Home Media Center News Releases

Detroit—In protest of plans to move technology work out of Detroit, local employees of the Internal Revenue Service (IRS) held an informational picket today to raise public awareness about the agency’s plan to shut down the mainframe database at the Detroit Computing Center and transfer all related work out of state.

Members of the National Treasury Employees Union (NTEU) Chapter 78 (IRS Detroit Computing Center) said the IRS has not provided any reason for the move – in fact, the agency is going ahead with the planned shutdown despite a 2004 study on the issue that found no compelling business case to do so.

Chapter 78 members held the rally at 11 a.m. today in front of the Detroit Computing Center, 785 Michigan Ave. Joining them were several members of NTEU Chapter 24 (IRS Michigan).

“It makes no sense for the IRS to proceed with this ill-advised plan when the agency’s own feasibility study concluded that it was a bad idea,” said Chapter 78 President Debra S. Carter, adding that the 2004 study also included a cost analysis that proved that the total costs of shutting the mainframe down and transferring the work elsewhere were far greater than any savings gained.

“Not only does the IRS plan to migrate these technology jobs to locations outside of Michigan, but the agency has not clearly defined any corresponding plans to bring additional work into Detroit,” she said.

The cost analysis done as part of the 2004 study included all costs related to hardware, software, telecommunications, training and other services. In the analysis, the plan’s only savings are those that come due to staff attrition and reassignment of the Detroit-based employees.

NTEU National President Colleen M. Kelley chided the IRS for failing to respond to an information request that local union leaders sent to agency management in August asking for more details about the shutdown plan, including efforts to retrain and reassign any displaced staff.

“Employees who do the technology work on the mainframe are unclear about their futures,” President Kelley said. “The IRS has made it clear that any staff lost as a result of this plan will not be replaced. As one of only three IRS computing centers in the nation, this is a clear loss for the city of Detroit.”

NTEU is the largest independent federal union, representing 150,000 employees in 31 agencies and departments.