A program using cooperative learning to improve the teamwork skills of high school-level vocational home economics students in multicultural, economically diverse communities was developed and tested during a 5-month action research project. The research phase of the project included the following: 71 of the students enrolled in the classes Home Economics Related Organizations (HERO) and Foods 3 and 4 answered the initial survey; videotaped oral interviews with 25% of the students in each class; and a survey of 33 HERO employers concerning students' ability to work within groups. Data from the surveys/interviews and a literature review were used to develop instructional strategies that were in turn incorporated into a 3-month instructional program focusing on teamwork/cooperative learning and conflict resolution and communication in group settings. Postprogram surveys were completed by 47 of the 71 students originally surveyed and by 29 HERO employers. Only slight differences were noted between the responses to the pre- and postproject employer surveys. The participating teachers considered the project a positive experience, however, and noticeable gains in the students' understanding of group dynamics and team building were observed in the postproject surveys. (The bibliography lists 42 references. Appended are the student and employer interview and survey instruments, project learning activities, sample group processing forms, and pre- and postproject survey results.) (MN)