[Federal Register Volume 65, Number 221 (Wednesday, November 15, 2000)]
[Notices]
[Pages 69016-69018]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-29026]



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FEDERAL MEDIATION AND CONCILIATION SERVICE


Federal Mediation and Conciliation Service Labor-Management 
Cooperation Program; Application Solicitation

AGENCY: Federal Mediation and Conciliation Service.

ACTION: Draft Fiscal Year 2001 Program Guidelines/Application 
Solicitation for Labor-Management Committees.

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SUMMARY: The Federal Mediation and Conciliation Service (FMCS) is 
publishing the draft Fiscal Year 2001 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. This Solicitation contains changes in the length of 
time for the grant budget period.

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

A. Introduction

    The following is the draft solicitation for the Fiscal Year (FY) 
2001 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 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 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 a 
particular city, county, contiguous multicounty, or statewide 
jurisdiction. 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 2001, competition will be open to company/plant, area, 
private industry, and public sector committees. Public Sector 
committees will be 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 should have numbered pages 
and 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 will accomplish during the life of the grant. 
Applications that promise to provide

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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, 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 17, 2001, 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.
    (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 that can document that a 
major purpose or function of their organization is 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 with 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

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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 grantees who seek funds on behalf of an entirely 
difference committee whose efforts are totally outside of the scope of 
the original grant.

D. Allocations

    The FY 2001 appropriation for this program is expected to be $1.5 
million, of which at least $1,000,000 will be available competitively 
for new applicants. Specific funding levels will not be established for 
each type of committee. 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.
    In addition to the competitive process identified in the preceding 
paragraph, FMCS will set aside a sum not to exceed thirty percent of 
its nonreserved appropriation to be awarded on an non-competitive 
basis. These funds will be used only to support applications that have 
been solicited by the Director of the Service and are not subject to 
the dollar range noted in Section E.
    FMCS reserves the right to retain up to five percent of the FY2001 
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 expand existing or establish new labor-management 
committees will be for a period of 18 months. If successful progress is 
made during this initial budget period and all grant funds are not 
obligated within 18 months, these grants may be extended for up to six 
months. No continuation awards will be made.
    The dollar range of awards is as follows:
     Up to $65,000 over 18 months for company/plant committees 
or single department public sector applicants;
     Up to $125,000 per 18-month period for 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 
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

    All applicants must provide at least 10 percent of the total 
allowable project costs. 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 committee 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 committee 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 FY2001 FMCS Financial and Administrative Grants Manual 
which will be included in the application kit.

G. Application Submission and Review Process

    Applications must be signed by both a labor and management 
representative and be postmarked or electronically transmitted no later 
than May 19, 2001. 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, D.C. 20427. FMC will not consider 
videotaped submissions or video attachments to submissions. Those 
wishing to send their application by e-mail should consult the FMCS web 
site (www.fmcs.gov) to determine how and if to proceed.
    After the deadline has passed, all eligible applications will be 
reviewed and scored initially by one or more Grant Review Boards. The 
Board(s) will recommend selected applications for rejection or further 
funding consideration. The Director, 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 FY2001 grant applicants will be notified of results and all 
grants awards will be made before September 15, 2001. Applications 
submitted after the May 19 deadline date or that fail to adhere to 
eligibility or other major requirements will be administratively 
rejected by the Director, 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. Please consult the FMCS web site 
(www.fmcs.gov) to determine when/if the application can be submitted 
electronically.
    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.

C. Richard Barnes,
Director, Federal Mediation and Conciliation Service.
[FR Doc. 00-29026 Filed 11-14-00; 8:45 am]
BILLING CODE 6732-01-M