Document: 494 U.S. 922 110 S.Ct. 1623 108 L.Ed.2d 914 DEPARTMENT OF the TREASURY, INTERNAL REVENUE SERVICE, Petitionerv.FEDERAL LABOR RELATIONS AUTHORITY, et al. No. 88-2123. Argued Jan. 8, 1990. Decided April 17, Syllabus During collective-bargaining negotiations, respondent National Treasury Employees Union (NTEU) proposed that contractual grievance and arbitration provisions be designated as "internal appeals procedure" required for employee complaints by an Office of Management Budget (OMB) Circular relating to "contracting out" work. Petitioner Internal Revenue Service (IRS) refused bargain over proposal, claiming its subject matter was nonnegotiable under Title VII Civil Reform Act 1978 (Act), 5 U.S.C. § 7101 seq. The Federal Labor Relations Authority (FLRA), which is charged with administering Act, held IRS negotiate NTEU proposal 7114, requires agency management unions in good faith reach agreement, 7121, specifies such agreements must contain grievance-settlement procedures. Held: FLRA erred holding proposal. Pp. 926-934. (a) plain text 7106(a)(2)(B)—which provides "nothing this [Act] shall affect authority [agency officials] accordance applicable laws . make [contracting-out] determinations" (emphasis added) demonstrates section supersedes 7121. P. 928. (b) arguments presented overcome 7106(a)(2)(B)'s meaning lack merit. First, 7121(c), exempts certain appointment, suspension, removal decisions from requirements, not rendered superfluous if are already insulated those requirements 7106(a), subsection (2)(A) refers same protected rights. Although two sometimes overlap, each also has a distinct effect on decisions: 7121(c) removes them coverage only regardless whether they made laws, while 7106 entire but laws. Second, cannot subjected procedures exercise reserved rights theory 7121 among "applicable laws" referred 7106(a)(2), since phrase clearly outside Act. Third, 7106(a) even though would establish any substantive limitation management's contracting-out decisions, provide enforcement "external limitations" contained OMB Circular's mandatory nondiscretionary provisions. Insofar union concerned, it entirely up will comply at all except extent compliance law." Fourth, reasonable interpret latter being synonymous term "any law, rule, or regulation" 7103(a)(9)(C)(ii), defines "grievance" claimed "violation, misinterpretation, misapplication regulation affecting conditions employment." (Emphasis added.) Thus, said contracting violate rules regulations are, definition, "not laws." 928-932. (c) This Court decide first instance law" 7106(a)(2). 932-933. (d) question 7117(a)—which "duty shall, inconsistent Government-wide rule regulation, extend matters [non-Government-wide] added)—renders "no arbitration" language properly presented, raised considered court below. Nor consider "rule" "regulation" within 7103(a)(9)'s meaning, did argue here. 934. 274 U.S.App.D.C. 135, 862 F.2d 880, reversed remanded. SCALIA, J., delivered opinion Court, REHNQUIST, C.J., WHITE, BLACKMUN, O'CONNOR, KENNEDY, JJ., joined. BRENNAN, filed dissenting opinion, MARSHALL, joined, post, p. STEVENS, 937. David L. Shapiro, Washington, D.C., petitioner. Robert J. Englehart, respondent, Authority. Gregory O'Duden, Union. Justice SCALIA Court. 1 In case we review determination (FLRA Authority) that, seq., (NTEU Union) contract provision subjecting claims had failed 2 * establishes system federal agencies their employees, administration FLRA. recognizes right employees form join unions, 7102, imposes upon officials duty "negotiate purposes arriving collective bargaining agreement." 7114(a)(4). A agreement "for settlement grievances," 7121(a)(1), defined "complaint[s] concerning violation, employment," 7103(a)(9)(C)(ii); "provide satisfactorily settled negotiated procedure binding may invoked either party. 7121(b)(3)(C). agency's qualified, however, one pertinent respect. reserves "in determinations respect out." 7106(a)(2)(B). 3 A-76 generally directs "contract private sector non-"governmental" activities (e.g., data processing) unless specified cost comparisons indicate can performed more economically house." Executive President, A-76, revised, 48 Fed.Reg. 37110 (1983). administrative resolve bidders "determinations resulting [the] Circular," out where no comparison required. Supp. I-14, I-15 4 course negotiations IRS, put forward wished contest, "grievance constitute Circular.1 taking position then petitioned Authority, empowered "resolv[e] issues bargain." §§ 7105(a)(2)(E); see 7117(c). 7114 view IRS' failure "violation [a] "conditions so complaint qualify agreement. 27 F.L.R.A. 976, 978-979 (1987). found union's precluded reservation determinations, because "would contractually recognize external limitations right." Id., 978.2 6 Appeals District Columbia Circuit affirmed Authority's decision. 880 (1988). We granted certiorari. 493 807, 47, 107 16 (1989). II 7 provides, part: 8 "(a) [N]othing chapter [i.e., Act] official agency— 9 10 "(2) laws— 11 "(A) hire, assign, direct, layoff, retain agency, suspend, remove, reduce grade pay, take other disciplinary action against employees; 12 "(B) assign work, out, determine personnel operations conducted; 13 "(C) filling positions, selections appointments from— 14 "(i) ranked certified candidates promotion; 15 "(ii) appropriate source. ." added). proceedings below again before argued when decision violates still thus immunized foregoing imposed controls rendering here nonbargainable.3 According internal Branch directive regarding office management. 17 FLRA's do trump entitles enforce resolving 7103—that is, 7103(a)(9)(C)(ii) according FLRA, makes difference law"; long "law, does bar negotiation NTEU's This, appears, been consistent position. See, e.g., AFSCME Local 3097 v. Department Justice, Div., 31 322, 338 (1988) (§ regulations"); GSA American Federation Government Employees, AFL-CIO Nat. Council 236, 3, (1987) preclude compelling regulation"). A. 18 lightly overturn construction administering. Bureau Alcohol, Tobacco Firearms 464 89, 97, 104 439, 444, 78 195 accept one, ourselves arrive at. See Chevron U.S.A. Inc. Natural Resources Defense Council, Inc., 467 837, 842-843, 2778, 2781-2782, 81 694 (1984); NLRB Food Commercial Workers, 484 112, 123, 413, 421, 98 429 For reasons follow, conclude reasonable. 19 flatly contradicted 7106(a)'s command chapter"—i.e., nothing Act—shall Section covered italicized language. 20 presents four text. contends reading supersede render portions superfluous.4 Subsection things, suspension removal—decisions 7106(a). Compare 7106(a)(2)(A) (C)(i) 7121(c)(3) (4). suggestion these exclusions have unnecessary were disagree. 7121(a)'s provisions, yet laws; although overlap treatment enumerated (each 7121(a) laws), quite well.5 21 argues 7106(a)(2)—so never excuses negotiating, submitting to, case. If section, presumably rest there basis treating specially. view, says chapter"—a pointless tautology. It clear 22 barred because, words incorporation into itself particular decisions"; rather, F.L.R.A., 980. Referring earlier emphasizes proceeding arbitrator second-guess discretionary aspects determination, "that provisions" Circular. Headquarters, 97th Combat Support Group (SAC) Blytheville Air Force Base, Ark. AFL-CIO, 2840, 656, 661-662 (1986). He could, example, order "reconstruct" relied making decision, ibid., and, justified Circular, he could reconsider it; impose "substantive limitation" (other than aggrieved employee). trouble argument disconnected statute. empower rights, Or point differently, insofar powers remedial matter, most redo comparisons, actually awarded set aside. A-76's cost-comparison 23 Finally, suggests 7106(a)(2) coextensive gives rise definition explicitly use reasoning here, seems done cases. 333, 338-339. simply contrary interpretation statute regulation," another "laws" cannot, abandon pretense precise communication, deemed mean thing both places. modifier "applicable" difference—not extending fashion, several places employs terms conjunction 7114(c)(2) (agency head approve "if regulation") added); 7122(a) ("If [of arbitrator's decision] finds award deficient—(1) recommendations considers necessary, rules, regulations") There short, justification saying "rules" "regulations" encompassed true, therefore, actions B 24 At oral argument, counsel urged sustain ground includes least carry "force law," regulation. Tr. Oral Arg. 36. adopt ground. While think permissible (though inevitable) extends some, all, regulations,6 extension should made, scope described, FLRA—which until now mistaken assumption irrelevant, synonymous. As emphasized Chevron, statute, part receives power give content statute's textual ambiguities. U.S., 843-844, S.Ct., 2781-2782. That task infused judgment discretion, requiring " 'accommodation conflicting policies committed care.' 845, 2783, quoting United States Shimer, 367 374, 383, 1554, 1560, 908 (1961). ought undertake behalf reviewing orders. Cf. SEC Chenery Corp., 318 80, 88, 95, 63 454, 459, 462, 87 L.Ed. 626 (1943); Burlington Truck Lines, States, 371 156, 169, 83 239, 246, 207 (1962). 25 some regulations, include directives like A-76. poorly situated evaluate it, neither respondents briefed addressed cursory fashion argument. moreover, calls very difficult abstract conclusion, wit, conceivable Appeals, remand, wish enter inquiry, prefer await specification, (if any) believes embraces event, decline stage proceedings. C 26 outright Union's therefore 7117, "the law regulation." 7117(a)(1) it. EEOC 476 19, 24, 106 1678, 1681, 90 (1986) (per curiam ).7 7103(a)(9); separate reversal petition certiorari, "management rights" clause reversed, cause remanded further opinion. 28 ordered. 29 whom MARSHALL joins, dissenting. 30 Because remands I believe unnecessary, respectfully dissent. read below, 1978's provision, determined infringe rights.1 Since permissibly statutory having find acknowledges, ante, 932, affirm below.2 promulgated formal notice published Register public comment invited. 44 20556 (1979), amended, (1983), 50 32812 (1985). referenced by, restated, Acquisition Regulations, codified CFR pt. 7, subpt. 7.3 By terms, enforced. Supp.Intro. (rev. Aug. 4, 1983). Hence, uphold conclusion 7106(a)(2).3 unreasonable, implausible itself, indistinguishable different 1978. 931-932. suspect reads too much between 7103(a)(9)(C)(ii). But, understand Court's say phrases Ibid. fact, employed phrases, arguable, error likely embrace restrictive regulation."4 Thus remand free cover statutes, exercising n. 2, supra. more—for instance, nonbinding policy statements unpublished guidelines. 32 issue expansive abrogating vis-a-vis consistently 931. purport wholly inapplicable areas. "shall agency" types decisions. An existing fully provision. require merely what Service's Therefore relying ground, necessary reached 33 34 (rev., 1983) Appeals' previously endorsed correct. 27, 1683, (dissenting opinion); Dept. Health Human Services 844 1087 (CA4 1988) (en banc). But certainly "a 7117(a)(1). Under seeking about seeks F.2d, 1099. am persuaded interprets reversal. To instead leaves open read: "The Procedure parties' Master Agreements." 976 characterized "establish[ing] 'grievance arbitration' master labor 'administrative procedure' mandated Supplement disputed 'contracting-out' cases." 136, 881 follow term. "government-wide 7117(a), inconsistent" 977. explained Part II-C, us. qualification permits "procedures observe exercising" 7106(b)(2). call our attention qualification, rightly refrain asserting governs enable examiner compel thereby dictating criteria infra, relevant following: "(a)(1) Except provided paragraph (2) subsection, grievances, including questions arbitrability. Any exclude application "(c) preceding subsections apply concerning— "(1) violation subchapter III 73 title (relating prohibited political activities); retirement, life insurance, health insurance; "(3) 7532 title; "(4) examination, certification, appointment; "(5) classification result reduction pay employee." gets support providing "Except grievances. construed create Act's exception 7121(a), specific disappear. concedes point. Reply Brief 7; 14. STEVENS bars reason, namely, covers subject" 'Government-wide regulation.' Post, 938 opinion). address 979 (the "require[s] Statute 'in laws' "). inclined agree taken Deputy Solicitor General 14, statutes force Administrative (APA) measure. id., 47 ("[I]f party bring APA action, strong, conclusive, evidence you dealing law"). APA, valid actionable anyone "aggrieved" 702, 706(2)(A); Center Auto Safety Dole, 264 219, 223, 235, 828 799, 803, 815 (1987); Padula Webster, 261 365, 368, 822 100 precludes 938. provides: "[T]he asks incorporated entirety function appears insulate process efforts change anything agency—e.g., Congress, OMB. clauses explain direct conflict with, covering as, bargainable. They kind pre-emption greater adopted occupied field. purpose served "matters of" Incorporating place odds authority. 978, undermine validity narrow. fit overly phrase, fortiori, appropriately broad definition. Moreover, finding interfere sufficient 979.

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