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Obama Gives New Rights to Contractor Employees

Employees working on federal services contracts will have the right of first refusal to keep their jobs when the contract changes hands, according to an executive order signed by President Obama Jan. 30.

The order was one of three affecting government contractors. The president said his moves would “level the playing field” between workers and employers.

An incoming services contractor will be required to hire any qualified employee of the previous contractor who would lose his job as a result of the contract change. The order applies to work covered under the Service Contract Act.

“The federal government’s procurement interests in economy and efficiency are served when the successor contractor hires the predecessor’s employees,” Obama’s order says.

“A carryover workforce reduces disruption to the delivery of service during the period of transition between contractors and provides the federal government the benefits of an experienced and trained workforce that is familiar with the federal government’s personnel, facilities and requirements.”

The president also signed two executive orders reversing labor policies of the Bush administration. One would require federal contractors to post notice that workers can limit their financial support of unions serving as their exclusive bargaining representatives.

The other prohibits contractors from being reimbursed for expenses incurred in fighting a unionizing effort by employees.

Union leaders were invited to the White House signing ceremony. “I take this as a welcome signal that the tone in Washington has changed and our administration respects the significant contributions that unionized federal employees make to our country,” said Colleen Kelley, president of the National Treasury Employees Union.


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