appropriate to remove controls from most such firms.

This exemption from economic controls does not apply to price or pay adjustments made by organizations in the health industry or to rate increases made by insurance companies, even if the firms are tax exempt. The health and insurance industries have great impact on the economy, and the Cost of Living Council does not deem it advisable to exempt such industries at this time. Therefore health industry prices and insurance industry rates remain subject to the mandatory controls of Subparts M, O, and R of Part 150. Health industry pay adjustments remain subject to Subpart I of Part 152. Although price and pay adjustments involving hospitals and most other health care providers are not exempted from economic controls by these amendments, price and pay adjustments involving certain health care providers were exempted by § 150.57 of the Price Regulations and § 152.40b of the Pay Regulations, issued on January 16, 1974. Such price and pay adjustments remain exempt from controls whether or not the organization is tax exempt.

Since non-profit trade associations and employee associations involving healthrelated firms or employees of such firms are not considered providers of health care, such associations are exempted by this amendment.

The exemption provided in new § 150.54 (bb) is in addition to the exemption

previously given to dues paid to nonprofit organizations under § 150.55(b).

The Council retains the authority to reestablish price and wage controls over any of the organizations or industries exempted by these amendments if price or wage behavior is inconsistent with the policies of the Economic Stabilization Program. The Council also has the power, under §§ 150.162 and 152.6, to require firms to file special or separate reports setting forth information relating to the Economic Stabilization Program in addition to any other reports which may be required under the Phase IV rules.

Because the purpose of this amendment is to grant an immediate exemption from the Phase IV price and pay regulations, the Council finds that publication in accordance with normal rulemaking procedure is impracticable and that good cause exists for making this amendment effective in less than 30 days. Interested persons may submit written comments regarding this amendment. Communications should be addressed to the Office of the General Counsel, Cost of Living Council, 2000 M Street, NW., Washington, D.C. 20508.

In consideration of the foregoing, Parts 150 and 152 of Title 6 of the Code of Federal Regulations are amended as set forth herein, effective January 25, 1974.

[39 FR 3810, Jan. 30, 1974]

Part 501 505

743; Pub. L. 93-28, 87 Stat. 27; E.O. 11695, 38 FR 1473; E.O. 11730, 38 FR 19345; Cost of Living Council Order No. 16, 38 FR 1489; Cost of Living Council Order No. 20, 38 FR 6098.

SOURCE: 38 FR 33031, Nov. 29, 1973, unless otherwise noted.

Subpart A-General

§ 501.1 Purpose and scope.

The purpose of the regulations in this part is to establish rules for the stabilization of certain wages and salaries affecting employees in the construction industry. A Construction Industry Stabilization Committee and various industry Craft Dispute Boards were established under Executive Order 11588 (36 FR 16339, April 3, 1971) and have been continued under Executive Order 11695 (38 FR 1473, January 12, 1973) to carry out the purposes of the Act. In addition, the Committee from time to time is delegated authority from the Cost of Living Council to perform stabilization functions related to the construction industry. These delegation orders include Cost of Living Council Orders No. 16 and 20 (38 FR 1489, January 12, 1973; and 38 FR 6098, March 6, 1973; respectively).

(c) "Board" means each Craft Dispute Board jointly established by national contractor associations and national and international unions under the Act. (See Executive Order Nos. 11588 and 11695.)

(d) "Committee" or "CISC" means the Construction Industry Stabilization Committee. (See Executive Order Nos. 11588 and 11695.)

(e) "Construction" means:

(1) All work relating to the erecting, constructing, altering, remodeling, painting, or decorating of installations such as buildings, bridges, highways, and the like when performed on a contract basis, but shall not include maintenance work performed by workers employed on a permanent basis in a particular plant or facility for the purpose of keeping such plant or facility in efficient operating condition;

(2) The transporting of materials and supplies to or from a particular building or project by the workers of the contractor or subcontractor performing the construction or the manufacturing of materials, supplies, or equipment on the site of a project by such workers; and

(3) All other work classified as construction in 29 CFR 5.2(g).

(f) "Cost of Living Council" or "Council" means the Chairman of the Cost of Living Council established by Executive Order No. 11615 (36 FR 15727) and continued under the provisions of Executive Order Nos. 11695 and 11730, or his delegate.

(g) "Party" or "party at interest"

means:

(1) A bargaining representative of employers who could be required to pay the wages and salaries in question, or in the absence of such bargaining representative, an employer who could be required to pay the wages and salaries in question:

or

(2) A bargaining representative of employees who could receive payment of wages and salaries in question.

(h) "Wages and salaries" means all wage and salary rate schedules and economic adjustments (including work rule changes) established pursuant to a collective bargaining agreement and affecting employees in the construction industry.

501.3 Prior regulations and other published matter.

On and after November 29, 1973, the regulations of the Construction Industry Stabilization Committee, issued October 8, 1971 (36 FR 19576) for insertion in Chapter XVIII of Title 29 of the Code of Federal Regulations, are superseded by the regulations in this part and in Part 505 of this chapter. A table, attached as an Appendix to this chapter, provides appropriate cross references from 29 CFR Part 2001 to the corresponding provisions in this chapter.

Subpart B-Organization

§ 501.10 Establishment of Craft Dispute Boards.

(a) Associations of contractors and national and international unions may jointly establish Craft Dispute Boards if not already established pursuant to the Act.

(b) Each Board shall advise the Committee in writing, of the names and association or union affiliation of its respective members, the name adopted for the Board and the address to which communications to the Board should be sent, the crafts or branches in the construction industry over whose wages and salaries it will have jurisdiction, its meeting place and telephone number.

(c) A directory containing the information required by paragraph (b) of this section will be maintained by the Committee and the information will be furnished to any interested person upon request addressed to the Construction Industry Stabilization Committee at Washington, D.C. 20210. § 501.11

dures.

Notification of Board proce

Each Board shall have the functions and shall follow the procedures set forth in this chapter and shall keep the Committee advised of any additional case handling procedures, consistent with this chapter, which it may adopt.

§ 501.12 Composition of each Board.

Each Board shall be composed of an equal number of labor and management representatives, consisting of persons representative of labor organizations in the construction industry and persons representative of employers of the craft or crafts in the construction industry covered by the Board.

§ 501.13 Jurisdiction of the Boards.

Each Board shall have jurisdiction, with respect to wage and salary increases agreed to or being negotiated for the appropriate craft or branch in any locality:

(a) To provide advice and assistance in an effort to resolve any unresolved collective bargaining disputes involving wages and salaries;

(b) To consider and determine, pursuant to any Orders issued under the Act and the regulations in this chapter, whether the wage and salary increases provided in any collective bargaining agreement negotiated for a craft or branch in the construction industry are approvable in accordance with applicable criteria; and

(c) To consider and determine, pursuant to any Orders issued under the Act and the regulations in this chapter, whether the wage and salary increases provided in a collective bargaining agreement referred to in § 501.15(c) are approvable in accordance with applicable criteria.

§ 501.14 Composition of the Committee.

The Committee is composed of 12 members appointed by the Secretary of Labor in concurrence with the Director, Cost of Living Council. The Committee includes 4 members representative of labor organizations in the construction industry, 4 members representative of employers in the construction industry, and 4 members representative of the public. The Committee is headed by one of the public members appointed as Chairman of the Committee by the Secretary of Labor in concurrence with the Director, Cost of Living Council. In addition, alternate members, representative of labor organizations and employers in the construction industry, and representative of the public, are appointed by the Secretary of Labor with the concurrence of the Director of the Cost of Living Council.

§ 501.15 Jurisdiction of the Committee.

(a) The Committee shall have jursdiction to review, under the applicable criteria, and to approve or disapprove wage and salary increases in any construction industry collective bargaining agreement entered into on or after March 29, 1971. Such jurisdiction includes review of agreements on its own initiative

and review of prior determinations by a Board.

(b) The Committee shall have jurisdiction to review and to approve or disapprove any wage and salary increase scheduled to take effect on or after August 15, 1971, contained in any construction industry collective bargaining agreement entered into prior to March 29, 1971. In its review, the Committee shall determine whether such wage and salary increase is unreasonably inconsistent with applicable criteria.

(c) The Committee shall have jurisdiction to review and to approve or disapprove wage and salary increases affecting employees in the construction industry scheduled to take effect on or after January 11, 1973, or contained in a collective bargaining agreement entered into on or after that date—

(1) Under the terms of a construction industry collective bargaining agreement which covers both construction and nonconstruction operations; or

(2) Under the terms of any collective bargaining agreement which (i) continues a close historical relationship established with respect to a construction industry collective bargaining agreement or sequence of agreements, or provides substantially the same levels of compensation as provided in a construction industry collective bargaining agreement, and (ii) covers delivery of materials to a construction site under circumstances in which a dispute involving such agreement would cause on-site operations to be more than marginally interrupted.

(d) The Committee shall have jurisdiction to perform such other functions as may be necessary to carry out the purposes of the Act and any delegations of authority issued pursuant thereto, with particular attention to improving the collective bargaining process in the construction industry and to the rationalization of the wage structure within and among geographic areas and between crafts within a particular area. Subpart C―Construction Industry Wage Stabilization

§ 501.30 Affected wages and salaries; criteria for approval.

(a) All wage and salary increases contained in collective bargaining agreements referred to in § 501.15 require prior approval of the CISC, regardless of the number of employees involved.

Pending action on any agreement by the Committee, negotiated increases in wages and salaries may be placed in an escrow account, with reversion to the employer of monies which are not approved. After the Committee has disapproved an increase in wages and salaries and has authorized payment of a portion thereof, monies in excess of the authorized amount may neither be placed in escrow nor continued to be held in escrow. In addition, if, upon a preliminary review, the Committee returns any proposed wage and salary increase to the Board without approval, monies in excess of the wage and salary increase which the Committee suggests may be appropriate may neither be placed in escrow nor continued to be held in escrow.

It shall be a violation of CISC regulations for any person to:

(a) Pay directly or indirectly, immediately or on a deferred basis, any portion of a wage and salary increase not authorized by regulations or CISC determination;

(b) Receive or accept directly or indirectly, any portion of a wage and salary increase not authorized by regulations or CISC determination;

(c) Induce, solicit, encourage, force or require, or attempt to induce, solicit, encourage, force, or require directly or indirectly, any other person to pay or to receive, directly or indirectly, any portion of a wage and salary increase not authorized by regulations or CISC determination;

(d) Fail or refuse to comply with any regulation issued pursuant to the Act, or induce, solicit, encourage, force, or require any other person to fail or refuse to comply with any regulation issued pursuant to the Act;

(e) Fail or refuse to submit any collective bargaining agreement or document required by the regulations; or

(f) Implement a wage and salary increase without approval or authorization by the Committee.

§ 501.33 Renegotiation of wage and salary increases.

If a Board returns a proposed wage and salary increase to the parties without approval or the Committee returns a wage and salary increase to a Board or the parties without approval, the affected employers and employees and their representatives shall promptly attempt to renegotiate the contract and shall participate fully and promptly in such meetings as may be undertaken by the Federal Mediation and Conciliation Service for the purpose of aiding the parties to reach a new collective bargaining agreement. A renegotiated agreement shall be submitted to the Committee for review of the wage and salary increases. If the parties cannot reach agreement by renegotiation, or either party desires further review, the collective bargaining agreement may be submitted to the Committee in accordance with the appropriate procedures in § 505.28 of this chapter.

Subpart D-Procedures Under DavisBacon Act and Other Prevailing Wage Laws

§ 501.40 Federal wage determinations under the Davis-Bacon Act and related statutes.

In implementing the provisions of the Davis-Bacon Act, as amended, and of other Acts providing for the payment of wages predetermined by the Secretary of Labor in accordance with the DavisBacon Act, and in making wage determinations applicable to specified crafts employed on specified work in areas thereunder as provided in 29 CFR Parts 1 and 5, there shall be excluded from consideration by the Secretary or his authorized representative, pursuant to the provisions of Cost of Living Council Order No. 16 (38 FR 1489) —

(a) Any wage or salary increase affecting such craft employed on similar construction in the area which has been put into effect in violation of the Act and this part, and

(b) Any wage or salary increase affecting such a craft employed on similar construction in the area which is in excess of that found to be acceptable under the Act and this part.