The Homeland Security Department can't implement proposed personnel rules because they improperly limit the ability of labor unions to bargain over working conditions, a federal appeals panel ruled Tuesday.

The system of regulations proposed early in 2005 by the federal agency"renders collective bargaining meaningless and is utterly unreasonable and thus impermissible,"the unanimous three-judge panel of the U.S. Circuit Court of Appeals for the District of Columbia said. Their strongly worded ruling upheld portions of federal District Court rulings last year and also expanded the protections of unions to bargain for worker rights.

The department's proposed rules gave agency management the power to override agreements reached in collective bargaining, removed many issues about work rules from bargaining discussions and created an internal board to hear labor disputes.

The ruling said the agency's ability to unilaterally cancel parts of labor agreements and the limiting of issues on the bargaining table"plainly violate the statutory command"in the law creating Homeland Security that the department ensure collective bargaining for its employees.

The Bush administration has argued that Homeland Security managers need flexibility if they are to improve national security after the terrorist attacks of Sept. 11, 2001.

Colleen Kelley, president of the National Treasury Employees Union, called the decision"a sweeping legal victory for all Department of Homeland Security employees"but said the ruling has implications for all federal employees.

The Treasury employees union was one of five that joined together to legally fight the DHS rules.

"This decision is about every federal employee without exception,"said Kelley, who suggested changes attempted at DHS could be tried at other federal agencies. Federal employee unions are also fighting attempts to change personnel rules at the Defense Department.

Kelley wants to meet with Homeland Security Secretary Michael Chertoff to discuss the agency's next steps about its personnel policies.

Union officials said the ruling could have an influence on the agency's efforts to replace a 15-grade pay scale with a series of broad salary ranges _ something the unions oppose.

Mark Roth, an attorney with the American Federation of Government Employees, said:"In order to go forward with some of their personnel flexibility, they will have to bargain with unions and bring their regulations into compliance with the law."

Homeland Security spokesman Larry Orluskie said the agency will discuss Tuesday's ruling and potential next steps with the Justice Department and Office of Personnel Management. He said key elements of the personnel policy are still in effect for managers, supervisors and employees not in the unions.

Flexibility in the agency's personnel policies"remain critical to Department of Homeland Security mission accomplishment,"he said.

The opinion was written by Judge Harry T. Edwards, an appointee of President Jimmy Carter, and joined by Judge A. Raymond Randolph, an appointee of President George H. W. Bush, and Judge Thomas B. Griffith, an appointee of President George W. Bush.

On the Net:

Department of Homeland Security:http://www.dhs.gov

National Treasury Employees Union:http://www.nteu.org

American Federation of Government Employees:http://www.afge.org

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