AN ACT Relating to the establishment of a labor-management cooperation program; adding a new chapter to Title 49 RCW; and making an appropriation.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. The legislature finds that the quality and stability of the relationships between labor and management in this state's businesses significantly affects the health of the state economy and the capacity of the economy to provide high-quality employment for the state's citizens. The legislature further finds that cooperative efforts between labor and management often lead to substantial increases in productivity, better product quality, greater job security, and a more flexible work force.

The legislature also finds that efforts to increase labor- management cooperation can help to foster a more positive labor relations climate in the state and can provide opportunities for labor and management to work together to solve conflicts and problems of mutual concern. The legislature recognizes that a positive labor-management relations climate in a state can be a major factor in attracting foreign investment. Therefore, in order to strengthen the state's economy and encourage cooperative solutions in the work environment, the legislature establishes the labor-management cooperation program.

NEW SECTION. Sec. 2. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Council" means the labor-management cooperation council.

(2) "Department" means the department of trade and economic development.

(3) "Director" means the director of the department of trade and economic development.

NEW SECTION. Sec. 3. The labor-management cooperation program is established within the department. The program shall promote and support efforts by labor and management to establish effective mechanisms to jointly address issues of common concern. The program shall work with existing labor-management committees to achieve its goals whenever feasible. The department, through this program, and in consultation with the council, shall:

(1) Serve as state liaison with other state, regional, and national organizations and programs promoting labor-management cooperation programs. These activities may include: (a) Public awareness and outreach programs; (b) the dissemination and sharing of information on labor-management cooperation; and (c) the provision of workshops, seminars, conferences, or other educational offerings on labor-management cooperation activities;

(2) Encourage the formation of and provide assistance to area and industry labor-management committees;

(3) Administer, subject to the provisions of this chapter, the labor-management cooperation grant program; and

(4) Provide any other service which enhances labor-management cooperation within Washington state as determined by the director with the advice of the council.

NEW SECTION. Sec. 4. The labor-management cooperation program shall work in conjunction with any business and job retention program established within the department or any other agency in state government.

NEW SECTION. Sec. 5. The labor-management cooperation grant program is established within the department to provide funds to local area or industry labor-management committees.

(1) The director shall, in consultation with the council, solicit and approve applications for funds to support the activities of local area or industry labor-management committees.

(2) Grants will be awarded on a competitive basis based on the application submitted. The application must provide a detailed description of the activities which the program will support, a description of the applicant committee, and a description of the financial and staff resources available to it. Applications will be judged on the appropriateness of the proposal, the attainability of its goals, and the evidence of interest in the proposal among representatives of labor and management in the committee's jurisdiction.

(3) Applicant committees must be composed of an equal number of labor and management representatives.

(4) Labor-management committees which have been in existence for at least two years shall receive preference in the awarding of grants.

(5) An applicant committee must provide at least a twenty- five percent match in contributions or in-kind services. The director may require up to a fifty percent match requirement if such a match is feasible in the director's discretion.

(6) No committee may receive more than twenty thousand dollars in a grant in a given biennium.

NEW SECTION. Sec. 6. Any labor-management committee receiving a grant under this chapter must annually submit to the director a report on the activities of the program supported by the grant, including an evaluation of contributions made to labor-management cooperation. The department shall provide these reports to the legislature upon request.

NEW SECTION. Sec. 7. The department shall report annually to the senate economic development and labor committee, the senate ways and means committee, the house of representatives trade and economic development committee, and the house of representatives ways and means subcommittee on appropriations for activities conducted under this chapter.

NEW SECTION. Sec. 8. (1) The Washington state labor-management cooperation council is established within the department. The council shall be composed of sixteen members as follows:

(a) Six representatives of labor, including two representatives of public employees;

(b) Six representatives of management, including two representatives of public employers; and

(c) The directors, or the directors' designees, of the following departments: (i) The department of trade and economic development; (ii) the department of community development; (iii) the employment security department; and (iv) the department of labor and industries. The directors shall serve as ex officio nonvoting members of the council.

(2) The members of the council shall be appointed by the governor. The governor shall designate a labor representative and a management representative to serve as cochairs of the council. Interested organizations may submit names to the governor for consideration for appointment to the council.

(3) Each member of the council shall serve a term of two years. The governor may make appointments to fill an unexpired term in the case of vacancies. A member is eligible for reappointment.

(4) Members of the council shall serve without compensation but shall be reimbursed for subsistence and travel in accordance with RCW 43.03.050 and 43.03.060.

NEW SECTION. Sec. 9. The council shall:

(1) Assist the department in the development of the overall policy, goals, and objectives of the labor-management cooperation program.

(2) Facilitate and ensure interagency coordination regarding the program.

(3) Develop and approve a work plan for the labor-management cooperation program.

(4) Review applications for labor-management cooperation grants and recommend to the director whether they should be approved or rejected.

(5) Make recommendations to the governor and the director on the future structure of the program.

NEW SECTION. Sec. 10. The sum of two hundred thousand dollars, or as much thereof as may be necessary, is appropriated from the general fund to the department of trade and economic development for the biennium ending June 30, 1991, to carry out the purposes of this act.

NEW SECTION. Sec. 11. Sections 1 through 9 of this act shall constitute a new chapter in Title 49 RCW.