[Federal Register Volume 68, Number 242 (Wednesday, December 17, 2003)]
[Notices]
[Pages 70265-70268]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-31032]


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

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 2004 Program 
Guidelines/Application Solicitation for Labor-Management Committees.

-----------------------------------------------------------------------

SUMMARY: The Federal Mediation and Conciliation Service (FMCS) is 
publishing the draft Fiscal Year 2004 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. The Solicitation contains changes in the eligibility 
requirement, specifically, that applicants who have not received 
funding under this program within the past 6 years are eligible to re-
apply.

DATES: Comments must be submitted on or before January 16, 2004.

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, 202-271-8868.

Labor-Management Cooperation Program Application Solicitation for 
Labor-Management Committees FY 2004

A. Introduction

    The following is the final solicitation for the Fiscal Year (FY) 
2004 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 organization 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.

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 aforementioned 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 of government employees and 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

[[Page 70266]]

given to the above definitions as well as to the focus of the 
committee.
    In FY 2004, 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
    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 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; noting, that grant funds may not be used to pay for existing 
employees
    (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 October 1, 2004, 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 
committees;
    b. 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;
    (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 
problem 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

[[Page 70267]]

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-managment 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 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.
    Successful grantees will be bound by OMB Circular 110, i.e., 
``contractors 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 within the past 
6 years for committee operations are not eligible to re-apply. The only 
exception will be made for grantees that seek funds on behalf of an 
entirely different committee whose efforts are totally outside of the 
scope of the original grant.

D. Allocations

    The FY2004 appropriation for this program anticipated to be 
$1,490,250 of which at least $1,000,000-$1,050,000 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), 
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 FY2004 
appropriation to contract for program support purposes (such as 
evaluation) other than administration.

E. 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 grants 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:

--Up to $65,000 over a period of up to 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 in cash. Matching funds may come from state or 
local government sources or private sector contributions, but many 
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 is 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 FY2004 FMCS Financial and Administrative Grants Manual, 
which will be included in the application kit.

G. 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 30, 2004. 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

[[Page 70268]]

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 2004.
    All FY2004 grant applicants will be notified of results and all 
grant awards will be made before October 1, 2003. Applications 
submitted after the June 30 deadline date or 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. Please consult the FMCS Web site 
(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.

John J. Toner,
Chief of Staff, Federal Mediation and Conciliation Service.
[FR Doc. 03-31032 Filed 12-16-03; 8:45 am]
BILLING CODE 6732-01-M