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IRS to Pay Former Workers Whose Jobs Were Outsourced

Source: By Stephen Barr, Washington Post, Friday, September 22, 2006

Ten former mailroom employees at the Internal Revenue Service who lost their jobs because of outsourcing will receive about $4,000 each in back pay as part of a legal settlement, the National Treasury Employees Union has announced.

The settlement ends a lawsuit brought by the union in a dispute over the meaning of an appropriations bill that prohibited the IRS from turning federal work over to a contractor during much of 2004 without first conducting a public-private competition.

...... Colleen M. Kelley , the union president, said lawsuits challenging outsourcing decisions by agencies are difficult to win. "This is the first case of which NTEU is aware in which the government has paid money to employees in settlement of a contracting out lawsuit," Kelley said.