Federal Manager's Daily Report

The Defense Department’s proposed rules (in Monday’s Federal

Register) to put in place its “national security personnel

system” track in many ways the final rules announced two

weeks earlier for the Department of Homeland Security.

Like DHS, DoD hopes to begin moving people into its new

system later this year, although in both cases full

implementation is several years off.


Like DHS, DoD’s pay and performance system prominently

features occupational clustering with pay banding, in

which performance–not longevity–will be the major means

of advancing in salary and in which unacceptable performers

will not get any raises. Also as at DHS, DoD plans to

create a pay pool by taking the money that ordinarily

would go for across-the-board raises, within grade raises

and promotions–although DoD plans to keep, at least for a

time, the practice of granting the national locality raise

component. Both departments envision raising the minimums

and maximums of a band based on the job market in that

occupation.


Similarly, DoD like DHS plans to combine the currently

separate processes for performance-based or conduct-based

discipline, while retaining employee rights to appeal to

the Merit Systems Protection Board. And also like DHS, the

Pentagon wants to impose stricter time limits on the appeals

process and limit MSPB’s authority to mitigate a penalty.

Both would keep negotiated grievance procedures as well.


Further, DoD wants to impose new restrictions on bargaining

similar to those planned at DHS. The departments want to make

non-negotiable management rights to determine the numbers,

types and grades of employees, the technology for performing

work. Both also want to create internal labor relations boards

to rule on issues such as scope of bargaining and impasses,

leaving the Federal Labor Relations Authority mainly responsible

for overseeing union elections and handling unfair labor

practices filed by employees. However, as at DHS, FLRA would

act as an outside appeals body over the internal labor board.