Costs Of Influencing Collective Bargaining Decisions Proposed For Disallowance

To implement the provisions of Executive Order No. 13494, Economy in Government Contracting, the FAR Council has proposed changes to the labor relations cost principle, FAR 31.205-21, expressly to disallow the costs of activities to persuade employees to exercise or not to exercise their collective bargaining rights, such as the costs of preparing and distributing materials, legal and consultant fees, costs of meetings (including salaries of attendees), and planning and conducting activities by managers, supervisors, or union representatives during working hours. Comments on the proposed rule are due June 14, 2010.