The Civilian Acquisition Council and the Defense Acquisition Regulations Council April 14 issued a
notice of proposed rulemaking (NPRM) to amend the Federal Acquisition Regulation to prohibit federal contractors from being reimbursed for activities involving educating employees about joining a union.
The NPRM is seeking to implement
Executive Order 13494 issued Jan 30, 2009 by President Obama. Under the NPRM, federal contractors will not be reimbursed for the costs incurred during work hours that are focused on employees’ rights in deciding whether to join a union. Potential costs include preparing and distributing materials; hiring or consulting legal counsel; holding meetings, and activities planned or conducted by managers, supervisors or union representatives. Neither the executive order, nor the NPRM prohibits employers from engaging in these activities, only from being reimbursed by the government for the costs incurred to engage in these activities.
ABC is concerned about the proposal’s practical impact on contractors—particularly small businesses—and is reviewing the potential legal implications of the NPRM. ABC plans to submit comments before the June 14 deadline.