Department of the Treasury, Internal Revenue Service v. Federal Labor Relations Authority, and National Treasury Employees Union, Intervenor

Opinion for the Court filed by District Judge JACKSON.

Opinion concurring and dissenting in part filed by Circuit Judge D.H. GINSBURG.

JACKSON, District Judge:

We are again presented with a controversy between a federal agency and a union representing its employees as to whether *881they must bargain over the agency’s power to contract for the goods and services it needs from the private sector. The Internal Revenue Service (“IRS”), petitioner, insists that “contracting-out” is an exclusive management prerogative and, thus, not a proper subject for negotiation in the course of collective bargaining.…