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.