[Federal Register Volume 63, Number 9 (Wednesday, January 14, 1998)]
[Notices]
[Pages 2241-2244]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-913]


=======================================================================
-----------------------------------------------------------------------

FEDERAL MEDIATION AND CONCILIATION SERVICE


Labor-Management Cooperation Program Application Solicitation for 
Labor-Management Committees FY1998

A. Introduction

    The following is the final solicitation for the Fiscal Year (FY) 
1998 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 company/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 company/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 
company/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 company/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 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 (company), area, 
industry, or public sector levels. A plant or company 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 1998, competition will be open to company/plant, area, 
private industry, and public sector committees. Public Sector 
committees will be

[[Page 2242]]

divided into two 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 company/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 company/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 promise 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 outcome, 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 of the grantee, as well as the FMCS grants program.
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 company/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, 1998, 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 
applicant.
    (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.

[[Page 2243]]

    (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 1998 appropriation for this program is $1.5 million, 
of which at least $750,000 will be available competitively 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 
(company/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 FY96-
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 FY98 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 extended 
or 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 extended or 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 company/plant or 
single department public sector applicants;
--Up to $50,000 over 18 months for new company/plant committee or 
single department public sector applicants;
--Up to $75,000 in FMCS funds per annum for existing area, industry and 
multi-departmental public sector committee applicants;
--Up to $100,000 per 18-month period for new area, industry, and multi-
departmental 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 
office 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. Cash 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 full-time staff as 
an expense or match contribution. For a more complete discussion of 
cost allowability, applicants are encouraged to consult the FY98 FMCS 
Financial and Administrative Grants Manual which will be included in 
the application kit.

[[Page 2244]]

G. Application Submission and Review Process

    Applications should be signed by both a labor and management 
representative and be postmarked no later than May 2, 1998. 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 Grants Program, 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 Grant Review 
Boards. The Board(s) will recommend selected applications for further 
funding consideration. The Director, Labor-Management Grants Program, 
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 FY98 grant applicants will be notified of results and all grant 
awards will be made before September 15, 1998. Applications submitted 
after the May 2 deadline date or that fail to adhere to eligibility or 
other major requirements will be administratively rejected by the 
Director, Labor-Management Grants Program.

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 the Federal Mediation and Conciliation Service, Labor-
Management Grants Program, 2100 K Street, NW., Washington, DC 20427; or 
by calling 202-606-8181.
John Calhoun Wells,
Director, Federal Mediation and Conciliation Service.
[FR Doc. 98-913 Filed 1-13-98; 8:45 am]
BILLING CODE 6732-01-M