A study examined the Canadian-American Plant Closing Demonstration Project (CAPCDP) to assess the influence of the labor-management approach on factors critical to project success and to identify practices that enabled the labor-management committees set up under the project to work better. CAPCDPs in Idaho, Michigan, New Jersey, and Vermont were studied by the following methods: (1) on-site examination of project planning and implementation documents; (2) interviews with state officials, labor-management committee members, and local service-provider staff; and (3) information on dislocated workers obtained through Title III of the Job Training Partnership Act and Employment Service records, unemployment insurance records, service-provider attendance lists, and labor-management committee documents. The findings indicated that labor-management committees enhanced the ability of the four dislocated worker projects to help workers cope with job loss and find employment. The committees played a key role in the following four elements critical to the success of such projects: (1) tailoring assistance strategies to meet worker needs through their involvement in project planning, oversight of worker progress, and direct assistance to individual workers; (2) facilitating early intervention by informing workers of their reemployment assistance options before layoff; (3) coordinating project activities by serving as a focal point for planning and monitoring service delivery and providing a communication link between workers and service providers; and (4) supporting and encouraging worker adjustment efforts by establishing on-site assistance centers, maintaining personal contact with workers, and sponsoring other supportive activities. The extent of committee contribution appeared linked to strong state leadership, the committee's composition, and sustained involvement after layoff. (35 references.) (CML)