Federal Manager's Daily Report

An arbitrator has rescinded the 90-day suspension an SSA employee was placed on for negligence in awarding a fraudulent contract, and awarded the employee $50,000 in compensation for discriminatory actions on the part of the agency, plus an additional $50,000 in punitive damages, the American Federation of Government Employees has announced.

While arbitration decisions in favor of employees are not rare and are often overturned, the amount of the award in this case stands out.

According to the union, the employee – with a clean personnel record after 14 years with the agency — was suspended after a payment she approved turned out to be fraudulent.

The arbitrator stated, “there is no substantial evidence that the grievant was negligent or otherwise inattentive to her duties as charged.”

AFGE says the agency failed to inform the employee of impending disciplinary action with union representation present as required, and also alleges that the agency varied the severity of disciplinary action among four employees involved in the award based on their racial make up, with the black employee getting the worst of it while the only white employee involved was not disciplined.