(1) May any qualified employees transfer from one employment unit to another?

(2) What kind of seniority-plant, department, seniority unit, job-is the basis for transfer competition?

(3) If lines of progression or promotional sequences are utilized within departments, is seniority the principal determinant of promotion from one job level to the next highest job level. In other words, is progression through the line principally a function of seniority?

(4) What kind of seniority-plant, department, seniority unit, line of progression, or job-is the basis for competition for promotion within lines of pro gression or seniority units?

(5) What kind of seniority competition is there for reduction in force aud layoff?

(6) Assuming that the affected class may transfer, if qualified, to other employment units, the heart of the matter is what losses, in terms of seniority, job retention rights, and wages, they will sustain if they seek to avail themselves of transfer opportunity?

F. Now make a determination as to whether members of the affected class are presently qualified, or can become qualified in the same manner as white or male employees in the past, for jobs in the employment units from which they have been excluded. The most productive technique here is probably comparing present qualifications of the affected class with qualifications of whites (or males) at the time the whites (or males) were hired. Make a determination of the qualifications of the least qualified white (or male) currently in the more desirable employment unit.

G. If you have identified an affected class, remedies must be developed for the contractor to be in compliance. Refer to OFCC guidance memos on affected class in developing each step of the remedy. However, in arriving at the nature and extent of the remedy, some insight is needed into the extent that any remedy would be welcomed and utilized by such individuals even with job security assured. It is therefore advisable that selected members of the affected class be interviewed. Your written discussion of the remedy should include the following aspects. Referring to the lines of progression or promotional sequences, which jobs must dead-ended minorities and women move into in order to progress? Would the affected class employee require additional training to progress? Are the jobs in the promotional sequences functionally related? What changes in the bargaining agreements would be necessary in order to stimulate transfer of affected class members or perhaps make transfer unnecessary? Has the contractor already initiated some action in this regard? When? Could long-time affected class members possibly move up more than one job title immediately or with little extra training in order to obtain their rightful place in relationship to their company seniority? Note: since this is still a preliminary stage to final agreements, you should avoid unnecessary interference in employeremployee relationships by giving the contractor the opportunity to discuss remedies with affected class members. If the contractor fails to do this adequately, you should interview selected members of the affected class. Through interviews you should determine whether minorities or women feel the union, if any, is servicing them properly.

(1) Bargaining Units. (a) Identify the various unions in the contractor's establishment. Determine if there are any memoranda of understanding of addendums not included in the labor agreement. Obtain copies of all collective bargaining agreements. Do the labor agreements contain an EEO clause? Review these agreements (and attach them along with progression charts to this report) considering, as appropriate, the following:

(b) Are EEO grievances subject to the applicable grievance machinery, if any. If so, with what frequency have such EEO grievances been filed and what have been the results. Does the labor agreement spell out the rights of employees in terms of tenure, layoff, recall, transfer, promotions and the various fringe benefits? Is there a formal posting and bidding procedure for transfer or promotions? What are the criteria for determining the successful bidder? Are minorities and women encouraged to bid into jobs where they have been previously underutilized? How important is seniority? Can an employee hold more than one seniority date? If so, explain what each means and how it was acquired. Do the layoff and recall provisions have a disparate effect on minorities and women? How and why? Have there been any mergers of seniority units or lines of progression, and how has this affected minorities and women? Are there any

"understood" or traditional practices which differ from those described in the contract itself? Are disciplinary actions spelled out clearly? (Explain this under Section 3 below.)

(2) Non-Bargaining Unit Positions. Determine if there are company policies or precedures in writing which deal with the situations as discussed in the previous paragraph for those positions not covered by any bargaining unit? Does longevity play any role in job security?

(3) Benefits and Disciplinary Actions. Review the contractor's personnel manual or its equivalent. Are there any disciplinary policies which would tend to discriminate against minorities or women? What is the policy on maternity leave and is it in accord with OFCC regulations? Does the policy result in rejection or suspension from employment or require involuntary leave solely on account of the condition of pregnancy? Are there any distinctions based upon sex in the granting of fringe benefits, including medical, hospital, accident, life insurance, pension and retirement benefits, profit sharing and bonus plans, credit union benefits, or leave which violate current OFCC regulations? Are the same benefits made available for the wives and families of male employees also made available for the husbands and families of female employees? Does the contractor specify any differences on the basis of sex in either mandatory or optional retirement age?

XI. Training and Educational Opportunities.

A. Internal. (1) Review the contractor's data on training that has occurred over the past year. Indicate the participation by total, male, female and male and female minority classification and show the training participating rate for each group. If the number of applicants in the last year was less than 100, your analysis should include all such applicants. If the number of applicants in the last year was more than 100, your analysis should include a sample of 10 percent of such applicants or 100 whichever is greater. Include employees hired directly into such programs. Is participation strictly voluntary or are there selection procedures? Such procedures must be validated if there is an adverse effect.

(2) Inquire about what types of training new employees receive. Is there evidence of any disparate failure or dropout rate? If such disparities exist, what efforts has the contractor made to correct the situation? How is failure determined? Is it in accord with 41 CFR Part 60-3? Is formal training being required now for jobs not previously involved? If so, have you included this in the section on affected class? If there is a registered apprenticeship program, has the contractor developed an affirmative action program under 29 CFR Part 30 or a State plan for EEO in Apprenticeship? Has the contractor's Apprenticeship AAP been approved by the contractor's apprenticeship registration agency?

B. External Programs. Describe any programs offering tuition assistance and the extent of minority and women participation? What is the contractor's explanation for any disproportionate representation of women or minorities? Describe any school work or other cooperative type programs, the minority and female enrollment at these institutions, and the minority and female participation in such programs. Are there any summer school work programs or other Government or privately-funded training on a part time basis? Are there any selection or qualifying procedures that would tend to preclude the involvement of a representative number of minorities and women (e.g., expense, length of training, travel involved, no clear evidence of career advancement, etc.)? After completion of the program, is job replacement assured or assistance available? XII. Goals and Timetables.

A. Achievement of past and present goals and timetables. Is the contractor meeting the current goals and timetables? Did he meet previous goals and timetables? If not, determine from the contractor his assessment of why the goals were not achieved. Pursue what you deem to be necessary changes for future success in meeting goals. If the contractor is not meeting the current goals and timetables or if the contractor did not meet the previous goals and timetables, a determintaion of good faith must be made and the determination will be based upon his efforts to broaden his recruitment and promotion base. See B (2) below. B. Establishment of present and future goals and timetables. (1) Specific goals and timetables are to be established separately for minorities and women considering the factors cited in Order 4 and based on the contractor's analysis. In establishing timetables the contractor must consider the anticipated expansion, contraction and turnover of and in the workforce. This would include a review

of anticipated vacancies in the major job groupings for the next year and any other pertinent period related to the affirmative action program.

(a) A goal must be established for each job group in which underutilization exists and must be designed to completely correct the underutilization. The goal must be stated as a percentage of the total employees in the job group and must be equal to the percentage of minorities or women available for work in the job group in accordance with the criteria set forth in 41 CFR 60-2.11.

A single goal for minorities is acceptable, unless through the company's evaluation it is determined that one minority is underutilized in a substantially disparate manner, in which case separate goals and timetables for such minority groups may be required individually, and it may further be required, where appropriate, that separate goals be established within the minority groups by sex. (See Order 4, § 60-2.12 (k).)

(b) For each job group in which underutilization exists, a specific timetable must be established for reaching the ultimate goal in the minimum feasible time period.

(c) For each job group in which underutilization exists, the contractor must establish annual rates of hiring and/or promoting minorities and women until the ultimate goal is reached. These rates should be the maximum rates that can be achieved through putting forth every good faith effort, including the use of available recruitment and training facilities, and must not be lower than the percentage rate set in the ultimate goal. Numerical goals based on projected openings are required but cannot be used in place of percentage goals. Goals should be stated both as actual numbers and as percentages for backup goals. That is, a contractor may establish a goal of 10 women based on an expected 20 vacancies for hires or promotions. But his expected vacancies may vary. So he should also give a percentage goal (e.g., 50 percent of hires) which would apply if opportunities exceed his current estimates.

(d) Each program must contain specific and detailed action oriented programs, including recruitment and training programs, which comply with Revised Order 4. These programs must, among other required ingredients, commit the contractor to undertake every good faith effort to contact and make use of relevant recruitment and training resources available in the community and to use its own resources for recruiting and training minorities and women to fill positions in job groups where underutilization exists. Data regarding promotable employees, community training facilities and company training facilities must be prepared by the company itself, and related to the locality.

(2) How many of these jobs will be filled through upgrading? In considering the current work force, turnover, and deficiencies identified, are the contractor's goals reasonable and will they achieve prompt and full utilization of minorities and women? Is there evidence that the contractor is considering minorities and women not in the work force? Make specific suggestions for affirmative action based on problem areas and on areas previously lacking in positive affirmative action, as pointed out by the review. The affirmative action program must appear as an exhibit to this report. Determination of good faith effort should be made which shall include but not be limited to the following:

(a) Notification to the community organizations that the contractor has employment opportunities available and maintenance of records regarding the organizations' response.

(b) Maintenance of a file of the names and addresses of each minority or female worker referred to the contractor and what action was taken with respect to each such referred worker.

(c) Participation in training programs in the area. Full consideration of the training which the contractor can reasonably undertake.

(d) Dissemination of the contractor's EEO policy, by including it in any policy manual; by publicizing it in company or union newspapers, annual report, etc. by conducting meetings to explain and discuss the policy; by posting of the policy; and by specific review of the policy with minority and female employees. (e) Dissemination of the EEO policy externally by informing and discussing it with all recruitment sources; by advertising in news media, specifically including minority news media; and by notifying and discussing it with all contractors and subcontractors.

(f) Specific and constant personal (both written and oral) recruitment efforts directed at all minority and female organizations, schools with minority and female students, minority and female recruitment organizations, and training organizations, within the contractor's recruitment area.

(g) Specific efforts to encourage present minority and female employees to make referrals in the recruitment effort.

(h) Validation of all worker specifications, selection requirements, tests, etc., as required by the Testing and Selection Order 41 CFR § 60–3.

(i) Making every effort to provide after-school, summer and vacation employment to minority youths.

(j) Where reasonable, the development of on-the-job training opportunities and participation and assistance in any association or group training programs relevant to the contractor's needs.

(k) Continuing inventory and evaluation of all minority and female personnel for promotion opportunities and encouragement of minority and female employees to seek such opportunities.

(1) Assuring that seniority practices, job classifications, etc., do not have a discriminatory effect.

(m) Assuring that all facilities and activities are nonsegregated.

(n) Continual monitoring of all personnel activities to insure that its EEO policy is being carried out.

(0) All other sections of Subpart C of Order 4 (41 CFR 60-2-20, 21, 22, 23, 24, and 25) and the OFCC Sex Discrimination Guidelines at 41 CFR Part 60-20. XII. Religious and National Origin Discrimination.

Refer to the regulations (41 CFR 60-50). Has the contractor reviewed his practices to determine whether members of religious and/or ethnic groups are receiving fair consideration for job opportunities? Describe the outreach and positive recruitment activities undertaken by the contractor to remedy problems identified. (See 41 CFR 60-50.2(b)). Describe any accommodation made by the contractor to the religious observances and practices of an employee or prospective employee. When such situations exist, if the contractor has not made such accommodation, describe the contractor's rationale including, at least: (a) business necessity, (b) financial costs and expenses and (c) resulting personnel policies.

((5 U.S.C. 553(a) (3) (B)) 29 CFR 2.7 section 201, Executive Order 11246, 30 FR 12319, and Executive Order 11375, 32 FR 14303.) Signed at Washington, D.C., this 8th day of July, 1974.

PETER J. BRENNAN,

Secretary of Labor. BERNARD E. DELURY,

Assistant Secretary for Employment Standards.

PHILLIP J. DAVIS,

Director, Office of Federal Contract Compliance.

[FR Doc. 74-16045 Filed 7-11-74;8:45 am]