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 11 FLRA No. 56
 
 NATIONAL TREASURY EMPLOYEES
 UNION
 Union
 
 and
 
 DEPARTMENT OF HEALTH AND
 HUMAN SERVICES,
 REGION II
 Agency
 
                                            Case No. O-NG-615
 
                DECISION AND ORDER ON NEGOTIABILITY ISSUES
 
    The petition for review in this case comes before the Authority
 pursuant to section 7105(a)(2)(D) and (E) of the Federal Service
 Labor-Management Relations Statute (the Statute) and presents issues
 relating to the negotiability of the following Union proposal:
 
          The employer will establish three competitive areas within
       Region II as follows:
 
          (a) New York, New Jersey;
 
          (b) Puerto Rico;
 
          (c) Virgin Islands.
 
    Upon careful consideration of the entire record, including the
 parties' contentions, the Authority makes the following determination.
 Essentially, the Union proposes that there be three competitive areas
 within the Region, based upon geographical considerations as opposed to
 the Region's organizational structure (i.e., its operational
 components).  The Agency contends that negotiation over the proposal is
 barred by an Agency regulation for which a compelling need exists.  /1/
 
    The proposal at issue herein and the positions of the parties with
 respect thereto are, in all material respects, substantially identical
 to Union Proposal 1 in National Treasury Employees Union and Department
 of Health and Human Services, Region IV, 11 FLRA No. 53 (1983).  For the
 reasons stated therein, the Authority finds that the present proposal is
 within the duty to bargain.  /2/
 
    Accordingly, pursuant to section 2424.10 of the Authority's Rules and
 Regulations, IT IS HEREBY ORDERED that the Agency shall upon request (or
 as otherwise agreed to by the parties) bargain concerning the proposal.
 Issued, Washington, D.C., February 3, 1983
                                       Ronald W. Haughton, Chairman
                                       Henry B. Frazier III, Member
                                       Leon B. Applewhaite, Member
                                       FEDERAL LABOR RELATIONS AUTHORITY
 
 
 
 
 
 
 
 --------------- FOOTNOTES$ ---------------
 
 
    /1/ The Agency regulation asserted as a bar to negotiations, HHS
 Personnel Manual Instruction 351-1-40, establishes the Agency's
 competitive areas and provides in pertinent part:
 
    351-1-40 COMPETITIVE AREAS
 
          A. The normal subdivisions of the Department for reduction in
       force are outlined below:
 
                                .  .  .  .
 
          5.  Positions under a regional office's appointing authority
       form competitive areas as follows:
 
          a.  *Each PHS Hospital, SSA Program Service Center, and SSA
       Data Operations Center is a separate competitive area.*
 
          b.  *Positions within the Indian Health Service within each
       commuting area form a competitive area.*
 
          c.  All other clerical, secretarial, and wage rate positions in
       a commuting area constitute a competitive area.
 
          d.  For positions other than those covered by 5.a., b., or c.
       above, separate competitive areas are established region-wide
       within each of the following components:  Office of Secretary,
       Public Health Service, Health Care Financing Administration,
       *Office of Child Support Enforcement,* Office of Human Development
       Services, and Social Security Administration.
 
 
    /2/ In so deciding, the Authority makes no judgment as to its merits. 
 
 
 

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