Ask the Scholar
Document scope · 1 page
Scholar
Ask about this object, its catalog metadata, its source description, or the page inventory.
For page-specific OCR and visual context, open one of the page chats.
Scholar Source Context
Document identity
localId
74231179
label
02/10/1981 (case file 043321) (1)
core
doc
dtoType
document
citationUrl
pageCount
1
Source metadata
id
74231179
sourceUrl
contentType
document
title
02/10/1981 (case file 043321) (1)
citationUrl
identifierLocal
439
collections
Records of the Office of the President (Reagan Administration)
Presidential Briefing Papers
imageCount
1
hasImages
yes
source
import
hasTranscription
no
Source extras
naId
74231179
coverageEndDate
logicalDate
1988-01-01
year
1988
coverageStartDate
logicalDate
1987-01-01
year
1987
levelOfDescription
fileUnit
recordType
description
ocrSource
nara-archive
Single page context
seq
1
pageIndex
0
type
document
mediaId
53233c13d6132c00
ocrText
yy
1512
ID #. 043321
WHITE HOUSE
OFFICE OF RECORDS MANAGEMENMT
WORKSHEET
XI H INTERNAL
Subject Codes:
Name of Document: PRESIDENT'S SCHEDULE FEB 1081
PR 007.01
LA 003.
/
Subject: Breakfast meeting with labor leaders
LA
so 001
2 Memo to the President re withdrawal
EG 021
of Department of Labor Regulations
LA 006
re chemical Cabeling service
LA 007.
contracts act, and Fair fabor
SA 003.
Standards Act
3 Folling pointofor staffmeetings
FG006.01 FG 006.01
if Memo re Cabinet meeting
F6 010.01
5, reneconomy Meeting with nineteen Governors
ST
BE 004
6 Meeting with President's Economic
FG 36'8.
Policy advisory Board.
7. Meeting with labor leaders
8 Meeting with Famile advisory Board
to received needepoint gift
61002
ROUTE TO:
ACTION
DISPOSITION
Tracking
Type
Completion
Action
Date
of
Date
Office/Agency
(Staff Name)
Code
YY/MM/DD
Response
Code YY/MM/DD
RMMATT
C
ORIGINATOR
/
/
/
/
Referral Note:
2012
ID #. 043321
WHITE HOUSE
OFFICE OF RECORDS MANAGEMENT
WORKSHEET
X MEDIA
H . INTERNAL
Subject Codes:
Name of Document:
BRIEFING PAPERS FOR
APPOINTMENTS FOR FEB1081
PRESIDENT'S SCHEDULED
9. Subject: meeting with David BRINKLEY
PR016
57 NBC the interviewed as
PROIL
Port of The Tapine of "a Day in
the Life of The President 111
10 Schedule of the President for
TR 001.
of The HA RLEM Dance Theatre -
Kennedy Center performance
EG 253.01
AR
-
-
ROUTE TO:
ACTION
DISPOSITION
Tracking
Type
Completion
Action
Date
of
Date
Office/Agency
(Staff Name)
Code
YY/MM/DD
Response
Code YY/MM/DD
RMMATT
RSZ
/
/
/
/
Referral Note:
UNPUBLISHED
February 9, 1981
THE WHITE HOUSE
5:00 pm
THE PRESIDENT'S SCHEDULE
Tuesday, February 10, 1981
8:00 am
Staff Time (Dave Fischer)
Residence
(15 min)
8:15 am
Breakfast with first group of Labor Leaders
First Floor
(60 min)
(Elizabeth Dole)
(TAB A)
Family Dining Roor
9:15 am
Staff Time (Baker, Meese, Deaver) (TAB B)
Oval Office
(15 min)
9:30 am
National Security Briefing
Oval Office
(15 min)
(Richard V. Allen) EM,JB, BUSH, MURPHY, MKO
9:45 am
Meeting with Jim Baker, Mike Deaver,
Oval Office
(15 min)
Ed Meese, Max Friedersdorf and Jim Brady (TAB C)
10:00 am
Cabinet Meeting
Cabinet Room
(60 min)
(Craig Fuller)
(TAB D)
11:00 am
Staff Time
Oval Office
(40 min)
11:40 am
Meeting with Executive Committee, National
Roosevelt Room
(20 min)
Governors Association (Rich Williamson) (TAB E)
Noon
The President escorts the Governors to
First Floor
(75 min)
Luncheon in the Residence
Family Dining Roor
2:00 pm
Meeting with the Vice President
Oval Office
(20 min)
2:30 pm
Brief dropby at Economic Advisory Board Meeting
Cabinet Room
(10 min)
(Martin Anderson) (TAB F)
NEEDLEPOINT PRESENTATION
3:00 pm
Meeting with second group of Labor Leaders
Oval Office
(30 min)
(Elizabeth Dole)
(TAB G)
4:00 pm
Speech preparation (Dave Gergen) Keu Washigin
Oval Office
(3Q min)
Friedended Brady LN, MD, JB, EML Harper +stockman
4:30 pm
Staff Time (Baker, Meese, Deaver)
Oval Office
(30 min
5:00 pm
Presentation of Needlepoint by Family Policy
Oval Office
(5 min)
Advisory Board (Rich Williamson)
(TAB H)
STARF TIME
5:45 pm
Wrapup with David Brinkley, NBC
Library
(30 min)
(James Brady)
(TAB I)
Residence
7:35 pm
The President and Mrs. Reagan depart
White House for Kennedy Center
(TAB J)
8:00 pm
Performance by Dance Theatre of Harlem
Kennedy Center
Opera House
10:15 pm
Depart Kennedy Center and return to White House
THE WHITE HOUSE
WASHINGTON
February 9, 1981
MEETING WITH: Labor Supporters
LOCATION: First Family Dining Room
TIME: 8:15 AM - 8:45 AM
FROM: ELIZABETH H. DOLE
PURPOSE: A "get-acquainted" session to enlist the help of labor in building
support for your economic package. This breakfast serves as a symbolic reward for
those labor leaders who gave you their public support during the general election.
You may also wish to pre-alert your guests that on Wednesday, DOL is going to with
draw and/or suspend three of its most controversial "midnight regulations" issued
by President Carter -- Chemical Labeling, Service Contracts Act and Fair Labor
Standards Act (FLSA).
BACKGROUND: This is another of your "outreach" efforts through the Office of
Public Liaison. Key issues of concern are:
TEAMSTERS: Deregulation and attendant possible loss of 10-15% of trucking
industry members due to route consolidations and organizing difficulties with
new smaller companies is the main concern. Availability and price of diesel
fuel as well as the 55 mph speed limit are viewed as very real economic con-
straints to member owner/operators.
MARITIME UNION AND M.E.B.A.: Both are concerned about the decline in U.S.
Merchant Marine and unfair competition with foreign flag shipping. They suppor
cargo preference legislation to require more goods to travel in U.S. ships
(results in more jobs) and construction and operating subsidiaries for U.S.
Merchant Marine. Jesse Calhoon has asked you to "overhaul" the U.S. Coast
Guard.
AIR TRAFFIC CONTROLLERS: They want strengthened air safety and FAA air traffic
control procedures, plus strengthened bargaining process for Air Traffic Con-
trollers, including the right to strike and bargain over wages (would require
change in current Federal law). Current contract expires 3/15/81 and nego-
tiations appear very tough.
PRESS PLAN: Press photo coverage
SEQUENCE OF EVENTS:
8:10 AM Labor leaders and staff enter the First Family Dining Room and await
your arrival.
8:15 AM You arrive, greet guests and ask them to join you for an informal
breakfast. Once seated, press will be admitted for brief photos.
After the press departs, Martin Anderson will provide a brief overview
of your economic package, followed by informal discussion during whicl
you ask the labor leaders to help gain support for your economic
package.
8:45 AM You thank your guests and take your leave.
ATTACHMENTS: Participants/Talking Points/Background Fact Sheets
THE WHITE HOUSE
WASHINGTON
February 10, 1981
MEETING WITH: Labor Leaders
LOCATION: Oval Office
TIME: 3:00 - 3:30 p.m.
FROM: ELIZABETH DOLE
PURPOSE: To initiate dialogue with labor leaders representing 95 percent
of organized labor and open avenues for two-way communication regarding your
economic package and subsequent issues.
BACKGROUND: You may wish to keep the meeting general in nature, since this
will enable the leaders (especially Lane Kirkland) to debrief the press by
saying that the meeting was open and constructive. All support a militarily-
strong U.S., however do have vested interests as follows: AFL-CIO ;
Oppose tax cuts as effective in generating jobs and stimulating investment,
while favoring reindustrialization agreements and government action.
Advocate common situs picketing, labor law reform, repeal of Landrum-Griffin
section 14-b and expanded Trade Adjustment Assistance. Also oppose youth
minimum wage as "firing fathers to hire sons". UAW; Advocate import
restrictions on foreign autos and expanded Trade Adjustment Assistance,
federal aid to Chrysler and comprehensive national health insurance. Concern
about rapid technological change required by government law and subsequent
automation of plants. UMW; Strongly supports government policy to encourage
use of coal to help alleviate persistent unemployment (currently at 20,000)
Also support coal gasification, coal conversion incentives, modernization
of port and railroad handling for coal (oppose coal slurry pipelines and truck
as inadequate), and improved mine safety. Concerned about unemployment
resulting from Clean Air Act and Federal Surface Mining and Reclamation
Act regualtions. TEAMSTERS; Concerned about deregulation and its attendand
possible loss of 10-15% of trucking industry members availability and
price of diesel fuel, and the 55 mph speek limit.
PRESS PLAN: Press photo coverage
SEQUENCE OF EVENTS:
2:30 p.m.
Labor leaders assemble in Cabinet Room for
introductory remarks by Elizabeth Dole, followed
by economic package overview briefings by
Secretary Regan, Secretary Donovan and M. Weidenbaum.
3:00 p.m.
The labor leaders and Administration spokesmen
join you in the Oval Office and are seated for a
photo coverage. After the press departs you offer
brief remarks followed by dialogue with the labor
leaders.
3:30 p.m.
You thank your guests and they depart.
Attachments: Participants/Talking Points/Background Sheets
PARTICIPANTS FOR MEETING WITH
LABOR SUPPORTERS
Labor Supporters:
Frank Fitzsimmons, President of the International Brotherhood of Teamsters
Shannon Wall, President of the National Maritime Union
Jesse Calhoon, President of the Marine Engineers Beneficial Association
Robert Poli, President of the Professional Air Traffic Controllers
Administration:
The President
Secretary Ray Donovan
Elizabeth H. Dole
Martin Anderson
LABOR SUPPORTERS TALKING POINTS (ON CAMERA)
-- Asked you here to personally express my gratitude for your wholehearted
campaign support.
-- I would like to enlist your support again. This time for our economic
package.
-- Through Elizabeth's "outreach" efforts, we hope to get your suggestions,
not only today but in the months ahead.
- We have got to stop inflation by slowing the growth of government and
returning productivity growth to the private sector. I'm proud of the
U.S. worker. It's our job to give him the tools and support to be
competitive in the world marketplace.
LABOR SUPPORTERS TALKING POINTS (OFF CAMERA)
- Off the record, I thought you might like to know that tomorrow DOL
is going to withdraw and/or suspend three of its most controversial
"midnight regulations" issued by President Carter --- Chemical Labeling,
Service Contracts Act and Fair Labor Standards Act (FLSA).
INTERNATIONAL BROTHERHOOD OF TEAMSTERS, CHAUFFEURS, WAREHOUSEMEN AND
HELPERS OF AMERICA (Ind.)
25 Louisiana Avenue, N.W., Washington, D.C. 20001
Phone: (202) 624-6800
President: Frank F. Fitzsimmons
Secretary-treasurer: Ray Schoessling
Membership: 1,923,986; Local unions: 750
Founded after the AFL began to organize the unskilled team drivers around
1900, the International Brotherhood of Teamsters, Chauffeurs, Warehousemen and
Helpers of America (IBT) was originally a loose confederation of locals controlled
by powerful bosses. It has since become the largest and most complex union in the
United States.
McClellan Committee's revelation of corruption in the IBT in 1957 led
to the conviction of president Dave Beck and the ouster of the union from the
AFL-CIO. James Hoffa was then elected president. Hoffa inaugurated the first
national contract in the trucking industry and helped expand the extensive health
and medical program. Accused of corruption and convicted of jury-tampering in
1963, Hoffa was jailed in 1967 but remained officially president until 1971 when
Frank Fitzsimmons was elected to replace him. In the 1970's the Labor Department
began a massive investigation into misuse of the assets of the Central States
Pension Fund, the Union's largest pension plan. This ongoing investigation has
lead to the ouster of the Fund's previous trustees, litigation to recover
millions of dollars in misspent funds and the turnover of all current invest-
ments to independent asset mangers.
Initiatives undertaken by AFL-CIO President Kirkland may lead to the re-
affiliation of the IBT with the AFL-CIO. Both organizations have appointed
internal committees to study possible reaffiliation, and the committees have
met jointly on several occassions. Reportedly the IBT may make a final decision
on the matter at its June 1981 convention.
Biographical Sketch of Frank Edward Fitzsimmons, President, IBT
Mr. Fitzsimmons was elected president in 1971 after serving as general vice
president since 1966. Previously he has served as business agent and vice
president, Local 299, IBT; secretary-treasurer, Michigan Conference of
Teamsters; and vice president of the IBT.
Fitzsimmons has announced that he will seek reelection to another 5-year
term as IBT President in June 1981.
Issues of major concern:
1.
Union "image" in face of charges by DOL, IRS, IBT dissidents, and the
press.
2.
Dissident groups and factions within the union.
3.
Effects of recent legislation to deregulate the trucking industry on
the Union's ability to maintain and increase present wage and job
security levels. It has been estimated that the Union could lose
10 to 15 percent of its trucking industry members due to the
consolidation of present routes, new authorization for predominantly
nonunion sectors of the industry to haul certain types of freight,
and expected organizing difficulties among the smaller carriers who
will emerge under the free entry provisions of the new law.
4.
Availability and price of diesel fuel; fifty-five mile per hour speed
limit. Over-the-road drivers, who are paid on a milage basis and must
adhere to Department of Transportation maximum daily hours of duty
regulations, experience "de facto" wage cuts when they must wait in
long fuel lines or adhere to the Federally imposed speed limit. The
price of fuel effects the earnings of owner-operators, who own their
own trucks and pay for their own fuel.
5.
Inconsistent State and Federal weight and length maximums and
licensing requirements. Heavy trucks must avoid certain states and
take circuitous routes due to maximum weight and length limits.
Complicated and expensive licensing requirements must be satisfied
on a state-by-state basis. These problems especially effect owner-
operators.
Collective bargaining status:
The current National Master Freight Agreement was reached in 1979 following
a short strike. In previous years the NMFA ratification tally has been monitored
and the count certified by the Department of Labor.
The current National Master Freight Agreement expires on April 1, 1982.
NATIONAL MARINE ENGINEERS' BENEFICIAL ASSOCIATION; (AFL-CIO)
444 North Capitol Street, Room 800, Washington, D.C. 20001
Phone: (202) 347-8585
President: Jesse M. Calhoon
Secretary-treasurer: C.E. DeFries
Membership: 13,490: Districts: 2
The National Marine Engineers' Beneficial Association was formed in 1875.
The decline of the American merchant fleet--down from 1,224 ships in 1950
to about 580 in 1980-cut deep into MEBA's ranks. In recent years (1976-78)
the union has slightly reversed its position, regaining control of the Great
Lakes and some other concessions. The union also represents marine engineers
in Atlantic, Gulf, and West Coast shipping firms.
Issues of major concern:
1.
Decline in the U.S. Merchant Marine.
2.
Unfair competition with foreign flag shipping.
3.
Supports cargo preference legislation which would require more goods
to travel on U.S. Merchant ships, therefore creating new jobs.
4.
Supports operating and construction subsidies for U.S. Merchant Marine.
5.
Jesse Calhoon has asked President Reagan to "overhaul" the U.S.
Coast Guard because of its handling of the disappearance of the
U.S. Flag ship S.S. Poet.
Collective Bargaining Status:
On the East and Gulf Coasts, union negotiates with the American Maritime
Association, Maritime Service Committee, and the Tanker Service Committee. On
the West Coast, the union negotiates with the Pacific Maritime Association. All
contracts were concluded in June, 1978.
Agreements expire on June 15, 1981
NATIONAL MARITIME UNION OF AMERICA; (AFL-CIO)
346 West 17th Street, New York, N.Y. 10011
Phone: (212) 924-3900
President: Shannon J. Wall
Secretary-treasurer: Thomas Martinez
Membership: 50,000: local unions: 2 divisions 7
The National Maritime Union was formed in 1937 when disgruntled East Coast
sailors, previously members of the Seamen's Union, joined the CIO.
Membership has, even into the 1970's, lagged behind rival seamen's unions
such as the Seafarers and Sailors Union of the Pacific. The union represents
unlicensed deck and engineering personnel.
Issues of major concern:
1.
Decline in the U.S. Merchant Marine.
2.
Unfair competion with foreign flag shipping.
3.
Supports cargo preference legislation which would require more goods
to travel on U.S. merchant ships, therefore, creating new jobs.
4.
Supports operating and construction subsidies for U.S. Merchant Marine.
Collective bargaining status:
On the East and Gulf Coasts, union negotiates with the Maritime Service Committee
and Tanker Serfice Committee, representing various subsidized cargo ship owners
and tanker operators. No representation for seamen on the West Coast. Contracts
were concluded during June of 1978.
Major agreements will expire on June 15, 1981.
PROFESSIONAL AIR TRAFFIC CONTROLLERS ORGANIZATION
(AFFILIATED WITH THE NATIONAL MARINE ENGINEERS" BENEFICIAL
ASSOCIATION)
444 North Capitol Street, Suite 820, Washington, D.C. 20001
Phone: (202) 638-6500
President: Robert E. Poli
Executive Vice President: Robert E. Meyer
Membership: 14,500 Local unions: 475
The Professional Air Traffic Controllers Organization represents employees
of the Federal Aviation Administration in the craft of air traffic controller.
The Union became affiliated with the Marine Engineers' Beneficial Association
in 1971. The union is considered one of the most agressive of Federal unions
and has engaged in several "sick-outs" and "work-to-rule" campaigns to enforce
its demands.
Issues of major concern:
1.
Seeks strengthened bargaining process for air traffic controllers including
the right to bargain over wages and retirement benefits and the right to
strike. These objectives would require changes in current Federal law.
2.
Seeks strenthened air safety, changes in FAA air traffic control pro-
cedures and improvement in electronic monitoring and control systems.
Collective bargaining status:
The current national PATCO agreement with the FAA, covering some 17,000
air traffic controllers, expires on March 15, 1981. Negotiations are scheduled
to begin on February 9.
The negotiations will be conducted in the face of deteriorating relations
between PATCO and the FAA. The FAA has accused the Controllers of being com-
placent and unattentive on the job, thereby exposing the public to unnecessary
risk. PATCO, on the other hand, accuses the FAA of inadequate staffing levels
and failure to maintain and update electronic traffic control equipment. Also
casting a pall over the negotiations is the attention the FAA's detailed strike
contingency plan has received by Congress and the press.
OF THE
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
SECURITY
STATES
WASHINGTON, D.C. 20503
FEB - 9 1981
MEMORANDUM TO THE PRESIDENT
FROM:
EDWIN L. HARPER DEBP
SUBJECT:
Withdrawal of Department of Labor Regulations
On Wednesday, February 11, the Department of Labor is going to
announce the withdrawal and/or suspension of three of its most
controversial regulations:
1. Chemical Labeling - Would require employers in the
chemical industry to label containers of hazardous
materials and to provide hazard warning information
to employees, customers and suppliers.
2. Service Contracts Act - Would extend the rules
implementing the Act to the timber, R&D and ADP
industries. The Act sets out wages to be paid under
government contracts; extends Davis-Bacon philosophy.
3. Fair Labor Standards Act (FLSA) - Rules establish salary
level test for determining whether the duties and respon-
sibilities of workers need to be examined to see if they
are exempt from the overtime provisions of the Fair Labor
Standards Act, because they are executive administrative
or professional employees.
All three of these regulations were issued as "midnight regulations"
by the Carter Administration. In the case of the Service Contracts
Act and FLSA Exempt Salaries our proposal will be to resort back to
the regulations in existence prior to the issuance of the "midnight
regulations.'
We have received a very large volume of mail by large and small
firms who oppose these regulations. The costs of these regulations
are significant: Chemical Labeling: $1 billion in first year, $300
to 350 million thereafter; FLSA Exempt Pay: $53 million per year.
(No accurate cost estimates are available for the Service Contracts
Act.)
Organized Labor will be as concerned about the precedent established
by this action as they are about the merits of the action.
Department of Labor
Regulatory Actions
1.
Summary
The Department of Labor announced today that it has
withdrawn its proposed chemical labeling regulation
indefinitely stayed the effective date of revised
regulations for
the Service Contracts Act
salary test levels for exemptions from the
overtime provisions of the Fair Labor Standards
Act.
2.
Chemical Labeling
This proposed regulation was withdrawn because it was
developed without consideration of a number of
issues.
These include:
Overlap between the proposed regulation and the
regulation under
- Toxic Substance Control Act
- Resource Conservation and Recovery Act
Experience of our trading partners in the European
Community
- Their chemical labeling rules are considerably
different from the rule proposed by DOL.
- Their rule has been in place, and we need to take
their experience into consideration in designing
our program.
The exent of hazard (toxicity) present in mixtures
where the hazardous chemical is sufficiently diluted
so that it is no longer a hazard.
The need to protect trade secrets so as not to
impede innovation.
Requiring costly labeling of pipe systems and
and reaction vessels without concommitment benefit.
The rule will be reproposed after a full review of
these issues.
In preparing its proposal, DOL will seek approaches
that
- provide workers with information about hazards
they are exposed to.
- protect trade secrets.
3.
Fair Labor Standards Act Exempt Salary Levels
This regulation would have increased the salary test
levels partly used to determine if executive,
administrative, and professional employees are exempt
from the overtime compensation provisions of the Act.
The Department stayed the February 13, 1981, effective
date of its revised regulation to
give the public an opportunity to comment on the
regulation.
- Although coment had been received, the final
regulation was importantly different from the
proposal.
- It called for two increases in the salary test
levels.
- The second step is higher than the level on which
the public commented.
- The comments were based on a single increase.
The increases proposed were claimed by many to
- be inflationary
- result in layoff of some workers.
The Department estimated that the cot of the
regulation would be $53 million.
- This is considerably lower than indicated by
comments.
- the Department's estimated and those provided in
comment have not, but should have, been reconciled.
The Department has asked the public to comment on
The two stage increase in salary levels.
It will subsequently either
- make the regulation final
- repropose a revised regulation.
In the interim, existing salary test levels remain
in effect.
Nothing will happen to workers' wages because of
this action.
- normal market pressures of supply and demand will
cause some wages to rise.
- the existing salary test levels will continue to
set a floor workers paid less than existing test
levels will not be exempt from the overtime
compensation protection provisions of the Act.
4.
Service Contracts Act
The Department indefinitely stayed the February 17
effective date of its revised Service Contracts Act
regulation.
It took this action to permit:
Legal review of the "principal purpose" language of
the Act
The rule stayed today would have expanded coverage
of the Act, among other areas, to:
Timber sales
Research and development
Servicing of rented ADP equipment and ADP
equipment services provided under purchase
warranties
There is substantial question about whether these
activities are subject to the Act.
Many, including the Comptroller General, believe
that they are not covered by the Act.
In addition, the Department had not followed its own rules in
issuing the rule.
It was asked to hold public hearings and to conduct a
regulatory analysis.
Under its policy for improving regulations it:
Should have held hearings
Should have conducted a regulatory analysis
It did neither even though comments indicated that
regulation would impose new cost on the economy of
more than $100 million each year.
The Department will:
Review its statutory authority
Conduct a regulatory analysis
Select a regulatory approach that:
Achieves the purpose of the Act
Avoids unnecessary inflationary pressure on the
economy
SERVICES CONTRACTS ACT
What did the Department do?
The Department idefinitely stayed the February 17, 1981,
effective date of its revised Services Contracts Act
regulations.
What effect does this have?
It continues the regulations that were previously in effect.
It also permits the Department to conduct a regulatory analysis
and analyze its statutory authority for the rulemaking.
After these analyses have been completed the Department will
repropose the regulation.
Why was this action taken?
The regulations, as issued by the Department are highly
controversial.
New language in the regulation explicitly extended coverage of
the Service Contracts Act to research and development and
timber sales and codified important administrative practices,
not previously subject to pubic comment. Some commentors
specifically indicated their belief that these actions exceeded
the Department's statutory authority.
The public had requested an opportunity to present their views
at a public hearing. NO public hearings were held.
A number of commenters asked the Department to conduct a regu-
latory analysis. They noted that the Department's own regu-
lations required it to conduct an anlysis if the regulation is
likely to cause or result in increased costs of $100 million or
more per year in the national economy or $50 million or more
for a specific segment of the economy. The comments indicated
that the regulation would have cost effects of these threshold
amounts or more. The Department did not conduct a regulatory
analysis.
What will happen while the Department is reviewing the
regulation?
The Department will continue to operate under the rules
previously in effect.
It will analyze its legal basis for issuing regulations
covering research and development and timber sales among other
types of contractual actions that involve the use of service
employees but whose "principal purpose" is other than to
provide services. It will conduct a regulatory analysis that
will examine the purpose of the Service Contracts Act and the
alternative approaches that can be taken to achieve this
purpose.
FLSA EXEMPT SALARY LEVELS
What did the Department do?
The Department stayed the effective date of a regulation that
would have increased the salary test level used to determine if
executive, administrative and professional employees (who met
certain duties and responsibilities tests) were exempt from the
overtime compensation provisions of the Fair Labor Standards
Act. Without this stay, the regulation would have become
effective on February 13, 1981.
What effect does this have?
It continues the interim salary test standards that have been
in effect until the Department has reviewed the regulation,
received additional public comment, and make a final determi-
nation about appropriate next steps.
Why did the Department take this action?
The two step increase that was promulgated was not contemplated
in the notice of proposed rulemaking. Therefore the public had
no opportunity to comment on it.
The second stage salary levels are higher than the levels that
the public commented on.
A number of commentors stressed that the levels proposed by the
Department, in its notice of proposed rulemaking, were infla-
tionary and would result in the layoff of some workers.
The Department estimated the cost of the proposed rule to be
$53 million. This number is substantially less than the
estimates contained in the public comments. These differences
have not been reconciled.
What does the Department expect will happen now?
The potential inflationary effect of the new regulation will be
removed.
The Department will reexamine its approach to making determi-
nations about exemptions to the overtime provisions of the Fair
Labor Standards Act.
It will receive public comments about the two stage increase in
salary levels.
It will either make the regulation final or, based on public
comments and its own analysis, repropose a regulation on salary
test levels.
What happens to workers' wages pending a final determination in
the rulemaking?
Nothing because of this action.
The reinstatement of the interim salary levels will not prevent
the normal market pressures of supply and demand from raising
the salary of any exempt employee.
HAZARDOUS CHEMICALS
What was proposed and when?
On January 16, 1981, the Assistant Secretary for Occupational
Safety and Health issued a proposed standard that would require
employers to identify the hazardous chemicals in their work-
place through specific hazards identification and evaluation
procedures, labeling requirements and the establishment and
maintenance of records.
What employers would have been covered by the rule?
All manufacturers and importers of chemicals and all firms
that use chemicals in the manufacturing process.
Why was the proposed rule withdrawn?
The proposed rule was withdrawn because the Department
recognized that there were major alternatives that could be
adopted to meet the regulatory goal. These alternatives had
not been considered.
What harm would have been done if the rule had not been
withdrawn?
Business would have spent a considerable amount of time and
effort commenting on a rule that the Department may change in
major ways.
This would have meant that the Department would have had to
again ask the public to comment on a hazards identification
proposal. The Department thought it only fair to consider the
alternatives first and propose a rule it believed would be the
basis for final rulemaking.
What changes does the Department plan to make in the proposed
rule?
We don't know, DOL will conduct an indepth review of the
issues. The reproposal will be based on this review.
What issues will be reviewed?
Among others, the review will consider:
O The identification standard that our trading partners in the
European Economic Community have had in place for some time.
We need to study their approach which is significantly
different from that which OSHA proposed. Among other
differences, it takes toxicity into consideration. The OSHA
proposal does not. It requires labeling of all mixtures and
substances with a toxic ingredient that comprises 1% of the
weight.
The alternative approaches that exist to providing needed
data to workers while protecting trade secrets. There is a
concern that the disclosure required by the proposal may
inhibit innovation without providing improved safety.
The detailed labeling required by the proposal. Labeling of
piping systems and reaction vessels is costly and
potentially confusing. The result might be both expensive
and counterproductive.
The overlap between the OSHA proposal and other Government
programs to control toxic substances.
These programs include those under the Toxic Substance
Control Act and the Resources Conservation and Recovery Act.
The interaction of these rules need to be examined to avoid
costly duplication and inconsistency.
When does DOL expect to repropose the rule?
We don't know.
The Department will examine the issues by conducting a new and
detailed regulatory analysis. That analysis will be completed
and DOL will repropose when it is satisfied that it has chosen
an approach that achieves the goal of letting workers know what
dangers they may be exposed to in the workplace -- and imposes
the least inflationary cost on industry consistent with this
goal.
(Rohrabacher)
February 9, 1981
TALKING POINTS: PRESIDENTIAL BRIEFING 9:15 a.m., February 10, 1981
PARTICIPANTS: Baker, Meese, Deaver
REFER TO: Newspaper article on Labor Department
-- With all the talks about cuts we can't forget that the purpose
of our being here is to get control and change the direction of
government.
-- Just like in California, there are elements in the bureaucracy
that are going to try everything possible to sabotage our
efforts.
-- If we let them, the bureaucracy is going to try to make cuts
in areas that hurt the public the most instead of cutting fat.
-- Every interest group, every business whose subsidy is cut,
all of them are going to be screaming.
-- Every cut has to be across the board and fair.
-- We've got to show people that savings are being made in
defense, too.
TALKING POINTS FOR PRESIDENTIAL BRIEFING
Tuesday, February 10, 1981
The Oval Office
9:45 a.m.
Participants:
Baker, Meese, Deaver, Friedersdorf and Brady
Purpose:
Friedersdorf will brief on Congressional
support for cuts among the Democrats in
the House, and emphasize need to talk
to members of the Senate for imput in
the grain embargo decision.
--
Ask Friedersdorf to set up meeting with Charles Stenholm
and the group of Democrats in the House that he represents.
--
Ask Friedersdorf to set up a meeting for you to discuss
the grain embargo with interested Senators.
-
We want everyone supporting our efforts in Congress,
especially the Democrats, to know they are having imput
into our decisions.
CABINET MEETING
February 10, 1981
Cabinet Room
10:00 a.m.
FROM: Craig L. Fuller
I. PURPOSE
Scheduled meeting of full Cabinet
II. BACKGROUND
The main focus of the meeting will be on the
Economic Program. Three items have been set
for the beginning of the meeting to provide
NBC with substantive material for their coverage
of a "day in the life of the President,"
1. Agenda - The President should indicate that
the focus of today's meeting is on the Economic
Program. First, however, there are three items
he should discuss before taking up the economic
plan.
2. Grain Embargo - This item is set on the agenda
to allow the President an opportunity to announce
that the Grain Embargo issue will not be discussed
in the Cabinet again until after he has had an
opportunity to meet with Congressional leaders.
The last Cabinet meeting ended with no decision
and an indication that the discussion would
continue during the next Cabinet meeting.
3. Personnel - Pen James is prepared to report on
our progress with Presidential appointments.
He will also discuss hiring minorities and women.
Since this discussion will occur during the NBC
filming, detailed talking points will be provided
for both Pen James and the President.
4. Inspectors General 1 The President should ask
Ed Harper to discuss this matter. They will ask
for consensus on an approach to coordinating the
Inspectors General program. A Cabinet briefing
memo is in the binder. The Procedure recommended
by OMB has been reviewed with Mr. Meese.
- 2 -
5. The Economic Program - This will be a two-part
presentation. Donald Regan will present a
Briefing on Tax Policy. David Stockman will
present a report on Spending Controls.
6. Special Prosecutor Legislation - Bill Smith
needs to make a brief comment on this situation,
details are in your Cabinet binder.
7. Reorganization Authority - David Stockman will
provide a briefing to the Cabinet on Reorgani-
zation activities. A briefing will be in the
Cabinet binder.
8. Cabinet Procedures and Schedule - Ed Meese will
have comments.
III. PARTICIPANTS
Attached to Agenda
IV. SEQUENCE OF EVENTS
As the President enters, the NBC crew will enter
the Cabinet Room. The President should discuss
the Agenda and the Grain Embargo. Then he should
ask Mr. James to discuss Personnel and Mr. Harper
to discuss the Inspectors General. At or before
the end of these discussions NBC will leave. At
that point the agenda can be resumed.
TALKING POINTS FOR THE PRESIDENT
Cabinet Meeting
10:00 a.m.
Feburary 10, 1981
Background
The NBC crew will be filming the first
portion of the Cabinet meeting. The
President should discuss the following
items with the NBC crew filming:
1. The agenda for the meeting
2. The grain embargo
3. An OMB recommendation on the
Inspectors General program calling
for an executive order creating
a "President's Council on Integrity
and Efficiency"
4. An overview of the Economic
Program by Dave Stockman which will
involve a prearranged discussion
with Secretary Weinberger
Talking Points
Agenda:
O Announce that the focus of the Cabinet meeting
is on the Economic Program.
O Indicate that there a couple of items that should
be discussed before getting into the presentations
by Dave Stockman and Don Regan.
CABINET TALKING POINTS - PAGE 2
Grain Embargo:
O indicate that this item is not on the agenda
for discussion, although we had indicated
it would be continued on the agenda for today.
O indicate that Senate leaders will be offering
input when they return next week and the
discussion on the grain embargo should be held
in abeyance for a future meeting.
Inspectors General
O indicate that OMB has developed a recommendation
on a way to better coordinate the efforts of the
inspectors general to find and reduce waste fraud
and abuse.
O ask Ed Harper to make his presentation
O request comments from the Cabinet
Economic Program
O indicate that Donald Regan and David Stockman
have been working night and day and through the
weekend to bring together the elements of the
Economic Program.
O before getting into the details of the program, ask
Dave Stockman for an overview.
(Dave will indicate where decisions have been made and
how much remains to be found to reach our agreed
upon goals.)
O when Dave indicates that more cuts are needed, indicate
that everyone will have to find a little more and
that youre counting on each department to find additional
savings
including Defense.
CABINET TALKING POINTS - PAGE 3
turn to Cap Weinberger who will outline where
he and Dave Stockman have found savings within
the Department of Defense.
when Cap is finished, indicate that the only
programs which we will protect from this
process are the programs for the truly needy.
(At that point, Dave Stockman will deliver a list
of programs that will not be cut in any substantial
way.)
Thank Dave for the overview. (The NBC crew will leave.)
Call on Don Regan to discuss tax policy.
SIMPLY FOLLOW THE AGENDA FOR THE REMAINDER
OF THE MEETING
THE WHITE HOUSE
WASHINGTON
February 9, 1981
MEETING WITH NINETEEN GOVERNORS
DATE:
TUESDAY, FEBRUARY 10, 1981
LOCATION:
ROOSEVELT ROOM AND FAMILY DINING ROOM
TIME:
11:45 a.m. - 1:30 p.m.
FROM:
RICHARD S. WILLIAMSON
RSW
I.
PURPOSE
This meeting provides an opportunity for the Administration
to receive input from Governors prior to formulating its
economic package through a dialogue between the Governors
and senior Administration advisors.
II.
BACKGROUND
The Administration worked with the National Governors'
Association to set up this meeting. The Executive Committee
of the NGA was invited to participate.
III.
PARTICIPANTS
A list of Governors attending is attached.
Vice President Bush will join the meeting briefly at 11:00 a.m.
(and will discuss regulatory task force)
Director Stockman, Murray Weidenbaum and Martin Anderson will
participate in the meeting. Jim Baker will chair
In addition, Ed Meese, Jim Baker, Michael Deaver, Joseph
Canzeri, Craig Fuller and Richard Williamson will attend.
IV.
PRESS PLAN
Photo opportunity at 11:45 a.m.
V.
SCHEDULE OF EVENTS
11:45 a.m.
You will join the end of the meeting
for a photo opportunity, make brief
remarks (talking points are attached)
and open the floor again for comments
and questions.
(continued on following page)
2
V.
SCHEDULE OF EVENTS (continued)
12:10 p.m.
You and the Governors will proceed
to the Family Dining Room for lunch.
1:00 p.m.
You will open the floor again for
comments and questions.
1:30 p.m.
Meeting will adjourn.
Attachments
1) List of Governors attending
2) Talking Points
GOVERNORS THAT WILL BE ATTENDING TUESDAY'S MEETING
1.
George Busbee
Georgia
Democrat
2. John V. Evans
Idaho
Democrat
3. James R. Thompson, Jr.
Illinois
Republican
4. William G. Milliken
Michigan
Republican
5. George Nigh
Oklahoma
Democrat
6. John Dalton
Virginia
Republican
7. Lee Sherman Dreyfus
Wisconsin
Republican
8. Pierre S. DuPont IV
Delaware
Republican
9. John Carlin
Kansas
Democrat
10. Dick Thornburgh
Pennsylvania
Republican
11. Robert List
Nevada
Republican
12. Richard Snelling
Vermont
Republican
13. James B. Hunt, Jr.
North Carolina
Democrat
14. Brendan T. Byrne
New Jersey
Democrat
15. John D. Rockefeller IV
West Virginia
Democrat
16. Harry Hughes
Maryland
Democrat
17. Lamar Alexander
Tennessee
Republican
18. Robert D. Ray
Iowa
Republican
11:40 a.m.
TALKING POINTS: GOVERNORS ECONOMIC BRIEFING, February 10, 1981
-- We are on the brink of an economic calamity, but it
is not the American system which is at fault. The task
before us is to return this great country to the concepts on
which it was founded. We will bring about an economic
renewal.
-- Federalism is a concept basic to our Constitution.
The Federal Government did not create the States; the States
created the Federal Government. : I am taking action to curb
the size and influence of the Federal establishment. We
will return to the States those powers that do not belong
here in Washington.
- State and local officials are closest to the people.
You know best what is good for your States and communities.
-- I have long believed State and local governments
often can be more efficient and responsive than the Federal
bureaucracy. As Governor of California, I saw first-hand
how the Federal Government can get in the way instead of
help. Specific, Federally-mandated programs sometimes don't
apply to local needs.
-- It will take all of us working together to turn
things around. Together, we can turn them a found, and I
have asked you here today to enlist you in this common
endeavor. Within the last week I've also met with city and
county officials and State legislators for this same purpose.
age 2
-- I would like to hear from you directly, to hear
your suggestions on how changes in Washington can cut your
administrative costs and increase efficiency, which areas
are most effectively left to the States, and how our funding
decisions can result in real savings to the taxpayers.
ON-CAMERA TALKING POINT FOR A REPUBLICAN GOVERNOR, February 10, 1981
-- Prime one Governor to talk about how the government
interferes and forces expensive mandates on the States
immediately after Reagan stops talking.
THE WHITE HOUSE
WASHINGTON
February 10, 1981
MEMORANDUM TO:
The President
FROM:
Martin Anderson
Assistant to the MCA President for Policy
Development
SUBJECT:
Meeting with outside economic advisers who
will compose the President's Economic Policy
Advisory Board.
TIME:
2:30 p.m.
PLACE:
Roosevelt Room
PURPOSE:
To discuss the functions of the President's
Economic Policy Advisory Board, especially
what role the Board can play in generating
support for the President's economic plan, to
be announced on February 18.
PARTICIPANTS:
Arthur F. Burns
(N.B. Paul McCracken
Milton Friedman
has agreed to be a
Alan Greenspan
member, but cannot attend
Arthur Laffer
today's meeting.)
James T. Lynn
George Shultz
William E. Simon
Thomas Sowell
Herbert Stein
Charls E. Walker
Walter B. Wriston
***
Donald Regan
David Stockman
Murray Weidenbaum
Ed Harper
Tim McNamar
STAFF:
Martin Anderson, who will serve as Secretary
of the Board
BACKGROUND:
The President's Economic Policy Advisory Board,
is an advisory board composed of economic
experts from private life. The board, which
will report privately to the President every
three or four months, or as requested, will
advise the President with respect to the
objectives and conduct of the overall domestic
and international economic policy of the
United States. The Board will make no
public statements.
TALKING POINTS:
1. Acknowledge the role the economists played during the
campaign as members of the Economic Policy Coordinating
Committee. Thank them, and note that in many ways they
are responsible for the economic plan you will be
presenting to Congress next week.
2.
Explain that the reason for inviting them to this
meeting is to ask them to become members of your
Economic Policy Advisory Board. Express your appreciation
for their being able to attend the meeting.
3. Note that you understand they are being briefed on the
tax, spending, and regulatory aspects of your comprehensive
economic plan. Tell them you would like their reaction to
the plan's specifics, and that you would like any
suggestions or advice they might have as to how best to
generate support for the plan among the public.
4. Explain that you have a meeting with labor leaders to
attend, but that you will return later during their
meeting to hear more of their comments.