Administration of Non-Discrimination Policy on Contract Work

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FOR: Managers of Operations AM: operating of fi cid.s 2nd enployees concerning the a dni nist rct ion of the policy of non-discrixination inen plc pent on AM: contract Policy. It i s the policy of the >Xt hat no enployee or applicant for errployxent in the a to ric energy prop m shall be discrininated agcinst beczusc of race, creed, color, or national ori&in. Rerjuirenent for Non-Discrimination Provision i n Goverment Contracts. The requlrezent fora non-discriiiinxtion provision i n Goverment contracts originated with Executive Order 8802, issued i n 1941, and zn u ending Gri kr, E. 0. 9346, issued i n 1943. These orZers rezffiraec! the Fed erd Governrlcntfs pcl icy of fully x tic iF - tim inthe defense prog rm by all persons regardless of race, crced, color, 3r national origin. of the Gcverrnent of the Unite6 Ste tes to incluck i n contrc-cts 1 provision obligzting the contrnctcr not to disc rini nate against m y crrployee or Tpplicmt f o r e;%2lopent bee-:use of race, creed, mo vision in sub-contrncts. The ;3urpose of this Bulletin is t o serve as n guide t o E. 0. 9346 requires contracting agencies

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4. Standard AM: Contrwt CLnuse. ing standsrd non-discriminstion clause has been prescribed f o r inclusion i n AFC contracts: I n coi-inection with the performance of this contract, the Contractor agrees not t o discriminate against any employee o r applicant for employment because of race, creed, color, o r national origin; and further agrees to insert the foregoing provision inall subcontracts hereunder, except contracts t h e performance of which does not involve t h e employment of persons. (Note that the revised chuse excepts o-dy those contracts "the performnce of which does not involve t h e employment of persons." This revision was made when it was found that no zu thor it y existed for the earlier version of the clause which excepted contracts "for standard commercial supplies orfor raw materials.") The clause has the same legal force and effect as other provisions tothe various aspects of employment including work assignment, upgrading, lay-off, and opportunity f o r training. It applies not merely to hiring practices but 5.Res ~ on sibi l ~ i t yf o r Enforcement. The ke cut iv c Orders of 194l and 1943 requiring a non-discrimination provision i n Government contrxts did not specif icj ll y pk ce responsibility for obtaining compliznce on t h e contracting agency. issued December 9 , 1951, orders t h a t "the head of each contracting

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agency shxI-1 be prirriarily responsible f o r obtaining compliance by any con-trxtor or subcontractor with the non-discrimination provisions of any contrrct entered into, amended, o r nodified by his agency and any subcontract thereunder, and s h a l l take appropriatle measures t o bring about the said compliance." Inthe AEC, the General Mamger has placed this responsibility I4znagers of Operetions m e responsible for the following: Insure that the contract clause set forth above is incorporated ind1 contracts involving the employment of labor within the continental linits of t h e United States. Review the policies and pr z ct ices of contractors i n the area of fair employment t o make sure that contractors are c,u?-ying out their responsibilities under the non-discrirination c l ? of tho contrnct . 1nvest;igate a d t&e zppropriate z c tion on complaints of discriminztion i n errplopent on AM: contracts. 6. Pre1~irAna.1-vDiscussion with Contractors. Problems inthe administ ration of tie non-discrirdnation policy will be kept toa rinimum if contractors hzve 3 underlying the Goverment's policy and of t h e i r obligations under the non-discrinination provision in their contracts with the AEC. TO assure t h a t these considerations are properly understood, they understanding of t h e considerations

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should be discussed with the prospective contractor during the period G f negotiations, with emphasis on the right of d l citizens to fair ana equol treatment i n eqloymcnt on work prid from public funds and ths obligation of both the AEXl and the contractor t o make good that right. the contractor, as a fact attested by the experience of AEC and American industry generally, that racial tensions and time-consming race relations problems are min u zed when the It should be stressed to employer almounces, and consistently follows, a policy of equal treatment (of r-11 in divi duds in respect t o employnent and workthe prospective contractor should be requested to furnish copies of his established personnel poficles pertaining to non-discrimination, or i f he has no such established policies,a Statement Ofthe practices he prcposes t o follow i n discharging his non-discrinination obligction under the contract. Particularly in the case of long-term ccntrncts, The econonic 2nd efficiency factors in Federal non-discrhiination policy should .iLso be e qh sized to the contractor, in part icu hr (1) the urgent need for util izz tion of 311 avzilable skills inthe present period of national labor shortages; (2) the fact that AM: support i n suck rwtters as contractor cq lo yee deferments and contractor requests f o r exemptions fror, estcbli shed re,gulations and requirements is premised on such full utilization ; and (3)the fact tkt the spending of Government

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funds on regional and nation21 advertising for special skills is only just j fie d when the skills which are available lac ally care being fully utilized. At this time, also,the contractor should be advised that it i s the policy of the AM; t o provide employee facilities on the basis of voluntary association of individuals 2nd t o make no provision for dupliczte facilities on any basis but the total requirerrents of the part,iculm project. 7. EvalustinP Com uli qs. Reviews of contractors policies and practices to rcde sure they m e discharging their contractual of disc rb in nti on, and the contractor's record with respect t 3 corrective %tion in my instances of discriminchion. Some of the considerntions pertaining t o these ite3s =e discussed 2. Persocnel Policies. Contractor personnel policies pertaining iEg the cormitnents enbodied inthe non-discrinim tion clcuse, (2) be so st n ted as t o provide pcs it ive guidance fron to:, mnagenent t o employees of the contrrctor who Will be directly responsible f cr czrrying mt the conpnny f s non-discrirainztion obligation, and (3) be nnde known t o a11 those involved i n

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b. Recruitnent and HirinP Practices. Recruitnent and hiring pr:-.ctices on t h e contract work should be consistent I n all respects with the policy of non-dlscrinination. Practices which are generally held t o be disc rir in a tory include specifying race or color i n recruitment advertising or i n requisitions on c ql open t agencies, and requiring qp li cants t o check race o r color on 2pFlication forms. Nost states 2nd cmriici?alities whicn have FEP laws prohibit these p rnc tice s in their fair emplor.ent regulations. practices which are plainly inccnsistent with a pd icy of non-discririinstion are the segregatien of interview lines and :.mintr,ining sep mate ayplication files based on race c. h lov m ntP rt terns. Contrzctors' eq lo yn ent patterns at given locations ?rcvi.de ti basis fcr evaluating compliance with the policy of nx A is cr Lai nation, nent with res pct torino rit y workers shGuld be evaluated i n relation ta the av,y il ability of c in or it y workers with skills required by t h e contractor. the labor rmrket includes a significant nunber of Negro Patterns of eqloy - For ex,qle,in an mea where workers with v<a.ricd skills,a conpany which exploys no Negroes o r a6signs.Wepoes t o unskillect jobs only i s obviously cFen t o Particular n tten tion should be given t o contractors' train - ing pr*ogrcm as an aspect sf eriloyncnt, since n discriminatory

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pattern once established tends t o be perpetuated a t all higher job levels. A spec lal problem comes up i n connection with building trades agprentice training programs where the selection of trainees is a responsibility which the contractor shares with others. Hbwever, where AM: funds or facilities are provided i n support of such apprentice training progrzms, the AM: is in3position to inf'luence the policies on selection of trainees and can use this influence t o prevent practices which would deny such training to menbers of minority groups. The number nnd avail obili ty of minority workers i n various occupations can be ascertained, either formally o r informdly, from locnl 2nd state eqloyment offices, and in larger cities from t h e National Urban League which maintczins a placement service for Negroes including cleric zl s and profession ds. The employment patterns of other plants in the are2 may ,dso afford compaisons on which t o evaluate the employment I n the case of long-term cc n tracts, periodic or nt least occasional surveys should be mede of t h e nurnber 2nd occuprtions of minority workers employed on the contrzct work. Usually, these surveys will concern Negroes only. compx&xi? e spec i zl ly those in states hzving fair eqloyment laws, do not mint a in a record of employees by color. However, there :is nothing t o prsvent an employer from making an informal

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count of Negroes on his payroll and their occupation72 disd. Com1aints. A discriroinction complaint usually points toa p nrt ic ulm personnel practice, such as interviewing, selection, training, uppading, dr layoff, and provides the basis for specific review and correction of the practice on w5ich the complcint i s besed, Depending onthe type and frequency of compkints, they my indicate, among other things, defects i n the coritrmtor's personnel policies or procedures, questionable pr m tic as by contractor officials, or lack of proper instruction of these officials in their rc spd n sibi li ties under the non-discomplaints is not a guarantee that the contractor i s doing all he shu dc to coq ly with non-discrimimtion policy. On the other hacd, atot ? J absence of e . Corrective kc+,jr,n. A contractor ts record on corrective rrctions, pursurnt t o discrimin3tion conplaints, should be cvdunted not only with rcgard t o whether action us timely and rcmedied the parti cul nr complrints but whether it was effective in 8. Tdkinrr Action on Cum lr in ts. Coxpliints of discrimination received by AEC, involving c contractor, should be Fromptly followed up i n writing by the Operations Office 2nd afull explanation should be requested of the contractor. Where it appezrs t h e t the contrnctor isat fcuILt, thc complaint should be followed up i n writing by the Manager of Opn,rztions and assurances of correctivc action obtcined from the contractort s loc nl top management,

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The basis for corrective action by AX i n discrimination cm es is the legal contractuzl obligation assunled by the contractor when the same lsgnl force as any other contract clause; questions which come up under it should be handled with the contractor inthe same affirrnntive manner 2s other questions of ccntrnct performznce contractor who reflyse:, t o comply vith the non-discrimination clause, cases, it i s the poiioy ef LG l o us? e-rerx rnasgnzhle means, short tractor ’ seql3p zn t practices. Tks zteps t o be taken will depend matter should b e ncrsued until thc reis asswanc(: that the conThe non-discriminatioc clzuse has The ul ti rate recourse of the Goverment against il in t ke greet nx j or it y the p z rt of al ocd labor union, t h problcr- stould be t&cn up directly with the union. Both the A . F. of L. m d C.I.O. ncticncl organizations have s?oken out vigorously on t h e record for fair enployment 2nd this nation21 policy is apart of mny union const it uti ocs.Full use snould be mcde of these facts where a local

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union i s following a contrary policy on AM: work. at the local level are unsuccessful the facts should be reported tGthe Division of Orgenization and Personnel, Washington, SG that the AM: cnri where appropriate request the cooperation and assistance of the International i n bringing the local union's practices into line with national policy, 9. Relations with Outside Committees and Agencies. AM: i s one of the five mj or Government Contracting agencies represented on t h e President's Committee for Government Contract Complicnce and cooperates fully in the Committee's progrms t o improve coq li ance with the non-discrinination clzuse on connot rc gx d the processing o f individual complcints as one of from mincjrity orgznizations and individuals and transmit these conplaints tothe contracting agencies with a request fora report on the f rct s md the action taken. It is the policy of the AEC t o cooperzte with the Connittee inthe handling of such cozplaints and t o nake investicgations and reports as re'quested by the Committee. The Con it tee is not an operating agency and does It does, however, receive corilplaints Contacts with the Connittee on Government Contract Conpliance will3sa general rule be handled by the Division of Organiz ation and Personnel, Washington.

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Fair mpl open t Commissions meeting i n Wmhington i n July 1952 pledged full cooperation tothe President's Committee i n the supervision of fair employment practices on Fed erd contract work in their respective s txt es. These agencies m e working t o &e effective essentially the sae policies which have been adopted bjj the Federal Goverment for its contr,n,ct work. Acccrdingly, it isthe AM:fs policy to cooperate with these agencies on m y problems of disc rini nation involving its I n general, contacts with the State Fair Enploynent Comdssions will 5e hendled directly by Operstions Offices. to this Bulletin lists the states having sone form of fair eq lo y m nt legislation. ) c. Kinorltv Organizaticns. Kinority organizations, such 2s the Nntiorizl Urbm League, National Association f o r Advnncerient mate interest in non-discrimination in e ql cyn ent on public work. Requests for information ccncerning n in or it y group eqlo:yncnt on AM: work and disc r in inc tion complaints fron such orgznizations ehould receive c,lreful consideration froc. ~ c ration sOffices and contractors. Copies of significant correspondence between Operations Offices and n in or it y

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organizations shmld he fwnished t o the Division of Orgcniz ation nnC! Personnel, Washington. By authority of the General Maringer Oscar S. Snith, Director Division of OrgEnization and

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AS of June 1952, the following states had sme fcrn of fcir e ql open t C oloradc New Jersey Connecticut Mew Mexico Indinnn New York