Federal Manager's Daily Report

The recently announced reorganization at the IRS could serve

as a testing ground for agency efforts to reshape their

workforces as technology and missions shift. Outside bodies

ranging from good government groups to the Office of

Management and Budget have been telling agencies they need

to be quicker on their feet on that score, but managers

often say they are hamstrung by agency personnel rules and

union contracts.

The IRS has said it wants to cut about 2,400 clerical jobs

no longer needed because of improved automation, such as

electronic filing of tax returns, while adding about 2,200

auditors, criminal investigators and tax collectors. While

the net effect on employment is roughly a wash, few of the

employees filling the jobs to be cut are qualified to fill

the jobs to be created, meaning that the IRS could have to

conduct a reduction-in-force, an often complex, lengthy and

contentious process.

Meanwhile, the National Treasury Employees Union is seeking

bargaining, arguing that recent projections by the General

Accounting Office show lower rates of electronic tax filing

than the IRS is counting on. NTEU also will push to have

affected employees retrained. The union likely will take

its case to Capitol Hill-and possibly to the courts-as well.

It was similar difficulties in reorganizing for changed

missions that led the Defense and Homeland Security

departments to seek and obtain alternative personnel

policies, including certain restrictions on the role of

unions. The IRS also is operating under an alternative

personnel system, created in 1998, but the IRS does not

have as wide a scope of management authority as DoD and DHS.