employee representatives concerning grievances, personnel policies and practices, or other matters affecting general working conditions of employees in the unit. A Bank, through appropriate officials, shall have the obligation to meet at reasonable times with representatives of a recognized labor organization to negotiate with respect to personnel policy and practices and matters affecting general working conditions, but not with respect to such areas of discretion and policy as the purposes and functions of the Bank, the compensation of and hours worked by employees of the Bank, its budget, its retirement system or any life, health or accident insurance, its organization and assignment of personnel and of work to a particular job, or the technology of performing its work. However, a Bank, through appropriate officials, may consult with representatives of a recognized labor organization on any personnel policy or practice, or any matter affecting general working conditions.

(c) Any labor organization seeking recognition shall submit to the Bank a roster of its officers and representatives, a copy of its constitution and bylaws, and a statement of its objectives.

(d) The exclusive recognition of a labor organization shall not preclude any employee, regardless of labor organization membership, from bringing matters of personal concern to the attention of appropriate officials in accordance with applicable law, rule, regulation, or established Bank policy, or from choosing his own representative in a grievance or appellate action. § 269.4 Determination of appropriate bargaining unit.

The Bank will be responsible for determining, in accordance with the guidelines previously set forth in § 269.3 whether a unit is appropriate for purposes of exclusive recognition. However, after a labor organization shows that it holds cards requesting a representation election signed by at least 30 percent of the employees in the unit which that organization considers to be an appropriate bargaining unit, either the labor organization or

the Bank may request the American Arbitration Association (hereinafter referred to as "Association” or “AAA”) to nominate from its National Panel of Labor Arbitrators a qualified Arbitrator who will investigate the facts and issue a decision as to the appropriateness of the unit for purposes of exclusive recognition and as to related issues submitted for consideration. The expenses for this proceeding, inIcluding the fees of the Association and of the Arbitrator, shall be borne equally by the parties. If either the Bank or the labor organization should disagree with the Arbitrator's decision, the party in disagreement may appeal his decision to the Federal Reserve System's Labor Relations Panel (the purposes and functions of which are discussed in § 269.10), and the decision of the Panel shall be final and binding on the parties.

(a) Once there has been a determination of an appropriate bargaining unit and a showing by a labor organization that it has cards signed by at least 30 percent of the employees in the unit requesting a representation election, such an election shall be held. A labor organization shall be recognized as the exclusive bargaining representative of the unit if at least 60 percent of the employees eligible to vote do so, and the labor organization is selected by a majority of those who vote.

(b) If there is any dispute as to whether a labor organization holds cards signed by at least 30 percent of the employees in a unit, the dispute shall be resolved by an Arbitrator selected by the AAA and the expenses of such procedure, including the Arbitrator's fee, shall be borne equally by the parties. The decision of the Arbitrator shall be final and binding on the parties to the dispute.

(c) The election shall be held under the auspices of the AAA and shall be subject to its election rules and regulations. However, if there should be any conflict between such rules and regulations, and the provisions of this part, the terms and conditions of this part will control. The fees charged by the

AAA for this service shall be paid by the Bank.

(d) An election to determine whether a labor organization should continue as the exclusive bargaining representative of a particular unit shall be held when requested by a petition or a showing in cards by at least 30 percent of the employees of that unit. Any dispute as to whether at least 30 percent of the employees requested such an election shall be resolved by the same procedure as that set forth in paragraph (b) of this section. The election shall be held under the auspices of the AAA in the same manner described in paragraph (c) of this section. The recognition of a labor organization as the exclusive bargaining representative of a unit shall be discontinued if at least 60 percent of the employees eligible to vote do so, and a majority of those vote for discontinuance.

(e) Regardless of anything previously stated, only one election may be held in any unit in a 12-month period to determine whether a labor organization should become, or continue to be recognized as, the exclusive representative of the employees in that unit.

(f)(1) If at any time prior to an election, an appreciable number of employees evidence substantial interest in representation by one or more labor organizations, whether or not a 30 percent interest has yet been shown, it shall be incumbent on the Bank, labor organizations, and all others to refrain from any conduct, action, or policy that interferes with or restrains employees from making a fair and free choice in selecting or rejecting a bargaining representative.

(2) A Bank, labor organizations, or employees are not precluded from exercise of the free speech privileges of § 269.6(c) but such exercise may properly be held to be contrary to the intent of this section even if the conduct, action, or policy in question does not constitute an unfair labor practice under § 269.6(a) (1), (2), or (3), or § 269.6(b) (1) or (2) of this policy.

(3) The Panel may promulgate expedited procedures for prompt disposition of allegations that a violation of this section has affected the outcome of the election.

(4) The Panel may determine whether there has been a violation of this section, may render appropriate interpretations of this section, and may set forth as guidelines the circumstances the Panel believes necessary for a fair and free election by a Code of Preelection Conduct or by decision in specific

cases.

(5) In the event of a proven violation of this section by a Bank, by labor organizations, or by other individuals or organizations, found sufficient to affect the outcome of an election, the Panel may take appropriate remedial action such as the setting aside of the results of an election and the ordering of a new election: Provided, however, That the Panel may not require a Bank to recognize a labor organization without an election unless the violation is found to be an unfair labor practice under § 269.6 that would make a free election unlikely.

[35 FR 4610, Mar. 17, 1970, as amended at 37 FR 21989, Oct. 18, 1972]

§ 269.6 Unfair labor practices.

(a) It shall be an unfair labor practice for a Bank: (1) To interfere with, restrain, or coerce employees in the exercise of the rights guaranteed in § 269.2(a); (2) to dominate or interfere with the formation or administration of any labor organization, or to contribute financial or other support to it; (3) to encourage or discourage membership in any labor organization by discrimination in regard to hire or tenure of employment or any term or condition of employment; (4) to refuse to bargain collectively with the representatives of its employees subject to the provisions of § 269.3(b).

(b) It shall be an unfair labor practice for a labor organization, its agents or representatives: (1) To restrain or coerce employees in the exercise of the rights guaranteed in § 269.2(a); (2) to cause or attempt to cause the Bank to discriminate against an employee in violation of paragraph (a)(3) of this section; (3) to refuse to bargain collectively with the Bank, provided the labor organization is the representative of its employees.

(c) Notwithstanding anything previously stated in this section, the expres

sion of any view, argument, or opinion, of the dissemination thereof, whether in written, printed, graphic, or visual form, shall not constitute or be evidence of an unfair labor practice, if such expression contains no threat of reprisal or force, or promise of benefit.

(d) The Federal Reserve System Labor Relations Panel may promulgate rules and regulations, including penalties, to remedy or prevent the unfair labor practices listed herein.

§ 269.7 Approval of agreement and required contents.

(a) Any basic or initial agreement entered into with a labor organization as the exclusive representative of employees in a unit must be approved by the President of the Bank or by a duly authorized officer. All agreements with labor organizations shall also be subject to the following requirements, which shall be expressly stated in the initial or basic agreement and shall be applicable to all supplemental, implementing, subsidiary or informal agreements between the Bank and the organization:

(1) The administration of all matters covered by the agreement shall be governed by the provisions of applicable laws and Federal Reserve rules and regulations, and the agreement shall at all times be applied subject to such laws and regulations.

(2) The management of the Bank shall retain the right in accordance with applicable laws and regulations: To direct employees of the Bank; to hire, promote, transfer, assign, and retain employees in positions within the Bank, and to suspend, demote, discharge, or take other disciplinary action against employees; to relieve employees from duties because of lack of work or for other legitimate reasons; to maintain the efficiency of the operations entrusted to management; to determine the methods, means and personnel by which such operations are to be conducted; and to take whatever actions may be necessary to carry out the functions of the Bank in situations of emergency.

§ 269.8 Grievance procedures.

(a) An agreement entered into with a labor organization as the exclusive

representative of employees in a unit may contain provisions, applicable only to employees in the unit, concerning grievance procedures. However, these procedures may not in any manner diminish or impair any rights which would otherwise be available to any employee in the absence of an agreement providing for such procedures.

(b) Procedures established by an agreement may include provisions for the arbitration of grievances. However, such arbitration (1) shall be advisory in nature, with any decisions or recommendations subject to the approval of the President or a duly authorized officer of the Bank; (2) shall extend only to the interpretation and application of agreements or the Bank's labor policy, and not to changes in or proposed changes in agreements or such policy; and (3) shall be invoked only with the approval of the individual employee or employees concerned.

§ 269.9 Time for internal labor organization business, consultations and negotiations.

Solicitation of memberships, dues or other internal employee organization business shall be conducted during the nonduty hours of the employees concerned. Officially requested or approved consultation between management executives and representatives of labor organizations shall, whenever practicable, be conducted on official time, but the President or a duly authorized officer of a Bank may require that negotiations with a labor organization be conducted during the nonduty hours of the Bank.

§ 269.10 Federal Reserve System Labor Relations Panel.

(a) There shall be established a Federal Reserve System Labor Relations Panel which shall consist of three members: Two members of the Board of Governors of the Federal Reserve System, and one public member, all of whom shall be selected by the Board.

(b) In addition to the duties set forth in this section, the Panel shall be responsible for the duties assigned to it in §§ 269.4 and 269.6(d). Upon the request of a party, the Panel may, in

its discretion, issue decisions in any disputed matters, which shall be final and binding upon the parties. The Panel may advise the Board of Governors and the Banks regarding rules for financial reporting and disclosure, and bonding requirements for labor organizations recognized or seeking recognition under this part. The Panel may also undertake any other tasks in the

area of labor relations which may be referred to it by the Board or a Bank.

§ 269.11

Amendment.

This part may be amended without notice provided all labor organizations recognized, or seeking recognition, under this part are immediately informed of each change. In no instance shall an amendment be applied retroactively.

(a) The term "obligations" means Government securities, U.S. agency securities, bankers' acceptances, bills of exchange, cable transfers, bonds, notes, warrants, debentures, and other obligations that Federal Reserve banks are authorized by law to purchase and sell.

(b) The term "Government securities" means direct obligations of the United States (i.e., U.S. bonds, notes, certificates of indebtedness, and Treasury bills) and obligations fully guaranteed as to principal and interest by the United States.

(c) The term "U.S. agency securities" means obligations that are direct obligations of, or are fully guaranteed as to principal and interest by, any agency of the United States.

(d) The term "System Open Market Account" means the obligations acquired pursuant to authorizations and directives issued by the Committee and held on behalf of all Federal Reserve banks.

§ 270.3 Governing principles.

As required by section 12A of the Federal Reserve Act, the time, character, and volume of all purchases and sales of obligations in the open market by Federal Reserve banks are governed with a view to accommodating commerce and business and with regard to their bearing upon the general credit situation of the country.

§ 270.4 Transactions in obligations.

(a) Each Federal Reserve bank shall engage in open market operations under section 14 of the Federal Reserve Act only in accordance with this part and with the authorizations and directives issued by the Committee from time to time, and no Reserve bank shall decline to engage in open market operations as directed by the Committee.

(b) Transactions for the System Open Market Account shall be executed by a Federal Reserve bank selected by the Committee. The participations of the several Federal Reserve banks in such account and in the profits and losses on transactions for the account shall be allocated in accordance with principles determined by the Committee from time to time.

(c) In accordance with such limitations, terms, and conditions as are prescribed by law and in authorizations and directives issued by the Committee, the Reserve bank selected by the Committee is authorized and directed

(1) To buy and sell Government securities and U.S. agency securities in the open market for the System Open Market Account, and to exchange maturing securities with the issuer;

(2) To buy and sell banker's acceptances in the open market for its own account;

(3) To buy Government securities, U.S. agency securities, and banker's acceptances of the kinds described above, under agreements for repurchase of such obligations, in the open market for its own account; and

(4) To buy and sell foreign currencies in the form of cable transfers in