Click here to view the decision.
62 FLRA No. 12
National Treasury Employees Union and United States Department of Treasury, Internal Revenue Service, Office of Chief Counsel (Reuben, Arbitrator), 0-AR-4024 (March 22, 2007)
The Arbitrator determined that the Agency did not repudiate a memorandum of understanding (MOU) in violation of § 7116(a)(1) and (5) of the Statute when it filled fewer than the number of attorney positions referenced in the MOU. The Union filed exceptions contending that the award did not draw its essence from the MOU; that the Arbitrator exceeded his authority; or that the award was contrary to law.
The Authority denied the exceptions. The Authority first found that the award did not fail to draw its essence from the MOU because Union had not established that the Arbitrator's interpretation of the MOU was implausible, irrational or unfounded or that it evidenced a manifest disregard of the agreement. Second, the Authority found that the contention that the Arbitrator exceeded his authority merely restated the essence arguments and denied the exception consistent with its denial of the essence exception. Finally, deferring to the Arbitrator's interpretation of the MOU, the Authority held that there could be no repudiation of the MOU because the Union had not established a breach of the agreement.