Arbitrator rules GSA must cancel warehouse shutdown

An independent arbitrator has ruled that the General Services Administration must go back to the drawing board with its plan to shut down eight Federal Supply Service warehouses.

Jerome H. Ross, who was assigned to resolve a challenge to the decision to close the warehouses filed by the American Federation of Government Employees Council of GSA Locals, ruled that GSA officials had failed in their obligation to bargain with AFGE, which represents the warehouse employees, before making the decision that could put as many as 2,000 employees out of work.

At issue was a 1993 memorandum of understanding between AFGE and GSA in which the agency agreed to increase the range of issues over which it would bargain with the union. In one section of the memo, GSA agreed to negotiate with AFGE over all reinvention-related initiatives.

In a memo issued on March 1 of this year, Federal Supply Service Commissioner Frank Pugliese characterized the warehouse shutdown as "consistent with" the objectives of the National Partnership for Reinventing Government, the government's reinvention champion. The memo clearly established that the agency considered the decision a reinvention initiative, Ross said.

"In effect, the FSS commissioner explained the decision was being made because the world had changed and FSS must change with it. He asked employees to create a new business model which anticipates the needs of tomorrow's customers. In a phrase, management tasked itself with the goal of reinventing FSS," Ross wrote in his decision.

GSA was ordered to cancel the warehouse closures and bargain with AFGE in accordance with the memorandum of understanding and other applicable laws.

On Friday, GSA officials said they needed more time to review the decision before commenting on it.

"It's a good decision. We maintained all along that [GSA Administrator David Barram] had not met his obligation -it was clear cut," said Bruce Williams, a spokesman for AFGE's Council of GSA Locals.

Union members are now waiting to see if GSA will honor the decision, Williams said. If GSA decides to defy the ruling, AFGE's national office is prepared to take the matter to the D.C. circuit court.

GSA has 30 days to decide whether to abide by the arbitrator's decision.