[Federal Register Volume 61, Number 27 (Thursday, February 8, 1996)]
[Notices]
[Pages 4775-4778]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-2736]



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FEDERAL MEDIATION AND CONCILIATION SERVICE


Labor-Management Cooperation Program; Application Solicitation

AGENCY: Federal Mediation and Conciliation Service.

ACTION: Publication of Final Fiscal Year 1996, Program Guidelines/
Application Solicitation for Labor-Management Committees.

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SUMMARY: The Federal Mediation and Conciliation Service (FMCS) is 
publishing the final Fiscal Year 1996 Program Guidelines/Application 
Solicitation for the Labor-Management Cooperation program to inform the 
public. The program is supported by Federal funds authorized by the 
Labor-Management Cooperation Act of 1978, subject to annual 
appropriations. No comments were received from the public. The 
guidelines are based on an assumption that this program will be funded 
at its anticipated level. Should there be a significant change in the 
program's final appropriation, a revised final version will be 
published in the Federal Register.

FOR FURTHER INFORMATION CONTACT:
Peter L. Regner, 202-606-8181.

Labor-Management Cooperation Program Application Solicitation for 
Labor-Management Committees FY 1996

A. Introduction

    The following is the final solicitation for the Fiscal Year (FY) 
1996 cycle of the Labor-Management Cooperation Program as it pertains 
to the support of labor-management committees. These guidelines 
represent the continuing efforts of the Federal Mediation and 
Conciliation Service to implement the 

[[Page 4776]]
provisions of the Labor-Management Cooperation Act of 1978 which was 
initially implemented in FY81. The Act generally authorizes FMCS to 
provide assistance in the establishment and operation of plant, area, 
public sector, and industry-wide labor-management committees which:
    (A) Have been organized jointly by employers and labor 
organizations representing employees in that plant, area, government 
agency, or industry; and
    (B) Are established for the purpose of improving labor-management 
relationships, job security, and organizational effectiveness; 
enhancing economic development; or involving workers in decisions 
affecting their jobs, including improving communication with respect to 
subjects of mutual interest and concern.
    The Program Description and other sections that follow, as well as 
a separately published FMCS Financial and Administrative Grants Manual, 
make up the basic guidelines, criteria, and program elements a 
potential applicant for assistance under this program must know in 
order to develop an application for funding consideration for either a 
plant, area-wide, industry, or public sector labor-management 
committee. Directions for obtaining an application kit may be found in 
Section H. A copy of the Labor-Management Cooperation Act of 1978, 
included in the application kit, should be reviewed in conjunction with 
this solicitation.

B. Program Description

Objectives
    The Labor-Management Cooperation Act of 1978 identifies the 
following seven general areas for which financial assistance would be 
appropriate:
    (1) To improve communication between representatives of labor and 
management;
    (2) To provide workers and employers with opportunities to study 
and explore new and innovative joint approaches to achieving 
organizational effectiveness;
    (3) To assist workers and employers in solving problems of mutual 
concern not susceptible to resolution within the collective bargaining 
process;
    (4) To study and explore ways of eliminating potential problems 
which reduce the competitiveness and inhibit the economic development 
of the plant, area, or industry;
    (5) To enhance the involvement of workers in making decisions that 
affect their working lives;
    (6) To expand and improve working relationships between workers and 
managers; and
    (7) To encourage free collective bargaining by establishing 
continuing mechanisms for communication between employers and their 
employees through Federal assistance in the formation and operation of 
labor-management committees.
    The primary objective of this program is to encourage and support 
the establishment and operation of joint labor-management committee's 
to carry out specific objectives that meet the forementioned general 
criteria. The term ``labor'' refers to employees represented by a labor 
organization and covered by a formal collective bargaining agreement. 
These committees may be found at either the plant (worksite), area, 
industry, or public sector levels. A plant or worksite committee is 
generally characterized as restricted to one or more organizational or 
productive units operated by a single employer. An area committee is 
generally composed of multiple employers of diverse industries as well 
as multiple labor unions operating within and focusing upon city, 
county, contiguous multicounty, or statewide jurisdictions. An industry 
committee generally consists of a collection of agencies or enterprises 
and related labor union(s) producing a common product or service in the 
private sector on a local, state, regional, or nationwide level. A 
public sector committee consists either of government employees and 
managers in one or more units of a local or state government, managers 
and employees of public institutions of higher education, or of 
employees and mangers of public elementary and secondary schools. Those 
employees must be covered by a formal collective bargaining agreement 
or other enforceable labor-management agreement. In deciding whether an 
application is for an area or industry committee, consideration should 
be given to the above definitions as well as to the focus of the 
committee.
    In FY 1996, competition will be open to plant, area, private 
industry, and public sector committees. Public Sector committees will 
be divided into two sub-categories for scoring purposes. Once sub-
category will consist of committees representing state/local units of 
government and public institutions of higher education. The second sub-
category will consist of public elementary and secondary schools.
    Special consideration will be given to committee applications 
involving innovative or unique efforts. All application budget requests 
should focus directly on supporting the committee. Applicants should 
avoid seeking funds for activities that are clearly available under 
other Federal programs (e.g., job training, mediation of contract 
disputes, etc.).
Required Program Elements
    1. Problem Statement--The application, which should have numbered 
pages, must discuss in detail what specific problem(s) face the plant, 
area, government, or industry and its workforce that will be addressed 
by the committee. Applicants must document the problem(s) using as much 
relevant data as possible and discuss the full range of impacts these 
problem(s) could have or are having on the plant, government, area, or 
industry. An industrial or economic profile of the area and workforce 
might prove useful in explaining the problem(s). This section basically 
discusses WHY the effort is needed.
    2. Results or Benefits Expected--By using specific goals and 
objectives, the application must discuss in detail WHAT the labor-
management committee as a demonstration effort will accomplish during 
the life of the grant. Applications that offer to provide objectives 
after a grant is awarded will receive little or no credit in this area. 
While a goal of ``improving communication between employers and 
employees'' may suffice as one over-all goal of a project, the 
objectives must, whenever possible, be expressed in specific and 
measurable terms. Applicants should focus on the impacts or changes 
that the committee's efforts will have. Existing committees should 
focus on expansion efforts/results expected from FMCS funding. The 
goals, objectives, and projected impacts will become the foundation for 
future monitoring and evaluation efforts.
    3. Approach--This section of the application specifies HOW the 
goals and objectives will be accomplished. At a minimum, the following 
elements must be included in all grant applications:
    (a) A discussion of the strategy the committee will employ to 
accomplish its goals and objectives;
    (b) A listing, by name and title, of all existing or proposed 
members of the labor-management committee. The application should also 
offer a rationale for the selection of the committee members (e.g., 
members represent 70% of the area or plant workforce).
    (c) A discussion of the number, type, and role of all committee 
staff persons. Include proposed position descriptions for all staff 
that will have to be hired as well as resumes for staff already on 
board;
    (d) In addressing the proposed approach, applicants must also 
present their justification as to why Federal 

[[Page 4777]]
funds are needed to implement the proposed approach;
    (e) A statement of how often the committee will meet as well as any 
plans to form subordinate committees for particular purposes; and
    (f) For applications from existing committees (i.e., in existence 
at least 12 months prior to the submission deadline), a discussion of 
past efforts and accomplishments and how they would integrate with the 
proposed expanded effort.
    4. Major Milestones--This section must include an implementation 
plan that indicates what major steps, operating activities, and 
objectives will be accomplished as well as a timetable for WHEN they 
will be finished. A milestone chart must be included that indicates 
what specific accomplishments (process and impact) will be completed by 
month over the life of the grant using October 1, 1996, as the start 
date. The accomplishment of these tasks and objectives, as well as 
problems and delays therein, will serve as the basis for quarterly 
progress reports to FMCS.
    5. Evaluation--Applicants must provide for either an external 
evaluation or an internal assessment of the project's success in 
meeting its goals and objectives.
    An evaluation plan must be developed which briefly discusses what 
basic questions or issues the assessment will examine and what baseline 
data the committee staff already has or will gather for the assessment. 
This section should be written with the application's own goals and 
objectives clearly in mind and the impacts or changes that the effort 
is expected to cause.
    6. Letters of Commitment--Applications must include current letters 
of commitment from all proposed or existing committee participants and 
chairpersons. These letters should indicate that the participants 
support the application and will attend scheduled committee meetings. A 
blanket letter signed by a committee chairperson or other official on 
behalf of all members is not acceptable. We encourage the use of 
individual letters submitted on company or union letterhead represented 
by the individual. The letters should match the names provided under 
section 3(b).
    7. Other Requirements--Applicants are also responsible for the 
following:
    (a) The submission of data indicating approximately how many 
employees will be covered or represented through the labor-management 
committee;
    (b) From existing committees, a copy of the existing staffing 
levels, a copy of the by-laws, a breakout of annual operating costs and 
identification of all sources and levels of current financial support;
    (c) A detailed budget narrative based on policies and procedures 
contained in the FMCS Financial and Administrative Grants Manual;
    (d) An assurance that the labor-management committee will not 
interfere with any collective bargaining agreements; and
    (e) An assurance that committee meetings will be held at least 
every other month and that written minutes of all committee meetings 
will be prepared and made available to FMCS.
Selection Criteria
    The following criteria will be used in the scoring and selection of 
applications for award:
    (1) The extent to which the application has clearly identified the 
problems and justified the needs that the proposed project will 
address.
    (2) The degree to which appropriate and measurable goals and 
objectives have been developed to address the problems/needs of the 
area. For existing committees, the extent to which the committee will 
focus on expanded efforts.
    (3) The feasibility of the approach proposed to attain the goals 
and objectives of the project and the perceived likelihood of 
accomplishing the intended project results. This section will also 
address the degree of innovativeness or uniqueness of the proposed 
effort.
    (4) The appropriateness of committee membership and the degree of 
commitment of these individuals to the goals of the application as 
indicated in the letters of support.
    (5) The feasibility and thoroughness of the implementation plan in 
specifying major milestone and target dates.
    (6) The cost effectiveness and fiscal soundness of the 
application's budget request, as well as the application's feasibility 
vis-a-vis its goals and approach.
    (7) The overall feasibility of the proposed project in light of all 
of the information presented for consideration; and
    (8) The value to the government of the application in light of the 
overall objectives of the Labor-Management Cooperation Act of 1978. 
This includes such factors as innovativeness, site location, cost, and 
other qualities that impact upon an applicant's value in encouraging 
the labor-management committee concept.

C. Eligibility

    Eligible grantees include state and local units of government, 
labor-management committees (or a labor union, management association, 
or company on behalf of a committee that will be created through the 
grant), and certain third party private non-profit entities on behalf 
of one or more committees to be created through the grant. Federal 
government agencies and their employees are not eligible.
    Third-party private, non-profit entities which can document that a 
major purpose or function of their organization has been the 
improvement of labor relations are eligible to apply. However, all 
funding must be directed to the functioning of the labor-management 
committee, and all requirements under Part B must be followed. 
Applications from third-party entities must document particularly 
strong support and participation from all labor and management parties 
with whom the applicant will be working. Applications from third-
parties which do not directly support the operation of a new or 
expanded committee will not be deemed eligible, nor will applications 
signed by entities such as law firms or other third parties failing to 
meet the above criteria.
    Applicants who received funding under this program in the past for 
committee operations are generally not eligible to apply. The only 
exceptions apply to third-party grantees who seek funds on behalf of an 
entirely different committee.

D. Allocations

    The FY 1996 appropriations for this program has not yet been 
approved. FMCS has been given a tentative allocation of approximately 
$1.25 million for this program. Although we expect this amount will not 
be changed significantly, FMCS reserves the right to amend this 
Solicitation should that occur. If that happens, the public will be 
notified by notice in the Federal Register. Specific funding levels 
will not be established for each type of committee. Instead, the review 
process will be conducted in such a manner that at least two awards 
will be made in each category (plant, industry, public sector, and 
area), providing that FMCS determines that at least two outstanding 
applications exist in each category. After these applications are 
selected for award, the remaining applications will be considered 
according to merit without regard to category. An additional $250,000 
has been reserved for the listed continuation of FY94-funded grantees.

[[Page 4778]]

    In addition to the competitive process identified in the preceding 
paragraph, FMCS will set aside a sum not to exceed thirty percent of 
its appropriation to be awarded on a non-competitive basis. These funds 
will be used only to support industry-specific national-scope 
initiatives and/or regional industry models with high potential for 
widespread replication.
    FMCS reserves the right to retain up to an additional five percent 
of the FY96 appropriation to contract for program support purposes 
(such as evaluation) other than administration.

E. Dollar Range and Length of Grants and Continuation Policy

    Awards to continue and expand existing labor-management committees 
(i.e., in existence 12 months prior to the submission deadline) will be 
for a period of 12 months. If successful progress is made during this 
initial budget period and if sufficient appropriations for expansion 
and continuation projects are available, these grants may be continued 
for a limited time at a 40 percent cash match ratio. Initial awards to 
establish new labor-management committees (i.e., not yet established or 
in existence less than 12 months prior to the submission deadline), 
will be for a period of 18 months. If successful progress is made 
during this initial budget period and if sufficient appropriations for 
expansion and continuation projects are available, these grants may be 
continued for a limited time at a 40 percent cash match ratio.
    The dollar range of awards is as follows:

--Up to $35,000 in FMCS funds per annum for existing inplant 
applicants;
--Up to $50,000 over 18 months for new in-plant committee applicants;
--Up to $75,000 in FMCS funds per annum for existing area, industry and 
public sector committees applicants;
--Up to $100,000 per 18-month period for new area, industry, and public 
sector committee applicants.

    Applicants are reminded that these figures represent maximum 
Federal funds only. If total costs to accomplish the objectives of the 
application exceed the maximum allowable Federal funding level and its 
required grantee match, applicants may supplement these funds through 
voluntary contributions from other sources.

F. Match Requirements and Cost Allowability

    Applicants for new labor-management committees must provide at 
least 10 percent of the total allowable project costs. Applicants for 
existing committees must provide at least 25 percent of the total 
allowable project costs. All matching funds may come from state or 
local government sources or private sector contributions, but may 
generally not include other Federal funds. Funds generated by grant-
supported efforts are considered ``project income,'' and may not be 
used for matching purposes.
    It will be the policy of this program to reject all requests for 
indirect or overhead costs as well as ``in-kind'' match contributions. 
In addition, grant funds must not be used to supplant private or local/
state government funds currently spent for these purposes. Funding 
requests from existing committees should focus entirely on the costs 
associated with the expansion efforts. Also, under no circumstances may 
business or labor officials participating on a labor-management 
committee be compensated out of grant funds for time spent at committee 
meetings or time spent in training sessions. Applicants generally will 
not be allowed to claim all or a portion of existing staff time as an 
expense or match contribution.
    For a more complete discussion of cost allowability, applicants are 
encouraged to consult the FY96 FMCS Financial and Administrative Grants 
Manual which will be included in the application kit.

G. Application Submission and Review Process

    Applications should be signed by both a labor and management 
representative and be postmarked no later than May 4, 1996. No 
applications or supplementary materials can be accepted after the 
deadline. It is the responsibility of the applicant to ensure that the 
application is correctly postmarked by the U.S. Postal Service or other 
carrier. An original application containing numbered pages, plus three 
copies, should be addressed to the Federal Mediation and Conciliation 
Service, Labor-Management Program Services, 2100 K Street, NW., 
Washington, DC 20427. FMCS will not consider videotaped submissions or 
video attachments to submissions.
    After the deadline has passed, all eligible applications will be 
reviewed and scored initially by one or more Customer Review Boards. 
The Board(s) will recommend selected applications for further funding 
consideration. The Director, Labor-Management Program Services, will 
finalize the scoring and selection process. The individual listed as 
contact person in Item 6 on the application form will generally be the 
only person with whom FMCS will communicate during the application 
review process.
    All FY96 grant applicants will be notified of results and all grant 
awards will be made before September 30, 1996. Applications submitted 
after the May 4 deadline date or that fail to adhere to eligibility or 
other major requirements will be administratively rejected by the 
Director, Labor-Management Program Services.

H. Contact

    Individuals wishing to apply for funding under this program should 
contact the Federal Mediation and Conciliation Service as soon as 
possible to obtain an application kit. These kits and additional 
information or clarification can be obtained free of charge by 
contacting Karen Pierce or Linda Stubbs, Federal Mediation and 
Conciliation Service, Labor-Management Program Services, 2100 K Street 
NW., Washington, DC 20427; or by calling 202-606-8181.
John Calhoun Wells,
Director, Federal Mediation and Conciliation Service.
[FR Doc. 96-2736 Filed 2-7-96; 8:45 am]
BILLING CODE 6732-01-M