[Federal Register Volume 72, Number 63 (Tuesday, April 3, 2007)]
[Notices]
[Pages 15881-15884]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 07-1554]


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FEDERAL MEDIATION AND CONCILIATION SERVICE


Labor Management Cooperation Act of 1978 (Pub. L. 95-524)

AGENCY: Federal Mediation and Conciliation Service.

ACTION: Request for public comment on draft Fiscal Year 2007, program 
guidelines/application solicitation for labor-management committees.

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SUMMARY: The Federal Mediation and Conciliation Service (FMCS) is 
publishing a draft Fiscal Year 2007 Program Guidelines/Application 
Solicitation for the Labor-Management Cooperation Program. The program 
is supported by Federal funds authorized by the Labor-Management 
Cooperation Act of 1978, subject to annual appropriations. This 
solicitation contains a change in the deadline for accepting 
applications.

DATES: Written comments must be submitted to the office listed in the 
ADDRESSES section below within 30 days from the date of this 
publication in the Federal Register.

ADDRESSES: Michael Bartlett, Federal Register Liaison, Federal 
Mediation and Conciliation Service, 2100 K Street, NW., Washington, DC 
20427. Comments may be submitted by fax at (202) 606-5345 or electronic 
mail (e-mail) to [email protected]. All comments and data in 
electronic form must be identified by the appropriate agency form 
number.

FOR FURTHER INFORMATION CONTACT: Linda Stubbs, Grants Management 
Specialist, FMCS, 2100 K Street, NW., Washington, DC 20427. Telephone 
number 202-606-8181, e-mail to [email protected] or fax at (202) 606-
3434.

A. Introduction

    The following is the draft Solicitation for the Fiscal Year (FY) 
2007 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 
FY1981. 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.

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

[[Page 15882]]

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 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 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 FY2007, 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; an assurance that grant funds will 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 ``month one'' 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.
    Applicants must prepare their budget narrative and milestone chart 
using a start date of ``month one'' and an end date of ``month twelve'' 
or ``month eighteen'', as appropriate. Thus, if applicant is seeking a 
twelve month grant, use figures reflecting month one through twelve. If 
applicant is seeking an eighteen month grant, use figures reflecting 
month one through eighteen. If the grant application is funded; FMCS 
will identify the start and end date of the grant on the Application 
for Federal Assistance (SF-424) form.
    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 (if any), a breakout of

[[Page 15883]]

annual operating costs and identification of all sources and levels of 
current financial support;
    (c) A detailed budget narrative that clearly identifies each line 
item and the estimated cost (a complete breakdown of each line item) 
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;
    (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; and
    (f) An assurance that the maximum rate for an individual consultant 
paid from grant project can be no more than $950 for an eight-hour-day. 
The day includes preparation, evaluation and travel time. Also, time 
and effort records must be maintained.

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 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, and 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 last 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 FY2007 appropriation for this program is $396,000. The Grant 
Review Board will review submissions and make recommendations for 
awards based on merit without regard to category.
    In addition, to the competitive process identified in the preceding 
paragraph, FMCS will subject to funds availability, 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.

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 grant funds 
are not obligated within the specified period, these grants may, at the 
discretion of FMCS, be extended for up to six months.
    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.

    Additionally, FMCS reserves the right under special conditions to 
award supplemental (continuation) grants subject to funds availability. 
If awarded the additional amount is added to the current grant amount.
    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 may be obtained from the 
FMCS Web site (http://www.fmcs.gov) under ``Who We Are''.

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 may 
generally not include other Federal funds. Funds generated by grant-
supported efforts are considered

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``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 FY2007 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. The individual 
listed as contact person in block 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 
once the application has been submitted. Additionally, it is the 
applicant's responsibility to notify FMCS in writing of any changes 
(e.g. if the address or contact person has changed).
    We will accept applications beginning May 1, 2007, and continue to 
do so until July 31, 2008, or until all FY2007 grant funds are 
obligated. Awards will be made by September 30, 2008. Proposals may be 
accepted at any time between April 1, 2007 and July 31, 2008, but 
proposals received late in the cycle have a greater risk of not being 
funded due to unavailability of funds. Once your application has been 
received and acknowledged by FMCS, no applications or supplementary 
materials will be accepted thereafter. Applicants are highly advised to 
contact the FMCS Grants Program prior to committing any resources to 
the preparation of a proposal.
    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. FMCS will confirm receipt of all 
applications within 10 days thereof.
    All eligible applications will be reviewed and scored by a Grant 
Review Board. The Board(s) will recommend selected applications for 
rejection or further funding consideration. The Director or his/her 
designee will finalize the scoring and selection process. All FY2007 
grant applicants will be notified of results and all grant awards will 
be made by September 30, 2008. Applications that fail to adhere to 
eligibility or other major requirements will be administratively 
rejected by the Director or his/her designee.

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 
(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, 
Linda Stubbs at (202) 606-8181 ([email protected]).
    Additionally, we are currently accepting applications for FY2006 
grant cycle and will do so until July 31, 2007 or until all FY2006 
funding has been obligated. Please consult the FMCS Web site (http://www.fmcs.gov) to download forms and information.

Fran Leonard,
Director, Budget and Finance, Federal Mediation and Conciliation 
Service.
[FR Doc. 07-1554 Filed 4-2-07; 8:45 am]
BILLING CODE 6732-01-P