It is understood and agreed by the parties that the Employer possesses the sole power, duty and right to operate and manage its departments, agencies and programs and carry out constitutional, statutory and administrative policy mandates and goals.

The powers, authority and discretion necessary for the Employer to exercise its rights and carry out its responsibilities shall be limited only by the express terms of this Agreement but subject to applicable Civil Service Rules. Any term or condition of employment other than the wages, benefits and other terms and conditions of employment specifically established, continued or modified by this Agreement shall remain solely within the discretion of the Employer to determine, modify, establish or eliminate.

Management rights include, but are not limited to, the right, without engaging in negotiations, to:

1. Determine matters of managerial policy; mission of the agency; budget; the method, means and personnel by which the Employer's operations are to be conducted; organization structure; standards of service and maintenance of efficiency; the right to select, promote, assign or transfer employees; discipline employees for just cause; and in cases of temporary emergency, to take whatever action is necessary to carry out the agency's mission. However, if such determinations alter conditions of employment to produce substantial adverse impact upon employees, the modification and remedy of such resulting impact from changes in conditions of employment shall be subject to negotiation requirements. Such negotiations shall not be required where the action of the Employer is in compliance with another Article of this Agreement. However, this shall not preclude the parties from discussing issues and mutually agreeing on the method and/or means of implementing the provisions of this Agreement.
2. Utilize personnel, methods and means in the most appropriate and efficient manner as determined by the Employer.
3. Determine the size and composition of the work force, direct the work of the employees, determine the amount and type of work needed and, in accordance with such determination, relieve employees from duty because of lack of funds or lack of work.
4. Make work rules which regulate performance, conduct, and safety and health of employees, provided that changes in such work rules shall be reduced to writing and furnished to MCO for its information as soon as possible, but prior to their implementation.
5. Such other rights normally consistent with the Employer's duty to furnish State services.

It is agreed by the parties that none of the management rights noted above or any other management rights shall be subjects of negotiation during the terms of this Agreement; provided, however, that such rights must be exercised consistently with the other provisions of this Agreement. Any claim or complaint by the Union of failure or refusal of the Employer to bargain in good faith over the modification and remedy of a substantial adverse impact from a change in a condition of employment shall be subject exclusively to the procedures of the Civil Service Rules and Regulations.

The parties recognize that prohibited subjects of bargaining have been, and during the term of this Agreement will continue to be, defined exclusively by the Civil Service Commission; that nothing herein is intended to regulate or interpret matters determined currently or in the future by the Civil Service Commission to be prohibited subjects of bargaining; and that the Civil Service Commission has the sole and exclusive jurisdiction to regulate and interpret prohibited subjects of bargaining.