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FOIA Number: 2013-0306-F FOIA MARKER This is not a textual record. This is used as an administrative marker by the William J. Clinton Presidential Library Staff. Collection/Record Group: Clinton Presidential Records Subgroup/Office of Origin: Chief of Staff Series/Staff Member: Harold Ickes Subseries: OA/ID Number: 9162 FolderID: Folder Title: AFL-CIO General [Folder 2] Stack: Row: Section: Shelf: Position: S 22 4 2 2 Withdrawal/Redaction Sheet Clinton Library DOCUMENT NO. SUBJECT/TITLE DATE RESTRICTION AND TYPE 001. memo re: Non-selection to National Labor Relations Board (1 page) 12/14/1994 b(6) 002. profile DOB (Partial); POB (Partial) (1 page) 11/22/1995 b(6) 003. profile DOB (Partial); POB (Partial) (1 page) 11/15/1995 b(6) COLLECTION: Clinton Presidential Records Chief of Staff Harold Ickes OA/Box Number: 9162 FOLDER TITLE: AFL-CIO General [Folder 2] 2013-0306-F jml 191 RESTRICTION CODES Presidential Records Act - [44 U.S.C. 2204(a)] Freedom of Information Act - [5 U.S.C. 552(b)] PI National Security Classified Information |(a)(1) of the PRA] b(1) National security classified information [(b)(1) of the FOIA] P2 Relating to the appointment to Federal office [(a)(2) of the PRAJ b(2) Release would disclose internal personnel rules and practices of P3 Release would violate a Federal statute [(a)(3) of the PRA] an agency [(b)(2) of the FOIA] P4 Release would disclose trade secrets or confidential commercial or b(3) Release would violate 8 Federal statute |(b)(3) of the FOIA| financial information |(a)(4) of the PRAJ b(4) Release would disclose trade secrets or confidential or financial P5 Release would disclose confidential advice between the President information |(b)(4) of the FOIA] and his advisors, or between such advisors |a)(5) of the PRA| b(6) Release would constitute a clearly unwarranted invasion of P6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA] personal privacy |(a)(6) of the PRA] b(7) Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA] C. Closed in accordance with restrictions contained in donor's deed b(8) Release would disclose information concerning the regulation of of gift. financial institutions [(b)(8) of the FOIA] PRM. Personal record misfile defined in accordance with 44 U.S.C. b(9) Release would disclose geological or geophysical information 2201(3). concerning wells |(b)(9) of the FOIA] RR. Document will be reviewed upon request. THE WASHINGTON POST WEDNESDAY, OCTOBER 11, 1995 FINAL Unions Win Senate Approval of Retraining called the Workforce Development Act, also has drawn fire for turning over to the states the operation of the Job Corps, a live-in program for 52-45 Vote Preserves Benefits of Workers Who Lose Jobs Because of Trade Agreements "at-risk" young people. Kassebaum, who conducted hearings that Te- vealed outbreaks of violence and survives By Judith Havemann they are unemployed, can find sistance was "crucial in obtaining and will be putting those people crime at some centers, would re- Washington Post Staff Writer help." the necessary agreements" that led "first and foremost." quire the worst 25 centers to States would be required to set to the passage of the North Ameri- Bill Cunningham, a lobbyist for close. Organized labor won a hard- up one-stop centers to offer work- can Free Trade Agreement (NAF- the AFL-CIO, said it would have The House passed similar job- fought and rare victory in the Sen- ers counseling, placement and re- TA) and the General Agreement been "criminal" for the Senate to training legislation-without the ate yesterday, preserving benefits ferral to academic or occupational on Tariffs and Trade (GATT). "renege" on its long-term commit- Job Corps provision-in Septem- for U.S. workers who are thrown training services. A quarter of the "Strip Trade Adjustment Assis- ment to workers displaced by ber. out of work when their jobs move tance from the trade laws and you GATT and NAFTA. $5.9 billion block grant would be The House voted 345 to 79 to overseas because of international earmarked for "employment" activ- will never see a trade agreement The trade adjustment assistance consolidate- nearly 100 education trade agreements. ities to be largely carried out at the again," said Moynihan. It would be comes in two forms: job training and job-training programs into The 52 to 45 vote to save work- one-stop centers, and another a "commitment broken." and extended benefits for up to two three block grants to states for ers' entitlements to special retrain- quarter set aside for vocational and Sen. Edward M. Kennedy (D- years for workers who lose their jobs. Only job training, a roughly adults, youths, and family educa- assistance came as the Senate adult education. Mass.) the ranking minority mem- $250 million annual program, was tion and literacy. began voting to revamp the na- When the key elements of the ber of the labor committee, said affected by the Senate vote, but The Senate work force act, once tion's job-training programs by bill take effect in 1998, dozens of the Trade Adjustment Assistance part of the welfare reform legisla- turning them over to the states familiar programs would be wiped program had been "a matter of na- Cunningham said related action in tional policy for Republicans and the House Ways and Means Com- tion, was separated from welfare with a block grant, or lump-sum out, including the Job Training mittee yesterday made it likely the after Democrats objected that Democrats alike." Some of the payment. Partnership Act, one of former More than 80 separate job train- commitments, Kennedy said, are entire program would emerge in- states would devote too large a vice president Dan Quayle's princi- tact in this session of Congress. share of their job-training funds to only two to three years old. mg; vocational and adult education pal legislative achievements when If so, it would make trade adjust- training recipients for jobs so they "These workers have worked programs would be repealed, funds he was in the Senate. ment assistance to workers one of could meet mandatory work re- generally for a lifetime, have suf- reduced about 15 percent-ac- The broad consolidation of pro- the few entitlements for the non- quirements in the welfare legisla- fered by an act of Congress, and cording to the Democrats-and assis tance grams is expected to pass today elderly likely to survive the Repub- tion. we should do no less than meet this states required to set up new, with bipartisan support, but the ef- lican revolution. Republican lead- responsibility," he said. ers in both the Senate and House streamlined systems to help people fort to toss the Trade Adjustment Kassebaum said, "It makes no FOR MORE INFORMATION are attempting to wipe out the en- find jobs. Assistance program into the single sense to maintain a separate and titlement to welfare and Medicaid To stay updated throughout the day Labor and Human Resources job-training pot ran into strong op- distinct program for workers laid health insurance, and the House on the progress of legislation before Committee Chairman Nancy Lan- position from organized labor and off" because of trade agreements. has voted to eliminate the enţitle- Congress, see Digital Ink, The don Kassebaum (R-Kan.) said the others. "I believe governors and local ment to foster care and adoption Post's on-line service. To learn bill will establish a single system Sen. Daniel Patrick Moynihan elected officials will be responsive assistance, as well. about Digital Ink, call "where anyone, regardless of why (D-N.Y.) said trade adjustment as- to those laid off" for this reason, The Kassebaum job-training bill, 1-800-510-5104, Ext. 9000. THE WASHINGTON POST WEDNESDAY, OCTOBER 11, 1995 Uranium Enrichment Sale Reviewed Two Nuclear Fronts ment could earn a return on USEC $1 By Daniel Southerland Washington Post Staff Writer lion or more higher than the amount est mated by the corporation's financial adva With little fanfare, Congress and the ers. Or, the report indicates, to Clinton administration are moving to sell government could earn more by not prive off a giant government corporation valued tizing USEC. at about $1.5 billion-the first major fed- "The numbers used by GAO are all eral privatization action in nearly a decade. liminary data," said Hal Shelton, chief The new company, with headquarters nancial officer for USEC. "Until we have near Montgomery Mall in Bethesda, is specific method for privatization, we wor called the United States Enrichment Corp. know what the final numbers are." Its business is little known, but it is a prof- Shelton said the GAO used misleadin itable one: enriching uranium for nuclear discount rates in calculating estimated VA power utilities. ue of USEC. The plan to privatize USEC has gained And he said, the agency overlooked wide support in Congress and the adminis- costs that would have been involved in tration, and President Clinton is likely to keeping USEC inside the government, approve it, congressional sources say. such as anticipated increases in electricity Committees in the House and Senate have rates and costs for refurbishing USEC's adopted similar versions of a bill governing two gaseous diffusion plants that supply USEC's privatization, and the issue is now enriched uranium. expected to be dealt with in conference. USEC and the Treasury Department are But a General Accounting Office report soon to select an investment banker to prepared last month questions whether conduct the transactions involved in selling taxpayers will get full value for the deal. the corporation. The GAO contends the analysis done by The privatization could go one of two USEC's financial adviser, J.P. Morgan Se- ways, USEC said-an initial public offering curities Inc., to arrive at a value for the of common stock, or a merger or acquisi- corporation should be revised, allowing for tion by a large corporation. a much greater return to the government "The Treasury Department is playing an for the corporation's sale. active, dominant role," Shelton said. The GAO also said the Treasury Depart- Bill Magavern, energy director with ment, not the corporation, should handle Public Citizen, a citizens advocacy group Clinton Administration Moves Along the privatization process in order to safe- founded by Ralph Nader, said "strict con- guard taxpayers' interests. flict of interest rules are necessary to pre- In letters to the GAO, the Treasury De- vent USEC officers and executives from partment and William H. Timbers Jr., pres- enriching themselves at taxpayer ex- ident and chief executive of USEC, strong- pense." ly criticized the GAO report. Timbers "A hasty privatization deal could end up called the report "seriously flawed" and as- costing taxpayers far more than any tax serted Treasury already was playing a cut contribution from the asset sale would leading role in the privatization process. save them," said Magavern, who added USEC's privatization plan forecasts the that Public Citizen favors the privatization corporation's stock could be sold for $1.5 of USEC if it is properly executed. billion to $1.8 billion, minus about $100 "Safeguards will need to be considered million in estimated transaction fees. to ensure that the taxpayers' interests are After future taxes and the cash USEC protected if, because of the complexity of expects to take with it from the Treasury the privatization effort, the corporation is are factored in, the total return to the undervalued when sold," the GAO said. Treasury from privatizing USEC could be According to the GAO, the USEC case is $1.7 billion to $2.2 billion, the GAO said. important, partly because it may lay the But the GAO said its analysis showed the groundwork for future federal privatiza- corporation could be worth much more. It tions. calculated the "net present value of the Despite several proposals and much dis- cash flows" for USEC as a government cor- cussion of privatization in Congress, no ma- poration, on which its sales price is partly jor privatization has occurred since 1987, based, might range from $2.8 billion to when Consolidated Rail Corp. was sold to $3.5 billion. In other words, the govern- investors for $1.65 billion. AFL-CIO, From C1 84-union AFL-CIO to spend at least that means business is unlikely to Unions Have Become "Irrelevant, a third of its $60 million annual oper- off money on Democrats." speech to spell out of some of the ating budget on organizing, particu- Sweeney also said the labor mov changes Kirkland's opponents want: larly multi-union, industrywide cam- ment's leadership should better I) More spending on organizing; paigns. Kirkland's critics argue that H Warns Leader of Kirkland Foes flect the changing demographics Financial support for Democrats the federation spends too much the workplace if it hopes to grow. to be conditioned on their support money on foreign operations and not for labor's interests. The SEIU, the AFL-CIO's third- enough on organizing at home. Greater visibility and power within largest union, is one of the most di- By Frank Swoboda Sweeney, 60, leads a coalition of 11 major Sweeney also called on the the AFL-CIO for women and minori- verse and fastest-growing unions in AFL-CIO to focus more of its politi- Washington Post Staff Writer unions seeking to block Kirkland's reelection ties. the nation. to a ninth, two-year term at the AFL-CIO cal efforts at the grass-roots level Sweeney insisted that the effort "More than half of working Amer- The leader of the coalition trying to oust convention in October. The leaders of the and to adopt a "new attitude toward to force Kirkland to retire was not icans are women, and our own polls AFL-CIO President Lane Kirkland warned TUESDAY, MAY 23, 1995 THE WASHINGTON POST unions argue that Kirkland, 73, must be re- part of a battle over personalities. tell us they are the most likely pros- yesterday that unions had become "irrele- placed if the labor federation is to deal with "It's about the future of the labor pects for union membership," Swee- vant" to the lives of most American workers. the challenges facing organized labor today. movement," he said. The SEIU president ney said. "The problem with the American labor Last week, five more unions joined the anti- Sweeney said the coalition still movement, the problem with unions, is that "The new work force, the growing Kirkland coalition, and Sweeney said yester- hoped that Kirkland would step suspects unions are we are irrelevant to the vast majority of un- service sector work force, is increas- day that another four would join this week, down and allow AFL-CIO Secretary- organized workers in our country," John J. giving Kirkland's opponents nearly 60 per- Treasurer Thomas J. Donahue to be becoming irrelevant ingly younger, and filled with more Sweeney, president of the 1.1 million-mem- people of color," he said, "and our ber Service Employees International Union, cent of the votes in October. drafted for the presidency. Donahue, 66, is a favorite of the union insur- to many current polls tell us they too are prime pros- told delegates to an SEIU legislative confer- In his first public statement since the fight pects to join our movement." gents as well as other union leaders ence. He said he had "deep suspicions" that over Kirkland's leadership spilled out into supporting Kirkland, but he has re- union members. But when these people look at unions also were becoming irrelevant to the open earlier this year, Sweeney used his fused to oppose Kirkland for the union and AFL-CIO leaders and many union members as well. See AFL-CIO, C4, Col. 2 AFL-CIO's top job. Donahue has an- union staffs, he said, they do not see nounced that he will retire in Octo- rewarding our friends and punishing people like them. ber. our enemies." He warned that labor Should Kirkland refuse to step may be many congressional Demo- down, however, Sweeney said Kirk- crats' best hope for future campaign land's opponents were prepared to money. take him on at the convention and "While labor's clout is seen as be- beat him. "That's not a threat, that's ing diminished, we may be the only a promise, and John Sweeney never money game in town for many Dem- breaks a promise," said Sweeney, ocratic members of the House and who is a likely candidate to oppose Senate," he said. Since Democrats Kirkland. are in the minority in Congress and At the top of Sweeney's list of no longer have "all those big com- needed changes was a call for the mittee chairmanships any more 5/16/98 LABOR: A HOUSE DIVIDED Supporters and opponents of AFL-CIO President Lane Kirkland Pro Union Douglas Dority United Food and Commercial Workers Morton Bahr Communications workers of America Lenore Miller Retail, Wholesale and Department Store Workers William Bywater International Union of Electrical Workers John Barry International Brotherhood of Electrical Workers Albert Shanker American Federation of Teachers Frank Hurt Bakery, Confectionery and Tobacco Workers Jay Mazur International Ladies Garment Workers Union John Sturdivant American Federation of Government Employees James Norton Graphic Communications International Jack Sheinkman Amalgamated Clothing and Textile Workers Michael Sacco Seafarers International Union Glass, Molders, Pottery Plastics and Allied James Hatfield Workers Moe Biller American Postal Workers Vincent Sombrotto National Association of Letter Carriers John T. Joyce Bricklayers and Allied Craftsmen Plumbing and Pipe Fitting Journeymen and Marvin J. Boede Apprentices Gene Upshaw Federation of Professional Athletes Edward Hanley Hotel and Restaurant Employees Gloria Johnson AFL-CIO Executive Council member Robert A. AFL-CIO Building and Construction Trade Georgine Department Con Gerald W. American Federation of State, County McEntee and Municipal Employees George Becker United Steelworkers of America Owen Bieber United Auto Workers Arthur Coia Laborers International Union Ron Carey Teamsters Wayne Glenn United Paperworkers International Frank Hanley International Union of Operating Engineers George Kourpias Machinists and Aerospace Workers Sigurd Lucassen United Brotherhood of Carpenters and Joiners John J. Sweeney Service Employees International Richard L. Trumka United Mine Workers of America The Washington Times 5/16/98 LABOR: A HOUSE DIVIDED Supporters and opponents of AFL-CIO President Lane Kirkland Pro Union Douglas Dority United Food and Commercial Workers Morion Bahr Coinmunications Workers OFAmenca Lenore Miller Retail, Wholesale and Department Store Workers William Bywater International Union of Electrical Workers John Barry International Brotherhood of Electrical Workers Albert Shanker American Federation of Teachers Frank Hurt Bakery, Confectionery and Tobacco Workers Jay Mazur International Ladies Garment Workers Union John Sturdivant American Federation of Government Employees James Norton Graphic Communications International Jack Sheinkman Amalgamated Clothing and Textile Workers Michael Sacco Seafarers International Union Glass, Molders, Pottery Plastics and Allied James Hatfield Workers Moe Biller American Postal Workers Vincent Sombrotto National Association of Letter Carriers John T. Joyce Bricklayers and Allied Craftsmen Plumbing and Pipe Fitting Journeymen and Marvin J. Boede Apprentices Gene Upshaw Federation of Professional Athletes Edward Hanley Hotel and Restaurant Employees Gloria Johnson AFL-CIO Executive Council member Robert A. AFL-CIO Building and Construction Trade Georgine Department Con Gerald W. American Federation of State, County McEntee and Municipal Employees George Becker United Steelworkers of America Owen Bieber United Auto Workers Arthur Coia Laborers International Union Ron Carey Teamsters Wayne Glenn United Paperworkers International Frank Hanley International Union of Operating Engineers George Kourpias Machinists and Aerospace Workers Sigurd Lucassen United Brotherhood of Carpenters and Joiners John J. Sweeney Service Employees International Richard L. Trumka United Mine Workers, of America The Washington Times 5/16/98 LABOR: A HOUSE DIVIDED Supporters and opponents of AFL-CIO President Lane Kirkland Pro Union Douglas Dority United Food and Commercial Workers Morton Bahr Communications workers UI America Lenore Miller Retail, Wholesale and Department Store Workers William Bywater International Union of Electrical Workers John Barry International Brotherhood of Electrical Workers Albert Shanker American Federation of Teachers Frank Hurt Bakery, Confectionery and Tobacco Workers Jay Mazur International Ladies Garment Workers Union John Sturdivant American Federation of Government Employees James Norton Graphic Communications International Jack Sheinkman Amalgamated Clothing and Textile Workers Michael Sacco Seafarers International Union Glass, Molders, Pottery Plastics and Allied James Hatfield Workers Moe Biller American Postal Workers Vincent Sombrotto National Association of Letter Carriers John T. Joyce Bricklayers and Allied Craftsmen Plumbing and Pipe Fitting Journeymen and Marvin J. Boede Apprentices Gene Upshaw Federation of Professional Athletes Edward Hanley Hotel and Restaurant Employees Gloria Johnson AFL-CIO Executive Council member Robert A. AFL-CIO Building and Construction Trade Georgine Department Con Gerald W. American Federation of State, County McEntee and Municipal Employees George Becker United Steelworkers of America Owen Bieber United Auto Workers Arthur Coia Laborers International Union Ron Carey Teamsters Wayne Glenn United Paperworkers International Frank Hanley International Union of Operating Engineers George Kourpias Machinists and Aerospace Workers Sigurd Lucassen United Brotherhood of Carpenters and Joiners John J. Sweeney Service Employees International Richard L. Trumka United Mine Workers of America The Washington Times December 14, 1994 Memorandum to Leon Panetta From: Joan Baggett Subject: Union Issues I. Clinton Administration set-backs/problems for organized labor: A) NAFTA and Trade Issues The Administration's continued priority on expanding free trade has raised serious concerns within the labor movement. Opposition to NAFTA is still deeply felt among the rank-and-file. National union eadership signaled a willingness to move beyond NAFTA but are deeply troubled by actions since the NAFTA fight. Of particular concern was the President's decision to de-link trade and human rights In deciding to continue MFN status for China. They object to our handling of GSP cases involving Malaysia and Indonesia & have serious concerns about the APEC agreement. The admission of China to the WTO is also looming as an issue. The Miami Summit again raised questions about how serious the Administration is in addressing labor's very real concerns on labor standards & worker rights. Fast track authority for Chile accession to NAFTA is already shaping up as a fight over labor & environmental standards. How we decide these issues and manage this debate will be watched very closely. Finally, at the same time we are expanding free trade, we are also reforming job training programs. These refor as would eliminate trade adjustment assistance (TAA) as a separate program. The Kennedy Administration (Pat Moynihan) secured organized labor's commitment to the first GATT round by proposing the TAA program. Labor opposes elimination of TAA. B) Striker Replacement -- not only was the bill to ban the hiring of permanent replacement workers in a strike defeated in the senate, but an overwhelming majority of rank-and-file union activists believe that the Administration did little to support this bill. INOTE: Opposing NAFTA and passing striker replacement were at the top of labor's agenda. This double defeat, with the perception among many that the President pulled out every stop for NAFTA and barely lifted a finger for the striker replacement bill are a big part of the problem the President has with this constituency. No other issues cut as deeply with union activists as NAFTA and striker replacement. There is an overall perception among rank-and-file union activists that the Administration has been too pro-business and not pro-labor. 202 219 7971 DOL OSEC 002 C) Health Care Reform -- the AFL-CIO was perhaps the President's strongest supporter in the push for reform of our health care system. In the next round, there are a number of issues unions will be concerned with. First and foremost will be the implications for workers if, in the absence of comprehensive reform, Medicare and Medicaid program spending is cut to raise money for either deficit reduction and/or expansion of coverage (comprehensive reform). Their concern stems from the fact that cuts in public health spending mean cost-shifting to private sector providers who in turn shift higher prices to private payors with insurance. Even if we can lessen the cost-shifting associated with the spending cuts by targeting expanded coverage for some new groups such 35 kids or the unemployed, it still does not ease the burden for those workers with insurance who are facing increased efforts by employers to cut benefits at the bargaining table. Labor also will be concerned that insurance market reform (e.g. portable coverage and eliminating pre-existing condition exclusions) in the absence of comprehensive cost controls will drive costs up and provide incentives for employers to drop coverage in a voluntary environment. Additionally, they will ba adamant about no taxation of benefits and lukewarm to medical savings accounts as another mechanism for employers to shift costs. We have not been supportive of taxation and somewhat leery of savings accounts but it is premature to give assurances. State flexibility most likely still splits the movement with the multiemployer plans seeking to retain ERISA federal preemption and the public health care unions desiring more state flexibility as a way for the state to financially assess large employer plans to pay for uncompensated care--dollars that support health care workers' jobs. The Administration is discussing this issue and taking a hard look at what degree of flexibility is politically feasible. This requires a better read of the Republican Governors and Congressional members. Lastly, the unions will raise the threat to job security that health care workers are experiencing as the industry reorganizes and downsizes in the face of managed care generally and Medicaid walvers. Secretaries Reich and Shalala met with AFSCME President McEntee and SEIU President Sweeney to address this issue and HHS offered up a number of initiatives in the Medicaid waiver process. The DOL is ettempting to work through the National Commission for Employment Policy to establish a designated task force on health care issues as well as convene meetings of Industry and labor leaders to discuss these issues. D) Campaign Finance Reform -- The Administration's proposal from last year barred "soft money" in federal elections, but opened up a channel for hard money (including PAC money) to state parties, to be used for grass-roots activity. DOL OSEC 003 taken several positions in court cases that unions opposed -- most notably one which sided against the United Mine Workers; (4) USTR and workers' rights. These kinds of issues usually affect one or two international unions, but taken together, could add up to big trouble for the Administration with labor. HI Dunlop Commission report - This commission appointed by Secretaries Reich and Brown has been looking into workplace issues, concentrating primarily on worker/management relations. The commission issued its findings n October and is due to release its recommendations in January. A number of unions have gotten drafts of the commission's recommendations. The unions believe that one part of the report, involving changes in section 8 (a) (2) of the National Labor Relations Act (the section that prevents employers from establishing "sham" unions) would be devastating for them if it stands as currently written. II. Clinton Administration accomplishments regarding organized labor: A) created 5 million new jobs, most paying at or above the national average; B) appointed a National Labor Relations Board that is fair to workers and their unions for a change. The appointments of Chairman Bill Gould, member Peggy Browning and General Counsel Fred Feinstein are recognized by the labor movement as perhaps the most significant made by the administration; C) passed Hatch Act reform: D) rescinded three anti-labor Reagan/Bush executive orders -- one on the hiring of Patco workers E) passed Family and Medical Leave Act; F) played an activist role in helping to resolve tough collective bargaining disputes (American Airlines. Long Island Rail Road, UPS, Teamster national trucking contract, Mineworkers and Bituminous Coal Operators Association, baseball) G) created National Partnership Council for federal gov't unions and DOL Task Force on Excellence in State and Local Government through Labor Management Cooperation for other public workers; H) November AFL-CIO legislative newsletter reported that 32 bills supported by organized labor were signed into law by the President; Withdrawal/Redaction Marker Clinton Library DOCUMENT NO. SUBJECT/TITLE DATE RESTRICTION AND TYPE 001. memo re: Non-selection to National Labor Relations Board (1 page) 12/14/1994 b(6) COLLECTION: Clinton Presidential Records Chief of Staff Harold Ickes OA/Box Number: 9162 FOLDER TITLE: AFL-CIO General [Folder 2] 2013-0306-F jm1191 RESTRICTION CODES Presidential Records Act - [44 U.S.C. 2204(a)] Freedom of Information Act 15 U.S.C. 552(b)] P1 National Security Classified Information |(a)(1) of the PRA] b(1) National security classified information [(b)(1) of the FOIA] P2 Relating to the appointment to Federal office [(a)(2) of the PRA] b(2) Release would disclose internal personnel rules and practices of P3 Release would violate a Federal statute [(a)(3) of the PRA an agency [(b)(2) of the FOIA] P4 Release would disclose trade secrets or confidential commercial or b(3) Release would violate a Federal statute [(b)(3) of the FOIA] financial information |(a)(4) of the PRA] b(4) Release would disclose trade secrets or confidential or financial P5 Release would disclose confidential advice between the President information [(b)(4) of the FOIA] and his advisors, or between such advisors [a)(5) of the PRAJ b(6) Release would constitute a clearly unwarranted invasion of P6 Release would constitute a clearly unwarranted invasion of personal privacy |(b)(6) of the FOIA] personal privacy [(a)(6) of the PRA b(7) Release would disclose information compiled for law enforcement purposes ((b)(7) of the FOIA] C. Closed in accordance with restrictions contained in donor's deed b(8) Release would disclose information concerning the regulation of of gift. financial institutions |(b)(8) of the FOIA) PRM. Personal record misfile defined in accordance with 44 U.S.C. b(9) Release would disclose geological or geophysical information 2201(3). concerning wells [(b)(9) of the FOIA] RR. Document will be reviewed upon request. 202 219 7971 DOL OSEC GUUG 1) Revitalized enforcement at DOL (OSHA, Federal Contract Compliance, Mine Safety and Health, Wage and Hour) and increased DOL budget -- more front line workers. (NOTE: From the standpoint of most union leaders, the problems listed above far outweigh the accomplishments.) III. What we can do for organized labor we need to prove that "we are on their side." A) NLRB Appointments the President currently has the opportunity to make another Democratic appointment to the Board. Labor's and the Administration's choice for this position is Sarah Fox, a staffer for Senator Kennedy. Another Republican seat on the board becomes open in August. Negotiations are underway to package the Fox appointment with the Republicans' choice. Labor supports this strategy. While these negotiations are taking place (it may take several months to finalize) the Administration must make a recess appointment to ensure that for the recess (b)(6) [001] (b)(6) critical that we make a recess appear tment to ensure that the board is not immobilized with two Democrats and two Republicans. El) Support an increase in the minimum wage Organized labor has long advocated increases in the minimum wage. This is a good "on your side" issue for the Administration. Whether we win or lose, this would go a long way in sending an important signal to working Americans. C) Defend important union programs the Republicans are likely to attack a number of federal government programs important to organized labor, like, Davis-Bacon, OSHA, NLRB, Fair Labor Standards Act. The Administration must be seen actively fighting to protect these programs. D) Budget -- An increase in the budgets of the NLRB, OSHA and additional funding for job training would be important to unions. Budgetary issues of immediate concern are: funding for the NLRB; funding for AMTRAK; Mass Transit Operating Assistance; Davis-Bacon: cargo preference; shipbuilding -- Target 11 Loan Guarantees; operating differential subsidy program for the maritime industry; federal workers retirement; privatizing of prisons; agency restructuring; Department of Energy cleanup; infrastructure funding; Mine Safety and Health Administration; and Wage and Hour division of DOL. E) Executive Orders there are two that would send strong signals of support to organized labor: DOL USEC 1) Prevent the federal government from entering into contracts with employers who have permanently replaced striking workers. While likely to be opposed by the NPR, this order would resonate with union leaders and rank-and-file activists better than anything else the President could do. Short of that. DOL and the NLRB could produce a list of the 100 worst labor law offenders and the President could send that out to every agency in the federal government urging that these employers not be considered in the awarding of federal contracts. 2) Issue an order that prevents federal government contractors from using federal dollars to promote or oppose union organizing. Labor was successful in securing language like this in the Head Start bill as a way of preventing employers from using federal money to oppose them in organizing campaigns. This order would send a strong "on your side" message to labor. F) Grants -- we should do a better job of making sure that unions are being considered in the awarding of OSHA, Employment and Training, HUD, HHS and other federal government grants. IV. Administration coordination with the labor movement - For the White House, our current method of dealing with labor is much too scattered. Bob Rubin and George Stephanopoulos meet with top AFL-CIO officials regularly and the WH Political office deals with the day-to-day, nuts and bolts troubleshooting. With Rubin leaving, Stephanopoulos having so many other important responsibilities, and the pending changes in the WH political operation, we must establish one point person, high up in the organization to deal with labor's concerns across the administration. This must be someone who understands the issues and the politics and who can get things done. There must be staff below this person to deal with the day-to-day problems, concerns and hand holding. V. Auclience when communicating with organized labor we must recognize that there are four primary audiences who often have different priorities and are reached in very different ways. (1) International union presidents and top officers and staff ; (2) State and local union leadership and staff; (3) rank-and-file activists; and (4) union members. The following section focuses primarily on the first three audiences. The fourth, union members will be reached, by and large, with the same message as the general public as a whole. VI. Communications A) Union conventions and conferences the President should be scheduled to speak at several union events over the next several months - some in person and some via satellite. B) Walk a picket line -- when candidate Clinton walked on the picket line with striking Caterpillar workers that sent a signal throughout the labor community that he understood their concerns and was "on their side." We should pick one particularly egregious strike situation and schedule the President to join in a rally. Other Administration officials should be encouraged to join a picket line. C) Produce a video for union audiences - the President should speak directly to union members and be introduced by each international union president. This will further buy the presidents in. The video would be shown at union conventions, conferences and local union meetings. D) Regional AFL-CIO conferences - the DOL is proposing that seven regional conferences of state-level union representatives be organized. This would be an opportunity for all of our labor-related agencies (DOL, NLRB, Federal Mediation and Conciliation Service, National Mediation Board) to spotlight the things they are doing. The President should attend a conference and speak to some of the others via satellite. E) Newsletter column -- we should produce a quarterly column from the President to be sent to union publications. F) Town Hall Meetings -- When traveling. the President should meet with workers in different industries to talk about the problems they face on the job. This could include airlines, telecommunications, supermarkets, auto, office, construction, health care, garment, manufacturing, public safety, rail, service, retail, etc. Another series of meetings could be conducted with a cross section of workers who face different work-related problems. This could include: workers injured or survivors of workers killed on the job, people who work full- time with no health care coverage, people looking for work, unemployed Black teens, migrant workers. workers with no benefits, people in part-time jobs who would like to be working full-time, single parents who work outside the home. The unions could help us identify groups of workers in any community. This effort would go far in reaching mid-level union leaders and proving that we are on their side. G) Telephone call from President to next AFL-CIO Executive Council Meeting - Top level Administration officials should attend the AFL-CIO Executive Council meeting in February and the President should call in to the meeting and speak to the group. H) Send a signal across the Administration -- the Chiefs of Staff should be instructed that the Administration needs to work better with organized labor and be sensitive to their interests. This must come from the top down. 0202 150 2653 WH PRESS OFFICE Remarks as prepared for Vice President Al Gore to United Auto Workers Convention Washington, DC February 7, 1995 There's an old labor song, "Which Side Are You On?" Well, you know, sometimes pictures say much more than words. During the '92 campaign, so many people saw the pictures of Bill Clinton in Pecria with Owen Bieber, carrying a sign, and joining people on the picket line outside Caterpillar. People saw that picture and they knew which side Bill Clinton was on! I know that negotiations have resumed between Caterpillar and this Union The President and I hope that both parties appear at the bargaining table without preconditions and make every effort to resolve this dispute. It's gone on too long! Meanwhile, Tm proud to be with you today as we continue the fight for working; people in Peoria and all over America. It'll be a tough fight Because, let's not fool ourselves. Those who have championed the rights and values of working people in America are under attack. And on November 8, we took a hit. A big hic Nobody knows this better than you. The people in this room were the ones outside the polling booths, running phone banks, driving people to the polls on that bleak Tuesday There are those who say that election marked the end of the Democratic party. They're the same people who've been saying unions are dead in America. I say: Not so fast. The U.A. W. knows how to fight You knew how to fight in the Thirties against those who believed labor disputes should be decided by chubs and baseball bats and shotgund. You know how to fight now. And you know how to fight back We're going to fight back together. Because while we invite Republicans to join hands with us, we remember wha: they did to working people when they got the chance. And make no mistake about it: we will not work with them when they are breaking the backs of working men and women We remember what Republicans did to OSHA and the NLRB. We remember now they fought the minimum wage increase fought the plant closing law fought the ar ti-scab bill fought unemployment benefits. When we campaigned in 1992, we had a different idea We promised to put people first. There were those who said his economic policy wouldn't do that. Here are the facts. Almost 6 million new jobs. The lowest unemployment in over four years! The lowes unemployment for African Americans in two decades! 1 02/10/95 17:43 202 136 2685 WH PRESS OFFICE 00: $700 billion less deficit - $10,000 for every American family! Tax curs for fifteen million American families. That's putting people first! Remember the people who said Democrats were too divided to work together? Think of all the good ideas that last administration vetoed and remember how many the now law. Like motor voter. It's now law. Because of this Administration. Family and Medical Leave. It's law. Because of this Administration The assault weapons ban It's law. Because of this Administration Last fall's AFL-CIO newsletter listed all the bills supported by organized labor signed into law by the President There were 32 of them That's putting people first! And think about the accomplishments of this Administration that speak directly to the passionate concerns of organized labor. We put Bill Gould and Peggy Browning and Fred Feinstein on the NLRB and now we have a Board that believes in collective bargaining. And incidentally, we'll be making another appointment to that board soon. I guarantee this: it'll be another step towards a Board that for a change - is fair to workers! We passed Hatch Act reform because we believe you don't lose the basic rights of citizenship because you work for the federal government! We rescinded those anti-union executive orders of the Reagan Bush years - including the one on Patcol We played an active role helping resolve tough collective bargaining disputes, whether American Airlines, or the Long Island Railroad, UPS, the Teamsters national contract, the Bituminous Coal Operators Association. This Administration doesn't duck the tough fights. We help settle them. Secretary Bob Reich has put teeth into enforcement at the Department of Labor whether OSHA or Federal Contract Compliance Mine Safety and Health And let me mention one thing that was possible only because the UAW has acted as a full partner. The Clean Car Initiative. Everybody knows the need to produce a generation of vehicles for the 21st Certury - one that goes beyond anything the auto companies or government could do alone. Now we'll do it. And it's because of an unprecedented willingness by labor, business and government to work together. For that, I thank the UAW. We made a great start. Are we going to be able to finish the job? Are Republicans going to be able to dismantle what we have worked SO hard to build? Because they're trying The other day, Dick Armey tried to answer the question: "If you want to balance the budget why not tell us where you'd cut?" Here's what he said And I quote. 2 CH02 458 2843 WH PRESS OFFICE 003 "The fact of the matter is that once members of Congress know exactly, chapter and verse. the pain that the government must live with their knees will buckle." What's he mean? Are we afraid to trust the intellect of the American people? Democrats believe that as citizens and taxpayers Americans have the right to know. They have a right to know if Republicans plan to CUI social security. They have a right to know if Republicans plan to cut Medicare. And that's why Democrats are working so hard on Capitol Hill to have a "Right to Know" provision added to the balanced budget You know, Americans don't want to kill government. They want to fix governm ent When we see Republicans insisting on measures that mean draconian cuts in Medicare and Medicaid - we draw the line. When we see capital gains plans that give tax breaks to the wealthy - we draw the line. When we see the Republicans urging modification of Section 8(a)(2) of the National Labor Relations Act we draw the line. We oppose tampering with the prohibition against company dominated unions! Unfunded mandates? Gotta reduce em But not in a way that undermines the safety of drinking water. Not in a way that guts OSHA There we draw the line! That's what we're against. Let me tell you what we're for. And let me start with one area that may surprise you Health care. We fought together on health care, last year. And we lost. But nobody knows better than people in this union how great the need is for health care reform. Owen, I know you talked about this in your speech Sunday night. We still have a crisis in health care. The President pointed this out in the State of the Union. Over a million people lost health insurance last year. For those who still have it, the copays are getting steeper. Rising health care costs mean less for wages. We won't get it all next year. But we're still committed to universal coverage. We are still committed to a system of health care that's always there! Here's a second area The President's Middle Class Bill of Rights. There are those who say this Administration didn't mention the middle class III til the election results were in What nonsense. We've been working for the middle class since Day One, whether by creating jobs, cutting taxes, passing student loan reform or passing bills like Family and Medical Leave. But it's time to finish the job we've started. And what better way than to return money to the pockets of working Americans and help them realize their dreams. To send their children to college. To own a home. To afford medical care. 3 02/10/95 17:48 202 138 2685 WH PRESS OFFICE 00. To put something away for retirement. When it comes to these deeply felt aspirations, government shouldn't block the road. It should pave the way. And that's what Bill Clinton's Middle Class Bill of Rights is all about. And there's one other issue. Majority Leader Armey has said he wants to repeal the minimum wage. We want to raise the minimum wage. It's at its second lowest level since 1955. There are those who think minimum wage workers are all teenagers. They're not.. Only a third are. Almost half are over the age of 25. There are those who think the minimum wage costs jobs. We've looked at the data It doesn't Are we to tell Americans we believe in the value of work, then make it impossible for working Americans to rise above the poverty level? Let Republicans be the mean-spirited party carrying that message. Ler's work together 10 make sure that the message we send Americans is that Democrats believe you can get ahead if you work hard. Let our message be: if you work hard, government will work hard for you I come from a family that has always fought for working people. I remember my father who supported this union and was supported by this union Some of you with long memories will remember the year he first ran for the Senate against Kenneth McKellar. not one of the great champions of labor in our history. His slogan was "The thinking fellar votes for McKellar." My mother came up with ours: "Think some more, vote for Gore." My mother and father trusted the good sense of the voters in Tennessee. And I trust the good sense of the American people. We've worked too hard to build this country up to see protections for working people tom down And nobody has worked harder to build this country than the UAW. When most people think of this union they think of the auto industry. And it's rue that the cars that came off the assembly lines revolutionized America. We see that in every facet of our lives, from Burger King drive-ins to the vast network of highways linking every community in America. But you did more. When America sent men and women into space they were sent there in spacecraft built by UAW workers. When America sent troops into combat, from Korea to Haiti, they rode in tanks and planes built by UAW workers. And when it was time to look beyond America's borders to fight the menace of totalitarianism, the UAW was there. Thirty three years ago, when President John F. Kennedy spoke to the UAW he pointed out how much this union has done to build "strong, free trade unions around the world" I wish President Kennedy could be here today to see the fruits of those efforts. The Cold War is over. Democracy has won. 4 "S FRESS OFFICE 001 It has even won where no one expected democracy to win Owen, Sunday night you quoted Nelson Mandela I was privileged to be there in South Africa when Nelson Mandela took the oath of office. And looking around, 1 could see UAW representatives. That was fitting. Over the years the UAW worked so hard to end apartheid. And as dramatic as it was, that victory, last year, was one of many. No organization did more to keep America strong at home, and to win our battles abroad than the United Auto Workers. Let's work together in the next two years, to preserve what we have won Abroad, that means peace, and democracy. At home, it means jobs, growth, and fairness. The Administration of Bill Clinton wants to be your partners, whether taking up 3 sign on a picket line in Peoria, or signing a bill to help working Americans. We stick to the values of our past. But we work for the future. That's how we realize the American Dream. That's how we make sure that the best days for this country and this union are yet to be. 5 American Federation of Labor and Congress of Industrial Organizations EXECUTIVE COUNCIL 815 Sixteenth Street, N.W. AMERICAN FEDERATION OF LABOR LANE KIRKLAND PRESIDENT THOMAS R. DONAHUE SECRETARY-TREASURER Washington, D.C. 20006 Albert Shanker Edward T. Hanley Wayne E. Glenn (202) 637-5000 John J. Sweeney James E. Hatfield Vincent R. Sombrotto Gerald W. McEntee William H. Bywater Marvin J. Boede AFL Owen Bleber John T. Joyce Morton Bahr CONGRESS OF INDUSTRIAL Robert A. Georgine Gene Upshaw Jay Mazur Lenore Miller Jack Sheinkman John J. Barry Sigurd Lucassen Moe Biller George J. Kourplas John N. Sturdivant Richard L. Trumka Frank Hanley James J. Norton Michael Sacco Ron Carey Arthur A. Cola Frank Hurt Linda Chavez-Thompson Gloria T. Johnson Douglas H. Dority George F. Becker March 8, 1995 To: Presidents of National and International Unions Principal Officers of AFL-CIO State Federations Principal Officers of AFL-CIO Central Labor Councils Dear Trade Unionist: Today, President Clinton signed an historic Executive Order declaring it to be the policy of the federal government not to contract with employers that permanently replace lawfully striking employees. A copy of the Order is enclosed. Under the Executive Order, the Secretary of Labor is authorized to investigate any complaint submitted to the Department by employees of a federal contractor with a federal contract worth more than $100,000. If the Secretary determines that "organizational units" of the contractor have permanently replaced lawfully striking employees, the Secretary may proceed to debar those organizational units from receiving any future federal contracts until the labor dispute has been resolved. In addition, under the Executive Order, if the Secretary finds that a federal contractor has hired permanent replacements after today, March 8, 1995, the Secretary may proceed to terminate existing contracts with the employer (although such termination can be overridden by the head of the contracting department or agency). This Executive Order could not be more welcome. It places the moral authority and market power of the federal government against employers who resort to the discredited practice of permanently replacing workers with scabs. We have expressed to the President our appreciation for this bold initiative. The Republicans and a few Democrats in Congress already have begun an effort to attach to appropriations legislation a rider to prevent the Executive Order from being implemented. The AFL-CIO is leading the fight to defeat these Republican attempts and calls upon all trade unionists to join in this effort. Sincerely and fraternally, Kisled President Enclosure Office of the Press Secretary For Immediate Release March 8, 1995 EXECUTIVE ORDER ENSURING THE ECONOMICAL AND EFFICIENT ADMINISTRATION AND COMPLETION OF FEDERAL GOVERNMENT CONTRACTS Efficient economic performance and productivity are directly related to the existence of cooperative working relationships between employers and employees. When Federal contractors become involved in prolonged labor disputes with their employees, the Federal Government's economy, efficiency, and cost of operations are adversely affected. In order to operate as effectively as possible, by receiving timely goods and quality services, the Federal Government must assist the entities with which it has contractual relations to develop stable relationships with their employees. An important aspect of. a stable collective bargaining relationship is the balance between allowing businesses to operate during a strike and preserving worker rights. This balance is disrupted when permanent replacement employees are hired. It has been found that strikes involving permanent replacement workers are longer in duration than other strikes. In addition, the use of permanent replacements can change a limited dispute into a broader, more contentious struggle, thereby exacerbating the problems that initially led to the strike. By permanently replacing its workers, an employer loses the accumulated knowledge, experience, skill, and expertise of its incumbent employees. These circumstances then adversely affect the businesses and entities, such as the Federal Government, which rely on that employer to provide high quality and reliable goods or services. NOW, THEREFORE, to ensure the economical and efficient administration and completion of Federal Government contracts, and by the authority vested in me as President by the Constitution and the laws of the United States of America, including 40 U.S.C. 486 (a) and 3 U.S.C. 301, it is hereby ordered as follows: Section 1. It is the policy of the executive branch in procuring goods and services that, to ensure the economical and efficient administration and completion of Federal Government contracts, contracting agencies shall not contract with employers that permanently replace lawfully striking employees. All discretion under this Executive order shall be exercised consistent with this policy. Sec. 2. (a) The Secretary of Labor ("Secretary") may investigate an organizational unit of a Federal contractor to determine whether the unit has permanently replaced lawfully striking workers. Such investigation shall be conducted in accordance with procedures established by the Secretary. 2 (b) The Secretary shall receive and may investigate complaints by employees of any entity covered under section 2 (a) of this order where such complaints allege lawfully striking employees have been permanently replaced. (c) The Secretary may hold such hearings, public or private, as he or she deems advisable, to determine whether an entity covered under section 2 (a) has permanently replaced lawfully striking employees. Sec. 3. (a) When the Secretary determines that a contractor has permanently replaced lawfully striking employees, the Secretary may make a finding that it is appropriate to terminate the contract for convenience. The Secretary shall transmit that finding to the head of any department or agency that contracts with the contractor. (b) The head of the contracting department or agency may object to the termination for convenience of a contract or contracts of a contractor determined to have permanently replaced legally striking employees. If the head of the agency 90 objects, he or she shall set forth the reasons for not terminating the contract or contracts in a response in writing to the Secretary. In such case, the termination for convenience shall not be issued. The head of the contracting agency or department shall report to the Secretary those contracts that have been terminated for convenience under this section. Sec. 4. (a) When the Secretary determines that a contractor has permanently replaced lawfully striking employees, the Secretary may debar the contractor, thereby making the contractor ineligible to receive government contracts. The Secretary shall notify the Administrator of the General Services Administration of the debarment, and the Administrator shall include the contractor on the consolidated list of debarred contractors. Departments and agencies shall not solicit offers from, award contracts to, or consent to subcontracts with these contractors unless the head of the agency or his or her designee determines, in writing, that there is a compelling reason for such action, in accordance with the Federal Acquisition Regulation. (b) The scope of the debarment normally will be limited to those organizational units of a Federal contractor that the Secretary finds to have permanently replaced lawfully striking workers. (c) The period of the debarment may not extend beyond the date when the labor dispute precipitating the permanent replacement of lawfully striking workers has been resolved, de determined by the Secretary. Sec. 5. The Secretary shall publish or cause to be published, in the Federal Register, the names of contractors that have, in the judgement of the Secretary, permanently replaced lawfully striking employees and have been the subject of debarment. Sec. 6. The Secretary shall be responsible for the administration and enforcement of this order. The Secretary, after consultation with the Secretary of Defense, the Administrator of the General Services, the Administrator of the National Aeronautics and Space Administration, and the Administrator of the Office of Federal Procurement Policy, may adopt such rules and regulations and issue such orders as may be deemed necessary and appropriate to achieve the purposes of this order. more Sec. 7. Each contracting department and agency shall cooperate with the Secretary and provide such information and assistance as the Secretary may require in the performance of the Secretary's functions under this order. Sec. 8. The Secretary may delegate any function or duty of the Secretary under this order to any officer in the Department of Labor or to any other officer in the executive branch of the Government, with the consent of the head of the department or agency in which that officer serves. Sec. 2. The Secretary of Defense, the Administrator of the General Services, and the Administrator of the National Aeronautics and Space Administration, after consultation with the Administrator of the Office of Federal Procurement Policy, shall take whatever action is appropriate to implement the provisions of this order and of any related rules, regulations, or orders of the Secretary issued pursuant to this order. Sec. 10. This order is not intended, and should not be construed, to create any right or benefit, substantive or procedural, enforceable at law by a party against the United States, its agencies, its officers, or its employees. This order is not intended, however, to preclude judicial review of final agency decisions in accordance with the Administrative Procedure Act, 5 U.S.C. 701 et seq. Sec. 11. The meaning of the term "organizational unit of a Federal contractor" as used in this order shall be defined in regulations that shall be issued by the Secretary of Labor, in consultation with affected agencies. This order shall apply only to contracts in excess of the Simplified Acquisition Threshold. Sec. 12. (a) The provisions of section 3 of this order shall only apply to situations in which contractors have permanently replaced lawfully striking employees after the effective date of this order. (b) This order is effective immediately. WILLIAM J. CLINTON THE WHITE HOUSE, March 8, 1995. # # # MICAN PEDERATION OF LA AFL-CIO & NEWS UNES CIO OF INDUSTRIAL OBGA FOR IMMEDIATE RELEASE CONTACT: James B. Parks March 8, 1995 or Candice Johnson of the AFL-CIO at 202/637-5010 EXECUTIVE ORDER A STEP TOWARDS JUSTICE AFL-CIO President Lane Kirkland had the following comment on President Clinton's executive order banning the use of permanent replacements in federal contracts: President Clinton's action today was a welcome step towards justice in the workplace. It sets a strong moral tone for labor-management cooperation and for dignity for those who work. The President has used the executive order as a vehicle to help America's workers in contrast to his predecessor who used it as a weapon against the interests of working people. The order sends a message to all Americans that quality products cannot be turned out by employers who make war on their employees. Employers are rewarded with higher productivity and efficiency when they treat their workers with respect. The President's action was a move in the right direction and we stand ready to fight every one of the initiatives to overturn it. ### AFI-CIO Labor Federation Expresses Its Vulnerability in Hostile Times By LOUIS UCHITELLE But Kirkland supporters also pushed for change. Among them was C.I.O. is, in fact, already changing. A Special to The New York Times BAL HARBOUR, Fla. Feb. 23 - William Bywater, president of the Strategic Approaches Committee, International Union of -Electronic, for example, has been sending This was the week of the A.F.L. C.I.O. leadership's self-proclaimec Electrical and Machine Workers, A.F.L.-C.I.O. representatives into the great awakening, aptly expressed by whose members once included as- field to help in strikes, mainly by Thomas R. Donahue, the federa- sembly-line workers making televi- enlisting other unions in support. sion sets which are now virtually The budget is being doubled, to near- tion's secretary-treasurer: "My all made in Mexico and other low- ly $3 million, to expand an institute God, we have to do more ourselves.' wage countries. that trains union organizers. And the The A.F.L.-C.I.O. executive coun- cil, dropping its trademark bland- am a strong believer in demon- federation is scrambling to set up a ness at its winter meeting here, en- strations," said Mr. Bywater, a bit- communications network to com- gaged in a rare display of self-ex- ter opponent of the North American pete with Rush Limbaugh and other amination. Battered by defeats from Free Trade agreement, who blames conservatives now on radio and tele- vision. the Administration and Congress, the Democrats for, failing the labor movement by supporting the pact. "I think you are going to see a lot the council recognized more publicly! would have the A.F.L.-C.I.O. picket more visibility from the A.F.L.- than ever before that the federation is suffering from the same sort of the White House and Congress," he said. He and one or two others also powerlessness that afflicts millions C.I.O.," Mr. Donahue said. of workers. favor the formation of a Labor Party Perhaps. But because it is a feder- The federation had stayed aloof to field candidates in national elec- ation of independent unions, the tions. from the setbacks in collective bar- A.F.L.-C.I.O.'s efforts at change con- gaining and organizing that have Then, there is the example of Ce- stantly run into obstacles. Union or- damaged and shrunk so many sar Chavez, the late farm workers ganizing and collective bargaining unions. It had instead acted primari- leader who led a grape boycott in the are considered- the exclusive pre- ly as a spokesman and lobbyist for 1970's. Several executive council serves of each union, and so is col- its 83 affiliated unions. But the Re- members argued that the A.F.L.- lecting money to finance strike bene- publican takeover of Congress in No- C.I.O. should mobilize the public fits. Just this week, the A.F.L.-C.I.O. vember, coming after the A.F.L.- against companies in conflict with rejected a proposal to set up a na- C.I.O.'s failure to get its way with the unions. In. this spirit, one or two tional "solidarity bank" that would Clinton Administration, finally suggested moving the venue of their kick in benefits for strikers whose forced the federation to grope for a annual February meeting from this union had run short of money. The more active role beyond Washington expensive seashore resort to places unions cannot agree on how to fi- politics. like Decatur, III., where members of nance such a fund. "We had hoped to change the labor three unions have been on strike or laws to make it easier for people at locked out for months. That would Whatever the obstacles, the Clin- work," said Mr. Donahue, who is focus attention on the struggle, they said. ton Administration has played a favored by many on the executive huge role in propelling the A.F.L.- council as the next federation presi- The main charge against Mr. Kirkland, 72, is that he is not suffi- C.I.O. toward change. Through most dent. "That hope is gone now, and we of Mr. Kirkland's tenure, the Repub- have to say, 'My God, we have to do ciently outspoken and cantankerous. licans held the White House, and Mr. more ourselves.' That is the shifting and willing to sell labor's case on Kirkland held out the hope that when of gears that took place here this talk shows and other public forums. the Democrats took power, labor's week." "I am supporting Lane Kirkland, but agenda would go forward. That did The council is composed of 33 my advice to him is, when it is called not happen. Over the objections of leaders, most men over 60, for, get in their face more," said labor, the Clinton Administration who traditionally meet behind closed Kenneth L. Coss, president of the pushed Congress to approve the doors and say little to reporters. But United Rubber Workers. by the end of the meeting, many Mr. Kirkland, defending himself at North American Free Trade Agree- were openly listing what they would the closed door meeting, asked the ment and a new world trade agree- union leaders who had more cha- ment, and then failed to win passage do to make the A.F.L.-C.I.O. more powerful, or were expressing their risma - or a better program.- than a bill that would prohibit compa- anguish and uncertainty about the he did. federation's future. "It is nice to have a debate abot- Their debate took the form of chal- an idealized version of a perfec nies from hiring permanent replace- THE NEW_YORK TIMES SUNDAY, FEBRUARY 1995 ments for strikers. lenging the leadership of Lane Kirk- leader, but there is no perfect leac er," Mr. Donahue said. "The two senators from Clinton's land, the A.F.L.-C.I.O. president He pointed out that the A:F.L. own Arkansas did not support us on since 1979. They were in effect focus- striker replacement," Mr. Coss of ing on Mr. Kirkland their frustration the Rubber Workers said. "And that for the Republican victory and the is viewed as an indication the Presi- perception of some that the Demo- dent would not do all he could for crats, the A.F.L.-C.I.O.'s traditional labor." ally, had cut them loose. During an The Administration tried to repair unusual five-hour meeting, with Mr. the damage, particularly the im- Kirkland presiding, each union lead- pression that the party took labor er made a case for why the president support for granted. "There are ele- should stay in office or leave. But the ments in the party that say, 'Labor debate went beyond Mr: Kirkland has nowhere else to go but us,' said Jack Sheinkman, president of the Amalgamated Clothing and Textile The A.F.L.-C.I.O. is Workers Union. Vice President Al Gore announced groping for ways to here that the President would issue exert itself. an executive order whose goal would be to hold back Federal contracts from companies that hire replace- toward a consensus that, with or ment workers for strikers. Labor without him, the A.F.L.-C.I.O. would Secretary Robert B. Reich spent have to act more forcefully. more than a day here meeting with "The discussion of Lane Kirk- union leaders, and Democratic lead- land's future has really turned into a ers in Congress promised that or- discussion of how we address all our ganized labor henceforth could rely difficulties," said John J. Sweeney, on the Democrats for pro-labor poli- president of the Service Employees cles. International Union. His members They did not undo the damage, are government workers in danger many union leaders said, re- of losing their jobs in the current mains to be seen how effective they campaign to shrink government. Mr. are," said Mr. Coss, whose Rubber Sweeney is a leader of the movement Workers are involved in the Decatur against Mr. Kirkland, who said he strike. "I support Clinton; he's the would decide "in', the fullness of best we have. But we have to see the time" whether to run for re-election results, not the intent. The intent as president. does not mean much anymore." THE NEW YORK TIMES. SUNDAY, FEBRUARY 26, 1995 Campaign In Chicago Barely Stirs A Breeze By DIRK JOHNSON Specialio The New York Times CHICAGO, Feb. 25 - This is a place once famous for its punch-in- the-nose politics, where a prudent alderman donned a bulletproof vest at a raucous City Hall meeting in the 1080's and a skittish mayor-elect took his oath of office in the protec- tive shadow of armed guards. But the current Democratic may- oral primary is as bland as dry toast. If they can stay awake, voters here will go to the polls on Tuesday and almost surely award the nomination to Mayor Richard M. Daley, who leads Joseph Gardner, a commis- sioner on the Metropolitan Water Reclamation District, by more than 40 percentage points, polls show. This contest is so dull it could be Todd Buchanan for The New York Times called the Sominex Hour," said Mel- Mayor Richard M. Daley is expected to easily win Mr. Daley, left, accepted the endorsement of the vin Holli, a professor at the Universi- the Democratic nomination for re-election in a pri- ty of Illinois-Chicago and the author Coalition of Latin American Ministers at Iglesia De of The Mayors: The Chicago Politi- mary contest that has been noted for its dullness. Dios, a church in the Humboldt Park area. cal Tradition." Even the issue of race relations, the usual third rail in Chicago poli- (Michael A. Bilandic, a Croatian- prominent blacks, including Senator Mr. Gardner, 49, is regarded as tics, has been remarkably absent American, served between 1976 and Carol Moseley-Braun and 100 black thoughtful and affable, qualities that from the campaign between Mr. Da- 1979; Harold Washington, an Afri- ministers. In fact, as a measure of his supporters say are missing in the ley, who is white, and Mr. Gardner, can-American, was mayor from 1983 the odds facing Mr. Gardner, the Mayor, who often comes across as who is black. Indeed, surveys show until his death in 1987, and Eugene challenger's own pastor, the Rev. thin-skinned and inflexible. But be- that Mr. Daley might garner more Sawyer. the African-American al- Clay Evans, is backing Mr. Daley. sides the famous Chicago name, Mr. than a quarter of the black vote, derman who was sworn in under "Daley has successfully avoided Daley has something that Mr. Gard- while rolling up huge majorities armed guard, served from 1987 to doing anything that would antago- ner does not: money. The Mayor's among whites. 1989.) nize black voters," Mr. Holli said, war chest is estimated to be more Chicago, the nation's third largest Mr. Daley, 52, a relatively conser- noting that the Mayor has been a than $4 million; compared with Mr. city with just under three million vative, law-and-order politician who strong supporter of affirmative ac- Gardner's $170,000. people, is about 38 percent black, 37 is popular among Republicans, is not tion and set-aside programs for mi- As a politician, Mr. Daley differs percent white, 20 percent Hispanic known as an eloquent speaker and nority contractors. "And some of his in important ways from his father. and 5 percent Asian. scarcely exudes the charisma of, support among blacks, no doubt, The elder Daley was a New Deal Mr. Daley, the son of Richard J. say, the late Mayor Washington. But stems from the fact that he's so far Democrat, a politician who believed Daley, the former Mayor who pre- Mr. Daley's low-key style and atten- ahead. It's always nice to be allied in the ability of government pro- sided over the fabled Democratic tion to the concerns of workaday with the winner. grams to improve the lives of every- machine from 1955 until his death in Chicagoans - fixing the potholes, Political experts here also note day people, although critics charged 1976. is seeking a third term. An keeping the alleys clean, talking that voter turnout has been falling that he shortchanged black neigh- independent candidate, Roland Bur- tough on crime - apparently satisfy steadily in Chicago, a trend that usu- borhoods. ris, a former Illinois comptroller, the majority of voters here. ally benefits incumbents with strong By contrast, the younger Daley who is black, plans to run in the The Mayor has failed to deliver on organizations. The rate of turnout has brought more members of mi- general election. On Tuesday the Re- several proposals, like bringing casi- among registered voters in Chicago nority groups into the inner circle at publicans also will nominate a candi- no gambling to Chicago and building mayoral elections has fallen from a City Hall. But in many other ways, date, who will have scant name rec- an aisport on the South Side near peak of 80 percent in 1983, when Mr. he is more conservative than his ognition, little money and even less Lake Calumet. But his administra- Washington's candidacy fired so father, at times breaking with organ- chance of winning in the general tion has been relatively free of scan- much excitement among blacks, to ized labor. election in April. dal, and downtown Chicago is gleam- about 40 percent today. Indeed, Mayor Daley has spoken In the 1991 elections more than ing with new residential high-rises Mr. Holli said he and others be- glowingly about some of the changes 675,000 people voted in the Demo- and office towers. lieved that voters "simply became planned by the new Republican Con- cratic primary and only about 14,000 When he won election in 1989, Mr. worn out by city politics" during the gress. He met recently with Speaker in the Republican race. Daley got less than 10 percent of the turmoil of the 1980's, when a bloc of Newt Gingrich, and afterward the Since 1933 the Chicago mayor's vote-among blacks, many of whom white aldermen fought Mr. Washing- Republican told reporters with a post has been held by an Irish-Amer- loathed his father. In this campaign, ton in battles so pitched that they smile, "Mayor Daley and I think a ican for all but a handful of years. he has won endorsements from some were dubbed The Council Wars." lot alike on a lot of issues.' SENT BY:OFFICE OF SECRETARY : 5-24-95 : 5:31PM DOL- 2024561414:#11/15. MEMBERS OF THE AFL-CIO EXECUTIVE COUNCIL Morty Bahr - President, Communications Workers of America, 550,000 members. Lost 100,000 members at AT&T alone after the 1984 divestiture of telephone system and thousands more at the regional Bell companies. Nonetheless, the union has been able to maintain its membership numbers. Bahr is an innovative and pragmatic bargainer who accepts and adapts to technological change. Section 8(a)(2)/labor law reform, education and job training, health and safety, and health care will be his top issues. He also has a keen interest in the effect of the expanding information superhighway on jobs for his members. CWA is in intense negotiations this year for 400,000 members who work at AT&T and regional Bell operating companies (largest round of negotiations in '95). CWA reached what he considers to be a "model" agreement with NYNEX last year. Jack Barry President, International Brotherhood of Electrical Workers, 800,000 members. The IBEW has approximately one-third of its membership in construction and two-thirds in manufacturing. It has experienced a slow membership decline which it is attempting to counter with tough, confrontational organizing techniques. Davis-Bacon will be an important issue, as will construction safety/OSHA. Apprenticeship and training issues are also important to him. He is also negotiating with AT&T and regional Bell companies, although on a much smaller scale than CWA. IBEW reached an agreement last week with Bell Atlantic. George Becker - President, United Steelworkers of America. Becker replaced Lynn Williams last year and, although he is a more traditional trade unionist, he is an ally of Williams. The Steelworkers' membership has declined 500,000 from one million. Becker followed Williams in instilling an organizing culture in his union and attempting innovative bargaining strategies. Most of his new members are not in basic steel. He was very concerned about striker replacement and will likely show even greater interest in Section 8(a)(2). The United Rubber Workers (approximately 80,000 members) recently voted to merge with the USWA. Owen Bieber - President, United Auto Workers, 750,000 members. UAW membership has declined from 1.2 million in 1981. Bieber's main concern is the loss of auto jobs. He was very active in opposing NAFTA and supporting voluntary import restraints and striker replacement. He has been skillful at balancing the union's role in improving auto productivity while fending off militants within the union who want to take a hard line against auto companies. The loss of the auto parts business to Mexico is a big issue. The defense of OSHA will be important as will Section 8(a)(2). He is both detailed and descriptive in his questions and comments. When Bieber retires in June. Steve Yokich will likely replace him. Moe Biller - President, American Postal Workers Union, 250,000 members. Federal employee issues are important to the APWU. Biller doesn't typically participate at the Council meetings. Exec. Council . 1 SENT BY OFFICE OF SECRETARY : 5-24-95 : 5:32PM DOL- 2024561414:#12/15 Marvin Boede -- President, United Association of Plumbers and Pipefitters, 300,000 members. Nearly all of Boede's members are in construction. Apprenticeship and training are key interests (he chairs the Council's subcommittee on apprenticeship and training), but he rarely speaks out at these meetings. Again, Davis-Bacon would be his top concern. Bill Bywater -- President, International Union of Electronic, Electrical, Salaried, Machine and Furniture Workers, 175,000 members. Bywater is vocal and unequivocal. Striker replacement and trade are his issues. He was the most vocal labor opponent on NAFTA. GE and Westinghouse are the major employers with workers represented by the IUE. Ron Carey - President, International Brotherhood of Teamsters, 1.4 million members (the AFL-CIO's largest affiliate). Carey was elected in the Teamsters' first-ever direct election of its officers four years ago. The election was ordered by the federal courts as part of the government's receivership of the Teamsters. Carey is up for re-election in 1996. He spent his career as a union official fighting corruption in the union and is trying to clean out the bad players. The old-school Teamsters wage constant war against him. Jimmy Hoffa, Jr. has already begun to campaign for Carey's job. Carey is interested in labor law reform/Section 8(a)(2), organizing, OSHA defense, and striker replacement. NAFTA was a huge issue with Teamster members. Carey has been among the most frustrated and outspoken union leaders regarding the Administration's failure to support the labor movement. He broke with the longstanding Teamster tradition of endorsing Republicans for President to endorse you in 1992. Linda Chavez-Thompson - Vice-President of the American Federation of State County and Municipal Employees. Chavez-Thompson was elected to the Council only two years ago. Arthur Cola - Laborers' International Union, 450,000 members. Coia replaced Angelo Fusco a little more than two years ago, and is working hard to change the union's image and reputation. The Laborers' membership is in construction and public sector employment. This union has been the subject of numerous rumors of a Justice Department/Labor Department investigation because of the union's history of ties to organized crime. They recently reached a settlement with the Justice Department in an effort to clean up the union. Coia has generally managed to stay above the fray. Coia's top issues would be Davis-Bacon, the "helper" regulation, and construction safety. Doug Dority -- President, United Food and Commercial Workers. UFCW is a good organizing union, very sophisticated and practical in dealings with employers both when they are cooperative and when they are ruthless (in the union's view.) Hostile takeovers and leveraged buyouts have hurt the UFCW over the past decade. Dority, who replaced Bill Wynn two years ago, is very interested in labor law reform/Section 8(a)(2). The UFCW represents major food chains, meat packers. They have nearly one million members. OSHA and the minimum wage will also be important to Dority. Exec. Council - 2 SENT BY:OFFICE OF SECRETARY : 5-24-95 : 5:33PM : DOL- 2024561414:#13/15 Bob Georgine -- President, Building and Construction Trades Department of the AFL-CIO. The possible repeal of Davis-Bacon is unquestionably his top concern, as it is with all of the building trades unions. Construction safety/OSHA is also important to him. Wayne Glenn - President, Paperworkers International Union, 200,000 members. Striker replacement was his big issue. The bitter International Paper strike led him to pressure for prohibitions on the use of permanent replacements. The Paperworkers' membership is declining at much the same rate as all manufacturing unions. The union is headquartered in Tennessee. Frank Hanley - President, International Union of Operating Engineers, 300,000 members. Operating Engineers are usually construction employees. He has also suffered a membership decline. Construction safety/OSHA, Davis-Bacon, and double-breasting employers (unionized employers that establish non-union subsidiaries and shift their work) are likely subjects of interest to him. He wrote a letter to you last year urging that you stand up for traditional Democratic values and principles. The letter was out of character for him and suggests how frustrated he was with some of the Administration's actions. Jim Hattfield -- President, International Union of Glass Molders, Pottery. Plastics and Allied Workers, 100,000 members. Striker replacement was his highest priority. This union has suffered a major membership decline. Frank Hurt -- President, Bakery, Confectionery and Tobacco Workers Union, 100,000 members. BCTWIU primarily represents food processing and tobacco workers. Its membership has been fairly stable. Hurt was formerly in charge of the union's organizing. Health care is a big issue. Gloria Johnson Vice President, IUE (Bywater's union), and president of the Coalition of Labor Union Women. Johnson was elected to the Council two years ago. She is an outspoken advocate on issues affecting women in the workplace. Jack Joyce - President, International Union of Bricklayers and Allied Craftsmen, 85,000 members. Joyce's membership is down from approximately 145,000 in the mid-70s. Joyce is a smart, articulate, and respected leader. Davis-Bacon, training, international affairs, and other building trades issues would top his list. George Kourpias President, International Association of Machinists, 600,000 members down from one million. The IAM represents airline mechanics, manufacturing workers, and some retail and truck mechanics. NAFTA and striker replacement were important issues to him. His union and seven others are involved in a long lasting strike against NASSCO, a San Diego shipbuilding company which President Clinton visited during the 1992 campaign and to which the federal government has provided $22 million in loan guarantees. Exec. Council - 3 SENT BY:OFFICE OF SECRETARY : 5-24-95 : 5:33PM DOL- 2024561414:#14/15 Sig Lucassen -- President, United Brotherhood of Carpenters, 450,000 members. While the Carpenters are still primarily found in construction, more than one-third of the membership now works in manufacturing. His presidential election will be rerun under Labor Department supervision. Davis-Bacon will be his top concern along with ERISA preemption (i.e., ERISA has been held to preempt state apprenticeship laws) and section 8(a)(2). Jay Mazur - President, International Ladies' Garment Workers Union, 140,000 members almost all in the garment industry. The ILGWU has suffered a steep decline in membership largely due to imports. Accordingly, Mazur is focused on trade issues and "industrial homework" which is syphoning off his membership. In June, ILGWU will merge with the Amalgamated Clothing and Textile Workers Union forming a new 300,000 member union called UNITE (Union of Needletrades, Industrial & Textile Employees). Gerry McEntee -- President, American Federation of State County and Municipal Employees, 1.2 million members. After rapid growth, AFSCME's membership declined in 1992 for the first time in many years. McEntee is extremely close to the Administration and was an early Clinton supporter. Health care reform, labor law reform (something to help state and local employees), OSHA coverage for public workers, the effects of health care reform on health industry workers, welfare reform, the balanced budget amendment, and the Service Contract Act are all important issues. This is another smart, aggressive, innovative, politically active union. McEntee will speak his mind. Lenore Miller - President, Retail, Wholesale and Department Store Union, which merged about a year ago with United Food and Commercial Workers. RWDSU had 80,000 members. Miller is concerned about basic trade union issues such as Section 8(a)(2). She was an early Clinton supporter. Jim Norton - President, Graphic Communications International Union, 125,000 members. GCIU's members are in the newspaper industry . typesetters, mail room etc. Its membership has held fairly stable. Norton is comparatively new to the Council. Striker replacement and Section 8(a)(2) will be big issues. Mike Sacco -- President, Seafarers International Union, 80,000 members. Sacco is also president of the AFL-CIO's Maritime Trade Department. His principal interests are enacting maritime reform, protecting the Jones Act, making Alaska North Slope oil available for export, and preserving cargo preference and the Service Contract Act. Jack Sheinkman -- President, Amalgamated Clothing and Textile Workers Union, 180,000 members. The Amalgamated suffered a major decline in the 1980s but has leveled off recently, primarily due to aggressive and effective organizing strategies. Sheinkman is a major player on trade issues. He is a former attorney and, therefore, likely to talk about labor law reform (Section 8(a)(2)) as well as OSHA, trade assistance, perhaps industrial policy, and health care. ACTWU represents workers at Xerox in Rochester, NY which is recognized by some as a model of healthy cooperative labor-management relations. Exec. Council - 4 5-24-95 5:34PM : DOL- 2024561414:#15/15 SENT BY OFFICE OF SECRETARY : Sheinkman will retire in June to become the new chair of Americans for Democratic Action. As noted above, ACTWU will merge with the ILGWU to form UNITE. Al Shanker - President, American Federation of Teachers, 800,000 members. Shanker has broad interests, but focuses principally on elevating standards for teachers. His union has grown dramatically and steadily. He is the longest serving Council member. His interests include labor law reform/section 8(a)(2), education and job training, and international affairs. He was an early Clinton supporter. Vincent Sombrotto -- President, National Association of Letter Carriers, 210,000 members. Like Sturdivant (below), he will be concerned with federal employee issues. Sombrotto is quite outspoken. John Sturdivant -- President, American Federation of Government Employees, 150,000 members. He has taken a leadership role on the National Partnership Council and in promoting the work of the Vice President's National Performance Review. Unsurprisingly, he will show a keen interest in the balanced budget amendment and the Republicans' treatment of the President's FY 1996 budget. He also has major problems with the proposed Civil Service Reform Bill. John Sweeney -- President, Service Employees International Union, 1 million members. SEIU has experienced major growth in the public sector (currently about one-half of his members) while also achieving great success in private sector organizing. SEIU is a smart, aggressive, progressive union with a lot of young and innovative staff. Sweeney chairs the AFL-CIO's Organizing and Health Care Reform committees. The preservation of the Service Contract Act, labor law reform, welfare reform, and health care are leading issues with him. Rich Trumka -- President, United Mine Workers of America, 80,000 members. Trumka is a young (45 or so), articulate lawyer. He served on the Kerrey/Danforth Commission on entitlements. Retiree health insurance, health care, and mine safety and health, as well as labor law reform/Section 8(a)(2) and the federal budget are among his interests. Secretary Reich helped settle a nasty strike between the UMWA and the Bituminous Coal Operators Association (BCOA) by bringing in former Secretary of Labor Bill Usery as special mediator. This was very important to the UMWA. Gene Upshaw - President, Federation of Professional Athletes. He does not attend many of the Council's meetings. Upshaw represents professional football players. Exec. Council - 5 AFL-CIO - waking THE WASHINGTON POST WEDNESDAY, MARCH 1, 1995 IN THE LOOP Passing the Buck "You stress [in an earlier cable] that your goal in By Al Kamen Washington Post Staff Writer the planned exit is to 'emphasize the achievements of the country and the program. There is no coherent W hite House press secretary Michael way that can be done," Stokes said. McCurry decreed last week that his Ambassador Walter C. Carrington in Lagos cabled troops must start being nicer to the press. that, "Pulling the Peace Corps out of Nigeria, no He ordered a dozen aides who deal most directly with matter in what terms such an event is explained, will the press corps to go out of their way to do be seen by Nigerians, whether pro-democracy or something nice each day for a reporter and then pro-military, as a political decision. It will be write McCurry a note saying what they had done. interpreted as just another sanction imposed by the Those who don't have anything to write about U.S. government." were to pony up $1 to the office pizza kitty. Peace Corps officials say they have no choice, But old ways die hard. though volunteers may return to Nigeria, whose The first day, the only aide who had done military rulers have been promising democracy for a something nice [helping a Canadian broadcaster get a decade, when the political situation there improves. better camera shot at Andrews Air Force Base] was The other programs were due for phaseout anyway, deputy secretary Mary Ellen Glynn, a recent arrival officials say. The per capita income in the Seychelles, from the State Department who apparently hasn't $6,300 a year, is many times above the average in learned the ropes. most countries the agency serves. So McCurry got mad and the notes started coming. Some were rejected out of hand, like the one Talbott Speaks on the Issues from an aide who took credit for returning a reporter's phone call the same day. Sounds pretty Are we talking wonks or what? "Several of us in remarkable for the Clinton White House but Foggy Bottom read every word in every issue of Arms Control Today." So said Deputy Secretary of McCurry ruled that returning phone calls was part of State Strobe Talbott in a speech to the Arms Control the job. Association. Sounds like some folks at the State Another aide wanted credit for purchasing Girl Department need to get a hobby. Scout cookies from a daughter of a member of the White House press corps. A third wanted credit for agreeing to go to the White House correspondents Court Calls and Tyson Answers dinner with someone who was not a first choice. Just because newly installed National Economic McCurry rejected those notes as well. Council director Laura D'Andrea Tyson is a major Word is McCurry, as part of this era of good player doesn't mean she can give up her feeling, allegedly moved the scheduled time of constitutional obligation-with or without a balanced Clinton's news conference Friday to accommodate a budget amendment-to serve on jury duty. network correspondent who had to go out of town. Tyson yesterday was not to be found at the White So is the kitty flush with cash? No. "Tve got nine House. She was down at D.C. Superior Court, sitting dollars and a bunch of IOUs," McCurry said. "But I around waiting to see if she would be called to be on want the scraps of paper, not the money. I'm a jury. She wasn't picked, which means she won't be determined that we're gonna get this operation in called for two more years. the business of serving reporters as well as serving the president," he said. One Commission Seat, Two Names "And besides, I like pepperoni." There has been some talk at Justice that outgoing Golden Child Enters Dark Days assistant attorney general for legislation Sheila Anthony is a possibility for a seat on the International The Peace Corps, golden child of another budget Trade Commission, but Sen. Daniel Patrick era, is closing some long-standing overseas Moynihan (D-N.Y.) ranking minority member on the operations to make ends meet. This is not one the Finance Committee, which confirms commission libs can blame on Gingrich and Co. President members, is said to be backing Steven Beckman, an Clinton's budget for the agency, $234 million, is economist specializing in internation matters for the effectively a freeze, and with inflation and all, United Auto Workers, which opposed NAFTA and "something had to go," as one official put it. GATT. What's going, among some domestic cuts, are two There are rumblings that Republicans may not be small programs-in the Seychelles and in the Cook excited about putting a laborite on the commission, Islands-and another in Nigeria, which in the 1960s but the White House almost certainly will oblige was one of the biggest agency operations with Moynihan. hundreds of volunteers. Meanwhile, Kent Markus, former chief of staff to The move is not going down well with the former Democratic National Committee chairman ambassadors in those countries. David Wilhelm, who was brought to the department Carl B. Stokes, ambassador to the Seychelles, sent by principal deputy associate attorney general Nancy a confidential memo to the agency saying that pulling McFadden to work on the Brady bill and then the out the 14 volunteers "will cause a political shock crime bill, is to be acting head of the legislative shop wave that will obliterate those [21] years of good will until designee Andy Fois is confirmed, then Markus and achievements here that the PC has compiled." becomes deputy to Fois. AFL- CIO EXECUTIVE OFFICE OF THE PRESIDENT 19-Dec-1994 08:52pm TO: John O. Sutton FROM: Peter J. Shakow Office of Political Affairs CC: Ann C. Castagnetti SUBJECT: Lane Kirkland Letter * In consultation with OMB (Chris Edley), Joe suggests the following language be used to reply to Lane Kirkland's December 13th letter: > POJUS' Dear Lane: Thank you for your letter regarding funding for mass transit operating assistance, Amtrack and the U.S. maritime industry. I appreciate learning of your views. At this point in the budget deliberations, I do not anticipate that my Administration will propose the elimination of mass transit operating assistance, or sharp reductions in assistance to Amtrack or the U.S. maritime industry. As you know, many difficult choices must be made among competing priorities in order to formulate a budget that meets the statuatory spending caps. Your views are being taken into consideration during this process. Thanks for your continued support. Sincerely, I assume that you will handle the letter from here on out. If this is not the case, let me know. I am happy to make edits and walk it through correspondence if y'all so desire. Thanks. Breen Feducts 5 American Federation of Labor and Congress of Industrial Organizations EXECUTIVE COUNCIL AMERICAN FEDERATION OF LABOR 815 Sixteenth Street, N.W. LANE KIRKLAND PRESIDENT THOMAS R. DONAHUE SECRETARY-TREASURER Washington, D.C. 20006 Albert Shanker Edward T. Hanley Wayne E. Glenn (202) 637-5000 John J Sweeney James E. Hatfield Vincent R. Sombrotto Gerald W. McEntee William H. Bywater Marvin J. Boede Owen Bieber John T. Joyce Morton Bahr CONGRESS AFL OF INDUSTRIAL Robert A. Georgine Gene Upshaw Jay Mazur Lenore Miller Jack Sheinkman John J. Barry Sigurd Lucassen Moe Biller George J. Kourpias John N. Sturdivant Richard L. Trumka Frank Hanley James J. Norton Michael Sacco Ron Carey Arthur A. Coia Frank Hurt Linda Chavez-Thompson Gloria T. Johnson Douglas H. Dority George F. Becker December 13, 1994 The President The White House Washington, D.C. 20500 Dear Mr. President: On behalf of the AFL-CIO, I I write to express labor's profound concern over reports that your administration is considering the elimination of a number of federal programs -- affecting various sectors of the economy -- that are of critical importance to working people, their families and the country at large. In the area of rail and public transit, you should be aware that any proposal to zero-out or sharply reduce federal funding for Amtrak, if adopted by Congress, would threaten the very existence of the nation's inter-city passenger rail system and with it the jobs of some 25,000 Amtrak workers. Meanwhile, the elimination of funding for local mass transit operating assistance would have a devastating impact on a large number of the 250,000 people who work for transit systems in cities throughout the country. These ideas were proposed time and again during the Reagan and Bush administrations, only to be restored by Congress after careful consideration of how devastating their impact would be on travelers and commuters who depend on these services and working people whose jobs are on the line. Further, we are counting on you to stick by your recent commitment to continue the administration's support for programs that will help maintain and revitalize the U.S. maritime industry. As I have previously expressed to you, severe cutbacks in these programs would result in the reflagging of nearly all remaining U.S.-flag vessels and the rapid loss of tens of thousands of American jobs. Without a strong merchant marine, America cannot fully secure its future as a military and trading power. The President December 13, 1994 Page 2 Over the course of your administration, we have been proud to support your bold efforts to redirect the nation's economic policies. In light of the realignment of Congress, we urge you to strongly defend those programs which are critical to the future of this country and its working people. Sincerely, fame Kill President 2 0 0 American Federation of Labor and Congress of Industrial Organizations 815 Sixteenth Street, N.W. Washington, D.C. 20006 AMERICAN FEDERATION OF LABOR CONGRESS AFL OF INDUSTRIAL -CIO Mr. George Stephanopoulos The White House Washington, D.C. 20500 AFL AFI-CIO - - washy 310, GREER. MARGOLIS MITCHELL BURNS 9/31/90 GMMB&A AFL-CIO &ASSOCIATESINC TV :30 March 30, 1995 AFL95-102 "Cuts" -- FINAL RECORDED VERSION - VIDEO: AUDIO: Move in on family on porch. AMERICA'S WORKING FAMILIES ARE UNDER ATTACK. Move in on men meeting at the THE NEW CONGRESS IS CUTTING JOBS top of stairs. Man and woman at working at WAGES table. Patient being taken out of HEALTH AND SAFETY ambulance. Elderly woman with glasses. HOUSING FOR SENIOR CITIZENS School children in cafeteria. EVEN SCHOOL LUNCHES. Family sitting around table THEY'RE CUTTING PROGRAMS THAT HELP eating. WORKING FAMILIES MAKE ENDS MEET - Two limos pull away from curb. so THEY CAN GIVE TAX BREAKS TO BIG BUSINESS AND THE RICH. Quick cut of workers walking in IT'S TIME TO STAND UP FOR a factory. Family going out front door of AMERICA'S WORKING FAMILIES house. Man with hardhat. FOR GOOD JOBS, GOOD WAGES Doctor with family. HEALTH AND SAFETY Welder with sparks flying. AND A REAL VOICE ON THE JOB. Pan right-to-left of workers STAND WITH US standing together Working people walking across WE'RE THE MEN AND WOMEN OF THE AFL- bridge toward camera CIO. Add CG: Stand with us. 1-800- LEADING THE FIGHT FOR AMERICA'S 458:7852. Disclaimer. WORKING FAMILIES. 1010 Masconsin Avenue, VII Suite 800 Washington, DC 20007 (202) 338-8700 FAX (202) 338-2334 2110 Main Street Suite 203: Santa Monica, CA 90405 (310) 314-4800 FAX (310) 314-4803 NFL- CIO 4/1198 every AFL- CIO NEW CONGRESS / OLD POLITICS Big business and the rich win. Working families lose. The he new Congress has launched an all-out assault on That's not what America voted for in 1994. It's just America's working families. more trickle-down economics, and it's hurting working They voted to slash education and job training. They're families. Big business and the rich get richer, and the rest of us get stuck with the tab. gutting worker health and safety protections that save thousands of lives every year, and they oppose increasing It's time to fight back - to stand up for America's working the minimum wage, protecting Davis-Bacon and raising families. For good jobs and good wages. For health and middle-class incomes. They cut school lunches, housing for safety. And for a real voice on the job. the elderly and veterans and college loans for middle- We're the men and women of the AFL-CIO, and we're income families. And instead of investing in better jobs and wages here in America, they want to hand out tax breaks for leading the fight for America's working families. the rich and for big corporations that move jobs overseas. Stand with us, America. If you want to help Call 1-800-458-7852 Today Stand UP It's the Fight of Our Lives For America's Working Families BROUGHT TO YOU BY THE MEN AND WOMEN OF THE AFL-CIO LEADING THE AGHT FOR AMERICA'S WORKING FAMILIES 06/12/95 16:06 202 219 7971 DOL OSEC PRL-CIO 002 - wol American Federation of Labor and Congress of Industrial Organizations EXECUTIVE COUNCIL MARICAN REDERATION + 815 Sixteenth Street, N.W. LANE KIRKLAND PRESIDENT THOMAS M. DONAHUR SECRETARY-TREASURER Washington, D.C. 20008 (202) 837.5000 Albert Edward T HERIBY wayne &. Giann John : Sweeney James & Hetfield Vindent R. Bombrame Gerale W McEniee William n. Byward Marvin J Boads Own Bieber John T. Joyce Marten Bahr COMPANY AFL OF INDUSTRIAL Robert a, Georgine Gane Ugahaw JAY Mazur Lenon Mitter Jack Snainkman John ; Barry Sigure EMERGEN VOI Biller George J. Kourpias John N Student Richard 6. Trumsa Frank Hanley Jamas J Norton Michael Sacco Ron Carey Afthur A Coie Frans Hun Linds Chaves-Thompaon anile T. Jahnson Douglas * Derify George F. Becker June 12, 1995 To: Members, of the Exacutive Council Presidents of National and International Unions Dear : I have determined to become a candidate to succeed Lane Kirkland as AFL-CIO President. It is my hope and desire to pull together the broadest and most diverse support within the labor movement. The purpose of this letter is to begin in earnest the process of generating that support. Lane advised me at the beginning of last week that he had decided to step down as AFL-CIO President. The reports of his decision have appeared in the press and it is his intent to make a public announcement to that effect today. Given Lane's decision I have had telephone conversations with over 65 general presidents of our 80 affiliated unions to advise them that I was considering my candidacy. Those conversations convinced me there is an over- whelming sentiment for unity in the Federation. By any measure, the era that Lane's retirement will bring to a close has been immensely productive: it encompasses the unification of the labor movement through the reaffiliation of the United Automobile Workers, the Mine Workers, the Teamsters, and the Longshoremen's and Warehousemen's Union; the creation of the Organizing Responsibilities Procedure, the Labor Institute for Public Affairs, the organizing Institute, the Strategic Approaches Committee, the Union Privilege Benefit Program, the grassroots Legislative Action Committee structure, the comprehensive communications program adopted last year, and more. I am proud to have had an active role in this record of accomplishment. And, I am particularly proud to have been part of a process that opened up the Federation to all of its constituents; a process that has stimulated the best thinking of our affiliates and has mobilized their talents and energies. These initiatives were not the product of a distant leadership or any narrow group but of the labor movement as a whole. 06/12/95 16:07 202 219 7971 DOL OSEC 003 June 12, 1995 Page two In a world that is rapidly changing, we've done our best to meet the new conditions of work and workers. By any measure, more needs to be done. The unifying theme I see -- in what no doubt appears to the public to be simply internal political disagreement -- is an intensified commitment to progressive change in all our institutions in order to better represent all union members. That certainly is welcome; it, indeed, comes none too soon. We race the most formidable challenges as we strive to find the means to fulfill the labor movement's historical role as the authoritative voice of America's working people. My first priority at the Federation has been to mobilize a consensus for creative innovation. I am confident that all of you who joined with me in our project on the changing nature of work and its consequences and in the extensive committee work that made all our new programs operational realities, would second that assessment. Each one of these efforts has been hard going because the problems that must be overcome are hard problems that do not yield easy answers. But it is my conviction that we have now reached the point of agreement to go forward in our task of creating an ever more dynamic, more diverse and more self sufficient labor movement. While most of the work must be the prime responsibility of individual unions, the Federation must play a catalytic role. The one sure means of squandering this possibility is to fall into factionalism. I see no disagreements on principle that divide us. The working men and women who depend on this movement and the millions more who ssek a genuine voice on the job require that we make a common cause. I believe I can be a significant factor in that process. I therefore seek your support. Thank you and with every good wish, Fraternally, Secretary-Treasurer A.F.L.-C.I.O. Candidates Prod Each Other to Move Unions Toward Change By LOUIS UCHITELLE no turning back." A.F.L.-C.I.O. would become the driv= Suddenly the A.F.L.-C.I.O., awak- But there is great risk in the un- ing force in recruiting workers into he said, acknowledging that Mr. trend that has produced so many ening to danger, is trying to train dertaking. If the unions, through a unions, a task now left to the individ- Sweeney has enough delegate votes corporate mergers. But neither the and ship out hundreds of new union new activism, fail to win enough ual unions. But what other way is Some giant pledged to him now to win the ballot- union leadership nor corporate organizers. Never mind the cost. public support to reverse their de- there to organize a company like ing at the A.F.L.-C.I.O.'s October America view the union mergers as And the two men vying to lead the clining membership, then the at- Wal-Mart, with employees spread undertakings for convention in New York. "But don't sufficient by themselves to chal- federation show up at tempt at revival might instead con- across stores in every state, or the exclude the possibility that my per- lenge the hegemony that manage- every sore spot for vince Americans that the traditional ubiquitous parts makers that supply labor. formance as interim president can ment now exercises over labor. News workers, hoping to unions have indeed become Irrele- the big auto manufacturers. change a lot of minds." "Corporate America has become Analysis awaken in ordinary non- vant in their struggle to deal with "The key is the scale," said Rich- Maybe. But no matter who wins, comfortable dealing with the unions union Americans a new wage stagnation, layoffs and cuts in ard Bensinger, executive director of converting the A.F.L.-C.I.O. into the that represent its workers," said feeling that unions can help them. Sweeney as co-chairmen, to draw up benefits. the A.F.L.-C.I.O.'s Organizing Insti- flagship of an aggressive union William Lucy, secretary-treasurer Nearly two months into their elec- No group has a bigger stake in the tute. "The task has gotten beyond by early fall a proposal to revamp movement goes beyond organizing, of the American Federation of State, tion campaign, the candidates, A.F.L.-C.I.O.'s revival effort than what any individual union can do." the federation's governing executive or revamping the executive council. County and Municipal Employees. Thomas R. Donahue and John J. Beyond organizing, Mr. Donahue council. The idea is to include more Corporate America, and that makes Somehow the federation must per- "But it has not had to face a chal- Sweeney, keep upping the ante, turn- obtained from the executive council, women, as well as black and Hispan- suade Americans that unions are an lenge from a national union move- the nation's executives a gauge for ing initially vague platforms into measuring progress. So far they are. for the first time, the authority for Ic union leaders. Women and minor- answer to their concerns. By nearly ment to corporate sway over public ever more specific promises and the A.F.L.-C.I.O. to make no-interest ities are close to edging out white not showing any worry. "I don't see every union leader's reckoning, that opinion." even some action. Prodding each loans totaling $1 million to unions on males as a majority of all union anything that is going on yet that is requires the sort of authoritative, other, they are making a huge com- of major concern," said Robert Cor- strike and running out of money to members. But the council is still charismatic voice that made Samuel mitment: That organized labor will pay their strikers. He also appropri- dominated by white male union pres- lett, vice president of human re- Gompers such a national figure ear- Idents. become a social movement, engaged sources for the Lockheed Martin ated money to train 500 local union ly in the century and Walter Reuther In raising the living standards of all In all this flurry of activity, Mr. Corporation, the big aerospace com- people to be political advocates - in mid-century. Donahue comes across as the incum- American workers, as it was in the pany. "And I think other employers recognizing, in effect, the federa- In pursuit of such a voice, Mr. 1930's, and not a collection of unions bent, still identified with the 16-year tion's failure as a lobbyist in Wash- Donahue and Mr. Sweeney, and their share that view." Kirkland era, during which union concerned mainly with trying to pre- The revival movement is still in a ington, where it has been unable to running-mates, have been criss- serve the jobs and wages of those membership went into steep decline. win legislation that would prohibit crossing the country in recent very early stage. Mr. Donahue and who are already members. The insurgents pushing hardest for the use of replacement workers in weeks, speaking to strikers on picket Mr. Sweeney have only just crossed change have gravitated to Mr. Not since the 1960's, when unions the line from campaign promises to strikes or pass bills that would make lines, at rallies to protest all sorts of recruited Federal Government em- Sweeney, whose just updated plat- issues and at demonstrations action. They did so last week during organizing easier. ployees for the first time, enlisting form incorporated most of the pro- the summer meeting of the A.F.I.- The focus is now to shift to the against members of Congress with tens of thousands, has there been so posals put forth a few days later by cities and states. The hope is that anti-labor voting records. C.I.O.'s executive council in Chicago: Mr. Donahue. much innovation in the union move- local union members, now largely But the constant public appear- Lane Kirkland, long an advocate of ment and talk of change. Making Above all, the Sweeney support- passive in election campaigns, can ances have drawn very little nation- the status quo, formally retired as money available, as the organization ers, in talking up their candidate, president, forced out by the pressure be turned into lively agitators for or al attention. Union mergers have did last week, to send 1,500 union point to his achievement as presi- for change. Mr. Donahue, his secre- against members of Congress. They gotten more publicity, particularly dent of the Service Employees Inter- organizers Into the field over the would become, in Mr. Donahue's the announcement late last month tary-treasurer, became the interim national Union since 1980. Early on, next 18 months is a huge undertak- president, until the October presi- words, "the most powerful foot sol- that agreement had been reached to ing for an organization that did not he threw resources into organizing, diers of the entire electoral pro- create a giant union by combining dential election, and took four steps and membership in his union grew, train any organizers five years ago the Auto Workers, the Steelworkers toward change. cess. bucking the national trend. and now puts only 200 a year through and the Machinists. The first involved the organizers. Finally, Mr. Donahue set. up a Such arguments keep Mr. Dona- THE NEW YORK TIMES, MONDAY, AUGUST 7, 1995 Its three-month course. He committed the A.F.L.-C.I.O. to committee, with himself and Mr. Mr. Donahue and Mr. Sweeney hue hopping. "People say that "There has to be meaningful publicly favor union mergers as a eventually spend $20 million a year Sweeney has the election locked up," change," Mr. Sweeney said, a view means of strengthening unions, on organizing, up from $3 million he shares with Mr. Donahue. "We mainly by eliminating duplicate bu- today. That is an eye-catching shift have started a dialogue and there is reaucracies and freeing money for in resources for an organization with organizing. A dozen mergers have a $60 million budget. If it works, the been announced or completed in the past 18 months as unions join the THE WASHINGTON POST THURSDAY, JULY 27, 1995 FINAL Leaders of 3 Large U.S. Labor Unions Agree to Merger By Frank Swoboda AI sent a large group of fleet service Washington Post Staff Writer workers. Leaders of three of the nation's Sources said the unions decided it largest unions have agreed to a "uni- was counterproductive to fight among fication" that will create a 2 million- themselves, a belief that led to the member union by the year 2000. merger talks. In the case of the three The United Auto Workers, the In- unions involved in this merger, money ternational Association of Machinists was not a major issue. All three largest union, with 1.6 million mem- and the United Steelworkers unions unions are well-heeled. bers, and the National Education As- will announce the merger today. The The merger also reflects an evolu- sociation has more than 2 million boards of directors of the three tion of the U.S. labor movement to- members, but not all are covered by unions, meeting at the Omni Shore- ward a structure similar to the one collective bargaining agreements. ham Hotel, approved the alliance in a Western European unions have de- The NEA is the only major union out- vote last night. See UNIONS, A4, Col. 1 side the AFL-CIO. The steelworkers, the machinists The new union would have 1.95 UNIONS, From A1 and the auto workers unions at one million members, making it the larg- point all had more than 1 million est union in the nation. veloped in the post-World War II era, members, but shrinking employment The merger comes at a time when in which labor federations represent in the nation's basic manufacturing in- more and more unions, facing global workers across industry lines. dustries has taken its toll on all three economic shifts as well as dwindling In the merger of these three unions, cutting their membership al- membership and political power, are unions, the two major aerospace in- most in half. banding together in an effort to in- dustry unions-the machinists and Other unions have been merging to crease their strength at the bargain- the UAW-would join forces. It cope with the forces eroding their ing table. would combine the union whose mem- power. The International Ladies Gar- Turmoil within the labor move- bers manufacture steel with the union ment Workers Union and the Amal- ment has spurred not only a raft of whose workers build automobiles. gamated Clothing and Textile Work- mergers, but also an unprecedented Over the last 20 years, both the ma- ers Union merged to become the challenge by a number of unions, in- chinists and the steelworkers unions Union of Needletrades, Industrial and cluding the auto workers, steelwork- have become conglomerates, often Textile Employees (UNITE) on July taking in units outside their basic ju- 1. The 94,000-member United Rub- ers and machinists, to AFL-CIO risdictions. ber Workers International merged Ironically, the presidents of all with the steelworkers' union on the President Lane Kirkland's leader- three unions-Stephen Yokich of the same day. ship. Kirkland decided to resign, UAW, George Becker of the United In addition, the NEA and the sparking a battle over who will run Steelworkers and George Kourpias of American Federation of Teachers the AFL-CIO this fall. As recently as the International Association of Ma- have been talking about joining the 1970s there were 129 unions in chinists-all will be retired by the forces, and the Newspaper Guild's the AFL-CIO: with this merger time the merger is completed in convention recently approved a merg- there would be fewer than 80. 2000. All three unions have mandato er with the 600,000-member Com- Sources said yesterday that the ry-retirement ages. munications Workers of America. merger talks grew out of a bitter or- The International Brotherhood of Guild members are to vote on the ganizational fight between the ma- Teamsters is currently the nation's merger in September. chinists' and steelworkers' unions last year at Arlington-based USAir Group Inc. over who would repre- AFL-CIO into retirement, charging that he work force - the layoffs and wage Labor Group had done far too little in his 16-year stagnation so characteristic of the tenure to reverse the national de- last 20 years will continue. cline in union membership or win In addition, union leaders say that Chooses Aide legislation favorable to labor. without more members, organized During those years, Mr. Donahue, labor will not be able to muster who is 67, was Mr. Kirkland's second enough influence to keep a Republi- To Kirkland in command as secretary-treasurer. can-controlled Congress from weak- The Sweeney forces maintain that ening labor laws that protect union that Mr. Donahue, however good his activities. In its heyday, the A.F.L.- intentions, is too identified with the C.I.O. wielded its influence to elect Donahue Is Named Kirkland regime to bring change Presidents and successfully lobby rapidly enough to save the labor Congress. But now, both Mr. Dona- As Interim President movement. Mr. Donahue tried to hue and Mr. Sweeney argue that deal with that issue on his first full union political activity must shift to day as president, filling out the time cities and regions where union influ- between Mr. Kirkland's departure ence is still sufficient to swing elec- ByLOUIS UCHITELLE and the regular presidential election tions. CHICAGO, Aug. 1 - Thomas R. at the A.F.L.-C.I.O. convention in Mr. Donahue became the interim Donahue became the interim presi- New York City in October. president at the summer meeting of dent of the A.F.L.-C.I.O. today, but Mr Donahue insisted that he had the A.F.L.-C.I.O.'s executive council. whether he can keep the job depends been a catalyst for change during The 32 council members, most of on how rapidly and radically he can the Kirkland tenure, and now is step- them union presidents, gave Mr. bring change to the shrinking feder- ping up the pace. While avoiding Donahue the interim by a ation before the election of a perma criticism of Mr. Kirkland, he prom- vote of 21 to 11. But Mr. Sweeney nent president in October. ised to "sharply increase" the $3 says that in October he will have Recognizing this Mr. Donahue million a year or so that the federa delegates voting for him who repre- promised in a speech to immediately tion had allocated to organizing, and sent nearly 60 percent of the 13.3 begin pouring millions of dollars into to quickly train "1,500 new organ- million members in the 81 unions helping unions enroll new members. izers for our unions." affiliated with the A.F.L.-C.I.O. And he promised to begin training He also said he would tap the Donahue supporters do not dispute 500 people active in the labor move- federation's $58 million reserve fund this, but at a briefing this morning ment to spearhead local and region- to support "multi-union organizing they said some of those delegates al election campaigns for candidates programs aimed particularly at low- might be induced into voting for Mr. favored by the federation: He was so wage industries and at those which Donahue, particularly women emphatic on these points that his have long been union-resistant pleased to see Barbara Easterling opponent for the presidency, John J. The Sweeney camp promises to on the ticket with Mr. Donahue. Ms. Sweeney, accused Mr. Donahue of raise the organizing budget to $10 Easterling, executive vice president lifting the Sweeney platform. million a year from the present $3 of the Communications Workers of "It sounded like I wrote the million. And his supporters hold up America, was elected today as Mr. speech," Mr. Sweeney said, only half Mr. Sweeney, who is 61, as a leader Donahue's secretary-treasurer. in jest. "The issue is not how we who has doubled the membership of The Sweeney camp is also fielding differ - our goals are not so differ the Service Employees International a female candidate, Linda Chavez- THE NEW YORK TIMES, WEDNESDAY, AUGUST 2, ent - the issue is how quickly and Union, which he heads. The union Thompson, a vice president of the comprehensively change will come has 1:1 million members. American Federation of State, Coun- in these two key areas: organizing So far, corporate America has ty and Municipal Employees. But and political activity." publicly ignored-the struggle over she is the candidate for executive The struggle for the presidency of the federation's leadership. But no vice president of the federation. the American Federation of Labor issue raises more opposition to and Congress of Industrial Organiza- unións among executives than union tions, the first in its 40-year history, efforts to sign up workers. The is really a strùggle to revive the unions, on the other hand, say that federation. Mr. Sweeney heads a without more members - the 16 group of insurgents who forced the million unionists today represent previous president, Lane Kirkland, less than 13 percent of the nation's Study Cites Adult Males for Most Teen-Age Births By JENNIFER STEINHAUER that found similar patterns on state In Chicago, the An Ounce of Pre- levels. For example, a California vention Program, a social-services At least half of the babies born to survey of 47,000 births to teen-age agency, found that 61 percent of 445 teen-age girls are fathered by adults, mothers in 1993 found that two- young mothers interviewed in 1986 according to a new national study by thirds of the babies were fathered by said they had been sexually abused, the Alan Guttmacher Institute. men who were of post-high-school beginning at an average age of 11. The study, which many research- age. With high school girls, fathers Similarly, the Washington Alli- ers said is the most comprehensive tended to be an average of 4.2 years ance Concerned With School Age of its kind, implies that a startling older than their partners, and with Parents, a pregnancy-prevention number of teen-age girls are having mothers in junior high school, they program based in Seattle, found in a sex with men who are breaking state were on average 6.7 years older. statewide survey of 535 mothers laws on statutory rape. In most states, including New ages 12 to 17 that the average age of Some family-planning experts York, rarely applied laws of consent the father was 24 and that 68 percent said the study also demonstrated of those girls said they had been that pregnancy-prevention pro- Raising questions sexually abused at one point. grams, many in schools, failed to reach many of those responsible for "The whole political debate is unplanned pregnancies. about prevention based on the notion that teen-age Drawing from a survey of nearly pregnancies result from planned, ra- 10,000 mothers between the ages of 15 and 49 who were interviewed from and statutory rape. tional behavior, that it can just be educated or condom-ed away," Mr. 1989 to 1991, researchers found that Males said. half of the fathers of babies born to Partly in response to Mr. Males's mothers between ages 15 and 17 prohibit people 18 or older from hav- research, Gov. Pete Wilson of Cali- were 20 or older, and that 20 percent ing sex with those under 16, and fornia has proposed a $12 million of the fathers were six or more years punishment is generally greater teen-age pregnancy-prevention ini- older. In general, the survey found, with the breadth of age difference. tiative, $2.4 million of which would the younger a mother was; the great- "One begins to see the fact that be designated for prosecution of men er the age difference between her this is sexual abuse among many of who have sex with girls under 18. and her partner. these teen-agers," said Mike Males, Recent surveys have led research- "To most people, these numbers a graduate student at the University ers to question whether punitive are counterintuitive," said David J. of California at Irvine and a CO- measures against teen-age mothers Landry, a co-author of the study and author of the California survey with designed to stymie the rates of preg- a senior research associate at the his adviser, Kenneth S. Y. Chew. nancy work, including measures like institute, based in New York. "This Indeed, their study found that proposed reductions in Welfare research highlights that teen-age among California mothers ages 11 to benefits. pregnancy is not just limited to teen- 15, only 9 percent of their partners Understanding the vast age differ- agers, but that in fact adult males were other junior high school boys. ences between girls and their part- bear a lot of the responsibility." Forty percent of the fathers were ners is essential in developing pre- The sample base for the study, to high school boys, and 51 percent vention programs, the experts said. be published on Thursday in Family were adults, it found. "When an adult male gets a girl Planning Perspectives, a publication Other experts in family planning pregnant, it's like an immaculate of the institute, came from a survey and sex abuse contend that in many conception," said Charlie Langdon, by the National Center for Health cases of teen-age pregnancy, the girl the executive director of the Wash- Statistics, which interviewed moth- had been sexually assaulted either ington organization. "We have to ers between 1989 and 1991. by the father of her child or by look at what can be done to bring The research supports recent data someone else previously. consequences for the dads." AFL-CIO THE WASHINGTON POST WEDNESDAY, AUGUST 2, 1995 eval Lane Kirkland and the Tides of Time AFL-CIO Chief Retires as Labor Movement Struggles to Remake Itself By Frank Swoboda control of Congress and actively ceeded Kirkland in that post, was Washington Post Staff Writer pushing a pro-business agenda, the elected president yesterday at a leaders of 11 major unions concluded Lane Kirkland retired as president meeting of the AFL-CIO Executive early this year that Kirkland had to Council in Chicago. Donahue's elec- of the AFL-CIO yesterday, a good go. Labor, they insisted, needed a tion was not in doubt because he had man who, even his friends said, bolder leadership to win the affec- the support of a majority of the mem- stayed too long. tions of a younger, more diverse bers of a council where each member For more than a quarter-century, work force that has come to view has one vote. first as secretary-trea- unions as irrelevant. NEWS But Donahue faces an uphill battle ANALYSIS surer and then as pres- Kirkland, his critics argued, had to keep the AFL-CIO presidency in ident of the 13 million- lost touch with the times. A man of October at the AFL-CIO convention, member labor federation, Kirkland many words in an age of sound bites, where each union has as many votes fought the bosses, communism, can- Kirkland had become an artifact of a as it has dues-paying members. cer and Republicans. In the end, it time when manufacturing industries There he will be opposed by John J. was the Republicans who helped and their unions drove the economy, Sweeney, president of the Service force him out. most women stayed home and the Employees International Union-the Kirkland, 73, retired under pres- threat of communism dominated same union where Donahue served as sure. He didn't want to leave right U.S. foreign policy. vice president. now. If opposition hadn't emerged, Throughout his 16 years as It is perhaps ironic that some of the he might have resigned some time AFL-CIO president, Kirkland stead- unions Kirkland brought back into the next year after being reelected to a fastly maintained the focus on for: AFL-CIO-including the United Auto ninth two-year term as the head of eign policy, a focus that often result- Workers, the International Brother- the world's largest labor organiza- ed in organized labor siding with the hood of Teamsters and the United tion. Reagan and Bush administrations. When the number of unions од defense matters while castigating Mineworkers of America-helped posing him numbered more than 20 them on domestic policies. Kirkland lead the fight against him and are now and the AFL-CIO almost singlehand- backing Sweeney. representing 53 percent of the AFL-CIO membership, Kirkland an- edly kept Poland's Solidarity move- It is even more ironic that if Kirk- npunced he would retire. He could ment alive in the 1980s, smuggling: land had decided to step down earlier, still count and it was clear he risked money and equipment into that coun- when he first came under attack, Donahue would have been the unani- an embarrassing defeat if he decided See KIRKLAND, F3, Col. 1 mous choice to succeed him. But to run for another term at the Octo- KIRKLAND, From F1 when Kirkland initially refused to re- ber convention. sign, Donahue, out of personal loyal- But Kirkland's real opponent was try when even the U.S. government ty, declined the insurgents' invitation time. Faced with a dwindling mem- backed away. to run as their candidate. But now, with the Cold War over The real race for labor is not be- bership and Republicans suddenly in and communism on the run almost tween Donahue and Sweeney-it's everywhere you look, Kirkland's crit- against time. Can organized labor ics argue it's time for labor to come come together and agree on new home: time for the AFL-CIO to turn leaders, a new agenda and new tactics for organizing the millions of non- A man of many union workers, particularly in the ser- vice sector of the economy? Or will it words in an age of split apart as it did in the 1930s, when the CIO was formed, as it searches sound bites, for new membership base? Kirkland had become an artifact of a time when manufacturing droue the economy. its attention to the domestic problems facing unions in America today; time to concentrate on organizing new members for a steadily shrinking la- bor movement. Kirkland's resignation has trig- gered a two-man race for the AFL-CIO presidency, pitting two old allies against each other who each pledge to take the labor movement in the same direction. AFL-CIO Trea- surer Thomas R. Donahue, who suc- SEC to Propose New Stock Trading Rules wut Changes Could Save Investors Millions on Nasdaq Transactions rules are written for the benefit of pro- and make it easier for brokers to get a By Jerry Knight fessional traders. better price for their customers," said Washington Post Staff Writer Responding to its critics, the NASD Robert Colby, deputy director of the The Securities and Exchange Com- board last week endorsed a proposal by SEC's division of market regulation. mission will propose a package of new an outside committee headed by for- The trading rule proposals the SEC stock trading rules tomorrow that could mer senator Warren Rudman to give will release tomorrow apply to all stock TUESDAY, 26, 1995 THE WASHINGTON POST save Nasdaq stock market investors the public a greater voice in the way markets, but would have the most im'- millions of dollars a year by helping the Nasdaq market is run. Rudman's pact on Nasdaq because it works differt them get better prices when they buy panel said powerful Nasdaq traders ently than the New York and American and sell stocks. have repeatedly blocked or delayed stock exchanges. The exchanges con- The SEC proposals would force Nas- previous efforts to modernize trading duct what amount to day-long auctions daq to change the way it handles orders practices. of securities, but on Nasdaq, shares are from small investors and would for the Traders also are likely to resist some bought and sold from a network of deal- first time give the general public access of the upcoming proposals from the ers, connected by computers. to Nasdaq computer systems that Wall SEC, industry sources said, because The Nasdaq dealers have separate Street firms use to trade stocks among huge amounts of their profits are at computer networks for trading among themselves. stake. For example, Nasdaq traders themselves, and sometimes stocks can The board of the National Associa- now add a small markup to the price of, be bought at better prices on those sys- tion of Securities Dealers last week is- every share of stock they sell. But un- tems. The SEC would require Nasdaq sued its own plan for revamping the der the SEC plan, some buyers would to let all investors see prices on those handling of small orders that NASD be able to purchase stock directly from computers and would require that small President Joseph R. Hardiman called "a other investors and the traders would investors get the same prices available major step forward for individual in- make no money on the deal. on the dealers' system. vestors." Another part of the SEC plan intends Managers of some big mutual funds But the NASD plan does not go as to make it possible for investors to buy have been trying for years to get ac- far as the proposed SEC rules, and Nasdaq stocks for one-eighth or one- cess to the dealers' computer net- some of the NASD's suggestions are a quarter of a point less than the quoted works, but the Nasdaq traders repeat- rehash of earlier ideas that already price. That savings-of 12½ or 25 edly have refused to open their system have been rejected by the SEC, securi- cents a share-also would come out of to the general public. ties industry sources said. traders' profits. Some researchers esti- Release of the SEC proposals tomor- Nasdaq is the target of separate in- mate the changes could save investors row will start a rulemaking process that vestigations by the SEC and the anti- hundreds of millions of dollars a year. could take many months. The SEC will trust division of the Department of Jus- The rules are intended to encourage give Wall Street and the public until: tice, which are probing allegations that Nasdaq traders to "do a bit better for January to comment on the proposals small investors suffer because Nasdaq's the customers than-they are doing now and then suggest changes. Sweeney Claims Lock on AFL-CIO Votes Federation Chief Donahue Hopes to Get Some Unions to Switch to Him By Frank Swoboda Washington Post Staff Writer John Sweeney, president of the Service Employees International Union, said yesterday he believes he has locked up enough delegates to ensure his election as president of the AFL-CIO. With less than a month to go be- fore the federation's New York con- vention, Sweeney claims to have the support of unions representing 58 percent of the AFL-CIO member- ship. The AFL-CIO is locked in a rare contested election for the fed- eration presidency at a time when unions are in serious trouble in the workplace. AFL-CIO President Thomas Don- ahue yesterday acknowledged that JOHN SWEENEY THOMAS DONAHUE Sweeney had a majority of the dele- challenger for AFL-CIO chief current AFL-CIO president gate votes, but he said Sweeney's majority was closer to 53 percent Donahue wants the carpenters' sup- and he was confident he could per- thrown their support behind one of port to help spark other defections suade some unions to switch their the candidates. The remaining un- from Sweeney. support. Unions cast as many votes committed unions are small, repre- Carpenters President Sigurd Lu- as they have dues-paying members senting less than 3 percent of con- cassen, a strong Sweeney supporter, in the election of the federation's na- vention delegates. is stepping down at the union's con- tional officers. vention this week and it is unclear In addition to the union support, "I think there are a number of whom the new leadership will sup- the Sweeney camp has been actively unions still in play and I intend to port in the election. Sweeney said he working to WOO support from the 50 keep working with them right down has had no indication that the car- state AFL-CIO organizations and the to the convention vote," Donahue penters will not support him. more than 500 AFL-CIO central la- said. Donahue-conceded yesterday that bor councils, most of which choose The only agreement between the he has no chance of persuading ma- not to attend the national conven- two candidates yesterday was that jor industrial unions such as the auto tion. neither was likely to pull out of the workers, steelworkers and machin- This year, however, the presence rare election race for the AFL-CIO ists to switch their votes from Swee- of the state federations and central, presidency before the start of the ney, so his campaign has concentrat- labor bodies-which each get one Oct. 23 convention. ed efforts on trying to win the convention vote-could be impor- A key test for Donahue will come support of the powerful construction tant for votes on policy changes. The this week when the executive board unions that basically have split their Sweeney camp yesterday claimed of the 378,000-member carpenters support between the two candidates. the support of nearly three-fourths. union votes on an endorsement. Almost all of the 78 unions have of these groups. 08/09/95 11:00 202 508 6946 AFL-CIO PRES OFF 002/006 AFL-CIO evant Los Angeles Times August 6, 1995 CJ Thomas Donahue Locked in the Struggle to Build a Revitalized Labor Union BY HARRY BERNSTEIN rganized labor is in trouble. Unions now represent fewer than one in six O American workers, down from one in three during the 1950s. Meanwhile, labor's most vehement enemies hold sway-with powerful Republicans controlling both houses of Congress, and major employers fighting unions more furiously than they have in decades. In an effort to combat these troubles, leaders of the 14-mitlion-member AFL-CIO are in the midst of a struggle for new leadership-and Thomas R. Donahue, an articulate, charming man, is at the center of the fight. As recently as a few months ago, Donahue insisted he would be retiring this year, at age 66, after serving for decades as a union activist and leader. He was secretary-treasurer of the AFL-CIO for the last 16 years, the second-highest position in America's preeminent labor federation, encompassing 80 autonomous unions with nearly 14 million members. But in June, Donahue announced he would seck election as president to replace the dour Lane Kirkland, 73, the longtime union leader, who had first insisted he would run for reelection but then dropped out of the race after facing strong opposition. Last week, Kirkland resigned the presidency to help Donahue, who was named interim president by the federation's 33-member executive board on Tuesday. That was no contest, since each council member had only one vote. regardless of the size of the member's union, and most small unions supported Kirkland's choice, Donahue. His real challenge will come in October at the AFL-CIO convention in New York, where his opponent will be John J. Sweeney, president of the Service Employees Union. Sweeney claims he will have nearly 60% of the votes of the convention delegates, since votes are based on union membership, and most large unions back Sweeney. The winner of that election will serve a full two-year term and, if tradition is resumed, the new president will serve for many years. The last serious contest for the federation presidency was 101 years ago. Sweeney and his supporters say Donahue has been 100 much a part of Kirkland's administration to provide the new leadership that is so urgently needed. Sweeney's prediction of his victory could be wrong, but whoever wins, he must set about revitalizing the labor movement. providing what labor has most spectacularly lacked-strong. vocal leadership that can press a coherent liberal agenda. Neither candidate has sharply attacked the other, but in a recent conversation, Donahue indirectly criticized both Sweeney and, for the first time, the uncharismatic Kirkland-who is seen as a handicap to Donahue. A native New Yorker and graduate of Fordham Law School. Donahue is married to Rachelle Horowitz. They have two children. 1 003/006 08/09/95 11:01 202 508 6946 AFL-CIO PRES OFF Los Angeles Times -2- LOS ANGELES TIMES INTERVIEW Newt Gingrich and the Republican majorities in Congress are pushing the most anti-worker, anti-union agenda this country has seen in decades. Reforming labor law to restore the right of working people to associate freely in independent, democratically elected unions remains at the top of our agenda. We need to put tens of millions of dollars into a trust fund to energize the organizing of workers in low-wage industries and new high-tech work force. Harry Bernstein covered labor issues for The Times for 32 years. He interviewed Thomas R. Donahue by phone from the labor leader's office in Washington, D.C. O K g 08/09/95 11:02 202 508 6946 AFL-CIO PRES OFF 005/006 Los Angeles Times -4- uestion: Some of your supporters were his mentor in the Service Employees Q have denounced your opponent, John Union, do you have serious differences over Sweeney, by saying he is splitting the the way the federation should be run? ranks of unions when they desperately A: John Sweeney and I see eye to eye need unity in their battles with corpora- on the importance of organizing low- tions and their enemies in Congress. Yet wage workers and recruiting other mem- aren't you doing the same thing by entering bers; on revitalizing our grass-roots polit- the race after the incumbent, Lane Kirk- ical and legislative operations so as to put land, decided to drop out of the contest and to shame the far-right Christian Coalition back you to challenge Sweeney? and the National Rifle Assn., and on Answer: Until a few weeks ago, I was creating a 21st-Century communications supported for the AFL-CIO presidency program for the labor movement. by John Sweeney and all of his present But I believe I am best able to build backers. I am running for the presidency broad support within the labor movement because working men and women are for those kinds of changes through open, threatened by an economic order which inclusive decision-making. I would not be puts profits above people and by a content to allow a small group of unions to political order which threatens to strip hold closed caucuses and then dictate away anything that helps hard-working decisions for the entire AFL-CIO. I also families whose real income is going down believe that my experience and God-giv- as profits rise. I know the men and women en abilities make me the best qualified to of the labor movement because I've been represent working families with Presi- brivileged to join them in more organizing dents, before Congress, on the airwaves drives, contract fights and political battles and in all of the other public forums in than anyone. I know what needs to be which working people SO desperately done to harness their talents and energy need a strong voice. I played that role in 10 forge the kind of unified. creative labor leading the fight against the North Amer- movement that can successfully stand up ican Free Trade Agreement, and I look for working families. I believe that by forward to doing SQ on many other issues virtue of my experience and abilities, I am that are SO important to workers. the best qualified person to make the kind Q: Some union leaders believe President of changes that are needed to make the Clinton is 100 conservative and not doing AFL-CIO into the leader of the fight for all he can to help organized labor get social working families. I am persuaded that, legislation it advocates and labor laws that over time, I can unify the labor movement would give unions more favorable treat- behind those changes. ment than they get under present labor laws. Do you agree? Q: Sweeney says the federation of unions should put a third of its budget in organiz- A: No. We have sometimes disagreed ing new members. Do you agree? with Bill Clinton-just as we disagreed with Roosevelt, Truman, Kennedy and A: I agree the AFL-CIO needs to vastly Johnson at times. But the fact remains expand the amount of money it spends to that President Clinton has regularly been assist unorganized workers in forming on the side of working people and the unions of their own. That is not simply a unions that represent them. question of money, but of training. target- Unions and working families in general ing, tactics and much more. One of my are getting a raw deal in Washington, but proudest accomplishments as AFL-CIO the culprit is not Bill Clinton-it's Newt secretary-treasurer was our creation of Gingrich and the Republican majorities in the AFL-CIO Organizing Institute, to Congress. They are pushing the most recruit and train organizers. At a time of anti- worker. anti-union agenda this very light budgets, it is one of the largest country has seen in decades. They are programs of the AFL-CIO and is graduat- undercutting the promise of America for ing 150 organizers a year-more than half millions of working families by attacking of whom are women and persons of color. the very programs and policies these We need to accelerate the growth of that families rely on, institute so that next year it doubles the President Clinton's position is clear- number of organizers it graduates. I also he has consistently supported changes in believe we need to put tens of millions of labor law that would help correct the dollars into an organizing trust fund to huge lift in favor of management and energize the organizing of workers in against American workers that we have low-wage industries and in the new today. He has appointed National Labor American high-tech work force. Relations Board members who, for the first time in years. are aggressively Q: Since you and Sweeney have been enforcing the law that protects the right close friends and allies for years, and you 08/09/95 11:03 202 508 6946 PRES OFF 006/008 LOS Angeles I imes -5- of workers to organize unions. The Re- Q: Since some union leaders feel Clinton publicans in Congress are trying to stop has not fought vigorously enough for the Labor Board dead in its tracks. labor-law reform, would you go along with, President Clinton worked for legislation suggestions that labor back another candi- to make it illegal for employers LO fire date for the Democratic nomination who is workers who exercise their right to strike. more pro-union-or even join in a coali- The Republicans in Congress filibustered that bill to death. President Clinton issued tion for a liberal, pro-labor third political an executive order under which the party? federal government will no longer pur- A: President Clinton has been fighting chase goods or services from companies for workers, trying to get on-the-job that permanently replace striking em- training, college loans, a minimum wage ployees. The Republicans are trying to: increase, enforcement of health and safe- overturn that. ty laws and for workers rights. So I So, yes, we have some disagreements disagree with the premise of your ques- with him on a few issues, but we think he tion. If some other candidates come has been on the side of unions and forward who are supportive of our goals, working families. and the goals of America's working families, we would consider their record, Q: I understand the federation 80 far has evaluate their electability and make our not pressed Clinton or Congress for an best judgment as to how best advance the overhaul of U.S. labor laws. Is it because cause of working families-just as we do you see certain defeat of such proposals in with all political candidates. the GOP-controlled Congress? Why not But I don't think it is.likely that anyone agitate for the laws you feel are necessary- within the Democratic Party will mount a even if you lose? Wouldn't that enable you strong challenge to the President in 1996. to get more attention to your arguments for It is even less likely that we will support a reform? third-party candidate in the next Presi- A: The problem is that we are fighting dential election. I don't think a third- tough battles now here in Washington party candidate can win in 1996, and that and across the country against more candidate would only help elect a Ging- anti-labor laws and for the things that rich clone by taking votes away from matter LO working families: good jobs. President Clinton. Working people cannot good wages and strong health and safety to risk that protections-as well as for a real. inde- pendent worker voice on the job. But Q: Some union leaders say labor should reforming labor law to restore the right of set its own standards for political en- working people to associate freely in dorsements, supporting candidates who, independent, democratically elected generally, meet those standards, and ab- unions remains at the top of our agenda. stain from endorsing anyone who does not We supported the creation of a presi- come close. Has the federation too often dential commission as a first step toward supported political candidates who are at developing constructive solutions, but best lukewarm toward labor's goals on the unfortunately that commission produced theory that one is "the better of two evils"? a timid sel of recommendations inade- A: I believe we should match our efforts quate to address the real problems work- for and against political candidates to ers face. Now that Newt Gingrich is their efforts for or against working peo- running Washington, we have found it ple. In other words, elected officials who necessary to fight vigorously against are real. dedicated supporters of policies legislation which would Jet employers set that help workers will earn the real, up phony unions under management's dedicated, determined support of working control and against the Republican's ef- families and of the unions that represent forts to prevent the Labor Board from them; for those who find it possible to enforcing the law. support workers' interests only some of With the support and active involve- the time. we can be equally lukewarm in ment of America's working families, our support for them. But the problem is we're going to continue to fight these that, like all Americans. when union battles with everything we've got. We'll members go to the polls every year. they make sure that the American people are called upon to choose between the know who it is that is taking away their candidates on the ballot. When one candi- shot al the American dream-and that date is more favorable to the interests of they hold the Republican right-wingers working families, we owe it to our accountable in 1996. members lo endorse that eandidate- even if he or she falls short of perfect. It's rare in politics that you can find the perfect candidate. So you have to make intelligent choices. The Workplace UNIONS threshold, federal officials say. And while most large employers don't experience strikes or wind up hiring permanent strikebreakers, many threaten to do so SMELLING SALTS to deter walkouts. Fully 82% of large unionized employers say they would hire replacements if they were struck in FOR LABOR? 1995, according to a recent survey by the Bureau of National Affairs in Wash- ington. Of those, 25% said the replace- Clinton's moves to help unions may give them new muscle ments would be permanent. An addi- tional 57% said they hadn't decided that R eynolds Metals Co. and Aluminum agencies to terminate contracts with issue-leaving the possibility open as a Company of America never threat- anyone who hires permanent strike- risk unions must run if they strike. ened outright to permanently re- breakers. It also allows the Labor Dept. CLAMPING DOWN. Even a company such place their 20,000 union members during to bar employers who already have as General Electric Co., which prides it- 1993 contract talks. Still, the possibility hired them, such as tiremaker Bridge- self on being an enlightened employer, worried union leaders so much that they stone/Firestone Inc., from bidding on likes the added leverage. GE says public- reined in their demands and didn't walk future contracts. The Administration is ly it shuns permanent replacements. But out. But labor will be tougher when the downplaying the impact, pointing out it has long opposed legislation to ban pacts expire in 1996. The reason: them SO labor won't President Clinton's recent order STRIKING gain clout. Indeed, BRIDGESTONE barring employers who hire perma- WORKERS: Clinton's order nent replacements from doing busi- THE NLRB "would shift the bal- ness with the government, as- the ON STRIKE MAY BOOST ance of power to la- aluminum makers do. "The order is CAUSES SUCH bor if it sticks," says AS THEIRS extremely important to us," says Sharon F. Canner, a Ernie J. LaBaff, president of the vice-president of the National As- Aluminum, Brick & Glass Workers sociation of Manufacturers, which is union. "Even if the companies don't fighting the order. say they'll hire replacements, it Clinton's NLRB is swinging the makes us stronger if members know pendulum back from management, it can't happen." too. One of the agency's most power- Labor unions have been complain- ful weapons is the court injunction, ing lately about how little Clinton which helps it to stop employers has done for them, a core Democrat- ic constituency. But his Mar. 8 or- Where Labor's Strength from breaking the law and delaying the consequences until a union is de- der on permanent replacements may help ease that jilted feeling. The Is on the Line feated. In the year since Chairman William B. Gould took office, the move could have a big impact on Union bargaining clout has been bolstered by board has sought 105 such injunc- bargaining at large, unionized compa- President Clinton's appointees to the National tions, including one against baseball nies. Labor also is benefiting from a Labor Relations Board and by his recent order owners on Mar. 27. By contrast, the newly awakened National Labor Re- banning government contractors from hiring per- board requested about 40 a year lations Board (NLRB), which is mov- manent replacements during strikes Some major during the Reagan and Bush years. ing aggressively to curb labor-law labor pacts-companies and industries-coming Gould is clamping down in other violations by employers. up this year: areas, too. The board has set time- "SNOWBALL EFFECT." True, Republi- EMPLOYER NO. OF UNION EXPIRATION tables for its 70 administrative judg- cans and business groups may yet WORKERS DATE es and has assigned special judges reverse both efforts. They may try McDONNELL DOUGLAS 19,000 Apr to try to settle cases before they to cut the NLRB'S budget and are CLOTHING MANUFACTURERS 45,000 Apr. get bogged down in litigation. The opposing Clinton's order in Congress 16,000 board also is considering procedural and the courts. Republicans also AUTO TRANSPORTERS May changes to reduce the endless le- plan to push bills that would weak- AT&T 145,000 May gal challenges employers mount to en safety and health inspections and REGIONAL BELLS 250,000 Aug block union organizing drives. "The other pro-labor programs. And even BOEING 35,000 Oct point is to eliminate wasteful liti- if Clintonites prevail, labor won't gation and delay," says Gould. suddenly become a powerhouse. DATA: BUREAU OF NATIONAL AFFAIRS Of course, these changes aren't Still, the cumulative effect will give that only about 19 government contrac- enough to revive labor. Workers still fear unions a boost. "These things have a tors a year use permanent replacements. losing their jobs to imports or domestic DAVID PETERSON/DES MOINES REGISTER snowball effect," says Daniel J. B. Mitch- And officials note that the order covers rivals if they strike. And the NLRB ac- ell, a management professor at the Uni- only contracts worth more than tions do little to deal with employers versity of California at Los Angeles. $100,000. who illegally fire union supporters, which "You could see an improvement in la- But the move is certain to ripple be- occurs in a third of all organizing bor's bargaining position and maybe yond the numbers. More than 90% of drives, studies show. Still, Clinton is giv- even a turnaround in organizing." the nation's 1,000 largest companies ing labor its biggest leg up in years. The executive order calls for federal have government contracts over the By Aaron Bernstein in New York 66 BUSINESS WEEK / APRIL 10, 1995 "I was thinking, 'If I can just get to the game, I'll be all right.' JOHNNY MOORE SAN ANTONIO, TEXAS The point guard for the Spurs never made it to that game against the Lakers back in 1985. Instead, he landed in the hospital, where after 10 days he was diagnosed with a deadly infection. For months, Johnny was plagued by excruciating headaches and terrible nausea. His doctors told him he might, go blind and lose the use of his limbs. They said he might even die Thanks to excellent care and a medication made possible by the research we do at Pfizer, none of these came to pass. And Johnny got another shot at life. "They told me I'd probably never have kids," he says. "And now I've got my little girl. I'm so thankful." Pfizer We're part of the cure. AFLCIO work THE WHITE HOUSE WASHINGTON November 14, 1995 MEMORANDUM FOR THE PRESIDENT FROM: GENE SPERLING STEVE ROSENTHAL AARON RAPPAPORT SUBJECT: ISSUES OF CONCERN TO THE LABOR MOVEMENT The unions share with you deep concerns about the reconciliation and appropriations bills now pending before Congress. Reconciliation. The unions oppose provisions in the House and Senate reconciliation bills that would enact deep cuts in: major entitlement programs (including Medicare, Medicaid, student loans, and AFDC) important pro-labor programs (such as the Trade Adjustment Act, the Coal Miner Retirement Provision, and the Service Contract Act). income tax rates or the EITC Appropriations. The unions view Congressional attempts to undermine worker safety programs -- through spending cuts and legislative riders -- as a direct assault on American workers and their families. Reconciliation The unions are fearful that deep entitlement cuts will cause significant layoffs, particularly among public service and health care workers, while efforts to devolve programs to the states will subvert protections for workers at the federal level. Medicare: The union position is that cuts should not lead to increased patient costs and should be no larger than $89 billion in total. Medicaid: The unions support your efforts to preserve the entitlement status of Medicaid and to retain federal nursing home standards. The House reconciliation bill would eliminate the nursing home standards, but it is not clear whether they will restore standards in their final reconciliation bill. Pension Reversion: The unions are strongly opposed to the House-passed provision, which allows companies to withdraw pension plan assets above a reduced level and use them for any purpose they desire. The Senate deleted a similar provision on the floor, a major victory for both the Administration and the unions. Nonetheless, the Washington Post and the Wall Street Journal both report that Conferees have reached a tentative agreement to include a modified pension reversion provision in the reconciliation conference report. Some unions are running paid television against this provision and this is a bill we can work together with them on defeating. Student Loans: The unions support the Administration's attempts to minimize cuts in student loans and to protect the direct lending program. Coal Miner Retiree Provision: UMW is strongly opposed to this proposal, which would weaken current laws requiring coal companies to pay the health care costs of retired coal miners and-their defendants. Although this provision is said to be subject to the Byrd rule, coal companies are working to find ways around the rule. The Administration opposes changes in the Coal Act. Trade Adjustment Assistance (TAA): The unions strongly support the continuation of this program, which provides training and income support payments to workers laid off as a result of foreign trade. The program, which expires in 1998, has been extended in the House bill, but not in the Senate plan. The Administration supports the extension of the TAA Service Contract Act (SCA): The public service union has put special emphasis on the preservation of the SCA, which essentially provides Davis-Bacon-like protections to low-wage workers in service industries. The House-passed bill repeals the SCA, while the Senate does not. The Administration opposes the House-passed repeal. This is undoubtedly an issue familiar to Sweeney from his long tenure as President of the SEIU, the public service union. Taxes: The unions want the smallest possible tax cut, oppose the EITC reduction, and are supportive of reductions in corporate welfare. CPI: The unions are strongly opposed to adjusting the CPI to reduce COLAs. He may stress that in addition to hitting Social Security recipients, many union contracts are tied to the CPI and that a change could therefore affect wages. Employment and Training. The unions support adequate funding for DOL's employment and training programs, particularly summer jobs and the dislocated worker program. Appropriations for employment and training activities have been reduced $1.6 billion below the 1995 level and $2.4 billion below your request. Other Issues Maritime Issues: The unions may raise concerns about bills pending in the House and Senate that would phase out the independent Federal Maritime Commission and possibly transfer its regulatory powers to the Department of Transportation. The longshoreman's union, in particular, is concerned that this change might result in an industry consolidation that would produce fewer shipping ports, powerful megafirms. and many new alliances with foreign companies. GI Bill for America's Workers. Although the unions were originally concerned that TAA and Wagner-Peyser funds might be placed at risk in the consolidation of federal training, job search and workforce programs, the Administration successfully negotiated with the House and Senate to maintain separate funding for each. As a result, the unions are generally supportive of this effort to serve all workers --- and particularly dislocated workers -- better. The Administration will continue to work to strengthen the House and Senate versions in conference, while fighting Republican proposal to cut the budget for education, training, and assistance to dislocated workers. Teamsters Election Funding: A federal Consent Decree requires the Federal government to pay the costs of Teamsters election. The Administration has requested $12 million in FY96 to carry out that order. However, while these funds have been authorized, none yet have been appropriated for this specific purpose. The Teamsters union may want assurances that the Administration will find sufficient resources within existing agency funds to meet the Consent Decree's requirements. 3 AFL-CIO Fight Signals End of Era for Labor Leadership Struggle Forces Debate Over Future and avoid the public fighting. Even his By Frank Swoboda opponents are surprised that he has Washington Post Staff Writer dug in his heels. "No one thought it Maybe organized labor should would go this far," said a union presi- thank Lane Kirkland for refusing to dent seeking Kirkland's ouster. step down as president of the But as much as both sides dislike AFL-CIO. the public civil war taking place within Kirkland's refusal to resign in the labor's leadership ranks, it may prove face of an open chal- to be one of the healthiest develop- NEWS lenge to his presidency ments in decades for an institution that ANALYSIS has forced a rare public has had a hard time coping with the debate on the future of the labor changing world around it. Now, union movement by union leaders condi- leaders are being asked to choose tioned to settling their differences sides in a debate about the future of behind closed doors. organized labor that goes far beyond Unions acknowledge they are in personalities. trouble. Their membership is Whatever the outcome of the Octo- shrinking, both as a percentage of the ber election, the internal politics of the work force and in absolute numbers. AFL-CIO may never be quite the Labor's political clout is on the wane. same. Unions opposing Kirkland are Unable to get its legislative agenda ap- pushing for an end to the autocratic, proved when Congress and the White top-down structure that has marked House were in the hands of the Demo- national labor policy for the last 40 crats, labor faces the prospect of los- years-first under the late George ing past legislative gains at the hands Meany and, since 1979, under Kirk- of the Republican majority in Con- land. The challengers insist they want gress. to open up the leadership process, Against that backdrop, the leaders which is concentrated in the hands of a of 11 major unions representing nearly few people-including the leaders of half the federation's 13 million mem- the anti-Kirkland movement-who are bers publicly declared their formal op- selected as much on the basis of insti- position last week to Kirkland's bid for tutional tradition as anything else. a ninth two-year term. This week, five The way McEntee sees it, union more unions joined the anti-Kirkland leaders have to ask themselves movement, raising the number of po- whether they are satisfied with the tential anti-Kirkland votes to more the way things are going at the than 7 million, more than enough to AFL-CIO. "If they are, they can vote unseat him if the coalition sticks to- for Lane Kirkland," he said: gether through the summer until the Arthur Coia, president of the La AFL-CIO convention in October borers' International Union, As Gerald W. McEntee, president summed up the frustration of Kirk- of the 1.2 million-member American land's opponents in a recent letter to Federation of State County and Mu- fellow members of the AFL-CIO's nicipal Employees and spokesman for executive council: the insurgent union group, noted, "it "Let's face it-if every new idea doesn't take a rocket scientist to fig- someone suggests gets shot down, ure out we've got 53 percent of the pretty soon no one will bother. Peo- votes." In the AFL-CIO, individual ple will just go through the motions, unions get as many votes as they have do what they ve always done be- members. McEntee said he would an- cause it's the way things have al- nounce more unions opposed to Kirk- ways been done, and ignore the re- land next week. sults," Coia wrote. The 73-year-old Kirkland is not "Maybe that's not a fair descrip- without his defenders. A group of 21 tion of life at 815 16th Street union leaders, representing slightly [AFL-CIO headquarters]--though I more than 4 million convention votes, think most affiliates hold this percep- has thrown its support behind Kirk- tion-but it is clear that with the land, accusing his opponents of failing challenges facing the labor move- to offer an "alternative vision, plan or ment, the AFL-CIO needs to over- See LABOR, F2, Col. 1 haul its organizational culture." Kirkland's opponents are expec- THE WASHINGTON POST/ LABOR, From F1 ted to announce their candidates for FRIDAY, MAY 19, 1995 program to better the lives of work- the top federation jobs within the ers." Simply opposing Kirkland, they next three weeks. Early betting has argue, is not in the interests of work- John Sweeney; president of the Ser- ing Americans. vice Employees International Union, Both sides insist that Kirkland isn't as the presidential candidate and the issue. They all praise his past lead- Richard Trumka, president of the United Mine Workers of America, as ership, but some of his supporters pri- vately say they wish he would retire the candidate for secretary-treasur- er. 4/5 Remarks by POTUS to Building Trades AFL-CIO - bout THE WHITE HOUSE Office of the Press Secretary For Immediate Release April 5, 1995 REMARKS BY THE PRESIDENT TO THE NATIONAL BUILDING AND CONSTRUCTION TRADES DEPARTMENT CONFERENCE Washington Hilton Washington, D.C. 10:20 A.M. EDT THE PRESIDENT: Thank you very much. Ladies and gentlemen, thank you for that wonderful welcome. Thank you, Bob Georgine, for that fine introduction. All the distinguished affiliated presidents up here on the platform, and all of you out there in the audience -- and I thank those of you who brought your children. Since most of what we're doing and a lot of what I have to say is about them, I'm glad to see them here. I forgive the person in the back who shouted, "UCLA." (Laughter.) I told the Gridiron Dinner the other night at the Press Club -- I said, my worst nightmare was a final with Arkansas and UCLA. My worst nightmare -- the team I love against a team with 54 electoral votes. (Laughter and applause.) It was a great tournament, a great game. They won it fair and square, and I congratulate them. You know, a lot of us here have a lot in common. Bob and I have something in common. We were both raised by strong mothers who believed in hard work and optimism and practiced what they preached and made sure that we practiced what they preached. It was our first lesson in organized labor. (Laughter.) I'm deeply honored to be here with you today. I want to thank you for the support that you have given to our programs to train America's workers for the future. I believe that good, strong unions and collective bargaining can help us to meet the challenges that are just ahead if all of us are willing to embrace those challenges and to do what has to be done to make sure that we compete and win in the global economy. That's why one of the very first thing I did as President was to rescind the anti-union executive orders of the last 12 years -- (applause) -- and why, last month, I also signed an executive order which bars federal agencies from doing business with companies that hire permanent replacement workers. (Applause.) I have been saying as I'm going around the country that we know what works in our own lives. What works in our own lives is when we are well-educated, well-trained, we work hard, and we work together. There is no future in this country in pitting management against labor. All of us are caught up now in a common destiny in the global economy. All of us will have more job security or more job insecurity, as the case may be, depending on how well we adapt to the challenges of today and tomorrow. That is the way we have to look at this. We are going up or down together. And it is time we stop looking for ways to be divided, one from another, and start at looking harder for how we can resolve these divisions in an open and honest way SO we can get about MORE - 2 - the business of building our future. That's what we ought to be doing in this country, and that's what I'm trying to do for you every day at the White House. (Applause.) I look at the unions represented here -- the carpenters, the painters, the bricklayers, the electricians, the others -- you built our home, our cities, our factories, the biggest industrial system in the world. You have built our country, and then you have had to rebuild our country. One of the greatest wonders I have seen since I have been President is the swift handiwork of your members who rushed in after the natural disasters, from Florida to the Midwest to California. You did a very good job. And we now are doing a better job with our Emergency Management Agency to try to make sure we do our part and the money gets out there to rebuild places who are torn down through no fault of their own. Many of you have become heroes to folks whose lives were devastated in those disasters, who wouldn't have a bridge to cross a river, or roads, to get them to work, or offices to work in, or roofs over their head if you hadn't worked hard to make sure that the American Dream could be restored. All through 1992 when I was out running for President, I met a lot of people who wondered about the state of the American Dream, including construction workers, farmers, office workers, mothers and fathers. I talked with them and listened to them; I worked with them. I walked a picket line with them at the Caterpillar Workers in Illinois. (Applause.) What I found was that most people felt that they were out there on their own, struggling against forces that were bigger than they were without anybody very much concerned about what was going to happen to them. I ran for President because I felt strongly that the end of the Cold War and the dawn of the Information Age gave us opportunities for peace and prosperity; gave our children opportunities to live out their dreams never before known in human history; but that we also had some very, very profound challenges that unless they were faced, the American Dream for all of our people would be at risk. I wanted to make sure that middle-class Americans and their children were not forgotten. I want to make sure that poor people would have chance to work their way into the middle class. I wanted to make sure that we could keep alive opportunities for entrepreneurs to become wildly successful without forgetting that this country was built and this will country will endure by the broad middle class, and by the fact that they work hard, play by the rules, raise their children and deserve to be rewarded for it, and must be rewarded for it if we're going to keep the American Dream alive. That is why I ran for this job. (Applause.) I also, very frankly, ran to challenge middle class America, because there are many things that government cannot and should not do. The most important things in the world to us -- our commitments, our values, our work, our family, our communities -- by and large operate independent of the government. Today we're having a great debate here in Washington about what role our national government should play, and how far we can go in working together and moving together. Really, the debate has been going on for at least 15 years now -- a debate that, frankly, I'm getting kind of tired of. An old debate that defends government at every turn; a new debate that attacks government at every turn. An old view that says we should spend more on everything; a new view that says we should spend less on everything. An old view that said we should do more of everything; a new view that says we should do less of everything. Both views defy our MORE Spham 310 285 - 3 - common experience, our common sense, and what we see about what's working not only here in the United States, but around the world. What works is when the government, in my judgment, focuses on four things: First of all, creating economic opportunity -- jobs -- working for better jobs and higher incomes, and demanding responsible behavior from citizens in return. I had an economic meeting in Atlanta last week, and Hugh McColl, from North Carolina, the chairman of NationsBank, pointed out that about that time, he said, tonight your basketball team and mine are going to have a basketball game. And the referee is going to throw the ball up, make sure the playing field is level, enforce the rules, and otherwise get out of the way. And that's about what the government ought to do. But we have to make sure the playing field is level (applause) -- that there are rules that are enforced, and we get out of the way. (Applause.) The second thing that we have to pay attention to is the security of our people -- our security from attack from abroad, and our security from within. I'm proud of the fact that since I have been President, for the first time since the dawn of the nuclear age there are no Russian missiles pointed at the children of the United States of America. I am proud of that. (Applause.) But I know and you know that our security is also threatened by crime and violence and drugs on our streets. And our security is also threatened by the things which are breaking our families apart and punishing people who are doing their best to do the right things. That's why we worked so hard to pass that crime bill with 100, police on the streets, and with prevention programs to give our kids something to say yes to; and why we should not walk away from our commitment to putting 100, police on the street. Violent crime has tripled in the United States in the last 30 years; the police forces have expanded by 10 percent. You don't have to be a rocket scientist to know that we could lower the crime rate if we did what city after city after city is doing now and put more police on the block, working with kids, trying to prevent crime and catch criminals quicker. And we must not back away from that commitment to our security. (Applause.) And there is another element to our security, too. It's what happens to families. Are we really going to reward work? Are we going to permit people to be successful workers and successful parents? Most places today, whether they're single-parent or two- parent households, all the parents are working. That's why I fought so hard for the Family and Medical Leave Act. I saw that as a question of family security -- why I want to see all the children in this country immunized; why in the economic plan last year we insisted that we give tax breaks for families with incomes just above the poverty line so we would not encourage anybody to slip back into welfare, and because nobody who works full-time and has children in the home should live in poverty in this country. If you work hard, you ought to be able to have a decent life. (Applause.) The third thing we have to do is to reform the government. We do have to change it. It ought to be smaller. It ought to be less bureaucratic. We ought to give more decisions back to the state and local government. We ought to give more decisions back to private citizens in their own lives. We ought to have government that meets tomorrow's problems, not yesterday's. That's why we've worked hard at deregulation and why we have given more responsibility to states in the area of welfare and health care reform than in two years -- than the last two administrations combined did in 12 years. We have been the administration that has pushed the decentralization of authority for solving a lot of our problems. And we've reduced the size of MORE - 4 - government. There are over 100,000 fewer people working for the federal government today than there were on the day I became President. And we have also decided that we have to solve some problems too long ignored. In a little-known action at the end of the last Congress, there was a reform in the United States pension systems which saved the pensions of 8.5 million working Americans who were in danger of losing their pensions, and protected the pensions of over 30 million more. We still have work to do, and when we have to do it, we should do it well. (Applause.) The fourth thing we have to do -- and maybe the most important of all -- is to help our people make the most of their own lives by making sure that everywhere -- everywhere -- we have a system of lifetime education and training that will permit people always to find work and always to compete and win in the global economy. That is what I think the job of government is -- create jobs, get better paying jobs, increase the security of the American people, make the government smaller and less bureaucratic, but do the job that has to be done, and give people the skills they need to make the most of their own lives. That should be our road map. If we could create opportunity, and we can insist on more responsibility from the American people -- and I believe that strongly; that's what welfare reform is all about -- we'll help you if you're in trouble, but not for a lifetime. You've got to go to work sometime. I think that's what child support enforcement is all about. If you've got the money, you ought to be taking care of your kid, not asking the taxpayers to do it. That's what enforcing the -- (applause.) That's what enforcing the student loan program is all about. I increased the availability of student loans, but when I became President it was costing you $2.8 billion a year because people weren't paying the loans back. We've cut that down to a billion dollars a year. If people borrowed money from the government to go to college, they ought to pay it back when they get a job so other kids can borrow the money when they come along. (Applause.) I have called this new arrangement the New Covenant. What it means to. me is simple: The government should try to create more opportunity, but the citizens of this country are going to have to behave more responsibly in seizing it. And if you put the two together, there will be no stopping the United States. Now, if you look at what's been accomplished in the last couple of years, I think the most important thing is that we have changed the direction of economic policy in this country. We went beyond the old debate. There's no more tax and spend, but there's not more trickle-down, either. This is invest and grow economics. And look at the results. (Applause.) Two years ago when we were fighting for the economic plan, the people who were against it said the sky would fall. If the President's plan passes, the economy will be wrecked. Everything will be terrible. Some said I was cutting too much. Some said it was an error to raise taxes on the wealthiest Americans to put against the deficit because that would hurt the economy. Well, two years later, we have over 6 million new jobs and the lowest combined rates of unemployment and inflation in 25 years. (Applause.) In reducing the deficit by $600 billion, we took $10,000 in debt off the future of every family in the United States. In cutting taxes for 15 million working families, this year, on average, families with two kids with an income of $25,000 a year or less will pay about $1,000 less in taxes than they would have if that economic plan hadn't passed. We made it possible for our country to say, if you work 40 hours a week and you have a child in your home, you will not be in poverty. That is important, folks. If you want people to MORE - 5 - get off welfare, we have to reward work. And it's also why, by the way, we ought to raise the minimum wage -- because people can't live on it. (Applause.) And we didn't just spend more money on everything. We cut 300 programs, and the new budget I proposed cuts or consolidates 400 more. We've also done what we could to help those of you in labor who have been taking responsibility all along. Last year, the AFL-CIO listed all the bills supported by organized labor that I signed into law. As of last fall, there were 32 of them -- motor voter, Family and Medical Leave, the assault weapons ban, to name just a few. Laws that increased our security as workers, parents and citizens. But, you know, in spite of all this, there's still a lot more to do. I have people all the time come up to me in kind of bewilderment and say, well, things are going well in my business. Things are going well for our country. This country is in better shape than it was two years ago. Why are people still so negative about the future of the country? When you ask people what about the direction of the country, they say they are worried. I was interviewed by a magazine the other day saying their annual readers poll said that people understood that things were getting better, but they were more worried about their personal security than ever before. Why is that? Well, there's a reason for that. The global economy has imposed new challenges and new burdens on our country and every wealthy country in the world, and runs the risk in our country of literally splitting apart the American idea. Let me explain what I mean by that. From the time I was born at the end of World War II until the year I was elected governor of my state for the first time, 1978, the American people moved forward in absolute lock-step. That is, if you break the economy into people who are in the lowest 20 percent and the second and so forth on to the top 20 percent, all of them had about the same increase in their incomes. Incomes roughly doubled in America from 1950 to 1978 evenly across the board, except the poorest 20 percent had an increase of 140 percent. So we were all going forward and we were actually coming together. Since 1978 that's all changed. Wages have been stagnant and not kept up with inflation on average for hourly-wage earners. And in the last 15 years, half of the American people are now living for the same or lower earnings that they were making 15 years ago when you adjust for inflation. Why? Because of the way the technology revolution and the global economy, where management and money and technology can fly across national borders, have divided opportunity, so that people with high levels of skill in growth industries tend to do well, and people with lower skill levels tend to get hurt. And then, if our government walks away from its obligations to invest in our future, even more people get hurt. The other thing that's happened is because the economy is changing so fast, even a lot of people that are doing well today think they're waiting for the other shoe to drop. So many big companies getting smaller all the time. You ought to read my mail about it. People my age, even young people I grew up with -- not so young anymore -- writing me, saying, you know, I've worked for this company for 25 years; I've got to send my kids to college; we're doing great now, but what happens if they lay me off? So there is this uncertainty in our country today, even though we are clearly in better shape then we were two years ago. We've turned away from the false choice between tax and spend and MORE - 6 - trickle-down economics. We're moving in the right direction. The question is, how can we get everybody involved in the American Dream? How can we reward everyone's work? How can we make people more secure in living with all these changes that are rifling through the world? That is the burden that I carry to the office every day, because I know -- I know that if everybody in this country had a chance to live their lives the way most of you have lived your lives and raised your kids, this country would be fine, and our future would be unlimited. The key to the 21st century, more than anything else, is clearly, education for young people, lifetime job training for adults. It is clear that if we can raise the skill levels of our people, constantly and permanently, and continue to change the job mix so that we're always getting America's share of those high-wage jobs, we can keep the American Dream alive and we can stop the middle class from splitting apart, so that everybody can grow and prosper. That is our great challenge. And that is the one we must not walk away from. You have been working on this for years. You've had opportunities to train a new generation of builders. I want to especially commend the outreach programs that you've had with the Housing and Urban Development Department, reaching deep into our cities, taking thousands of young people from housing projects, teaching them the skills and clearing away the obstacles to job opportunities. You have done some things that the government could not do. And I thank you for that. I know that Bob really cares a lot about this outreach program because he spent his own early years in housing projects in Chicago. This is the kind of partnership we need more of. For government's part, we have to do more, as well. In 1994, the educational experts said that the United States Congress, in passing our education program, did more for education than had been done in Washington in 30 years. We expanded Head Start. We established the Goals 2000 program, which writes the national education goals into law, but gives our local schools more flexibility in how they spend federal money to achieve excellence. We dramatically increased the number of programs around our country for apprenticeships from young people leaving high school who aren't going on to college. And we expanded the availability of college loans to the middle class, at lower cost and better repayment terms. And of course, our national service program, Americorps, is now bigger than the Peace Corps ever was. And there are 20,000 young people all across America working in community service projects, doing things that need done and earning funds to go on to college. Those are the kinds of things we must do more of. Those are the kinds of things that are important. That's why I said a moment ago that if we work on education and we work on incomes, the rest of this will pretty much take care of itself, I think. That's why I hope the Congress this year will not only raise the minimum wage, but with all this tax cut talk, we can't afford a lot of these tax cuts. We've got too big a deficit. But we ought to give the middle class a break. And the most important thing we could do is give people a tax deduction for any costs they or their children have for any education after high school, because that will raise incomes over the long run. (Applause.) Let me just ask you one other thing I want you to think about. There are a lot of exciting things going on in this town these days. And as I said, we are debating the role of government. But there must be a distinction made. If you don't believe in tax- and-spend economics; and you don't believe in trickle-down economics, and you do believe in invest-and-grow economics, and you've seen how MORE - 7 - it is working the last two years, then you also have to reject this debate that we should spend more money on everything or we should spend less money on everything. We have to make judgments up here based on what is important. Therefore, I would say, let's cut more spending. I have cut and cut and cut, and I want to cut some more. We've got to get this budget deficit down further. We can bring this budget into balance, and we can do it in a fair way. But we have to make judgments. We should not be cutting Head Start. We should not be cutting aid to the public schools. We shouldn't be cutting the apprenticeship programs. And we certainly shouldn't be limiting the availability of college loans to the middle class. We shouldn't be adding to the cost of college education for working families. These are proposals that I think are wrong. We shouldn't be eliminating national service. And we certainly shouldn't be doing all these things either to pay for a tax cut for the wealthiest Americans or because we refuse to find other things to cut. That is wrong. Let's make decisions, and let's do it right, and let's stick up for education and training. (Applause.) And you have issues in this Congress -- Bob referred to one of them, the Davis-Bacon law. We need to make this economy more competitive. But we need more high wages. We don't need a low-wage strategy. We need a high-wage strategy for the future. We need a high-wage strategy. (Applause.) Like every other law, it shouldn't be abused. We should not pretend it's something it's not. But it is a decent thing to say that the government should stand on the side of good wages and the real wages in the community that are good and fair. I've made appointments, like Bill Gould to the National Labor Relations Board, and Fred Feinstein to be the General Counsel, who now have given you a board that believes in the process of collective bargaining and one that believes we can be fair to workers. These are the kinds of things that we ought to do if you believe our future is in working together. I'm not for repealing Davis-Bacon. (Applause.) I also believe that we should not walk away from our commitment to safety in the American workplace. (Applause.) In 1993 there were more than half a million construction injuries, and over 900 fatalities. We can reform OSHA in ways that you feel better about it, and employers feel better about it, where it works better and makes more sense, and helps you get more jobs and gain more income, and helps them make bigger profits. But we cannot walk away from the fundamental fact that before we were committed to worker safety, a lot more people died in the work place; a lot more people were permanently maimed in the work place; a lot of more people were hurt in the work place. There is a right way and a wrong way to reduce the burden of government. I could just -- let me mention one other thing that affects some of your industries. I believe with all my heart if we hadn't passed the environmental protection legislation in the 1970s, the air would not be as clean, the water would be as pure as it is today and the legacy we're going to pass along to our children would not be as good. I believe that. I also believe, like any government bureaucracy, there are things about the EPA that ought to be changed. So we're going to more market-based incentives to give companies incentives to clean up the environment. And Carol Browner, our Administrator, is reducing by 25 percent the paperwork burden of the EPA. It will free up 20 million man-hours of work next year. That's a lot of time in a lot of industries that all of you work in. We're trying to give small businesses a break. We're saying to small businesses -- I was at a union print shop in Virginia a couple of weeks ago to announce this -- if you worry about whether - 8 - you've got an EPA violation and your afraid to call because you're afraid they 11 fine you, now we're going to set up a compliance center, and if you call there and ask, if you ask, you can't be fined for six months. And you're going to be given a chance to clean up the problems. I think we can change the way government regulation works to make it less nutty. But let's not forget that we have a common public interest in a safe workplace. We have a common public interest in a clean environment. And we have a common public interest in having a high-wage, high-growth partnership economy -- (applause) -- not a low-wage, stagnant, divided economy. (Applause.) So I say to you, engage the members of Congress. Tell them you welcome the debate about the role of government. But government has certain responsibilities: first of all, to change and get rid of the past stuff that doesn't work; to create more opportunity; to provide more security; to insist on more responsibility, but to give people the education and training and skills they need to make it in the 21st century. I'm telling you that if we take advantage of this time, if we keep the economic strategy that we have adopted -- that I hammered through the Congress by the narrowest of margins, with all the doubters saying, well, we had to either have tax-and-spend or trickle-down, and I knew this was the right thing to do -- if we will stay with this economic strategy, and then, aggressively go after strategies to raise wages, raise incomes, educate and train people, and if we don't throw out the baby with the bath water, this country is going to do just fine. I am looking for a future for America like the ones most of us who are my age in this audience used to take for granted. And we can give it to our kids, but only if we are tough enough and wise enough and compassionate enough to do what we know in our heart is right. You help, we'll do it. Thank you, and God bless you. (Applause.) END 10:55 A.M. EDT This week, AFL-Clo you can talk about Standing Up for America's Working Families. Or you can do it. Visit the Stand Up Action Center Phone banks and direct fax lines to Congress Send a message to Congress on the Stand UP Action Postcard Design your own Action Flier Use the Online Action Center - the latest technology at your fingertips Watch the House and Senate in action - LIVE Stand Find out more about how other union activists are Standing Up for America's Working Families Souvenir Photos & Buttons Free Raffle Entries for Participants Royal Ballroom B Open Saturday through Thursday New York State From the desk of AFL-CIO UNITY JOSEPH JAMISON DIELSION To MAROLD Iches Date Jon3 Handle As requested Comment For your info Recommendation Note and return Reply Per telephone conversation REMARKS: HAROLD, MAPPY CoPYDone 1/11 5.0counck FYI AFC-CIO Crican Federation of Labor and Congress of Industrial Organizations EXECUTIVE COUNCIL MERICAN FEDERATION OF LABOR 815 Sixteenth Street. N.W. JOHN J. SWEENEY RICHARD L. TRUMKA LINDA CHAVEZ-THOMPSON Washington. 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Wages Cake West Allrea K Whitehead Remarks by John Sweeney President, AFL-CIO National Press Club December 15, 1995 Thank you for inviting me to speak with you on behalf of American workers and their families. Two weeks ago, I had the honor of joining President Clinton's journey of peacemaking all across Ireland. Most Americans think of the problem in Northern Ireland as a religious and political divide -- and, of course, it is. But it is important to understand that this generation of "the troubles" began because of an economic divide, as well. In 1968, large numbers of Catholics began to protest against the discrimination that denied them good jobs in growing industries. They were inspired, in part, by the civil rights struggle in our own country, which was a movement for jobs and freedom. After more than a quarter-century of struggle, progress is being made. That is why one of our first stops in Northern Ireland was at the Mackie Engineering Works plant in Belfast. For years, that plant was a symbol of discrimination and division. Now it is a symbol of progress and peace. On the shop floor, Catholics and Protestants work together. At the bargaining table, labor and management are cooperating. Productivity, profits and wages are all rising, and management is investing in new equipment and new jobs. The lesson is clear: When there is dignity for everyone, everyone wins. What is happening at Mackie may happen throughout Northern Ireland. Thanks in large measure to President Clinton's brave peacemaking, Catholics and Protestants, Dublin and London, are closer together than at any time in a generation. In that land of pain and poetry, hope and healing may finally prevail over division and despair. That is why I found more joyous optimism on the streets of Derry and Belfast than I've seen in Detroit or the Bronx. In fact, I felt mixed feelings coming back from the peacemaking in Ireland to the problems here at home. Sweeney/National Press Club December 15, 1995 The conflict at Caterpillar, the newspaper strike in Detroit, the contract talks in New York City and the difficulties here in Washington, from the District Building to Capitol Hill, almost made me miss the relative tranquility of Belfast. Of course, that journey made me prouder than ever of everything America is doing to make peace in Northern Ireland, the Middle East and the Balkans. I am here today to talk about what we can do to reach another historic agreement: a new social compact between business and labor. To find new ways to grow the American economy, American companies and American wages in the new world economy. And to bridge the growing gap between the great majority of Americans who are working longer and harder for less and the fortunate few who are prospering as never before. Andy Warhol used to say that everyone will be famous for 15 minutes. Here at the National Press Club, you give your speakers 20 minutes. I promise you that, before my 20 minutes is up, I'll give you a preview of what labor will do next year and a prediction about the 1996 elections. To the journalists here today, let me offer this advice: The biggest story of our times will be whether America can find a way to restore the sense that we are all moving and advancing together, not sinking separately. I am a product of the social compact that lifted America out of the Great Depression and lifted working Americans into the middle class. My father was an Irish immigrant, a New York City bus driver and a proud member of the Transport Workers Union. Some of my earliest memories are of going to union meetings with him. We'd listen to Mike Quill -- whose brogue was better than some I heard in Dublin and Derry -- explain paycheck economics to workers and their families. Those were tough times. But working people, business people and public officials shared certain understandings -- a social contract, if you will. Here's what working people knew: If we got up every morning and did our jobs, then we could earn a better life for ourselves and a better chance for our children. Here's what business people knew: If they paid their workers fairly and plowed some of their profits back into their communities, they could count on loyal employees and loyal consumers. For companies back then, good citizenship was good business. And here's what our leaders in government understood - and President Kennedy said it best -- "A rising tide lifts all boats." 2 Sweeney/National Press Club December 15, 1995 For almost 30 years after winning World War II, we all prospered because we prospered together. We were concerned with raising the standard of living for all Americans -- not just accumulating enormous wealth for a fortunate few. That social compact was a formula for the strongest economy, the largest middle class and the most successful society this world has ever known. Unfortunately, those days are gone. You all have reported what happened: the oil embargo of 1973; global economic competition; new technologies; and the deregulation of the domestic economy, from transportation to communications. Business found new ways to compete -- ways that may succeed in the short term but which, I submit to you, are short-sighted and ultimately self-destructive. They competed, not by American teamwork and American know-how, but by driving down labor costs. Caught in an unforgiving global economy, corporate America too often squeezed the last possible ounce of productivity out of American workers, and then threw them on the scrap-heap of unemployment or old age, with reduced pensions and health coverage. Consider the stories you've reported on the business page: Chase Manhattan and Chemical Bank announce a merger that will put 12,000 people out of work and their stock goes up. Does a rising tide now sink all ships --- except for the luxury yachts? And what's wrong with this picture: Caterpillar is doing great, racking up record profits, enjoying great productivity. So they decide to install a two-tier wage system, schedule work on the weekends without paying overtime and reject pattern bargaining. They force thousands of workers out on strike, commit 300 unfair labor practices and rack up more record profits. Caterpillar says it did it to stay competitive with Kamatsu. Baloney! Kamatsu is struggling with a global market share below 3 percent, while Caterpillar has the lion's share. Know why? Because the United States government has spent American tax dollars fronting them into emerging nations in Europe, including Russia, and helping arrange financing for their operations through the World Bank! And, finally, how about this picture: The state of Arizona and the city of Phoenix bail America West Airlines out of bankruptcy with more than $100 million dollars in tax breaks and revenue bonds. The airline agrees not to contract out hangar jobs and rebounds with 11 straight quarters of profitability and stacks up $300 million in reserves. Then the Teamsters crank up an organizing drive aimed at machinists working for America West. America West shows its respect for our labor laws and thanks the 3 Sweeney/National Press Club December 15, 1995 community by illegally firing 500 $35,000-a-year machinists and contracting out their jobs to a company in Everett, Washington, where machinists make only $21,000. That happened last Friday. How many of you want to fly in an airplane that's just been repaired by a $21,000-a-year rookie mechanic? Raise your hands. For American workers and their families, these are snapshots from hell. They paint an ugly portrait of an economy that has lost respect for workers and the jobs they do. In a prophetic article in The New York Times last January, Lou Uchitelle added words to the pictures. "Something is wrong with America's economic boom," he wrote. "After four years of ever-stronger growth, people's wages should be going up faster than their expenses. For most people, they're not, and this is the first time in decades that a recovery has gone so long without putting more money in more pockets. And now, if the recovery runs out of steam in 1995 --- as so many economists predict that money might never show up." You have reported what this means for workers: Between 1947 and 1973, the median paychecks of American workers more than doubled -- and the bottom 20 percent enjoyed the biggest gains. But since 1973, median earnings have fallen by about 15 percent, and the bottom 20 percent have fallen the furthest behind. More than 40 percent of all earnings gains have gone to the richest 1 percent. Meanwhile, wealth became even more concentrated. The top 20 percent of all households now control more than 55 percent of all wealth. The rest of us -- 80 percent of all American households -- get to split the rest. Profits are up. Productivity is up. Executive compensation is up. The stock market is up. Worker wages and health benefits and pensions are down. Now, you're reporting how great gaps in wages and wealth are hurting American companies and the American economy. Think of the hardworking lowa family Susan Sheehan describes in a recent article in the New Yorker. Bonita and Kenny Merton live with their two sons in a small home they own in Des Moines. Kenny once had an $11-an-hour job before the factory closed. Last year, he made $17,239 hauling sand sacks. Bonita made $13,977 working full time at Luther Park Nursing home. After 15 years, she's paid $7.40 an hour, gets a ham at Easter, a turkey at Thanksgiving, $10 for her birthday and $20 at Christmas. She pays $36 a month for health insurance, $28 a month for dental coverage and gets no pension. Every year they go further and further in debt and there is no hope of ever doing better. Kenny says, "There ain't no middle class no more. There's only rich and poor." 4 Sweeney/National Press Club December 15, 1995 Now, ask yourself whether families like the Mertons are spending confidently this holiday season. American workers are running out of money, running out of hope and are loaded with debt. That's why retail sales are lagging; why manufacturers are loaded with inventory; and why they cut 32,000 jobs last month. Macy's figured out a new way this week to blame the worker: to compensate for plunging sales, they cut the commissions of their clerks. And can you imagine in the middle of all of this, the Republicans giving a tax break to the rich by declaring all-out war on the programs and policies Kenny and Bonita depend on just for survival? You may have seen the television commercials we're running during the current budget battle. In one of them, Father Julio Perez, a priest in Miami, sums it up for all of us when, with his eyes filled with tear,s he says: "I came to America in 1954. What a country we had then. What happened to America?" America is becoming edgier, angrier and meaner. Until we ease the growing gaps in work, wages and wealth, you will be sending more dispatches from a wounded nation - - more militia movements, more bombings, more hate crimes and more of the quiet anguish of Americans losing their sense of a common destiny and a common purpose. America will become more like the trouble spots where we send our sons and daughters to keep the peace. So what can we do about it? Of course, American business must change. But I stand before you today as president of the AFL-CIO because American labor must also change. That is why I ran for president of the AFL-CIO, and that is why I won. We understand that while the world and the workplace changed, labor stood still and lost ground. Just as today I challenge business to change, every day on my job I challenge labor to change. First, we have to reach out to unorganized workers -- because that is the only way we can build a stronger movement. For too long, too many unions have seemed satisfied with a shrinking membership base. As our membership strength has declined, so has our bargaining power. It used to be that strong unions lifted all workers up; now, non-union employers are dragging all workers down. Here's the truth: Our weakness encouraged employers to take the low road. Only by rebuilding our strength can we bring American business back to the high road of high wages. 5 Sweeney/National Press Club December 15, 1995 That is why I am challenging every union and every level of our labor movement to do what the fastest-growing unions do: Put at least 30 percent of our resources into organizing. That is why we will be training at least a thousand organizers a year, pouring $20 million into organizing programs -- and organizing from the Sunbelt to the Rustbelt and from health care to high tech. That is why we are rebuilding our grass roots political strength, training candidates and training political organizers. Yesterday, I told a gathering of 30 Democratic senators they can also expect an end to checkbook politics: we're going to demand a voice for the working people of this country in setting strategies, defining messages and issues and a hand in running campaigns. Second, we have to reach out to management -- from a position of strength -- because that is the only way we can build a stronger, high-wage economy. We can no longer afford the luxury of pretending that productivity, quality and competitiveness are not our business. They are our business, our jobs and our paychecks. Too many workers have suffered because of failed and foolish, short-sighted management policies. We need to follow the example of workers and their unions in companies and government agencies and school systems across the country who are winning a voice in improving the products they make and the services they deliver. As labor becomes stronger and smarter, we will really be in a position to offer management this challenge: *Take your profits and invest them in growing the American economy, American workers, and American wages. *Offer your workers the training they need for tomorrow's jobs -- not just the big- shots in the executive suites, but all your employees. *Work with your employees and their unions. Give us a voice in decision-making. Give us half a chance to improve the quality of our goods and services. That is the path to lasting prosperity -- and we want to walk down that road with you. We will offer this challenge with the confidence that we are prepared for conflict or cooperation -- and the choice is management's to make. Here's an example. In the Boeing contract just ratified by 32,000 Machinists in Washington, Oregon and Kansas, management agreed to give the workers and their unions a voice in decisions to contract out work --- adequate notice, a chance to bid competitively, retraining and meet-and-confer language. It's a tremendous agreement. The only trouble was, we had to strike for 69 days to get it! 6 Sweeney/National Press Club December 15, 1995 Our challenge to management is to avoid conflict, not promote it. Let's spend our time and our money and our energy pursuing higher profits and higher wages. Next year, we will begin to offer these challenges not only to the leaders of labor and business but to all Americans. Early next spring, the AFL-CIO will begin to hold hearings on falling living standards in communities across the country. We will ask working men and women what is happening to their jobs, their paychecks and their family budgets. We'll take our show on the road -- from lowa to New Hampshire, from the South to the Midwest and the Far West -- to put the issue of wages at the center of political debate. We want to get even more of the suggestions that already are pouring in from unlikely sources, like this letter I got last week from Rusty Hills in East Lansing, Michigan. He says, "As a conservative Republican, I suspect you and I part company on most political issues. But as a fellow Catholic, I believe strongly in just wages and an equitable distribution of profits." He goes on to make a recommendation: that we bargain wages by comparing the percentage increase in executive compensation to percentage increases for workers over the past 10 years. In every speech I give, from the Press Club to the picket lines, I try to make this simple point: America needs a raise. Next year, we'll be asking every candidate for public office to tell working Americans how they'll get them a raise. Then in June, we're going to start a Union Summer, as we send a thousand college students and young workers to organize voter registration and living wage campaigns across the country. We're going to begin a dialogue with working America - union members and future members, alike. And, come September, we'll have a Union Fall, as we organize and mobilize working Americans around the fundamental issue of raising wages and increasing incomes. If Americans vote on the issue of who can lift the poor and secure the middle class, I am confident they will make the right choices for president and Congress. Here's my prediction for 1996: If the Republicans continue to pursue their extremist economic agenda and Bill Clinton continues to stand tall against it, we will win back the House and re-elect our president. Somebody said the Republicans won the last election by saying, "They took it from you and gave it to them," meaning poor people. We can win this one by saying, "They tried to take it from you and give it to themselves." If we take that message to every workplace and every polling place, then we will win. And we can begin to close the gap between those who do the work of America and those who control their lives and livelihoods. 7 Sweeney/National Press Club December 15, 1995 I believe that, in the words of the Nobel Prize-winning poet Seamus Heaney, whose writings inspired so many fighters for peace and justice: "History says don't hope on this side of the grave. But, once in a lifetime, the longed-for tidal wave of justice can rise up -- and hope and history rhyme." Soon, you will see our labor movement "rising up," like "the longed-for tidal wave of justice." And working men and women will once again make "hope and history rhyme." -30- For information: Denise Mitchell 202/637-5340 8 AFC-CIO AFL working 2/5 to Jon o's THE WHITE HOUSE WASHINGTON February 2, 1996 Mr. John Sweeney President AFL-CIO 805 16th Street, NW Washington, DC 20006 Dear John: As always, it was good to see you. You and your colleagues provided a warm reception on a cold, snowy day. I very much appreciated our time together and felt we had a good exchange. I genuinely feel there are a number of areas in which an ongoing discussion could produce both at least a better understanding of the issues involved and in some cases agreement and common ground regarding certain trade issues. I look forward to working with you and the appropriate people in your organization in that regard and, of course, I appreciate your personal interest and supportive attitude. We will try to get the specific follow-up details worked out in the near term. Again, thank you for your personal and professional courtesies, and for your support of our Administration. Personally, Meel Mack McLarty bcc: Eric Desk it Anold ICKES copy THE WHITE HOUSE WASHINGTON 21 March 1996 MEMORANDUM FOR LAURA TYSON GENE SPERLING FROM: HAROLD ICKES CC: JENNIFER O'CONNOR SUBJECT: Meeting with John Sweeney Leon and I met with John Sweeney last week. Mr. Sweeney suggested he has many good ideas for corporations to feature as examples of good corporate citizens. Please include him in discussions of the upcoming corporate responsibility event (s) you are planning, so that we can take advantage of his ideas. AFL-LIO - work THE WHITE HOUSE WASHINGTON March 4, 1996 MEMORANDUM FOR DISTRIBUTION FROM: Thomas P. O'Donnell / SUBJECT: Monthly NEC AFL-CIO Meeting Enclosed is the agenda for tomorrow's NEC meeting with the Executive Officers of the AFL-CIO. I have also enclosed a list of meeting participants, short biographies of the AFL- CIO attendees and a copy of John Sweeney's standard "stump" speech. The next monthly meeting will be Thursday, April 4 at 11:00 a.m. Starting in May, the monthly NEC AFL-CIO meeting will be held on the first Wednesday of each month at 11:00 a.m. For example, the May NEC AFL-CIO meeting will be held on Wednesday, May 1 at 11:00 a.m. THE WHITE HOUSE WASHINGTON MONTHLY NEC AFL-CIO MEETING Tuesday, March 5, 1996 Roosevelt Room 10:30 A.M. AGENDA 1. Opening Remarks and Introductions (Tyson/Sweeney) 2. New Directions at the AFL-CIO (Sweeney) 3. Budget Issues Update (Tyson) 4. General Issues Discussion a. Economic Growth b. Corporate/Business Issues C. Trade 5. Next Meeting/Follow-up (Tyson/Sweeney) NEC AFL-CIO Meeting Participants Tuesday, March 5 at 10:30 a.m. in the Roosevelt Room. ADMINISTRATION ATTENDEES Laura Tyson - Assistant to the President for Economic Policy Bob Rubin - Secretary of the Treasury Gene Sperling - Deputy Assistant to the President for Economic Policy Dan Tarullo - Deputy Assistant to the President for Economic Policy Bob Reich - Secretary of Labor George Stephanopoulos - Senior Advisor To The President And Executive Assistant To The Chief Of Staff For Policy Harold Ickes - Deputy Chief of Staff for Policy and Political Affairs David Strauss (for Ron Klain) - Deputy Chief of Staff to the Vice-President Doug Sosnik - Assistant to the President Director of Political Affairs John Hilley - Assistant to the President and Director of Legislative Affairs Tom O'Donnell - Chief of Staff to the Assistant to the President for Economic Policy Jennifer O'Conner - Special Assistant to the President for Policy and Political Affairs AFL-CIO ATTENDEES John Sweeney - President of the AFL-CIO Rudolph Oswald - Director of Economic Research for the AFL-CIO Gerald Shea - Assistant to the President for Government Affairs of the AFL-CIO Peggy Taylor - Director of Legislation for the AFL-CIO Robert Welsh - Executive Assistant and Chief of Staff to the President of the AFL-CIO Withdrawal/Redaction Marker Clinton Library DOCUMENT NO. SUBJECT/TITLE DATE RESTRICTION AND TYPE 002. profile DOB (Partial); POB (Partial) (1 page) 11/22/1995 b(6) COLLECTION: Clinton Presidential Records Chief of Staff Harold Ickes OA/Box Number: 9162 FOLDER TITLE: AFL-CIO General [Folder 2] 2013-0306-F jml 191 RESTRICTION CODES Presidential Records Act 144 U.S.C. 2204(a)] Freedom of Information Act - |5 U.S.C. 552(b)| PI National Security Classified Information [(a)(1) of the PRA] b(1) National security classified information [(b)(1) of the FOIA] P2 Relating to the appointment to Federal office [(a)(2) of the PRA] b(2) Release would disclose internal personnel rules and practices of P3 Release would violate a Federal statute [(a)(3) of the PRA an agency [(b)(2) of the FOIA] P4 Release would disclose trade secrets or confidential commercial or b(3) Release would violate a Federal statute |(b)(3) of the FOIA] financial information [(a)(4) of the PRA] b(4) Release would disclose trade secrets or confidential or financial P5 Release would disclose confidential advice between the President information [(b)(4) of the FOIA] and his advisors, or between such advisors [a)(5) of the PRA] b(6) Release would constitute a clearly unwarranted invasion of P6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA] personal privacy |(a)(6) of the PRA| b(7) Release would disclose information compiled for law enforcement purposes |(b)(7) of the FOIA] C. Closed in accordance with restrictions contained in donor's deed b(8) Release would disclose information concerning the regulation of of gift. financial institutions |(b)(8) of the FOIA] PRM. Personal record misfile defined in accordance with 44 U.S.C. b(9) Release would disclose geological or geophysical information 2201(3). concerning wells [(b)(9) of the FOIA] RR. Document will be reviewed upon request. 03/04/96 12:25 202 508 6946 AFL-CIO PRES OFF WHITE HOUSE/NEC 002/006 American Federation of Labor and Congress of Industrial Organizations EXECUTIVE COUNCIL FEDERATION OF LABOR 815 Sixteenth Street, N.W. JOHN J. SWEENEY RICHARD L. TRUMKA Washington, D.C 20006 LINDA CHAVEZ-THOMPSON PRESIDENT SECRETARY.TREASURER EXECUTIVE VICE PRESIDENT (202) 637-5000 Albon Shanker - Edward 1. Hardey Waynn E. Glenn James E. Hadield AFL CIO Vincr.nl A. Sombrato Garald W. McEnico William H. Bymbit Marvin J. Boads Julin T. Joyce Morton Bair Rohert A. Georgive Gam Upsnaw by Matur Lanore Miller John J. Barry Mos Bilter George J. Kourpias John N, Stundivant Frank Hanloy Junes J. Norton of INDUSTRIAL Michael Sacco non Caroy Annur A Cob Frank Hun Gloria T. Johnson Douglas H. Donty George F. Bector Stophen P. Yokich Capl J. Rindolph Babbitt Clayola Brown Richard W. Cardiz M.A. "MEC" Florming Carolyn Forrest Pai Friend Michael Goodwin Joe L. Greona Sonny HJH Sumi Haru Carroll Haynos James LaSab Walliam Lucy Leon Lynch Doug McCarron Andrew McKonzie AL. 'MA' Monroe Arthur Moore Adure S. Rodriguez Hobert A. Scardated Robort E. Wage: Jake West Alfred K. Writehead JOHN J. SWEENEY AFL-CIO President John J. Sweeney was elected president of the AFL-CIO at the federation's biennial convention in New York October 1995. At the time of his election, Sweeney was serving his fourth four-year term as president of the Service Employees International Union, which grew from 625,000 to 1.1 million members under his leadership. He also was a vice president of the AFL-CIO and chair of Executive Council committees on Health Care and Organization and Field Services. Sweeney's first job in the labor movement was with the International Ladies' Garment Workers, which earlier this year merged with the Clothing and Textile Workers Union to form UNITE. He began his SEIU career in 1960 when he first joined Local 32B in New York City as contract director. Sweeney was elected president of Local 32B in 1976, and led two citywide strikes of apartment maintenance workers, including an eight-day landmark strike of 20,000 workers in 1979. He was elected to the SEIU Executive Board in 1972 and became SEIU president in 1980. Sweeney is a board member of the American Arbitration Association, the American Red Cross, the Catholic Youth Organization and the Citizen-Labor Organization; he is a trustee of the Asian-American Free Labor Institute, the George Meany Center for Labor Studies and Iona College. He has served with the National Committee on Employment Policy (1995), the International Labor Organization in Geneva (U.S. worker delegate, 1984, 1985 and 1991), the Federal Mediation and Conciliation Service Advisory Council (current) and the 1992 Democratic National Convention (delegatc). He co-authored Solutions for the New Work Force in 1989 and co-edited the UNA-USA Economic Policy Council's Family and Work: Bridging the Gap in 1987. John J. Sweeney was born (b)(6) He graduated from Iona [002] College in New Rochelle, N.Y., with a degree in economics. He lives in Washington with his wife, Maureen, a former New York City school teacher, and their two children, John and Patricia. November 22, 1995 03/04/96 12:26 202 508 6946 AFL-CIO PRES OFF WHITE HOUSE/NEC 003/006 American Federation of Labor and Congress of Industrial Organizations EXECUTIVE COUNCIL INFANCAN FEDERATION OF LABOR 815 Sixteenth Street. N.W. JOHN J. SWEENEY RICHARD L. TRUMKA LINDA CHAVEZ-THOMPSON Washington, D.C 20006 PRESIDENT SECRETARY-TREASURER EXECUTIVE VICE PRESIDENT (202) 637-5000 Albert Shanker Edward I Hanley Wayne E. Giónn Jamos E. Hattleld , AFL CIO Vincem R. Sombrotto Gorald W. McEnted William H. Bywator Marvin J. Bosde 1 John T. Joyce Morton Bahr Robert A. Goorgine Guno Upshaw CESO Jay Mazur Lonore Miller John J. Barry Moo Biller George J. Kourplas John N. Studivard Frank Hanloy James J. Norton OF Michael Succo Ron Carey Arthur A Colo Frank Hun INDUSTRIAL Gloria T. Johnson Douglas H. Dortty George F. Bocker Stephen P. Yolden Capt. J. Rendolph Babbin Clayola Brown Richard W. Cordiz M.A. "Mac" Fleming Carolyn Forrest Pai Friend Michael Goodwin Joo L. Greane Sonny Hall Suml Harv Carroll Haynos Junes LaSale Willium Lucy Leon Lynch Doug McCarron Andrew McKenzie AL "Mike" Monroe Anthur Moore Arturo S. Rodriguez Roben A. Scardelletti Robert E. Wages take West Alfrud K. Whilehead RICHARD L. TRUMKA AFL-CIO Secretary-Treasurer Richard L. Trumka was elected Oct. 25, 1995, as the youngest secretary-treasurer in AFL-CIO history, part of an insurgent campaign to reinvigorate the American labor movement. At the time of his election, Trumka, 46, was serving his third term as president of the United Mine Workers of America. A member of the AFL-CIO Executive Council since 1989, he chaired the Strategic Approaches and Energy Committees and served on the executive boards of the Industrial Union, Maritime Trades and Transportation Trades Departments. In 1994, President Clinton named him to the Bipartisan Commission on Entitlement and Tax Reform, where he represented the interests of working families in policy debates on Social Security, pensions and health care. During his tenure as UMWA president, Trumka led two major strikes against the nation's coal companies - Pittston in 1989 and the Bituminous Coal Operators in 1993 -- that resulted in significant advances in employer-employee cooperation and the enhancement of mine workers' job security, pensions and benefits. UMWA victories in those disputes were assisted by international campaigns that Trumka developed. As chairman of the committee on strategic approaches, he was instrumental in developing tactics to bring the pressure of international labor to bear on multinational conglomerates involved in disputes with U.S. workers. He also serves on the executive boards of the International Miners Federation and the International Confederation of Free Trade Unions, and played a key role in organizing a new global coalition of coal miners' unions in five countries. Trumka is a third-generation coal miner from Nemacolin, Pa., who began working in the mines at the age of 19. He joined UMWA Local 6290, serving as safety committee chairman. He soon became an activist in the Miners for Democracy reform movement. In the early 1970s, he graduated from Pennsylvania State University and later earned a law degree from Villanova University Law School. After serving four years on the UMWA legal staff during the reform administration of Arnold Miller, he returned to the mines in 03/04/96 12:26 202 508 6946 AFL-CIO PRES OFF +++ WHITE HOUSE/NEC & 004/006 Trimka 2 1978. He was elected to the union's executive board in 1981. He was first elected president of the union in 1982. He has received numerous awards, including the 1995 Gompers-Murray-Meany Award from the Massachusetts AFL-CIO and the Labor Responsibility Award from the Martin Luther King, Jr. Center for Nonviolent Social Change in 1990. ### Withdrawal/Redaction Marker Clinton Library DOCUMENT NO. SUBJECT/TITLE DATE RESTRICTION AND TYPE 003. profile DOB (Partial); POB (Partial) (1 page) 11/15/1995 b(6) COLLECTION: Clinton Presidential Records Chief of Staff Harold Ickes OA/Box Number: 9162 FOLDER TITLE: AFL-CIO General [Folder 2] 2013-0306-F jm1191 RESTRICTION CODES Presidential Records Act - [44 U.S.C. 2204(a)] Freedom of Information Act - [5 U.S.C. 552(b)] PI National Security Classified Information [(a)(1) of the PRA] b(1) National security classified information |(b)(1) of the FOIA| P2 Relating to the appointment to Federal office |(a)(2) of the PRA] b(2) Release would disclose internal personnel rules and practices of P3 Release would violate a Federal statute [(a)(3) of the PRA| an agency |(b)(2) of the FOIA] P4 Release would disclose trade secrets or confidential commercial or b(3) Release would violate a Federal statute [(b)(3) of the FOIA] financial information [(a)(4) of the PRA] b(4) Release would disclose trade secrets or confidential or financial P5 Release would disclose confidential advice between the President information |(b)(4) of the FOIA] and his advisors, or between such advisors [a)(5) of the PRA] b(6) Release would constitute a clearly unwarranted invasion of P6 Release would constitute a clearly unwarranted invasion of personal privacy |(b)(6) of the FOIA] personal privacy |(a)(6) of the PRA] b(7) Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA] C. Closed in accordance with restrictions contained in donor's deed b(8) Release would disclose information concerning the regulation of of gift. financial institutions [(b)(8) of the FOIA] PRM. Personal record misfile defined in accordance with 44 U.S.C. b(9) Release would disclose geological or geophysical information 2201(3). concerning wells |(b)(9) of the FOIA| RR. Document will be reviewed upon request. 03/04/96 12:26 202 .508 6946 AFL-CIO PRES OFF WHITE HOUSE/NEC 005/006 American Federation of Labor and Congress of Industrial Organizations EXECUTIVE COUNCIL FEDERATION OF LABON 815 Sixteenth Street. N.W. JOHN J. SWEENEY RICHARD L. TRUMKA LINDA CHAVEZ-THOMPSON Washington, D.C 20006 PRESIDENT SECRETARY-TREASURER EXECUTIVE VICE PRESIDENT (202) 637-5000 1 Albert Shanker Edward I Hanley Wayne a. Glunn James E. Harfleld & Vincers R, Sombrono Gerald W. Mcfinied William M. Bywater Marvin 1 Boade AFL CIO John I Joyce Monon Befr Robert A, Georgine Gene Upshaw ACCORDO My Mazur Lenors Miller John & Garry Mos Biller George J. Kourples John N. Studivent Prank Hanloy James 1 Norton Michael Secce Ron Carey Attur A. Coia Frank Hun INDUSTRIAL Glorts I Johnson Dougles H. Dority George 5 Becker Stephen P. Yokich Capt. 1 Randolph Babbill Clayois Brown Richard W. Cordiz MA. "Mar" Flaming Carolyn Forrest Pat Friend Michael Goodwin Joe L Greena Sonny Hall Sum Haru Carroll Haynes James LaSete William Lucy Leon Lynch Doug McCarron Andrew McKenzie A.L. Monroe After Moore Anturo S. Rodriguez Robert A. Scardollott Robert E. Wages take Wast Alfred K Whitehead LINDA CHAVEZ-THOMPSON AFL-CIO Executive Vice President Linda Chavez-Thompson was elected executive vice president of the AFL-CIO Oct. 25 at the federation's convention in New York, part of an insurgent campaign to reinvigorate the American labor movement. A second-generation American of Mexican descent, Chavez-Thompson has 27 years experience in the labor movement. She rose from the organizing ranks of her union, the American Federation of State, County and Municipal Employees, to become the first person of color elected to an executive office of the AFL-CIO. She is the highest ranking woman in the labor movement. Prior to her election as executive vice president, Chavez-Thompson served as a vice president of the AFL-CIO since Oct. 1, 1993. She served on the Executive Council committees on Full Participation, International Affairs, Article XX Appeals and Housing. She was elected national vice president of the Labor Council for Latin American Advancement in 1986, and continues to serve in that capacity. Chavez-Thompson was elected vice president of AFSCME in June 1988 and again in June 1992 without opposition. As vice president of AFSCME, she directed the union's efforts in a seven-state district -- Arizona, Colorado, Nevada, New Mexico, New Mexico, Oklahoma, Texas and Utah that is widely recognized as unfriendly to labor. But she achieved numerous successes there, including an organizing drive in Texas that brought in 5,000 new members over the past five years, and the passage of a collective bargaining law for public employees in New Mexico. She was elected executive director of AFSCME Council 42 on Feb. 4, 1995, responsible for advancing legislative, political action and education programs of more than 17 local unions that make up the council. Born (b)(6) to sharecropper parents (b)(6) Chavez-Thompson [003] began her trade union career as a union secretary. She served as an AFSCME international representative 1971 to 1973; assistant business manager and business manager of AFSCME Local 2399 in San Antonio from 1973 to 1977; and executive director of AFSCME Local 2399 from September 1977 to February 1995. AFL-CIO PRES OFF +++ WHITE HOUSE/NEC 006/006 03/04/96 12:27 202 508 6946 Chavey- Themp: 2 Chavez-Thompson has served on the Board of Directors of the American Cancer Society and the United Way; President of the San Antonio/Bexar County Public Employee Council; the Martin L King Commission; the Board of Trustees of San Antonio's VIA Metropolitan Transit Authority; the Governor's Health Policy Task Force and the Mayor's Commission on the Status of Women. Prior to moving to Washington, D.C. in November 1995, Chavez-Thompson had resided in San Antonio since 1972. She is the widow of Robert Thompson, has two children by a previous marriage and a grandson. November 15, 1995 ### 202 508 6946 AFL-CIO PRES OFF WHITE HOUSE/NEC 0 15:49 005/010 03/04/96 RUDOLPH A. OSWALD Rudy Oswald is the Director of Economic Research for the AFL-CIO. He has served in that position since 1976, having previously served as the Research Director of two AFL-CIO affiliated unions, the Service Employees International Union and the International Association of Fire Fighters. He was also the Assistant Director of the AFL-CIO's Education Department. He serves on various government advisory bodies, including the Advisory Committee on Trade Negotiations, the Panel of Economic Advisers to the Congressional Budget Office, and the Labor Advisory Committee to the Bureau of Labor Statistics. He serves on the Boards of the National Bureau of Economic Research, the National Planning Association, the Joint Council on Economic Education and is a past president of the Industrial Relations Research Association. He was educated at Holy Cross University, received his Masters from the University of Wisconsin and his Ph.d from Georgetown University. He attended the University of Munich as a Fulbright Scholar. ### 03/04/96 15:49 202 508 6946 AFL-CIO PRES OFF WHITE HOUSE/NEC 4 004/010 Bio for Peggy Taylor Director, Department of Legislation AFL-CIO Peggy Taylor became the Director of Legislation on March 1, 1995. She had been the AFL-CIO's Associate Director for the Department of Legislation since March 1986. Taylor has been an AFL-CIO legislative representative since 1979, specializing in budget, appropriations, and defense conversion issues. Before coming to the AFL-CIO staff, she was a professional staff member of the House Budget Committee, dealing primarily with labor and employment issues. She previously served on the Senate Labor subcommittee with responsibilities including occupational safety and health programs. 03/04/96 15:49 202 508 6946 AFL-CIO PRES OFF WHITE HOUSE/NEC 003/010 GERALD M. SHEA Gerry Shea is currently Assistant to the President for Government Affairs of the AFL-CIO. Mr. Shea was appointed to this position by President John J. Sweeney who was elected on October 25, 1995. Prior to this appointment, from June 1994 through October 1995, Mr. Shea served as executive assistant to the AFL-CIO secretary-treasurer, and, later, executive assistant to the president. From August 1993 through May 1994, Mr. Shea was director of the AFL-CIO Employee Benefits Department. Before coming to the AFL-CIO, Mr. Shea held the position of Assistant to the President for Government Affairs for the Service Employees International Union. He began his tenure with SEIU in 1972 as an organizer for the Massachusetts Hospital Workers Organizing Committee. Later, he served the union in various capacities, including executive director, Local 880; business manager, Local 285; Health Care Coordinator and, later, Healthcare Division Director for SEIU. Mr. Shea is a member of the 1995 Advisory Council on Social Security and the Prospective Payment Advisory Commission. Mr. Shea is a native of Massachusetts and a graduate of Boston College. November 1995 03/04/96 15:48 202 508 6946 AFL-CIO PRES OFF WHITE HOUSE/NEC 002/010 not current. ! Robert William Welsh, Jr. Executive Assistant to the International President Service Employees International Union AFL-CIO, CLC Bob Welsh has been the chief of staff and top aide to the President of the Service Employees International Union since 1976. He was named to this position by former International President George Hardy and has served under President John Sweeney since Sweeney's election in 1980. As Executive Assistant to the President, he has overall responsibility for the administration of the International Union, overseeing staff of more than 400 and an annual budget of over $50,000,000. Prior to becoming Executive Assistant to the President, he served as Assistant to the Executive Secretary for three years. He began his career in the labor movement with the AFL-CIO in 1972. Prior to 1972 he worked as a community organizer for the National Center for Urban Ethnic Affairs. Welsh holds an undergraduate degree in American History from the University of Virginia and a Masters in Public Administration from the American University. He was elected to the Service Employees International Union Executive Board in 1992 where he serves as Vice Chair of the SEIU Committee on the Future, chaired by International Vice President Betty Bednarczyk. He is on the board of the National Consumers league, and a member of the Industrial Relations Research Association. He is active in community affairs. He is married to the former Joan Seidman and has three children. $ Chief of Staff pate: Currently Exec. asst, to the President of the AFL-CIO 202 508 6946 AFL-CIO PRES OFF WHITE HOUSE/NEC J. 03/04/96 15:57 002 Remarks by John J. Sweeney President of the AFL-CIO The Business Council Washington, DC February 29, 1996 Thank you for that cordial introduction and thank you for inviting me here to speak to you on behalf of American workers and their families. I am here today to talk about what we can do to find new ways to grow the American economy, American companies, and American wages in the new world economy. And bridge the growing gap between the great majority of Americans who are working longer and harder for less and the fortunate few who are prospering as never before. In the process, I'm going to say some things about American business that will not be especially flattering. I offer my criticisms in a spirit of goodwill and I offer my apologies if you or your company are exceptions to the generalizations I make. I am a product of the social compact that lifted America out of the Great Depression and lifted working Americans into the middle class. My father was an Irish immigrant, a New York City bus driver, and a proud member of the Transport Workers Union. Some of my earliest memories are of going to union meetings with him. We'd listen to the thick brogue of Mike Quill as he explained paycheck economics to workers and their families. Those were tough times. But working people, business people, and public officials shared certain understandings -- a social contract, if you will. Here's what working people knew: If we got up every morning and did our jobs, then we could earn a better life for ourselves and a better chance for our children. 1 03/04/96 15:58 202 508 6946 AFL-CIO PRES OFF +++ WHITE HOUSE/NEC 003 Here's what business people knew: If they paid their workers fairly and plowed some of their profits back into their communities, they could count on loyal employees and loyal consumers. For companies back then, good citizenship was good business. And here's what our leaders in government understood -- and President Kennedy said it best: "A rising tide lifts all boats." For almost 30 years after winning World War II, we all prospered because we prospered together. We were concerned with raising the standard of living for all Americans -- not just accumulating enormous wealth for a fortunate few. That social compact was a formula for the strongest economy, the largest middle class, and the most successful society this world has ever known. Unfortunately, those days are gone. You all know what happened: the oil embargo of 1973; global economic competition; new technologies; and the deregulation of the domestic economy -- from transportation to communications. Many businesses, and especially larger corporations, found new ways to compete - ways that may succeed in the short-term but which, I submit to you, are short-sighted and ultimately self-destructive. They competed, not by American team-work and American know-how, but by driving down labor costs. Caught in an unforgiving global economy, corporate America too often squeezed the last possible ounce of productivity out of American workers. And then threw them on the scrap-heap of unemployment or old age, with reduced pensions and health coverage. Consider the stories you've been reading on the business page: Chase Manhattan and Chemical Bank announce a merger that puts 12,000 people out of work and their stock goes up. AT&T says they plan to lay off 40,000 men and women and their stock goes up. Does a rising tide now sink all ships except for the luxury yachts? And what's wrong with this picture: Caterpillar is doing great, racking up record profits, enjoying great productivity. So they decide to install a two-tier wage system, schedule work on the weekends without paying overtime and reject pattern bargaining. They force thousands of workers out on strike, commit 300 unfair labor practices, and rack up more record profits. Caterpillar says it did it to stay competitive with Kamatsu. Baloney! Kamatsu is struggling with a global market share below three percent. while Caterpillar has the lion's share. Know why? Because the United States government has spent American tax dollars fronting them into emerging nations in Europe, including Russia, and helping arrange financing for their operations through the World Bank! 2 03/04/96 15:58 202 508 6946 AFL-CIO PRES OFF WHITE HOUSE/NEC 004 And, finally, how about this picture: The State of Arizona and the City of Phoenix bail America West Airlines out of bankruptcy with more than $100 million dollars in tax breaks and revenue bonds. The airline agrees not to contract out hangar jobs and rebounds with 11 straight quarters of profitability and stacks up $300 million in reserves. Then the Teamsters crank up an organizing drive aimed at machinists working for America West. America West shows its respect for our labor laws and thanks the community by illegally firing 500 $35,000-a-year machinists and contracting out their jobs to a company in Everett, Washington, where machinists make only $21,000. That happened last December. Now tell me, really, "How many of you want to fly in a 757 that's just been repaired by a $21,000 rookie mechanic?" Raise your hands. For American workers and their families, these are snapshots from hell. They paint an ugly portrait of an economy that has lost respect for workers and the jobs they do. In a prophetic article in The New York Times last year, Lou Uchitelle added words to the pictures. "Something is wrong with America's economic boom," he wrote. "After four years of ever-stronger growth, people's wages should be going up faster than their expenses. For most people, they're not, and this is the first time in decades that a recovery has gone so long without putting more money in more pockets. And now, if the recovery runs out of steam that money might never show up." Here's what's wrong with America's economic boom: Between 1947 and 1973, the median paychecks of American workers more than doubled and the bottom 20 percent enjoyed the biggest gains. But since 1973, median earnings have fallen by about 15 percent, and the bottom 20% have fallen the furthest behind. More than 40 percent of all earnings gains have gone to the richest one percent. Meanwhile, wealth became even more concentrated. The top 20% of all households now control more than 55% of all wealth. The rest of us 80% of all American households - get to split the rest. Profits are up. Productivity is up, executive compensation is up and the stock market is up. But worker wages and health benefits and pensions are down. Now we are finally beginning to hear how this great disparity is hurting American workers as well as the American economy. Think of the hardworking Iowa family Susan Sheehan describes in a recent article in The New Yorker. Bonita and Kenny Merton live with their two sons in a small home they own in Des Moines. Kenny once had an $11-an-hour job before the factory closed. Last year, he made $17,239 hauling sand sacks. Bonita made $13,977 working full time at Luther Park Nursing home. After 15 years, she's paid $7.40 an hour, gets a ham at Easter, a turkey at Thanksgiving, ten dollars for her birthday and $20 at Christmas. She pays $36 a month for health insurance, $28 a month for dental coverage, and gets no pension. Every year they go further and further in debt and there is no hope of ever doing better. Kenny says, "There ain't no middle class no more. There's only rich and poor." 3 202 508 6946 AFL-CIO PRES OFF WHITE HOUSE/NEC 005 03/04/96 15:59 Like the Mertons, millions of American workers are running out of money, running out of options and running out of hope. They've exhausted their savings accounts, they are working two and three jobs and they are loaded with debt. They see the stock market soaring and profits roaring and they wonder, "Who the hell is getting my share?" They are frustrated and bitter and their anger is exceeded only by anxiety over possibly losing their jobs. And can you imagine in the middle of all of this, the radical Republicans in the House giving a tax break to the rich by declaring all-out war on the programs and policies Kenny and Bonita depend on just for survival? Because of the wage and the wealth gap. America is becoming edgier, angrier, and meaner. Until we ease the growing gaps in work, wages, and wealth, we will be reading more dispatches from a wounded nation more militia movements, more bombings, more hate crimes, and more of the quiet anguish of Americans losing their sense of a common destiny and a common purpose. America will become more like the trouble spots where we send our sons and daughters to keep the peace. So what can we do about it? Of course, American business must change. But I stand before you today as President of the AFL-CIO because American labor must also change. That is why I ran for President of the AFL-CIO, and that is why I won. We understand, that while the world and the workplace have changed, labor stood still and lost ground. Just as today I challenge business to change, every day on my job I challenge labor in change. Here's the truth: Our weakness encouraged employers to take the low road. And, only by rebuilding our strength, can we bring American business back to the high road of high wages. That is why I am challenging every union and every level of our labor movement to do what the fastest-growing unions do: Put at least 30 percent of our resources into organizing. That is why we will be training at least a thousand organizers a year, pouring millions into organizing programs; and organizing from the sunbelt to the rustbelt and from health care to high tech. That is why we are rebuilding our grassroots political strength, training candidates, and training political organizers. Second, we have to reach out to business, to management from a position of strength because that is the only way we can build a stronger, high-wage economy. We can no longer afford the luxury of pretending that productivity, quality, and competitiveness are not our business. They are our business, our jobs, and our paychecks. Too many workers have suffered because of failed and foolish shortsighted management policies. We need to follow the example of workers and their unions in companies and government agencies and school systems across the country who are winning a voice in improving the products they make and the services they deliver. 4 03/04/96 15:59 202 508 6946 AFL-CIO PRES OFF WHITE HOUSE/NEC 006 As labor becomes stronger and smarter, we will really be in a position to offer business a challenge: take some of your profits and invest them in growing the American economy, American workers, and American wages. Offer your workers the training they need for tomorrow's jobs -- not just the big-shots in the executive suites, but all your employees. Work with your employees and their unions. Give us a voice in decision-making. Give us half a chance to improve the quality of our goods and services. That is the path to lasting prosperity -- and we want to walk down that road with you. Our challenge to management is to avoid conflict, not promote it; let's spend our time and our money and our energy pursuing higher profits and higher wages. This year, we will begin to offer these challenges not only to the leaders of labor and business but to all Americans. Later this month, the AFL-CIO will begin to hold hearings on falling living standards in 29 communities across the country to put the issue of wages and wealth at the center of political debate. We will ask working men and women what is happening to their jobs, their paychecks, and their family budgets. We want to get even more of the suggestions that are already pouring in from unlikely sources, like a letter I got last month from Rusty Hills in East Lansing Michigan. He says, "As a conservative Republican, I suspect you and I part company on most political issues. But as a fellow Catholic, I believe strongly in just wages and an equitable distribution of profits." He goes on to make a recommendation: that we bargain wages by comparing the percentage increase in executive compensation to percentage increases for workers over the past 10 years. In every speech I give, from the Business Council to the picket lines, I'm trying to make this simple point: America needs a raise. And the sooner we get together and deliver one, the better off we will be, labor and management alike. So, let me offer, through you, a final challenge to American business: Labor's victories can be your victories, too. With decent paychecks, we can buy your products and services. With a little respect -- as that song says -- we can help you compete in the global economy. We are going to chailenge American business to use our brains as well as our backs, to let workers and their unions contribute to your decision-making process, to let us help you make the hard choices that affect our family budgets as well as your bottom lines. For American business, this is our message: Join us in supporting public policies and private initiatives to build a path to a new shared prosperity for American business AND American workers. Thank you very much -30- For information: Denise Mitchell 202/637-5340 5 05/09/96 THU 20:41 FAX 001 ACC.CED May 9, 1996 MEETING WITH AFL-CIO PRESIDENT JOHN SWEENEY DATE: May 10, 1996 LOCATION: Oval Office TIME: 11:05 a.m. CONTACT: HAROLD ICKES JENNIFER O'CONNOR I. PURPOSE To meet with John Sweeney, President of the AFL-CIO, on budget issues. II. BACKGROUND President Sweeney requested a meeting with you to discuss the prospects for a balanced budget agreement. In general, President Sweeney is worried about the implications of a deal. Other issues that are likely to come up are: Executive Council Meeting The AFL-CIO Executive Council met this week in Portland, OR. Most issues discussed were internal, except discussions on the TEAM Act and China MFN. TEAM Act As you know, the TEAM Act is a controversial issue on Hill right now. This bill, which would weaken the law's ban on company unions, passed the House and is before the Senate. The labor movement is actively trying to avoid a vote on it in the Senate. If it comes to vote and passes, the AFL-CIO strongly urges you veto it. The Administration is on record in support of such a veto. Secretary Reich and Chief of Staff Panetta are going up on this Hill today to discuss this issue with the Senate Democratic leadership and try to figure out how to move forward. The AFL-CIO is adamantly opposed to the TEAM Act or any amendment to section 8(a)(2) of the National Labor Relations Act. China MFN The AFL-CIO Executive Council passed a resolution on China MFN. The resolution states their opposition to the renewal of MFN status to China. It does not appear that labor will make this issue a big public relations issue. 05/09/96 THU 20:41 FAX 002 III. PARTICIPANTS The President John Sweeney, President AFL-CIO Gerald McEntee, President, American Federation of State, County and Municipal Employees IV. SEQUENCE OF EVENTS President Sweeney and Mr. McEntee will meet with President Clinton in the Oval Office. V. PRESS Closed Press VI. REMARKS None