[Federal Register Volume 68, Number 17 (Monday, January 27, 2003)]
[Notices]
[Pages 3882-3885]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-1695]


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FEDERAL MEDIATION AND CONCILIATION SERVICE


Labor-Management Cooperation Program; Application Solicitation

AGENCY: Federal Mediation and Conciliation Service.

ACTION: Request for public comment on draft Fiscal Year 2003 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 2003 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 allocation of 
all grant funds returned to FMCS.

DATES: Comments must be submitted before February 26, 2003.

ADDRESSES: Send comments to: Jane A. Lorber, Director, Labor Management 
Grants Program, FMCS, 2100 K Street, NW., Washington, DC 20427.

FOR FURTHER INFORMATION CONTACT: Jane A. Lorber, 202-606-8181.

Labor-Management Cooperation Program Application Solicitation for 
Labor-Management Committees FY2003

I. Introduction

    The following is the draft solicitation for the Fiscal Year (FY) 
2003 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 working lives, 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.

II. Program Description

Objectives

    The Labor-Management Cooperation Act of 1978 identifies the 
following seven general areas for which financial assistance would be 
appropriate to:
    A. Improve communication between representatives of labor and 
management;
    B. Provide workers and employers with opportunities to study and 
explore new and innovative joint approaches to achieving organizational 
effectiveness;
    C. Assist workers and employers in solving problems of mutual 
concern not susceptible to resolution within the collective bargaining 
process;
    D. Study and explore ways of eliminating potential problems which 
reduce the competitiveness and inhibit the economic development of the 
company/plant, area, or industry;
    E. Enhance the involvement of workers in making decisions that 
affect their working lives;
    F. Expand and improve working relationships between workers and 
managers; and
    G. 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 
fore mentioned 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 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 multi-county, 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 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 2003, competition will be open to company/plant, area, 
private industry, and public sector committees. 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

    A. 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

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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.
    B. 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 objectives after a grant is 
awarded will receive little or not 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.
    C. 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.
    1. A discussion of the strategy the committee will employ to 
accomplish its goals and objectives;
    2. 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).
    3. 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; noting, that grant funds may not be used to pay for existing 
employees.
    4. In addressing the proposed approach, applicants must also 
present their justification as to why Federal funds are needed to 
implement the proposed approach;
    5. 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
    6. For applications from existing committees, a discussion of past 
efforts and accomplishments and how they would integrate with the 
proposed expanded effort.
    D. 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, 2003, 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.
    E. 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.
    F. 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 C.2 of the Required Program Elements section above.
    G. Other Requirements--Applicants are also responsible for the 
following:
    1. The submission of data indicating approximately how many 
employees will be covered or represented through the labor-management 
committee;
    2. From existing committees, a copy of the existing staffing 
levels, a copy of the by-laws (if any), a breakout of annual operating 
costs and identification of all sources and levels of current financial 
support;
    3. A detailed budget narrative based on policies and procedures 
contained in the FMCS Financial and Administrative Grants Manual;
    4. An assurance that the labor-management committee will not 
interfere with any collective bargaining agreements; and
    5. 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:
    A. The extent to which the application has clearly identified the 
problems and justified the needs that the proposed project will 
address.
    B. The degree to which appropriate and measurable goals and 
objectives has been developed to address the problems/needs of the 
applicant.
    C. 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.
    D. 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.
    E. The feasibility and thoroughness of the implementation plan in 
specifying major milestones and target dates.
    F. The cost effectiveness and fiscal soundness of the application's 
budget request, as well as the application's feasibility vis-[agrave]-
vis its goals and approach.
    G. The overall feasibility of the proposed project in light of all 
of the information presented for consideration.
    H. 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.

III. 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 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

[[Page 3884]]

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 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 the applications signed by entities such as law firms or other 
third parties failing to meet the above criteria.
    OMB Circular 110 will bind successful grantees, i.e. individuals 
``that develop or draft specifications, requirements, statements of 
work, invitations for bids and/or requests for proposals shall be 
excluded (emphasis added) from competing for such procurements.''
    Applicants who received funding under this program in the past for 
committee operations are not eligible to re-apply. An exception may be 
made for grantees that seek funds on behalf of entirely different 
committee members whose efforts are totally outside of the scope of the 
original grant.

IV. Allocations

    The FY2003 appropriation for this program anticipated to be $1.5 
million, of which at least $1,000,000 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), provided 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 non-reserved appropriation to be awarded on a 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. All funds returned to FMCS from a 
competitive grant award may be awarded on a non-competitive basis in 
accordance with budgetary requirements.
    FMCS reserves the right to retain up to five percent of the FY2003 
appropriation to contract for program support purposes (such as 
evaluation) other than administration.

V. Dollar Range and Length of Grants

    Awards to expand existing or establish new labor-management 
committees will be for a period of up to 18 months. If successful 
progress is made during this initial budget period and all grant funds 
are not obligated within the specified period, these grants may be 
extended for up to six months. Continuation awards may be made.
    The dollar range of awards is as follows:
    [sbull] Up to $65,000 over a period of up to 18 months for company/
plant committees or single department public sector applicants;
    [sbull] 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.

VI. Cash Match Requirements and Costs

    All applicants must provide at least 10 percent of the total 
allowable project costs in cash. 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 costs allowed, applicants are encouraged to 
consult the FY2003 FMCS Financial and Administrative Grants Manual, 
which will be included in the application kit.

VII. Application Submission and Review Process

    The Application for Federal Assistance (SF-424) form must be signed 
by both a labor and management representative. In lieu of signing the 
SF-424 form representatives may type their name, title, and 
organization on plain bond paper with a signature line signed and 
dated, in accordance with block 18 of the SF-424 form. Applications 
must be postmarked no later than June 28, 2003. No applications or 
supplementary materials will be accepted after the deadline. It is the 
responsibility of the applicant to ensure that the U.S. Postal Service 
or other carrier correctly postmarks the application. 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 preliminarily by one or more Grant Review Boards. 
The Board(s) will recommend selected applications for rejection or 
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. Please be sure that person is 
available between June and September of 2003.
    All FY2003 grant applicants will be notified of results and all 
grant awards will be made before October 1, 2003. Director, Labor-
Management Grants Program, will administratively reject applications 
submitted after the June 28 deadline date or those that fail to adhere 
to eligibility or the other major requirements.

VIII. Contact

    Individuals wishing to apply for funding under this program should

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contact the Federal Mediation and Conciliation Service as soon as 
possible to obtain an application kit. Please consult the FMCS Web site 
(http:/www.fmcs.gov) to download forms and information.
    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.

    Dated: January 13, 2003.
John J. Toner,
Chief of Staff, Federal Mediation and Conciliation Service.
[FR Doc. 03-1695 Filed 1-24-03; 8:45 am]
BILLING CODE 6732-01-M