461(g); Sections 842.104 and 842.106 also

issued under 5 U.S.C. 8461(n); Sec. 842.105 also issued under 5

U.S.C. 8402(c)(1) and the 7701(b)(2); Sec. 842.106 also issued under

sec. 7202(m)(2) of the Omnibus Budget Reconciliation Act of 1990,

Pub. L. 101-508, and 5 U.S.C. 8402(c)(1); Sections 842.604 and

842.611 also issued under 5 U.S.C. 8417; Section 842.607 also issued

under 5 U.S.C. 8416 and 8417; section 842.614 also issued under 5

U.S.C. 8419; section 842.615 also issued under 5 U.S.C. 8418;

Sec. 842.703 also issued under sec. 7001(a)(4) of the Omnibus Budget

Reconciliation Act of 1990, Pub. L. 101-508; section 842.707 also

issued under section 6001 of the Omnibus Budget Reconciliation Act

of 1987, Pub. L. 100-203; section 842.708 also issued under section

4005 of the Omnibus Budget Reconciliation Act of 1989, Pub. L. 101-

239 and section 7001 of the Omnibus Budget Reconciliation Act of

1990, Pub. L. 101-508; subpart H also issued under 5 U.S.C. 1104.

11. In Sec. 842.106, paragraph (e)(2) is revised to read as

follows:

Sec. 842.106 Elections of retirement coverage under the Portability of

Benefits for Nonappropriated Fund Employees Act of 1990.

* * * * *

(e) * * *

(2) The procedures must not allow review under any employee

grievance procedures, including those established by chapter 71 of

title 5, United States Code.

* * * * *

[FR Doc. 94-29828 Filed 12-2-94; 8:45 am]

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