U.S. Dept. of the Treasury v. FLRA, No. 12-1456 (D.C. Cir. 2014)
Annotate this CaseThis case arose after the IRS Office of Chief Counsel and the National Treasury Employees Union renegotiated their collective bargaining agreement. At issue on appeal was the Authority's interpretation of section 7106 of the Federal Service Labor Management Relations Statute, 5 U.S.C. 7101 et seq. When an agency asserts that a contract provision falls outside section 7106(b)(3)'s exception to section 7106(a), whether the question concerns the agency's duty to bargain, or the provision's consistency with law, the underlying issue is precisely the same: does the provision represent a appropriate arrangement. In applying two different standards in these contexts, the court concluded that the Authority set forth two inconsistent interpretations of the very same statutory term. Therefore, the Authority acted arbitrarily and capriciously and, therefore, the court vacated and remanded for further proceedings.
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