Management System: Management and Operating Contracting
Subject Area: Contractor Industrial Relations

Procedure 7. Managing Labor Relations

Management System Coordinators
Process Steward:
Implementation Lead:
Subject Matter Expert:
Subject Area Point of Contact:

Latest MS Specific Document Revision Date 11/14/2021
Latest MS Total Biennial Review Completed 11/14/2021
SCMS Revision 5.1

1.0  Applicability

This procedure applies to Office of Science (SC) Consolidated Service Center (CSC), SC Site Office, and SC Headquarters (HQ) Office of Acquisition Management (SC-44) employees involved in the administration of SC contracts under which Contractors are subject to Collective Bargaining Agreements (CBA).

2.0  Required Procedure

The U.S. Department of Energy (DOE) recognizes that Collective Bargaining Agreements are between the Contractor and the union. Due to the economic impact, Contractors are required to review bargaining objectives with DOE prior to the commencement of collective bargaining and obtain Contracting Officer (CO), in consultation with the Head of Contracting Activity, approval of economic parameters, as well as, advise DOE of significant issues during the course of the contract.

Step 1

  1. The SC-44 CIR Team Lead assigns an employee(s) as a Contractor Industrial Relations (CIR) Subject Matter Expert (SME).

  2. The SC Site Office Manager assigns SC Site Office Staff Members as CHRM Points of Contact (POCs).

Step 2

Upon receipt of the Contractor’s request to meet on bargaining objectives, the SC Site Office CIR POC coordinates DOE's attendance, including the SC-44 CIR SME, if requested, and convenes a meeting with the Contractor.

NOTE: The objective of the meeting is to come to preliminary agreement with the contractor on its proposed objectives, discuss issues the union is anticipated to raise, management’s position on those issues, and determine the maximum (e.g., bottom-line versus optimum) costs management will accept under the negotiations, which establishes the economic parameters. A parameter for wage increases should be identified separately from other costs on the “SC Bargaining Objective and Economic Parameters Template.”  
Step 3

The SC-44 CIR SME and the Site Office CIR POC perform any additional follow-up evaluation and coordination and provide a recommendation to the CO on the acceptability of the contractor’s bargaining objectives and economic parameters.
Step 4

Upon obtaining the concurrence of the CO, the SC-44 CIR SME sends the recommended parameters, via email, to the SC-44 CIR Team Lead  with a request to obtain the concurrence of the Head of Contracting Activity (HCA).
Step 5

SC-44 CIR Team Lead reviews the request, obtains additional information or clarifications as necessary, and sends a package with a recommendation through the SC-44 Director of Procurement Policy and Director of Acquisition Management via email to the HCA for approval/disapproval. SC‑44’s CIR Team Lead recommendation is based on cost, level of consistency with other collective bargaining activity in the SC complex, adequacy of justification, and support of management objectives.
Step 6

Upon notification by the SC‑44 CIR Team Lead of the HCA’s concurrence/non-concurrence, the CO communicates DOE's disposition of the proposed parameters.
Step 7

  1. During the collective bargaining process, the CO, in consultation with the SC-44 CIR SME, reviews any changes that affect allowable costs.

  2. For those changes that exceed approved economic parameters, the SC-44 CIR SME makes a recommendation to SC44 CIR Team Lead on acceptability. SC‑44 Team Lead provides a recommendation to the HCA for concurrence/non-concurrence of the revised parameters and notifies the CO of the determination.

  3. The CO can approve Contractor requests to extend CBAs upon their expiration for up to six months only. For requests greater than six months and for retroactive wages and/or benefits, the SC‑44 CIR Team Lead provides a recommendation to the HCA for concurrence/non-concurrence of the revised parameters and notifies the CO of the determination.

NOTE: HCA approval is required before the Contractor may propose or agree to any changes in pension or benefits plans during negotiations, regardless if costs are within parameters.
Step 8

During labor negotiations and thereafter, the SC Site Office CIR POC monitors labor activities for impacts to continuity of operations, community or public concerns, etc., and notifies SC‑44 CIR Team Lead, as appropriate.

If applicable, any of the following that are identified, SC-44 CIR Team Lead will notify the Assistant General Counsel for Contractor Human Resources (GC‑63):

(a) National Labor Relations Board charges;

(b) A semi-annual report on all third-step grievances or other grievances for which further judicial or administrative proceedings are anticipated. Generally documents relevant to the third step grievance do not have to be included in the report; however, the report should provide the following information:

  1. List of all third step grievances filed during the previous six-month period and dates the third step grievances were filed;

  2. A brief description of issues regarding the grievance (a few sentences to no more than a paragraph);

  3. If settled, the date of settlement, and terms of the settlement. If a denial is made at the third step and the period for requesting arbitration passes, report the matter as closed.

  4. If not settled during the six-month reporting period, carry over the item to subsequent six-month reporting periods until settlement, request for arbitration, closure, or other proceeding occurs.

(c) Arbitrations, including copies of all decisions issued by an Arbitrator;

(d) Legal or judicial proceedings; and

(e) Other significant labor relations issues.
Step 9

The SC-44 CIR SME will notify the SC-44 CIR Team Lead of any significant labor relations issues, arbitration decisions, and U.S. National Labor Relations Board charges. The SC-44 CIR Team Lead will notify GC‑63.

3.0  References