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B-130515 1 (1974-03-11)

handle is hein.gao/gaobabkwp0001 and id is 1 raw text is: RESTRICTED ,.. ott be released outide the Gneral %,EAccounthg office except on the lbash, of specific approval 3 - -7q... b y th e O f fic e of c o n g re s o n m g d a ~ a h c Is kept y lI'V , F' ,ij ,, on 0 bMAJ Fcat1nS ranch, OAS B-13055RELEASED 3 ( MAR 131 1974 The Honorable Harold Runnels House of Representatives Dear Mr. Runnels: In accordance with your request of September 6, 1973, and subsequent discussions with your office, we examined a number of allegations relating to the Neighborhood Youth Corps (NYC) and the Emergency Employment Act of 1971 (EEA) (42 U.S.C. 4871) programs, being carried out in the city of Artesia, New Mexico. We discussed the detailed results of our work with you on November 15, 1973, and agreed to provide you with a summary of our work. The allegations referred to our Office related to a September 1972 labor dispute. About 40 city employees had been attempting to have the city accede to their request for union recognition; but the city refused. Subsequently, these employees failed to show up for work and, after refusing an order to return to work, their employment was terminated. The charge was made that funds from the NYC and EEA programs were used to hire other employees to replace the former city employees involved in the labor dispute. In reviewing this matter we examined correspondence and discussed the situation with officials of Artesia, the Eddy County Community Action Corpo- ration, the New Mexico Employment Security Commission, and the Department of Labor. We also examined time records, personnel records, payroll records, minutes of city council meetings, and other pertinent documents. However, both the NYC and EEA summer programs had been terminated at the time of our fieldwork. BACKGROUND EEA is designed to provide unemployed and underemployed persons with transitional employment in jobs providing needed public services during times of high unemployment. The Manpower Administration, Department of Labor, carries out this program through grants to States, cities, and coun- ties with populations of 75,000 or over and to consortia of Indian tribes. These units of government serve as program agents for the Department and negotiate subgrants with smaller units of government within their jurisdic- tions. Section 12 of the act states that the Secretary of Labor shall not pro- Vide financial assistance under this act unless he determines that the program shall (1) result in an increase in employment opportunities over EQ1O316

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