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Union Won’t Let IRS Cancel Its $76M In Bonuses

From an outraged Associated Press:

IRS head to fight bonuses for union employees


WASHINGTON (AP) — Citing budget cuts, the Internal Revenue Service is canceling this year’s employee bonuses for managers and is working to cancel bonuses for union workers, the agency announced Tuesday.

Notice that the non-union workers are not getting any bonuses for sure.

Acting IRS head Danny Werfel told workers in an email that he is canceling the bonuses because of automatic spending cuts enacted this year.

In other words Mr. Werfel is blaming the sequester. And never mind that, as we reported yesterday, the IRS currently pays more than 200 employees to do work for the unions full-time.

The agency was scheduled to spend nearly $98 million on employee bonuses this year — $76 million for union workers; $19.3 million for nonunion workers, including managers; and $2.5 million for executives.

The bonuses, which were made public in June, riled members of Congress who were already scrutinizing the IRS for improperly targeting conservative political groups when they applied for tax-exempt status…

It’s a scandal that the IRS was giving out bonuses without anyone knowing in the first place.

But speaking of the devil:

The National Treasury Employees Union said it believes the bonuses are legally required under its collective bargaining agreement The agreement calls for the IRS to set aside 1.75 percent of union salaries for bonuses, but there is a clause that could enable the IRS to renegotiate.

The vast majority of bonuses are based on performance, according to the contract. The agency has more than 90,000 employees.

How can performance bonuses be guaranteed? Can the unions foretell that their members’ jobs performance will warrant bonuses? This is one more example of how public sector unions have run completely amuck.

"NTEU has had a negotiated performance awards program at the IRS for decades, pursuant to the law and regulations which specifically direct agencies to implement such merit-based incentive programs," the union’s president, Colleen M. Kelley, said in a statement. "It is NTEU’s position that the awards are legally required as part of the collective bargaining agreement between NTEU and the IRS. NTEU is in bargaining with the IRS over this issue and intends to fully pursue the bargaining process to the end." …

So the head of the IRS says his employees don’t merit any bonuses. Tough luck.

In April, the White House budget office ordered agencies to cancel discretionary bonuses because of automatic spending cuts. The directive was written by Werfel, a former budget official who has since been appointed as acting head of the IRS.

But like most things coming from this White House, this mandate was simply political theater designed to placate Obama’s low information constituents and news media.

But, really, why should a union be calling the shots here? Who is running the IRS?

This article was posted by Steve on Wednesday, July 10th, 2013. Comments are currently closed.

One Response to “Union Won’t Let IRS Cancel Its $76M In Bonuses”

  1. GetBackJack says:

    Because of the Sequester, I have to spend this money.

    (Mandy Pantikin) – “I do not think you know the meaning of this word.”

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