This teacher's manual accompanies a course on labor relations for managers of small and medium-sized towns. Seven instructional modules are included. Module 1 provides an introduction to the curriculum, including an overview of the content/course methodology and a discussion of the industrial relations function. Module 2 discusses the methodology of collecting and evaluating data by focusing on the following topics: information and its role in negotiations; strategy and assessment of information needs in a competitive labor market; and making information available. Collective bargaining and public policy are covered in module 3, which includes such topics as resolution of conflict in labor management relations and the role of federal and state law in public sector labor relations. Strategy and tactics of the bargaining process are presented in module 4. Module 5 discusses how to live under agreements by discussing management decisions and actions for effective implementation of the agreement as well as the due-process clause of labor relations. Local policy considerations are covered in module 6, and module 7 contains special case studies. Each module contains the following elements: overview, objectives, instructor's notes, lecture outline, lecture/discussion topics, lecture materials, resources and references, and materials to be distributed. (BM)