**FEDERAL MEDIATION CONCILIATION SERVICE**

**LABOR-MANAGEMENT COOPERATION PROGRAM**

**APPLICATION SOLICITATION FOR LABOR-MANAGEMENT COMMITTEES FY2007**

A. **[INTRODUCTION]{.underline}**

> The following is the final 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]{.underline}**

> [Objectives]{.underline}
>
> 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 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]{.underline} - 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]{.underline} the effort is needed.

2\. [Results or Benefits Expected]{.underline} - By using specific goals
and objectives, the application must discuss in detail
[WHAT]{.underline} the labor-management committee will accomplish during
the life of the grant. Applications that promise to provide

objectives [after]{.underline} 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]{.underline} and [measurable]{.underline} terms. Applicants
should focus on the outcome, impacts or changes that the committee\'s
efforts will have. Existing committees should focus on
[expansion]{.underline} 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]{.underline} - This section of the application specifies
[HOW]{.underline} 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]{.underline} - 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]{.underline} 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]{.underline} - 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]{.underline} - Applications must include
current letters of commitment from [all]{.underline} 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]{.underline} - 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 annual operating costs and
>
> identification of all sources and levels of current financial support;
>
> \(c\) a detailed budget narrative that [clearly
> identifies]{.underline} 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]{.underline} for an
> eight-hour-day. The day includes preparation, evaluation and travel
> time. Also, time and effort records must be maintained.

[Selection Criteria]{.underline}

> 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]{.underline}
> 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]{.underline}**

> 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]{.underline} 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]{.underline} (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]{.underline}**

> 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]{.underline}**

> 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]{.underline}**. 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 ([www.fmcs.gov](http://www.fmcs.gov/)) under "Who We Are".

F. **[Cash Match Requirements and Cost Allowability]{.underline}**

> 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 is the policy of this program to reject all requests for [indirect
> or overhead]{.underline} costs as well as [\"in-kind\"]{.underline}
> 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]{.underline} spent at committee meetings or
> [time]{.underline} spent in committee training sessions. Applicants
> generally will not be allowed to claim all or a portion of
> [existing]{.underline} 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]{.underline}**

The Application for Federal Assistance (SF-424) form must be signed by
[both]{.underline} 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]{.underline}** copies, should be addressed to the Federal
Mediation and Conciliation Service, Labor-Management Grants Program,
2100 K Street, NW, Washington, D.C. 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]{.underline}**

> 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, D.C.
> 20427, Linda Stubbs at (202) 606-8181 (<lstubbs@fmcs.gov>).

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 (www.fmcs.gov) to
download forms and information.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

**Fran Leonard**

**Director, Budget and Finance**

**Federal Mediation and Conciliation Service**