The Federal Service Labor-Management Relations Statute, which is Title VII of the Civil Service Reform Act of 1978, grants employees of most federal agencies the right to organize and join labor unions. It also sets forth the procedures that initiate and govern the relationship between the employees' representative and the employer.

Statutory Grievance Procedures Requirement

Under the Statute, collective bargaining agreements, which set forth the working relationships between employees and their employers, must contain grievance procedures. These are the procedures followed when a dispute arises between or among a union, an employer, and an employee. The Statute specifies that any grievance procedure is to:

• Be fair and simple,
• Provide for quick processing, and
• Include procedures that:

1. allow an exclusive representative to present and process grievances;
2. allow an employee the right to present a grievance on his or her own behalf and allow the exclusive representative to be present at the grievance proceedings; and
3. require binding arbitration for any grievance not satisfactorily settled. Arbitration may be invoked by either the exclusive representative or the federal agency.

Exclusions from Grievance Procedures Requirement

In certain cases, employees may opt out of the grievance procedures specified in the collective bargaining agreement. For example, for disputes involving the following issues, employees may choose between the collective bargaining agreement procedure and their statutory remedies:

• Disputes involving Equal Employment Opportunity Commission complaints (ex: discrimination claims),
• A serious disciplinary action, and
• Certain unfair labor practices.

Arbitration Procedures

In cases of disputes not excepted from the collective bargaining grievance procedures, the final step in the grievance process is binding arbitration. Either the agency or the union may initiate arbitration proceedings. In these proceedings, the case is presented to an impartial arbitrator, who is responsible for issuing an award.

Within 30 days after the award is issued, either the agency or the union may file an "exception" to the award. The exception, which is essentially an appeal, is filed with the Case Control Office of the Federal Labor Relations Authority. The FLRA's regulations provide that the scope of review of an arbitrator's award is very narrow. The FLRA may determine whether the award is contrary to the law. Unless the case involves an unfair labor practice, the FLRA's decision is binding and it may not be appealed.

A party's noncompliance with the final award may constitute an unfair labor practice under the Statute. Charges of unfair labor practices may be filed with an FLRA regional office.

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