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B-180010 1 (1975-12-11)

handle is hein.gao/gaobadcqf0001 and id is 1 raw text is: C, THE COMPTRLLLER GENERAL S *OF THE UNITED STATES WASHINGTON, 0. C. 20548 FILE: B-1800 MATTER OF DIGEST: DATE: DEC 111975 10 Community Services Administration and AFGE Local 2677: arbitrator's award of punitive damages Grievance charged violation of provision in collective bargaining agreement that consul- tants would not be hired to perform work that could be performed by agency employees. Agency stipulated that it had violated agreement but refused union's demand that consultant repay salary-to U.S. Treasury. Prior to arbitration hearing, the consultant resigned. Arbitrator's award of punitive damages to be paid by agency to union may not be implemented since there is no authority to award punitive damages against the United States or one of its agencies. .1 This decision is in response to a request from the Director of the Community Services Administration (hereinafter referred to as the agency) as to whether it may disburse appropriated funds to implement an arbitrator's award of punitive damages to be paid by the agency to the union local (FMCS Case #74KO7852, J. Lawrence McCarty Grievance). The Federal Labor Relations Council has also requested a decision whether the arbitrator's award (Office of Economic Opoortunity and American Federation of Government Employees, Local 2677 (Doherty, Arbitrator), FLRC No. 75-A-23) violates applicable law. The facts in this case, which for the most part are not in dispute, are as follows., :Oh July 28, 1973, Mr. J. Lawrence McCarty was employed by the Office of Economic Opportunity (now the Community Services Administration) as a consultant. On December 7, 1973, Local 2677 of the National Council of OEO Locals, American Federation of Government Employees (hereinaifter the union), filed a grievance with the agency alleging that Mr. McCarty's employment was in violation of section 4 of the September 11, 1973 Amendment to the National Agreement between the agency and AFGE which provides: PUBLISHED DECISION f '-I'O , 'I ci (a U

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