ARTICLE 29 REDUCTION-IN-FORCE SECTION 1 - GENERAL A. A "reduction-in-force" occurs when the Agency releases an employee from his or her competitive level by separation, demotion, furlough for more than 30 days, or reassignment requiring displacement because of lack of work or funds, reorganization, change to lower grade based on reclassification of an employee's position due to erosion of duties when such action will take place after the Agency has formally announced a reduction-in-force in the employee's competitive area and when the reduction-in-force will take effect within 180 days, or when the need to make a place for a person exercising reemployment rights requires the Agency to release the employee. Reduction-in- force procedures do not apply to the return of an employee to his or her regular position following a temporary promotion or to the release of a reemployed annuitant. Reductions-in-force do not include the reclassification of a position resulting in a downgrade other than as provided in FPM Chapter 351. B. Reductions-in-force will be conducted in accordance with DFAS 1404.1 and other appropriate regulations. SECTION 2 - STATEMENT OF PRINCIPLES A. When the Agency becomes aware of the necessity to conduct a reduction-in-force, it will attempt to minimize the adverse effect on bargaining unit employees through appropriate means as reassignment, attrition, and positive placement efforts. B. Where possible and practical, any reduction in personnel will be attained through normal attrition and/or by assignments to vacant positions for which the employees are qualified and eligible. C. When a date is established for issuance of a specific notice of reduction-in-force, and dependent on the severity of the reduction-in-force, the Agency may suspend outside recruitment and competitive promotion. Outside recruitment and competitive promotions will cease for like position series when more employees are being displaced than there are vacancies to place them. The decision to resume recruitment actions will be made by the Center Director. SECTION 3 - NOTIFICATION A. The Parties share the common purposes of minimizing adverse impact on bargaining unit employees affected by any reduction-in-force, and of accommodating the administrative needs of the Agency. 75 1. The Agency will use every good faith effort to notify (in writing) the President of the appropriate Union of any reduction-in-force at the earliest possible date in order to negotiate the impact and procedures for implementation of the reduction. Attendant to the circumstances of the situation prior to the effective date, the period of notice will be at least 60 calendar days or the earliest possible time. 2. Affected employees will be notified not less than 60 and normally not more than 90 calendar days prior to the effective date. SECTION 4 - DOCUMENTATION Following notification of a reduction-in-force, the Agency shall furnish to the Union, all relevant and available documents or information concerning the reduction-in-force, subject to any Privacy Act limitations. SECTION 5 - EFFECTIVE DATE The Agency shall provide a specific written notice to each employee affected by the reduction-in-force. The notice shall state specifically what action is being taken, the effective date of the action, the employee's total credit for retention, extra retention credit for performance, the competitive level, and competitive area. It shall state why any lower standing employee is retained in his or her competitive level. An extra copy of this notice will be given to the employee should he or she desire to have Union representation. SECTION 6 - OFFER OF POSITION A. The Agency shall make a best offer of employment to each employee adversely affected by the reduction-in-force consistent with FPM Chapter 351. An offer, if made, shall be to a position with either no reduction in grade or pay, or with the least reduction possible in consideration of positions available, employee qualifications, and the retention standing of other competing employees. B. Employees reassigned or demoted by reduction-in-force may, within the specified time period for reply, request in writing, assignment to a vacant position at the same or lower grade with any pay retention to which they may be entitled. Any such request shall be answered in writing within fifteen (15) workdays. SECTION 7 - RESPONSE TO OFFER Employees shall respond to an offer of employment to another position in writing within the specified time period after receipt of a written offer. Failure to respond within the specified time period shall be considered a rejection of the offer. The specified time period for an employee's response will be ten (10) workdays. SECTION 8 - COMPETITIVE LEVELS AND RETENTION REGISTERS The Agency shall establish competitive levels and retention registers in accordance with applicable laws and regulations. A Union official and the affected employee shall have the right to review competitive levels and retention registers as may be applicable to the employee. All lists, records, and information pertaining to a reduction-in-force shall be maintained by the appropriate Human Resources Directorate for at least one (1) year following the effective date of the reduction-in-force. SECTION 9 - SEPARATION A. The Agency will make every reasonable effort to find employment in other Federal agencies within the commuting area for employees who are identified for separation through reduction-in-force. Employees for whom no positions are found may be counseled by a representative of the Agency on the benefits to which they may be entitled, including information concerning early retirement with discontinued service annuity, where applicable. Reemployment lists as prescribed by OPM shall be established for employees who cannot be retained. B. In a reduction-in-force, the Agency will contact the appropriate State Employment Service to obtain available information of training programs for which affected employees may be eligible, and inform them how they may apply. SECTION 10 - WAIVER OF QUALIFICATIONS A. In accordance with applicable regulations, when the Agency is unable to offer an assignment, the Agency may waive qualifications of employees who will be separated due to reduction-in-force for vacant positions which do not contain selective placement factors, provided the Agency determines the employee is able to perform the work of the position without undue interruption to the mission of the Agency and the employee meets any OPM-established minimum education requirements. B. Vacant positions which contain selective placement factors will be reviewed by the Human Resources Directorate to determine if these factors can be waived without seriously affecting the mission. SECTION 11 - INFORMATION TO EMPLOYEES Upon request, the Agency shall provide information needed by employees to understand fully the reduction-in-force and how and why they are affected. The Agency shall provide equitable treatment for all employees and make every effort to retain status employees during a reduction-in-force. SECTION 12 - RETIREMENT Prior to and during the reduction-in-force, all retirements will be strictly voluntary. There will be no coercion, direct or indirect, intended to influence the employee's decision, but the Agency will freely advise the employee of any prospective retirement rights. SECTION 13 - COMPETITIVE AREA A. Each DFAS Center is a separate competitive area. B. Each DFAS activity which is geographically separate from a DFAS Center is a separate competitive area. SECTION 14 - DISPLACEMENT The Agency will not fill a vacant bargaining unit position within the organizational unit in which the reduction-in-force is taking place until it has considered all reasonable alternatives to reduce the adverse effects on bargaining unit employees who are to be displaced as a result of the reduction-in-force. In considering these alternatives, the Agency will review the possibility and feasibility of redesigning a vacant position. SECTION 15 - PERMANENT CHANGE OF STATION In connection with a reduction-in-force and where applicable, the Agency agrees to grant official time and to pay permanent change of station expenses as provided by appropriate regulation.