June 8. 2010 | Rebecca Kehoe

FAR Update: Unallowable Costs - Labor Relations

The Federal Government is proposing to make the costs of any activities undertaken by a Federal Contractor (including recipients of federal disbursements) to persuade employees to exercise or not to exercise the right to organize and bargain collectively through representatives of the employees’ own choosing unallowable. 

All activity costs related to collective bargaining will be unallowable, such as: preparing and distributing material, hiring or consulting legal counsel or consultants, meetings (including paying the salaries of the attendees at meetings held for this purpose), and planning or conducting activities by managers, supervisors, or union representatives during work hours.

What activity costs will remain allowable?  Costs incurred in maintaining satisfactory relations between the Federal Contractor and its employees, such as: costs of shop stewards, labor management committees, and employee publications.

What can you do?  Submit your comments on the proposed rule by June 14, 2010 by searching for FAR Case 2009-006 at www.regulations.gov, fax your comments to (202) 501-4067 or mail them to General Services Administration, Regulatory Secretariat (MVCB), 1800 F Street, NW, Room 4041, Washington, DC 20405.

http://www.regulations.gov/search/Regs/home.html#documentDetail?R=0900006480ad71d3

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