If a company strives for greater cooperation by forming a team composed of representatives of employees and managers to discuss and solve problems, it might find itself hauled up before the National Labor Relations Board and be accused of unfair labor practices.

Congressional Republicans are trying to change this, however, with legislation entitled Team Act. Although President Clinton called for "companies and workers (to) work as a team" in his recent State of the Union message, he vowed to veto the bill.

• The Team Act states simply that it is not an unfair labor practice for an employer "to establish, assist, maintain, or participate in any organization...in which employees participate to address matters of mutual interest and which does not...seek authority to negotiate or enter into collective bargaining agreements."

• The problem dates back to 1935's National Labor Relations Act which contained a provision banning sham unions.

• The Act made it an unfair labor practice for management to participate in any organization which discussed with workers "grievances, labor disputes, wages, rates of pay, hours of employment, or conditions of work."

Supporters say the Team Act is needed because it is virtually impossible for employers and employees to know what they can and can't do under the current law.

Labor lawyers say the effect has been to allow only two kinds of organizations in non-union shops.

• One is "command and control," in which the employer makes the decisions and simply tells the work force exactly what to do.

• The other involves turning the plant completely over to the workers and telling them to make all the decisions.

• Any arrangement that is somewhere in between -- where there is give and take -- is probably illegal in most situations.

The law made few waves until companies started to break down the walls between management and labor in search of greater productivity. A recent survey found that some three-fourths of firms involve workers in company decisions.

But almost half said they worry about the legality of these arrangements. And one in five said they were uncertain about expanding programs or starting new ones.

The Team Act passed the House last fall, but not by a sufficient majority to override a presidential veto. Additional Senate hearings on the measure are scheduled for next week.