Government Contracts Monitor

New Pro-Union FAR Provisions

November 4, 2011

On November 2, 2011, two new pro-union FAR provisions were published as final rules.  First, FAR 22.1600 through 1605 and 52.222-40 – concerning Notification Of Employee Rights Under The National Labor Relations Act were finalized.  See http://www.gpo.gov/fdsys/pkg/FR-2011-11-02/pdf/2011-27779.pdf.  Interim regulations on the same subject were published on December 13, 2010, http://www.gpo.gov/fdsys/pkg/FR-2010-12-13/pdf/2010-30559.pdf, requiring the public posting of specific workplace posters advising employees of their rights under the National Labor Relations Act.  Those regulations now become immediately effective as final rules.

Also on November 2, 2011, FAR 31.205-21 concerning allowability of labor relations costs was amended.  Previously, FAR 31.205-21 made allowable all “[c]osts incurred in maintaining satisfactory relations between the contractor and its employees.”  The new proposed rule limits allowability.  Specifically, the “costs of any activities undertaken to persuade employees, of any entity, to exercise or not to exercise or concerning the manner of exercising, the right to organize and bargain collectively through representatives of the employees’ own choosing are unallowable.”  Among the specific types of unallowable costs listed in the proposed FAR provision are the costs of “(1) Preparing and distributing materials; (2) Hiring or consulting legal counsel or consultants; (3) Meetings (including paying the salaries of the attendees at meetings held for this purpose); and (4) Planning or conducting activities by managers, supervisors, or union representatives during work hours.”  The new regulations may be found at http://www.gpo.gov/fdsys/pkg/FR-2011-11-02/pdf/2011-27790.pdf and they become effective December 2, 2011.

 

Michael Schrier is the attorney responsible for the content of this article.