ARTICLE 5
MANAGEMENT RIGHTS
A. Section 7106 of 5 U.S.C. states:

"(a) Subject to subsection (b) of this section, nothing in
this chapter shall affect the authority of any management
official of any agency --

"(1) to determine the mission, budget, organization,
number of employees, and internal security practices of the
agency; and

"(2) in accordance with applicable laws --

"(A) to hire, assign, direct, layoff, and retain
employees in the agency, or to suspend, remove, reduce in grade
or pay, or take other disciplinary action against such employees;

"(B) to assign work, to make determinations with
respect to contracting out, and to determine the personnel by
which operations shall be conducted;

"(C) with respect to filling positions, to make
selections for appointments from --

"(i) among properly ranked and certified
candidates for promotion; or

"(ii) any other appropriate source; and

"(D) to take whatever actions may be necessary to
carry out the agency mission during emergencies.

"(b) Nothing in this section shall preclude any agency and
any labor organization from negotiating --

"(1) at the election of the agency, on the numbers,
types, and grades of employees or positions assigned to any
organizational subdivision, work project, or tour of duty, or on
the technology, methods, and means of performing work;

"(2) procedures which management officials of the agency
will observe in exercising any authority under this section; or

"(3) appropriate arrangements for employees adversely
affected by the exercise of any authority under this section by
such management officials."

B. See Executive Order 12871 as it pertains to 7106(b)1.