DHS Ruling’s Effects Being Assessed

Bush administration officials and federal unions are assessing the potential effects of a federal appeals court’s decision that strikes down several key provisions of the new personnel system, called MaxHR, that the Department of Homeland Security is working to put into effect. Like a federal district court before, the U.S. Court of Appeals for the District of Columbia Circuit said the department’s plans would violate labor-management and employee appeals right protections. Although the court decisions did not directly address the job classification, pay for performance and certain other elements of the new system—on which DHS was allowed to move forward even under the lower court’s decision—those parts might be delayed as well, if the department finds that it has to bargain over details of those provisions. Also still to be seen is what effect the decision will have on similar changes that the Defense Department is trying to install as part of its National Security Personnel System. A district judge also has ruled against certain labor-management and appeal rights provision of that system, and an appeal is pending before the same circuit court in that case. One or both could eventually end up before the U.S. Supreme Court.