[Federal Register Volume 61, Number 243 (Tuesday, December 17, 1996)]
[Notices]
[Pages 66277-66280]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-31916]


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FEDERAL MEDIATION AND CONCILIATION SERVICE


Labor-Management Cooperation Program; Application Solicitation 
for Labor-Management Committees FY 1997

A. Introduction

    The following is the final solicitation for the Fiscal Year (FY) 
1997 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 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 and an optional 
video tape 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 
employers 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 committees 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), areas, 
industry, or public sector levels.

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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 managers 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 1997, competition will be open to plant, area, private 
industry, and public sector committees. Public Sector committees will 
be divided into the sub-categories for scoring purposes. One 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 funds are needed to 
implement the proposed approach;
    (e) A statement of how often the committee will meet (we require 
meetings at least every other month) 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 September 15, 1997, 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

[[Page 66279]]

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 the 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 milestones 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 total FY 1997 appropriation for this program is $1.5 million, 
of which at least $725,000 will be available competively for new 
applicants. 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. A maximum of $400,000 of the $1.5 million 
appropriation has been reserved for the limited continuation of FY95-
funded grantees.
    In addition to the competitive process identified in the preceding 
paragraph, FMCS will set aside a sum not to exceed thirty percent of 
its non-reserved 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 that have been solicited by the 
Director of the Service.
    FMCS reserves the right to retain up to an additional five percent 
of the FY97 appropriation to contract for program support purposes 
(such as evaluation) other than administration. In addition, $25,000 
has been reserved to support the Ninth National Labor-Management 
Conference which will be held in Chicago on April 7-9, 1998.

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 in-
plant or single department public sector applicants;
     Up to $50,000 over 18 months for new in-plant committee or 
single department public sector applicants;
     Up to $75,000 in FMCS funds per annum for existing area, 
industry and multi-department public sector committees applicants;
     Up to $100,000 per 18-month period for new area, industry, 
and multi-department 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. Applicants are also 
strongly encouraged to consult with their local or regional FMCS field 
offices to determine what kinds of training may be available at no cost 
before budgeting for such training in their applications. A list of our 
field leadership team and their phone numbers is included in the 
application kit.

F. Match Requirements and Cost Allowability

    Applicants for new labor-management committees must provide at 
least 10

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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 their 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 
full-time staff time as an expense or match contribution.
    For a more complete discussion of cost allowability, applicants are 
encouraged to consult the FY97 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 April 19, 1997. No 
application 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, D.C. 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 FY97 grant applicants will be notified of results and all grant 
awards will be made before September 15, 1997. Applications submitted 
after the April 19 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.
    An optional video tape, entitled ``How to Apply for a Grant From 
FMCS'', is also available. The tape, however, will only be sent out 
after we receive a specific written request for the video.
John Calhoun Wells,
Director, Federal Mediation and Conciliation Service.
[FR Doc. 96-31916 Filed 12-16-96; 8:45 am]
BILLING CODE 6732-01-M