Activity 2. LABOR-MANAGEMENT POLICY DEVELOPMENT

(1972, $1,353,000, Pos. 25; 1973, $1,666,000, Pos. 25)

The primary goal of this activity is to evolve policies responsive to current and anticipated future developments in labor-management relations. The Office of Labor-Management Policy Development conducts research and contracts for research needed for policy recommendations on legislative or Executive action to promote effective labor-management relations, including problems under the various laws and Executive Orders for which the Assistant Secretary for Labor-Management Relations has administrative responsibility. The Office also renders assistance to the Solicitor of Labor and the Department of Justice in litigation arising under the two disclosure laws.

In 1971, the program of research and related services in the public sector labor relations area was toward a long-term goal of bringing the Department's contributions to the public sector to a level commensurate with comparable services to the private sector.

In addition to supplying continuing staff support to the Assistant Secretary for Labor-Management Relations, the Office of Labor-Management Policy Development in fiscal year 1971 completed and published two major research studies which showed the relationship between minority employment and the apprenticeship and work referral systems in the construction industry. These were "Exclusive Union Work Referral Systems in the Building Trades" and "Admission and Apprenticeship in the Building Trades Unions". Studies were initiated of union election cases under the Labor-Management Reporting and Disclosure Act closed in 1966-70, of the rights and obligations of retired union members, and of the administrative costs of welfare and pension plans for the purposes of aiding in the resolution of policy problems under the Labor-Management Reporting and Disclosure Act and Welfare and Pension Plans Disclosure Act.

In 1972, the Office of Labor-Management Policy Development will complete such research projects as the following: studies of the relationship of merit systems to collective bargaining in State and local governments; union election cases closed under the Labor-Management Reporting and Disclosure Act in 1966-70; the administrative expenses of welfare and pension plans; the rights and obligations of retired union members; the termination of multi-employer pension plans; information given to pension plan participants through booklets issued by the plan administrators; and the status of state civil service associations. Plans will be developed for a program of research in support of the responsibilities of the Assistant Secretary under Executive Order 11491, and a study of jointly administered funds existing under the Taft-Hartley Act, which do not report under the Welfare and Pension Plans Disclosure Act and of funds which are jointly administered outside the framework of Taft-Hartley. In addition, studies wil be initiated on voluntary arbitration of contract terms, incentive pay plans and the experience of two States in bargaining with public employees. Cooperation will be given to the Bureau of Labor Statistics and the Internal Revenue Service in the planning and funding of a study of pension plan terminations.

Financing of the Construction Industry Collective Bargaining Commission has been initiated as a responsibility under this activity.

This activity is also administering a program of contract research, primarily with the Bureau of Labor Statistics for such purpose as the following:

1.

Federal agreement study. The provisions of 600 to 700 contracts covering Federal employees are being analyzed as to subjects covered, relating contract provisions to the size of the unit, to the blue collar units, the white collar units, and the mixed units.

2. Strike studies. A study to focus on strikes occurring during the term of collective bargaining agreements is being made. In recent years almost one-third of all work stoppages occurred before the agreements expired. The study will analyze the characteristics of such situations during a recent period, identify the reasons for the stoppages, and

3.

attempt to ascertain whether the growing number of strikes is attributable to deficiencies in the grievance and arbitration procedures, or some other factors.

Also, a study is being made of the incidence during recent years of strikes arising during the renegotiation of agreements covering 1,000 workers or more. The objective of this study is to determine the feasibility of developing a new measure of strike activity.

State and local public sector studies. This project involves the analysis of collective bargaining agreements in State and county jurisdictions; the study of collective bargaining agreements of police and firemen in State and major local jurisdictions; a study of municipal collective bargaining agreements; and a study of municipal labor relations practices. All of these efforts are intended to expand and enhance our ability to respond to an increasing number of information and technical assistance requests from the State and local labor-management relations arena.

In 1973, major efforts will be directed along the lines laid out in the previous year, with emphasis on improving public sector labor relations, reduction of conflict, supplying technical services and supportive studies to program evaluators, and research relating to the private pension system. The objective in fiscal year 1973 is to obtain better research for use in policy development and for use in other Labor-Management Services Administration activities such as the Office of Labor-Management Relations Services.

Mandatory changes provide for within-grade promotion costs effective for part-year in 1972 and those becoming effective in 1973, increased costs for centralized services, penalty mail, Federal Telecommunications System services and increased contributions to the Federal Employees' Compensation Fund, and a decrease in the amount of two non-recurring extra days of pay.

Research in Labor-Management Relations Areas

Proposal: To provide financing of contractual studies and services.

The Need:

The Department of Labor's current research activities are inade

quate in the following important areas:

1.

2.

3.

Public sector labor relations. The increasing level of unionization
and collective bargaining activity in the public sector (accompanied by
a commensurate increase in disputes and disruptions in vital public
services) exerts compelling pressures on the Department to expand its
program of research and related services designed to meet the needs of
Federal, State and local governmental authorities and the organizations
with which they deal.

Pension research. Available data on the operation and impacts of the private pension system are deficient in many respects. The Department of Labor has been handicapped in developing legislative proposals and in reacting to the multiplicity of bills by a lack of factual data. Collective bargaining and economic stability. Labor relations during a period of economic restraint are likely to confront the collective bargaining parties and the Government with new challenges and with many difficult policy questions. Of particular importance, for long-range

economic objectives, is the opportunity to advance "productivity bargaining", through such approaches as modification of work rules, increased use of incentives and establishment of joint labor-management productivity committees (as in the recent U. S. Steel agreement). These developments require careful study, so that the Department will be in a position to assess their effectiveness and to encourage the extension of successful practices.

In November, 1971, the Secretary of Labor conducted a three-day Conference on State and Local Government Labor Relations during which representatives of the States and municipalities urged that more wage data, fringe benefit information, and contract analyses be supplied by the Department of Labor to aid the Government and employee representatives in the collective bargaining process. It was also apparent during the Conference that although there is an abundance of information available describing the various patterns of legislation governing State and local labor relations, there has been little rigorous analysis on a uniform comparative basis of the experience under these various patterns. Approximately one-third of the proposed increase would be devoted to the tasks of data gathering and comparative analyses. Another one-third of the proposed increase would be used for pension research. While the Departments of the Treasury, and Health, Education and Welfare and other segments of the Labor Department, such as the Bureau of Labor Statistics and the Manpower Administration, have made studies--sometimes on a crash basis in response to pressures related to current legislative proposals-the Labor-Management Services Administration needs funds for more extensive studies and for studies related more specifically to such problems as the application of pension plans to reemployed veterans, and the effectiveness or ineffectiveness of the Welfare and Pension Plans Disclosure Act in giving employees knowledge of their rights under pension plans.

The remainder would be used for studies of incentive systems and their relationship to the national objective of increasing productivity.

The Program: It is proposed to supplement the existing research activities with a series of studies designed to collect, analyze, and disseminate data to satisfy, in part, the needs identified above.

Activity 3. ADMINISTRATION OF REPORTING AND DISCLOSURE LAWS

(1972, $12,060,000, Pos. 662; 1973, $14,070,000, Pos. 712)

Includes the Department's functions in the administration of the LaborManagement Reporting and Disclosure Act, the Welfare and Pension Plans Disclosure Act, and Section 18 of Executive Order 11491 (standards of conduct for labor organizations), and the Department's cooperation in the President's program against organized crime.

In 1971, significant time was expended on efforts to ease the burden on the public in complying with the Acts. Regulations were amended to rescind the requirement for the filing of information on employee welfare or pension benefit plan covering fewer than 100 participants. This action caused a decrease of more than 28,000 reports received under the Welfare and Pension Plans Disclosure Act, but the net decrease in total number of reports received was only a few thousand because of the increase due to the first year coverage of Federal employee unions under Executive Order 11491.

The increased number of reports validated included a large number of welfare and pension reports which received only a partial examination. The large number of delinquency notices mailed, more than double the previous year, were possible through the extension of automatic data processing procedures to welfare and pension reports. Desk audits of financial reports filed under both Acts increased more than forty percent over 1970 and, as a result of inquiries from the public, analyses of welfare and pension reports increased over five-fold.

Sixty-one individuals were charged with criminal violations of the LaborManagement Reporting and Disclosure Act, including nineteen as a result of Labor-Management Services Administration's participation in anti-organized crime strike forces in seventeen major cities across the country. Other LaborManagement Services Administration strike force activity led to the indictment of twenty persons and one corporation for violations of other labor-related laws. Also, forty-three civil actions under the Labor-Management Reporting and Disclosure Act were instituted.

In 1972, operations in most areas are continuing at about the same levels as in 1971. Initially it was projected that 229,900 reports would be received this year; however, this will not be met, due primarily to deferring until 1973 approximately 49,000 reports under a regulation requiring the filing by all labor organizations of a new form, Report of Current Status of Labor Organizations' Constitution and Bylaws. The delinquency program is continuing to be emphasized with the total number to be mailed this year slightly higher than in 1971. The number of desk audits and detailed analyses have increased, made possible through increased productivity, and will continue at this rate.

Administrative rulings again are above the previous year because of increased requests arising under Executive Order 11491 and because of the larger number of investigations in the field, which have generated more requests.

Significant effort is continuing on amending regulations and reporting forms under the Welfare and Pension Plans Disclosure Act to provide more meaningful information to plan participants and beneficiaries. Also, a substantial amount of time has been spent in preparing amendments to regulations under the Labor-Management Reporting and Disclosure Act concerning reporting by union sub-units which claim not to be labor organizations. A new form has been devised to simplify and improve the reporting of changes in organizational data and a more simplified method of financial reporting by small labor organizations.

It is expected that more investigations will be accomplished in 1972 than in 1971, with over 5,500 completed as of March 1. Emphasis was started this year and will be continued next year on the types of investigations aimed at the discovery, correction and prevention of financial malpractice. Because of the large carryover from 1971 of basic complaint cases, there has been a significant increase in this type case in 1972. Field audits also have been increased and delinquency investigations under both Acts are about double the previous year, accomplished partially by field personnel working on the anti-organized crime strike forces.

Assistance in manning seventeen anti-organized crime strike forces is continuing at about the same level, but a greater number of investigations are being made of delinquent reports under the Welfare and Pension Plans Disclosure Act.

Technical assistance to and liaison with offices of national and international labor organizations are being emphasized. A new register of labor organizations and one of pension plans will be issued late this year.

In 1973, most program operations in the national office will continue at the same levels and, generally, with the same priorities as in 1972. Reports received were estimated to decrease substantially from 1972, but the deferral from 1972 to 1973 of the one-time filing by labor organizations of a new form for updating organizational data and the one-time filing of additional descriptive information for about 43,000 pension plans will cause a reversal of these estimates. Staff time necessary to handle these one-time reports will be available through increased efficiency. Desk audits of financial reports are planned at a moderate gain of about ten percent which is needed to support an increased field audit program.

Administrative rulings and time spent on amended regulations are expected to be at about the same level as the prior year. It is expected, however, that significant time will be spent on analyzing and commenting on the Employee Benefits Protection Act and several other bills pending in Congress concerning private welfare and pension benefit plans.

Investigations of most types are projected at about the same levels in 1973 as in 1972, with slight increases in deficient reports investigations and field audits, continuing the emphasis started in 1972 on the types of investigations aimed at the correction of financial malpractice.