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Labor (1)
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1515867
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Labor (1)
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collections
James M. Cannon Files (Ford Administration)
James Cannon's Issues Files
subjects
Department of Labor. Occupational Safety and Health Administration. 4/28/1971-
CETA
Labor
Labor disputes
Manpower policy
Minimum wage
Public works
Unemployment
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1976-07-31
month
7
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1976
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1975-03-01
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1975
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The original documents are located in Box 20, folder "Labor (1)" of the James M. Cannon
Files at the Gerald R. Ford Presidential Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. Gerald Ford donated to the United
States of America his copyrights in all of his unpublished writings in National Archives collections.
Works prepared by U.S. Government employees as part of their official duties are in the public
domain. The copyrights to materials written by other individuals or organizations are presumed to
remain with them. If you think any of the information displayed in the PDF is subject to a valid
copyright claim, please contact the Gerald R. Ford Presidential Library.
Some items in this folder were not digitized because it contains copyrighted
materials. Please contact the Gerald R. Ford Presidential Library for access to
these materials.
Digitized from Box 20 of the James M. Cannon Files at the Gerald R. Ford Presidential Library
[1975]
File
Ford Aide Says U.S. Unions
Need Legal Bargaining Rights
By Joseph Young
"An executive order whether
Washington Star Staff Writer
from the hand of a Republican or
President Ford's chief aide on
Democrat - bears the inescapable
labor-management affairs has come
mark of management, 20. Usery said,
out strongly in favor of collective
adding that "there is precious little
bargaining rights under law for
collective bargaining in the federal
federal employes and their unions.
sector" under the present system
In what appears to be a change in
whereby management deals with
[1975]
Executive Office of the President
FORD
Federal Civilian Employment
&
GERALD
June 30, 1975
June 30, 1976
Sept. 30, 1977
Actual
Req.
Recom.
Req.
Recom.
Account
FTP
Total
FTP
Total
FTP
Total
FTP
Total
FTP
Total
1/
485
White House Office
534
625
500
515
500
515
500
515
500
515
Office of the Vice President
30
39
30
31
30
31
30
31
30
31
Office of Management and Budget
2/
603
660
640
722
640
722
620
670
620
670
Council of Economic Advisers
35
39
46
60
46
60
46
60
46
50
Citizens Advisory Comm. on
Environmental Quality
1
1
1
1
1
1
1
1
1
1
Council on Environmental Quality
51
69
48
65
44
61
48
65
40
61
Council on International Economic
Policy
28
40
32
43
29
40
30
41
3825
39
Council on Wage and Price Stability
37
45
44
54
44
54
47
57
44
54
Domestic Council
32
34
59
64
40
45
59
64
59
64
Economic Mansion and Grounds
78
81
82
82
82
82
82
82
82
82
National Security Council
72
89
72
95
72
91
79
95
72
92
Office of Special Representative
for Trade Negotiations
45
49
45
48
45
48
62
65
60
63
1
Office of Telecommunications Policy
61
76
52
64
48
65
67
81
48
60
Office of Federal Procurement Policy
0
0
22
23
22
23
21
23
21
23
Presidential Clemency Board
0
15
0
0
0
0
0
0
0
0
Total
1607
1862
1673
1867
1643
1838
1692
1850
1655
1815
1/Budget not received, 1977 estimated at 1976 levels.
2/1977 estimated, no decision has been made.
3/1976 Supp. requested, 29 additional persons. Senate approved 10 persons. 1976 recommended figures reflect increase of 10.
LIBRARY
Analysis of Federal Civilian Employment
FORD
6-30-75
6-30-76
9-30-77
076829
Actual
Req.
Recom.
Req.
Recom.
Account
FTP
Total
FTP
Total
FTP
Total
FTP
Total
FTP
Total
Council on Environmental
Quality
51
69
48
65
44
61
48
65
44
61
Agency Request
The additional positions were requested to study environmental implications of energy technology developments
under provisions of the Non-nuclear Research and Development Act.
OMB Recommendation
OMB disallowed the increase on the basis that previous policy guidance indicated no new initiatives requiring
additional personnel were to be permitted.
Council on International
Economic Policy
28
40
32
43
29
40
30
41
28
39
Agency Request
The 1976 request was four more than 1975 actual due to increased workload and a requirement for an executive
level II position for the Executive Director who had been an Assistant to the President on a White House salary.
OMB Recommendation
OMB recommendation reflects general policy to hold down employment in EXOP.
Council on Wage and Price
Stability
37
45
44
54
44
54
47
57
44
54
Agency Request
In the 1977 budget an increase of three persons was requested to facilitate an additional public hearing on
price/wage problems, additional filings on Federal rule-making procedures and to carry out one additional
study of a critical industry's pricing policies.
FORD
j
076835
6-30-75
6-30-76
9-30-77
Actual
Req.
Recom.
Req.
Recom.
Account
FTP
Total
FTP
Total
FTP
Total
FTP
Total
FTP
Total
OMB Recommendation
OMB's recommendation is based on projected decrease in the probability of inflation. The life of the
Council runs out in 1977.
Domestic Council
32
34
59
64
40
45
59
64
59
64
Agency Request
In a pending supplemental the Domestic Council requests 29 additional persons. The House committee turned down
the request, while the Senate committee allowed up to 10 additional positions. The issue will go to conference.
OMB Recommendation
OMB approved the original supplemental for 29 positions. The figures for 1976 recommended reflect the 10 persons
voted by the Senate committee.
National Security Council
72
89
72
95
72
91
79
95
72
92
Agency Request
In 1976, the agency requested additional personnel on the basis that it would be desirable to have more persons.
In 1977, the request was tied to increased workload associated with requirements of the Freedom of Information
Act and declassification laws.
OMB Recommendation
In 1976, OMB agreed that some increase was desirable, but did not approve the full request. In 1977, OMB
recognized that these acts put strain on the agency in the short term and approved an additional temporary
position.
LIBRAR
3
FORD
6-30-75
6-30-76
9-30-77
Actual
Reg.
Recom.
Reg.77
Recom.
Account
FTP
Total
FTP
Total
FTP
Total
FTP
Total
FTP
Total
Office of the Special
Representative for Trade
Negotiations
45
49
45
48
45
48
62
65
60
63
Agency Request
In 1977 an increase of 17 persons was requested to cover duties imposed by the Trade Act of 1974.
OMB Recommendation
OMB recognized the validity of the need, but felt that 15 additional positions was sufficient.
Office of Telecommunications
Policy
61
76
52
64
48
65
67
81
48
60
Agency Request
In 1976 and 1977 the agency requested increases to conduct general research and analysis.
OMB Recommendation
OMB believed that existing staff and other resources were sufficient to conduct the business of the office.
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
SECUTIVE
to
SEAL
WASHINGTON, D.C. 20503
March 4, 1975
To:
OMB Senior Staff
From:
Ken Hagerty OH
Joss pat fill Issues in
Subject: Albert - Mahon Press Conference
Q&A
In response to questions Mahon (M) or Albert (A) made the following
statements:
M - Most, but not all the funds in this bill are in excess of
President's Budget. All but a cople of Hundred M.
M - This provides full funding of last December's authorizations
for Public Service jobs.
M - Most the items here are generally requested later by the Adminis-
tration anyway - so we're saying why can't we have them now.
A - No he hasn't told the President about this in advance.
M - Yes they have heard from some Administration people as they put
this together and "based on some of the information we elicited
we have put dollars in the bill."
M - Yes, a number of these programs require state and local matching.
A - Provision of materials for P.S. jobs (paint, trees, etc) is pending
before the Daniel's Labor Subcommittee
A - We've heard complaints from some mayors that they're having to
lay off skilled employees to be able to participate in our programs.
A - Refused to state he saw a depression coming.
A - This bill won't be the thing that makes the difference on whether
FORD
we have a depression or not.
M - No he hasn't discussed this bill with the Senate, but no reason
RALD
to think they won't buy it.
M - Yes this bill is outside the new Congressional budgeting process
but we are only making a trial run this year and we must react.
M&A - Bill won't be linked to the Emergency Farm bill, but the two
may come to the floor together.
STATEMENT OF REP. CARL ALBERT
THE SPEAKER
U. S. HOUSE OF REPRESENTATIVES
WASHINGTON, D. C.
MARCH 4, 1975
ANNOUNCEMENT OF EMERGENCY EMPLOYMENT
APPROPRIATIONS ACT, 1975
Good morning ladies and gentlemen. We have asked you to come
here this morning to inform you of a major counter-recessionary
legislative measure prepared by the Appropriations Committee, with
the full support and encouragement of the House Democratic Leadership.
This measure is the $5.9 billion Emergency Employment Appropria-
tions Act of 1975, which will create more than 900,000 direct jobs
and perhaps an equal number of indirect jobs, beginning over the
next three to eight months.
As you know, the American economy has been deteriorating steadily
and rapidly for months. Unemployment now stands at 8.2%, and we
fully expect the unemployment figures for February -- which will
be out at the end of this week -- to show another big jump in the
number of jobless.
As a result, our nation now stands at the crossroads, where one
path leads to slow but sure recovery from this severe recession and
the other path leads straight on into Depression.
We know which road the Administration would have us take. Presi-
dent Ford has promised to veto any spending measures, despite their
beneficial impact in creating jobs and stimulating the economy. But
then, this is the recommendation of the very Administration whose
economic policies have brought upon our nation the near-Depression
from which we are now suffering, with its terrible economic and
personal hardships for so many millions of unemployed Americans and
their families.
We in the Democratic Congress prefer to take the other road --
the road to economic recovery. The biggest single step we can take
down that road is to put people back to work again. The Appropria-
tions Committee, under Chairman George Mahon, has prepared a bill
which will do just this -- help get America back to work.
This bill provides $5.9 billion in funds to put nearly two
million people, not on the dole, but on the job.
Now I don't want to oversell this bill. Six billion dollars is
a lot of money, but in a trillion and a half dollar economy, it is
FORD
not going to end unemployment overnight. Clearly more -- a great
deal more -- will be needed, and will be provided. But this bill
is a very important step in the Democratic program for economic
recovery which I outlined at the beginning of this Session, and we
will pass this measure well within the 90-day action period we
promised the American people when our program was announced on
January 13th.
I would also like to note in passing that the many other initia-
tives we promised the nation are moving right along.
A tax cut for individuals and businesses and measures to protect
the elderly and needy from food stamp price increases have already
passed. Aid to housing, increased public employment authority, a
resolution calling for lower interest rates, and other measures are
well along. And the appropriations bill we are discussing today
will provide a measure of balance in the governmental sector to
the stimulus provided in the private sector by the tax reduction bill.
In closing, I want to thank Chairman Mahon of the Appropriations
Committee, and especially all the Subcommittee Chairmen and Members,
who have worked long hard hours in preparing this legislation very
quickly to deal with our national employment emergency. I can
assure you that the House Democratic Leadership will act equally
expeditiously in programming the bill for House action.
I will now ask Mr. Mahon to explain the legislation in more
detail.
March 4, 1975
STATEMENT BY GEORGE MAHON
CHAIRMAN OF THE HOUSE COMMITTEE ON APPROPRIATIONS
ON THE EMERGENCY UNEMPLOYMENT APPROPRIATION ACT OF 1975
Seven subcommittees of the Committee on Appropriations are
recommending that nearly $6 billion be provided in an emergency employ-
ment appropriation bill that will directly create over 900,000 new jobs.
These recommendations will be considered by the Full Appropriations
Committee on Friday.
If the bill is reported then, it can be on the
House Floor Wednesday, March 12, and hopefully the Senate could complete
action on it before Easter.
The Committee has developed this bill in close cooperation with the
House leadership as a response to the critical unemployment situation facing
the nation.
In recent weeks an intensive effort has been mobilized by the
Committee to identify existing programs and areas where additional funds
would immediately generate additional jobs.
Two approaches to the unemployment problem are being recommended--
funding of programs such as public service jobs in which funds are used
directly for the creation of jobs and funding of accelerated government programs
such as construction, repair and rehabilitation, and purchase programs where
funds will be used to create jobs indirectly through construction contracts,
purchase of automobiles for government use, further development of the
Nation's recreational and public land resources, and other similar programs.
The Committee on Appropriations believes that the current economic
situation requires unusual and emergency action. In the past, the
Committee has normally recommended enactment of an appropriation bill after
CRALD FORD
-2-
a budget request is received from the President.
These critical times, however, require immediate, positive action.
Unemployment reached 8.2% in January. Undoubtedly, the February
figures will be worse. In some industries unemployment is far above the
8.2% level - such as in the automotive industry with 24.0%, construction
with 22.6%, textiles with 19.4%
Certain segments of the population are particularly hard hit --
minorities at 13.4%, teenagers at 20.8%, part-time workers at 10.5%.
Estimates have been made which indicate that, unless current
economic conditions change, about 400,000 people a month
will exhaust their unemployment benefits during the July to December period.
For these reasons, it is essential that the government act immediately,
in a responsive way, to stimulate employment.
Bill Highlights
Highlights of the major features of the Committee's recommendations
include the following:
$1,625,000,000 for Public Service Jobs which should support 180,000
additional man years of employment.
$375,000,000 additional to fully fund the job opportunities program
of the Economic Development Administration, thus providing wide-ranging emer-
gency employment assistance in urban and rural areas suffering from high
levels of unemployment.
$117,955,000 for the acceleration of approved projects under the Bureau
of Reclamation and the Corps of Engineers to promptly provide jobs, increase
national capital assets and promote conservation of resources across the
nation.
FORD
-3-
$385,000,000 for the loan programs of the Small Business Administration
to increase and protect job opportunities in this essential sector of the
economy.
$443,000,000 for the purchase of 121,000 automobiles and other vehicles
by the General Services Administration, the Postal Service and other agencies
which will not only provide required additions and needed replacements for
federal vehicle fleets, but will significantly impact on the industry
presently hardest hit by the unemployment crisis.
$148,755,000 in appropriations and $83,162,000 for the liquidation of
contract authority in the Department of the Interior and the Forest Service
for immediate but lasting accomplishments including reforestation and timber
stand improvement, fire prevention activities, habitat fencing, erosion
control, hatchery improvements, and the construction and improvement of roads
and trails and recreation facilities.
$70,755,000 to make necessary and immediate improvements to facilities
of the Veterans Administration, including repair and improvement and energy
conservation projects at veterans' hospitals and medical facilities.
$106,000,000 to accelerate construction of approved watershed and flood
prevention operations of the Soil Conservation Service, which will immediately
create jobs and enhance the nation's land and water resources through long
term conservation benefits.
$465,000,000 for the General Services Administration to undertake
immediate construction, repair, alteration and improvement of public buildings
in hundreds of locations across the country.
$350,000,000 for the immediate construction and improvement of postal
facilities on a nationwide basis which will generate jobs and provide lasting
results.
$150,000,000 for rural water and sewer grants, and an increase of
$300,000,000 in the loan level for this program to stimulate jobs in the
construction industry and reduce the backlog of these needed projects
which will provide safe drinking water and help prevent pollution of
streams, lakes and rivers.
$412,700,000 for the summer youth employment which will generate
760,000 jobs for nine weeks of the summer.
$5,000,000 for jobs under the Youth Conservation Corps.
$70,000,000 for the Work Incentives Program to assist Welfare reci-
pients obtain employment and which will continue the present programs for
which funds are currently being exhausted.
$24,000,000 for community service employment for unemployed, low-income
persons aged 55 or over which together with $12,000,000 appropriated earlier
and not spent should provide 12,000 jobs.
$119,800,000 is provided for College Work-Study grants which will
provide part-time employment to about 250,000 students both in this current
academic year and during the summer.
FORD
FOR IMMEDIATE RELEASE
MARCH 5, 1975
JOBS
Office of the White House Press Secretary
THE WHITE HOUSE
STATEMENT BY THE PRESS SECRETARY
The President met yesterday with his senior Economic and Energy
advisers. They reviewed with the President general economic subjects
and discussed programs proposed and in place to deal with our current
economic conditions.
At the conclusion of that meeting, the President made the following
observations and decisions. First he noted that the Budget he
transmitted to the Congress last month included $32 billion for aid
to the unemployed during FY-75 and FY-76. The President noted
that $5 billion of that aid depended on congressional action and he
asked the staff to work with the appropriate committees of Congress
to see that the money needed is available in time to meet benefit
CORALD FORD LIBRARY
payments as they come due.
The President also observed that his budget recommendations provided
funding for 310, 000 Public Service Jobs through this calendar year. He
has decided now that it would be appropriate and desirable to provide
the funds necessary to continue these jobs another six months through
July first of 1976. Therefore, he has decided to recommend to Congress
that they provide supplemental funding totaling $1.625 billion to carry
out that purpose in addition to the $2.5 billion already contained in the
11
Budget for public service jobs and other manpower programs.
Under the provisions of the Comprehensive Employment and Training
Act (CETA) enacted in December, 1973, the state and local governments
make decisions as to the allocation of manpower funds between institutional,
on-the-job training, summer youth employment and other purposes. The
President was advised that preliminary plans indicate that state and local
governments are not allocating sufficient funds to meet this summer's
needs for job opportunities for youth. Therefore, the President has
decided to seek supplemental funding for specific summer youth programs
this year in the amount of $412 million. This will insure an additional
760,000 summer youth job opportunities on top of the allocations made
by State and local sponsors from CETA funds already provided.
Finally, the President indicated a concern about the possibility of
unemployed workers exhausting their unemployment compensation
benefits. The President asked that a study of this problem by com-
pleted promptly for his review.
# # #
THE WHITE HOUSE
Product
WASHINGTON
March 6, 1975
MEMORANDUM FOR HEADS OF DEPARTMENTS AND AGENCIES
Chairman Hampton of the Civil Service Commission
recently reported to me on progress to assure
equal opportunity in Federal employment. I have
also reviewed the most recent statistics on the
employment of minorities and women in the Federal
Government.
Minorities and women have demonstrated their
ability to compete successfully under merit prin-
ciples. Over one-fifth of the jobs in Government
agencies are held by Blacks, Spanish-speaking
Americans, American Indians and Asian Americans.
Nearly one-third of all Federal employees are
FORD
women.
While I am encouraged by these figures, our efforts
LIBRARY
must continue. For example, within the general
schedule and similar grade groupings, minorities
represent only 5.2% and women only 4.5% of Federal
employees at GS 13 and above. I therefore want
you to know how I view equal employment opportunity.
I urge you to provide strong leadership in your own
organization.
Our Nation's strength is based upon the concept of
equal opportunity for all our citizens. Decisions
motivated by factors not related to the requirements
of a job have no place in the employment system of
any employer and particularly the Federal Government.
But more is required than non-discrimination and
prohibition of discriminatory practices. What is
needed are strong affirmative actions to assure
that all persons have an opportunity to compete
on a fair and equal basis for employment and
advancement in the Federal Government. Affirmative
action includes recruitment activities designed to
2
reach all segments of our society, fair selection
procedures, and effective programs of upward mobility
SO that all employees have the opportunity to gain
skills to enable them to compete for higher level
positions. Such actions are under way in the Federal
Government. They must be continued and expanded.
Although the Federal Government has employed large
numbers of minorities and women, vigorous efforts
to assure equal employment opportunity must continue,
particularly in those geographical areas and agencies
and installations where more progress is needed.
There are program areas where special emphasis is
needed. There is reason to believe, for example,
that the skills of the Spanish-speaking as a group
have not yet been fully tapped. Also, a much wider
range of employment opportunities for women can be
opened. We cannot and must not permit persons to
be locked into jobs not commensurate with their
potential. I am looking to you and to every manager
in the Federal Government to assure that employees,
without regard to their race, national origin or
sex, have an opportunity for advancement in accordance
with individual abilities.
Moreover, men and women of all racial and ethnic
backgrounds must be assured a fair opportunity to
serve in positions where they can make a maximum
contribution and participate in the decision-making
process.
Equal employment opportunity doesn't just happen;
it comes about because managers make it happen.
I want equal opportunity to be reflected in every
aspect of Federal employment. I have called on
Chairman Hampton of the Civil Service Commission
to keep me fully informed on an annual basis of
the progress each Federal department and agency
is making in this regard. Increased accountability
on the part of Federal managers will help to promptly
identify deficiencies and strengthen our EEO program
at all levels.
Just as we will not condone preferences in employ-
ment decisions because of a person's race, ethnic
origin or sex, we will not tolerate failure to
GGRALD FORD LIBRARY
3
vigorously carry out affirmative actions in support
of equal employment opportunity. I am asking for
your personal commitment and active cooperation
in assuring that the American ideal of true equal
employment opportunity is a reality in the Federal
Government.
Please make my views known to all employees and
managers in your organization. Their understanding
of my objective is essential. Their support is
required.
Heald R. Ford
FORD & LIBRAR 078870
FOR IMMEDIATE RELEASE
MARCH 13, 1975
OFFICE OF THE WHITE HOUSE PRESS SECRETARY
Boyann
THE WHITE HOUSE
REMARKS OF THE PRESIDENT
AT THE
ISSUANCE OF A COMMEMORATIVE STAMP
STATLER HILTON HOTEL
9:06 P.M. EDT
Mr. Winthersinger, Ted Klassen, Ben Bailar,
Bill Usery, the two really honored guests here tonight,
ladies and gentlemen:
It really is a great privilege and pleasure to
have the opportunity of stopping by, and I wish that I
had an opportunity to spend more time and meet each and
every one of you individually.
I happen to think that what you represent is
a most important ingredient in our society here today.
I think all of you know, even better than I, that our
American system of collective bargaining is very uniquely
deserving of this special honor it is receiving through
the issuance of this stamp.
ESALO FORD
It has been my observation, as I visited and
traveled throughout the world -- and I have read history,
as all of you and many others have -- history has shown
that only where there is free collective bargaining is
there a free society.
И
The stamp's theme, "Out of Conflict Accord,"
is one to which every citizen can subscribe. The
fact that we have developed a strong, flexible collective
bargaining system stands as a tribute to the millions of
men and women of both labor and management who have
devoted themselves to building a better and better
America.
I think it is quite obvious that we need to
build a better America today. We need courage, we need
patience -- courage to face the vital issues before us,
and patience to work out just solutions.
MORE
Page 2
Our people cannot live on islands of self-interest.
We must build bridges and communicate our agreements as
well as our disagreements. Only then can we honestly solve
the Nation's problems and those problems are tremendous.
Those problems need our total dedication as we move ahead.
One of the longest and sturdiest bridges in this
land is collective bargaining. Today, more than ever in
the past three decades, there are really three parties
at each bargaining table -- management on the one hand;
labor on the other; and the third, our national welfare.
There is an ever-growing responsibility on
two sides for restraint in the interest of the third
party -- national interest. I most sincerely ask all
of you here this evening, and all members of labor and
management teams around the country, to remember that
there is a silent partner sitting down with you at each
bargaining session, your fellow citizens everywhere.
Let's try to remember as we can, bearing each
individual's respective responsibility, America's interests
and the search for social as well as economic progress. Our
objectives, yours as well as mine, are as old as human
nature. Each man and each woman are the roots of his
or her own survival. So, it is so true in democracy.
Democracy has within it the roots, as well as the
strengths, to save itself and that strength is national
unity and a strong, strong national purpose.
Many Americans see precious little advantage in
the Nation in the debate and the delay that has characterized
Washington in the past several months. Rather, they are
convinced that action, concerted action, is now precious
to our country and may, in the long, long run, prove
priceless.
It is said that an atmosphere of compromise now
pervades Washington. I believe that is correct, that
is good, and I would like to see that mood develop
into a movement, into agreement as well as action for
America.
MORE
FORD is LIBRARY 07VU3
from hef. whenr
Page 3
It seems to me, as I travel around the
country, as I read the mail and as I talk to people
here in Washington, Americans see delay, Americans
see division, lack of concerted action, and they don't
like it. They want to see some collective bargaining
between the Executive and the Legislative Branches of
their Federal Government.
I have said, for example, that I am willing to
compromise an a tax cut, and I repeat here this evening
that I am willing and anxious to achieve some compromise
in this area. It is also my observation that the
American people will not stand still for a government
that is standing still.
The American people, for example, want a tax
cut now. I think more of us ought to start listening to
America instead of listening to ourselves here in
Washington.
It is my further observation that I hear America
calling for action, reasonable action in a reasonable
amount of time. I suggest in the tax cut area action by
the end of March of this year.
It is my strong belief and deep conviction that
we ought to get to work. Let us give recession and
unemployment a new "one-two," the President and the Congress
hitting both of them simultaneously.
It is my belief that if we do so, we will put
all our workers back to work so free collective bargaining
can flourish in the future.
Thank you very much.
(Presentation to the President of folio by
Postmaster General Bailar.)
THE PRESIDENT: Thank you, Ben.
Let me make an observation. I was looking
in the office -- I have a little private office over the
Oval Office -- at a stamp collection that was started
in our family a good many years ago.
FORD LIBRARY give
As a matter of fact, I have a stamp collection
book that was given to me by an uncle and aunt, given to
me in 1922, which they had started in Argentina when they
were stationed there with an American company in 1912.
I don't know what it is worth -- I am not that
knowledgeable -- but a collection of stamps I think is
a great, great hobby. I have been collecting things in
this area, and at some time in the future I am going to
sit down and enjoy them and really get the benefit from
the great causes and things that they represent.
MORE
Page 4
I thank you very much, Ben, for your thought-
fulness and your expression on this occasion. This
will be one thing that I will remember for a long time,
and very deeply.
Thank you.
END
(AT 9:17 P.M. EDT)
THE WHITE HOUSE
WASHINGTON
April 10, 1975
MEMORANDUM FOR:
JIM CONNOR
FROM:
JIM CANNON
SUBJECT:
LABOR ISSUES
This memo provides additional background information for the
President's April 11, 1975, orientation meeting with Secretary
Dunlop. I understand that you already have the OMB material
and suggested talking points, with which we are in general agree-
ment.
Pursuant to your request, I will focus on federal mediation activities
and the roles of the Secretary of Labor and the Director of the Federal
Mediation and Conciliation Service.
Labor Department
The Secretary of Labor's role in labor disputes is largely "unofficial,"
i.e., no statutory authority, except that derived from his position as
a principal advisor to the President. Over the years the Secretary has
exercised considerable influence and control over the Federal Mediation
and Conciliation Service (FMCS) and the Federal Mediation Board (FMB).
Because both the FMCS and FMB are supposedly neutral, the Secretary
of Labor can and does act as the Administration spokesman.
FORD
The Secretary of Labor, and occasionally his representatives, have, in
the past, engaged in mediation activities. These activities were in
GERALD
LIBRARY
conflict with the assigned responsibilities of FMCS and have been the
product of personalities rather than any statutory authority.
Unfortunately, these personalities also come into conflict with the
"mediation" process. However, past Labor Secretaries such as Arthur
Goldberg were considered a constructive, positive factor. Peter Brennan
was not considered helpful.
2
The Federal Mediation and Conciliation Service
Prior to its establishment in 1947 as a totally independent agency, the
FMCS had been part of the Labor Department. The Director of FMCS
is appointed by the President by and with the advice and consent of the
Senate.
Section 202 of the Taft-Hartley Act (Labor Management Relations Act)
states 11
all mediation and conciliation functions of the Secretary
of Labor or the U. S. Conciliation Service
are hereby transferred
to the Federal Mediation and Conciliation Service
11
Under this
authority, the Service is directed to prevent or minimize interruptions
growing out of labor disputes in any industry affecting commerce.
The Service's professional staff is composed of about 280 mediators
stationed in the major industrial areas of the United States. Mediator
participation is keyed to a 30-day contract termination notice that parties
to a collective bargaining agreement must file with the Service. Based
on these notices, the Service participates in approximately 8, 000 contract
negotiations each year. In particularly significant disputes and those
having national impact in health, safety, defense or energy areas, the
Service assigns representatives from its national office in Washington.
The Director, William J. Usery, often acts as mediator in nationally
significant cases, is highly respected and very effective.
FORD
ERALD
LIER
National Mediation Board
Section 4 of the Railway Labor Act established the National Mediation
Board as an independent agency in the Executive Branch of the Government.
The Board is composed of three members appointed by the President by
and with the advice and consent of the Senate. Not more than two members
can be of the same political party.
The Board was established to mediate disputes arising in the transportation
industry, specifically railroads and airlines. The Board differs from FMCS
in that it exercises greater control over when the parties may be released
to engage in economic actions against each other. The Board can, to
some degree, control the timing of a work stoppage; however, it cannot
prohibit one. FMCS has access to persuasive powers only.
3
Once the Board notifies the parties, in writing, that its mediatory efforts
have failed, the parties are free to use any forum they choose to resolve
their dispute. There is no requirement that the Board retain exclusive
jurisdiction over the dispute even though it involves railroad or airline
industries. This factor, combined with the Congressional intent, as
expressed in Title II of the Taft Hartley Act, 1947, as amended, of utilizing
mediation efforts to peacefully resolve industrial disputes, could form
the basis for a cooperative Governmental mediation effort between the
two agencies. However, it would appear that neither Act provided the
Secretary of Labor with any designated mediation function, nor any
regulatory control over either FMCS or the National Mediation Board.
The Need for Coordination
In January 1974, William Usery, in addition to his duties as Director of
FMCS, was appointed Special Assistant to the President for Labor Relations.
His mandate is the:
"coordination of the Government's mediation activities and other
labor relations activities involving the public and private sectors
of the economy, including airlines, railroads, trucking and Federal
state and local governments. The President has also asked Mr. Usery
to submit to him recommendations for the systematic development
of long-range governmental programs to promote labor-management
peace in each of the sectors of his assigned responsibilities. In
FORD
carrying out this responsibility, Mr. Usery will work closely with
all appropriate governmental agencies. 11
LIBRARY
Among other factors, this appointment was based on the recognition that
many industries, due to material and fuel shortages, were becoming
critically interdependent on each other and that the composition of many
industries such as transportation had changed dramatically. Accordingly,
this shift in character and structure dictated the need for coordination of
all mediation activities in an effort to minimize the impact of labor man-
agement disputes on all segments of the Nation's economy.
In a move to fully utilize the Government's mediation capabilities, Usery
has coordinated Governmental efforts in resolving the threatened nation-
wide stoppage by the Airline Pilots Association in December 1973, as well
4
as the stoppage by independent owner-operators in January 1974, and a
subsequent threatened stoppage in May 1974. All of these disputes were
affected by actions of several agencies and demonstrated the wisdom of
a coordinated approach in their resolution. The actions taken in these
instances illustrate the need to give careful consideration to further
implementation of a unified Governmental approach to mediation.
I would certainly recommend preserving Secretary Dunlop's role as
principal advisor on policy and legislation affecting Labor relations.
Bill Usery should continue in a "neutral" role which will not diminish
his outstanding mediation capabilities. While Usery should look to
the Secretary for advice on long term policy matters, the complexity
of the problems suggests that a close two-way exchange should be en-
couraged.
FORD & LIBRARY 0.79.938
OMB TALKING POINTS
Possible Response to Secretary Dunlop
1
(and 5b) Responsibilities in Labor-Management Area
Rely on Secretary Dunlop for policy development and communications
with labor and management on major policy direction; rely on
Mr. Usery for mediation of particular disputes and work on
improving labor-management relations in specific situations, in
accordance with Secretary Dunlop's policy guidance.
2. Equal employment opportunity conflicts
a. Tell Secretary Dunlop that you have the regulations and are
expecting an options paper on them from OMB very shortly,
covering this and other issues in the regulations. Assure
him that DOL's views will be taken into account.
b. Say that over the long-term a regular forum for avoiding
conflicts in civil rights regulations of contractors and
aid recipients must be created. HEW has proposed that it
be added to the Equal Employment Opportunity Coordinating
Council for this purpose.
C. Point out that the increasing use of the procurement system
to accomplish social goals (setting wage levels; increasing
employment of minorities, women, handicapped, and veterans)
are burdening the procurement process, and that each new
addition dilutes the effectiveness of the method. Ask
Secretary Dunlop to work with the new Office of Procurement
Policy in its efforts to rationalize the system.
3. Follow-up on Education and Work
You are still waiting for a report from the Secretaries of HEW,
Labor, and Commerce that proposes a reasonable Federal role,
provides a unified strategy, specifies achievable objectives,
uses existing programs, and recognizes budgetary constraints.
Suggest a June deadline.
4. Legislation
a. Unemployment compensation.
ALOR 10 FORD
2
Emphasize the need for careful analysis to assure that proposed
changes do not have unfortunate, unintended results. Suggest
limiting legislation now to the extension of coverage (assuming
the policy question of Federal imposition of costs on State and
local governments can be resolved) and to setting up a commission
to consider other changes.
b. Farm-labor relations
Ask for submission of a draft bill so that issues can be
resolved and an Administration position developed.
C. Federal labor relations
Point out that effective use of his authority under the
revised executive order is the Administration's way to
avoid legislation in this area.
d. Workers' compensation
Ask for a vigorous pursuit of the task force effort to
help States improve their programs and to find answers to
the issues presented in the interdepartmental White Paper.
Point out that unnecessary and premature Federalization
must be avoided.
e. Construction labor relations
Ask for a paper proposing specifics and alternatives, and
an analysis of how it might affect other sectors.
FORD
5. Priorities in Department
a. Quality of Administration - OSHA, pensions, OFCC
Agree that these are areas of priority concern, and that
capable top management should be secured.
b. Communications with labor and management. See topic 1.
C. Long-term structural reform in collective bargaining.
Suggest that it might be useful to have a major paper outlining
the major problem areas and proposing alternative strategies
and priorities for approaching them.
THE WHITE HOUSE
WASHINGTON
April 10, 1975
see folder, too
MEETING WITH SECRETARY OF LABOR JOHN T. DUNLOP
Friday, April 11, 1975
2:00 p.m. (60 minutes)
The Oval Office
From: James E. Connor off
I. PURPOSE
To meet with Secretary Dunlop in order to discuss several broad
issues of mutual concern.
II.
BACKGROUND, PARTICIPANTS & PRESS PLAN
A. Background: This is your first private session with Secretary
Dunlop since his swearing in on March 18, 1975. You have
met with him several times, however, in Economic-Energy
sessions.
This will be the fourth in a series of meetings with your new
Cabinet officers. It is intended to enable you and the Secretary
to get to know one another better, and to enable each of you
to indicate general policy areas and approaches you consider
important.
B.
Participants: Secretary of Labor John Dunlop, James Connor
and James Cannon.
C. Press Plan: Announcement to the Press. Press Photo
opportunity at opening of meeting and David Hume Kennerly
photo.
FORD is LIBRARY
- 2 -
D.
Discussion: The Secretary has suggested several items he
would like to raise with you.
1. The title and role of the Special Assistant to the President
for Labor Relations.
In January 1974, William Usery, in addition to his duties as
Director of FMCS, was appointed Special Assistant to the
President for Labor Relations. His mandate is the:
"coordination of the Government's mediation activities
and other labor relations activities involving the public
and private sectors of the economy, including airlines,
railroads, trucking and Federal, state and local governments.
The President has also asked Mr. Usery to submit to
him recommendations for the systematic development
of long-range governmental programs to promote
labor-management peace in each of the sectors of his
assigned responsibilities. In carrying out this
responsibility, Mr. Usery will work closely with all
appropriate governmental agencies."
Mr. Usery will be meeting with you following the Dunlop meeting.
2. National Mediation Board.
The Railway Labor Act established the National Mediation
Board as an independent agency in the Executive Branch of
the Government. The Board is composed of three members
appointed by the President by and with the advice and consent
of the Senate. No more than two members can be of the
same political party.
The Board was established to mediate disputes arising in
the transportation industry, specifically railroads and airlines.
The Board differs from the Federal Mediation and Conciliation
Service (FMCS) in that it exercises greater control over when
the parties may be released to engage in economic actions
against each other. The Board can, to some degree, control
ERALD FORD LIBRARY
the timing of a work stoppage; however, it cannot prohibit one.
FMCS has access to persuasive powers only.
It appears that the law does not provide the Secretary of Labor
with any designated mediation function, nor any regulatory
control over either FMCS or the National Mediation Board.
- 3 -
3. Coordination of Federal Civil Rights Efforts.
The Secretary suggests that there is a need to coordinate
the EEOC, the OFCC in the Labor Department and government
contract letting agencies. He-thinks that present conflicting
policies and rulings are undesirable and that an opportunity
is at hand for coordination. He has spoken to Cap Weinberger
about this matter as it relates to Universities and to
Bob Hampton insofar as it relates to policies for government
employment and the need to revive coordinated procedures.
4. Legislative Priorities.
The Secretary would like to discuss broadly a number of
possible legislative matters in order to get your sense of
priorities. The items he has suggested are:
a. Longer term revisions of unemployment compensation.
b. Farm labor relations.
c. Federal labor relations.
d. Construction labor relations.
5. Administrative Priorities.
The Secretary wishes to inform you of his administrative
priorities within the Department of Labor. These include:
a. Improving the quality of administration with OSHA,
the Labor-Management Services Administration (pension
reform) and the Office of Federal Contract Compliance.
b. Improving communications with both labor and
management.
c. Long term structural reform in certain collective
bargaining sectors particularly construction, maritime,
cement and food distribution.
d. Working with the Productivity Commission on ways
of improving the long-term growth of productivity.
FORD is LIBRARY QERALD
- 4 -
6. The Secretary would also like to discuss his approaches to
Congressional and press relations and to solicit your
reaction.
7. OMB has prepared a substantial background paper
covering Department of Labor issues (TAB A). In it
they make several points which parallel the areas
Secretary Dunlop wishes to raise. These are:
a. Unemployment insurance. The Labor Department
study of Unemployment Benefit exhaustion, requested
on March 5, is needed promptly in order to develop
an appropriate Administration position. Preliminary
results were requested by March 28.
The Department is pushing for its draft bill for changes
in the permanent unemployment insurance law.
Experience under the present temporary program, and
a much more solid analysis of the need and effect of
the proposed changes, are needed before a good bill
can be prepared.
b. Occupational Safety and Health. The many conflicting
pressures on this program require sensitive management
to assure that actions taken will decrease accidents
and disease, and yet not cause unexpected adverse
results in the economy. Almost 4 1/2 years after
passage of the Act, DOL has not been able to reach
agreement with other agencies having similar or
overlapping authorities. Employers and employees
cannot be sure which regulations apply to them, who
will inspect them, and where to register complaints.
Effort by the Secretary will be necessary to resolve
these problems.
c. Pension Reform. DOL's implementation of the
fiduciary, reporting, and disclosure aspects of this
new law is excessively slow: no implementation plan;
no work priorities; unresolved issues; slow staffing.
This area needs top management attention to avoid
embarrassment.
FORD & LIBRARY GERALD
- 5 -
8.
In addition to the above, OMB has suggested that you
might wish to stress to the Secretary the importance
of implementing CETA quickly and effectively.
9.
The Department of Labor has an extremely large role
in Federal regulation. You might wish to discuss with
the Secretary your views on the potentially harmful
effects of regulation on economic activity. (The Secretary
had not been sworn in by the time of the Cabinet session
at which you discussed the catalytic converter.)
10. In your meetings with Attorney General Levi and
Secretary Coleman you discussed areas in which they
might cooperate with Secretary Dunlop. Attorney General
Levi was concerned with illegal alien immigration and
Secretary Coleman with mass transit contracting provisions
and railroad work rules. Secretary Dunlop indicates that
he has had discussions with both Levi and Coleman. You
might wish to ask him to give you a progress report in
these areas.
III.
TALKING POINTS
FORD & LIBRARY GENALD
1.
John, I've had a meeting with each of my new Cabinet officers
to discuss broad policy questions. I'd like to get your views
and to give you my own.
2.
I understand there are several areas you would like to discuss.
Let's start with them.
3.
John, I think that the administrative problems you've discussed
relating to OSHA, OFCC and the pension area areof extremely
high priority. I also think it is important that we make sure
that we start out on the right foot with the CETA program. I
hope you give it your personal attention.
4.
John, I don't believe you had yet been sworn in when we discussed
the catalytic converter at a Cabinet meeting. That case
provides a good example of how we can lose control of the
regulatory process and wind up paying an enormous price for
our mistakes. I hope you will be sensitive to the problem and
personally make sure that the regulatory process is continually
examined to make sure that we don't continually pile costs
unnecessarily on the American people.
- 6 -
5.
When I talked with Ed Levi and Bill Coleman they indicated
that they wanted to work with you on some issues. How's
that coming?
6.
I want you to know that you will have access to me when
you need it. I've asked Jim Connor to meet with you
regularly. If you need quick answers or want to see me,
let him know.
FORD is LIBRARY GERALD
I-A
Income Maintenance
Unemployment Insurance
(Manpower Administration)
Permanent Law - Changes
The Department sought clearance for substantial amendments
to the present law, among them: mandating coverage for
farmworkers and some groups of State and local education
and hospital workers; increasing permanent benefit dura-
tion to 39 weeks for some workers with Federal cost sharing;
increasing the weekly benefits of workers by a Federal
standard; revising the trigger for extended benefits; and
increasing the Federal Unemployment Tax Act wage base and
rate to improve the financing of the program. In January,
after the recent enactment of a temporary law extending
coverage, you enunciated a policy of no new spending pro-
grams and consequently consideration of the Labor proposal,
which would take effect in 1977, was deferred pending an
evaluation of the operation and costs of the temporary law.
Little supportive material other than "soft" rationales was
provided for the amendments. Costs associated with this
proposal are $3.5 to $4.9 billion annually.
Temporary Law
We are presently faced with special interest legislation to
provide health insurance either through continuation of pri-
vate employer coverage or Medicare for unemployed workers.
Both Labor and HEW have testified in opposition. Soon we
will be faced with: (1) extension of the Special Unemploy-
ment Assistance Program (SUAP) which provides temporary
coverage for up to 26 weeks to workers not covered by per-
manent law and terminates on December 31, 1975, and (2) pos-
sible increases in the maximum number of weeks the benefit
can be paid:
-- for covered workers from the present 52 to
65 weeks
-- for "uncovered workers" from 26 to 39 weeks.
Policy has not been developed on the proper relation of
benefit duration to economic conditions, or the distinction
between UI and welfare. You recently asked for analysis of
the problem of workers exhausting unemployment insurance
benefits. This information will be needed to effectively
address these and other potential legislative proposals.
BERALD FORD VIBRARY
I-A-2
Recommendation
That you urge Mr. Dunlop to assure that preliminary results
of the analysis are ready by the end of the month.
GERALD R. FORD LIBRARY
I-B
Income Maintenance
Black Lung Legislative Threat
(Employment Standards Administration)
The Federal Coal Mine and Safety Act of 1969 (FCMSA)
provides Federal benefit payments for underground coal
miners disabled by "black lung." Through 1972, the
Social Security Administration was responsible for the
program. Since then, DOL has been charged with deter-
mining eligibility for benefits, locating responsible
coal mine operators, and assessing costs of benefits to
them or their insurers.
The law is designed to make it easy for miners to qualify,
and includes medically dubious "rebuttable presumptions",
and limits the medical evidence that can be used to dis-
qualify living or dead miners who worked at least fifteen
years in underground mines.
The DOL administration of the program, although apparently
well run and sensitive to potential beneficiary filing and
adjudicatory problems, has not been able to settle claims
fast enough for the unions and their supporters in Congress.
However, major responsibility for current backlogs comes
from delays in getting private doctor reports and a large
volume of industry initiated appeals.
The House Labor Committee is now considering bills to add
still more questionable medical presumptions - even to the
point of effectively creating a Federal pension for some
miners - and to change the nature of the program from a
Federally enforced program of industry financed insurance
or self-insurance to a permanent, Federal trust fund
financed by a production tax.
This further Federal initiative into disability compensation
would provide disincentives for State reform of workers'
compensation and would be contrary to the Administration's
efforts to work with them for reform of the existing systems.
The looser presumptions and fundamental change to a per-
manent Federal program are unnecessary given the expectation
of a drastically declining claims load (under current
legislation) throughout the 1970's.
FORD is LIBRARY 87839
I-C
Income Maintenance
Federalization of Workers' Compensation
(DOL led inter-department task force)
The National Commission on State Workmen's Compensation
Laws was created in 1970 to study State programs compen-
sating workers (or survivors) disabled or killed in the
workplace. The Commission recommended in 1972 that the
States' primary responsibility for the program should be
retained, but that State programs be improved by increasing
coverage, benefit payments, medical care, and rehabilita-
tion. It recommended that if States had not improved by
July 1, 1975, the Federal Government should by law "guarantee"
the improvements. A Williams-Javits bill in the last Congress
would have set Federal standards for State programs and DOL
preemption, in case of unmet standards, of State compensa-
tion insurance regulation. The Administration alternative
to this attempt at Federalization took the form of an
Inter-departmental Workers Compensation Task Force with
inputs from Commerce, HEW, and HUD and led by DOL. In
addition to giving technical assistance to the States as
recommended by the Commission, it was given a research
mandate for problems not thoroughly covered by the Commis-
sion. These include the excessive proportion of premiums
collected going to administrative and legal costs and to
compensation for minor injuries. The task force has a small
staff (26 DOL and other agency personnel) and is lightly
funded ($700 thousand for research in FY 75). It has been
so slow in arrangements for its contract research that the
planned January, 1976 report to the President will probably
be late. Limited State adoption of the recommendations of
the Commission can now be reported. Very few States can be
expected this year to extend coverage (especially to domestics
and agriculture workers), or increase benefits to the extent
recommended by the Commission, because of economic conditions
and reluctance to increase the cost of hiring more workers.
The work of this task force is still the Administration's
principal response to premature Federalization of workers'
compensation. Although the legislative threat might have
receded somewhat for 1975, the task force work must not be
allowed to further lag in time and thoroughness if credi-
bility is to be maintained.
REFORD & LIBRAB 07V830
II-A
Manpower Programs
Public Service Employment (PSE)
(Manpower Administration)
We are now committed to the expenditure of about $4.1 billion
for PSE in FY 75/76. These funds follow a program design
created to meet many conflicting goals, but with the emphasis
primarily on transitional employment opportunities leading to
unsubsidized private or public sector employment.
In the Congress and elsewhere, PSE is also being advocated as
(1) a substitute for the "dole" (unemployment compensation or
welfare) ; (2) essential job creation, regardless of economic
conditions; (3) fiscal relief for States and localities;
(4) a vehicle to get the disadvantaged into the stability and
good pay of the public sector work force; and (5) a device to
counter excess unemployment. In the aggregate it can be
shown that some of these are mutually exclusive goals, but
that has not detracted from the power of the drive for more
PSE.
The Labor Department has not done any serious in-depth analysis
of potential economic and social policy goals, where and when
PSE might fit into plans to meet the goals, and what types of
PSE designs are therefore needed.
Without this kind of analytical framework, we are unable to
provide more than a range of generic rebuttals to PSE advo-
cates, and are therefore in a weak position from which to
pursue our overall strategy of private sector job development.
FORD is LIBRARY 038870
II-B
Manpower Programs
CETA Implementation
(Manpower Administration)
The Comprehensive Employment and Training Act of 1973 as
amended (CETA), set up a nationwide network of State and
local government prime sponsors responsible for planning
and operating manpower programs, under broad Federal
direction. The Labor Department performed very well in
negotiating prime sponsorship agreements and subsequently
has executed each successive grant or funding agreement
(about 10 different sets in the last year) with reasonable
efficiency.
Several significant problems seem to be developing. Activity
reporting by sponsors is delinquent and inaccurate in many
instances. Federal staff are devoting substantial time and
effort to sponsor plan drafting and modification. The trend
in regulation revision and field guidance is toward greater
specificity, narrowing the area of sponsor flexibility.
Despite the availability in the field of more than one full-
time professional per sponsor, the Department continually
requests more Federal staff to monitor sponsors. It took a
major initiative from OMB to bring about a CETA evaluation
plan that might make possible the development of data which
is relevant to policy choices.
The Federal Government retains the ultimate responsibility to
ensure that manpower funds are being used efficiently to meet
the needs of the eligible population. This did not change with
CETA. Federal staff should be focusing on providing quality
technical assistance to sponsors so that they do not repeat
the learning process the Federal Government went through since
1962. Staff must also ensure compliance with the Act.
Apparently, some local responsibilities are being assumed by
Federal staff, probably at the urging of the less experienced
sponsors. It is also likely that the Federal staff are still
inclined to focus on issues of a procedural nature rather than
on program results. The pace at which we have put out ever
greater increments of funds may be the cause of much of this.
However, unless careful attention is given to these initial
symptoms, the CETA program may lapse back into tight Federal
controls over both major and minor operating strategies and
tactics. The expected advantages of decentralization and
decategorization will not even have been tested, much less
realized.
GERALD FORD LIBRARY
II-B-2
Recommendation
It could be useful to our entire policy of greater reliance
on State and local governments if you asked Mr. Dunlop:
1. to take a fresh look at CETA implementation to assure
that the Federal Government is not assuming duties
that properly belong to State and local governments,
2. to assure that the evaluation can tell us how
decentralization and decategorization works and,
over time, what measurable impact manpower programs
have on the employment and earnings of participants.
FORD is LIBRARY
II-C
Manpower Programs
Work Incentive Program (WIN)
(Manpower Administration)
The WIN program, administered jointly by DOL and HEW, is
intended to get recipients of Aid to Families with Dependent
Children (AFDC) into jobs. The law, as modified in December,
1971, requires all AFDC recipients, unless exempt for such
reasons as health or children under six, to register for work
or training. HEW has the responsibility for providing child
care or other supportive services needed to enable AFDC
recipients to accept work or training. DOL has the responsi-
bility of helping registered AFDC recipients, certified by
HEW as ready for work or training, to find work. It also
provides for on-the-job training, classroom training, or
subsidized public service jobs to help registrants prepare
for the regular job market.
For a year and a half, the two Departments have been trying
to develop new joint regulations to change the program. The
primary aim of the proposed changes is to increase the chances
of placing AFDC recipients directly into jobs without going
through the more expensive training or subsidized employment
programs. The proposed regulations resulted in many public
comments, including challenges to their legality. The agen-
cies cannot agree on final regulations. The major issue is
whether AFDC recipients registered for WIN should be required
to look for a job before they have been certified as ready
for work or training. OMB has prepared a decision paper for
you on this issue.
In the meantime, the long wait for the new regulation has
caused some confusion and demoralization in the Federal and
State WIN staffs, and program operations are beginning to
suffer.
More basically, we do not have good evidence that the WIN
program can place significantly more AFDC recipients in jobs
than would find jobs on their own. The most optimistic esti-
mate of savings in welfare payments due to the WIN program do
not approach the cost of the program. A major evaluation is
underway, with preliminary results expected this summer, final
results after the first of the year.
GERALD R. LIBRARY FORD
II-C-2
Recommendation
It may be appropriate in your meeting with Mr. Dunlop to
stress:
1. The need for quick resolution of policy problems with
HEW so that the best possible WIN program may be
operated.
2. The need to complete as soon as practicable a meaningful
evaluation of the program that will enable you to judge
whether it is worth continuing at its current cost of
$315 million a year.
FORD i LIBRARY QERALD
II-D
Manpower Programs
Employment Service (ES)
(Manpower Administration)
The Federal-State Employment Service (ES) in existence since
1933, which is 100% Federally financed, has been faltering.
The proper role of the ES in today's labor market is not
clear, and the Labor Department has as an objective the
determination of its mission. A vast series of legislative
and administrative policies have resulted in overlapping
and conflicting goals and objectives making impossible any
meaningful approach to measuring ES performance. The Depart-
ment of Labor now allocates funds to States based on a method
that provides incentives to increase placements. Not only is
it not certain that placements are the best measure of ES
accomplishments, but the placement data used is not good.
Placements vary with respect to job duration and quality,
yet there is no measurement of actual job retention. The
sparse data collected on an ad hoc basis indicates that job
retention is low. For example, a 1973 study indicates that
only 43% of the employees placed in jobs with a reported
duration of 150 or more days were on the job after 30 days.
As the ES does not charge either employers or employees for
its services one would assume that if it effectively per-
forms there would be high utilization. In all but a few
States, mostly in the Southeast, there is little employer
use of the ES.
With the enactment of CETA, the ES is no longer mandated to
be the presumptive deliverer of services to manpower training
programs. But the Manpower Administration using the slogan
"to avoid the duplication of services" has put extreme pres-
sure on CETA prime sponsors to use these services (and finance
the costs) in spite of many sponsors' desire either to provide
the services themselves or contract elsewhere.
A key question for the future of the ES is whether a
nationally directed and funded program should be maintained,
or whether States should share in its direction and funding.
Associated with Federal direction is substantial enforcement
activity: inspection of migrant housing, assuring safe and
healthful workplaces, and compliance with other Federal labor
laws. This has set up a basic conflict between the role of
ES as a service agency called upon by employers and its role
as policeman.
GERALD FORD VIBRARY
II-E
Manpower Programs
Manpower Administration Management Problems
(Manpower Administration)
1. The Manpower Administration (MA) administers over
$21 billion in various programs of which $17 billion is
unemployment compensation benefits. The MA was created in
the sixties in a shotgun wedding between bureaus conducting
traditional employment service, unemployment insurance, and
apprenticeship activity with a bureau created to operate
poverty programs. In December 1973, the Comprehensive Em-
ployment and Training Act (CETA) did away with some 20
categorical programs operating through 10,000 direct Federal
contracts and set in place block grants to about 400 States
and localities.
Until CETA, MA was organized along categorical
program division lines in headquarters. The personnel
system was based primarily on a career series that offered
near automatic grade increases annually feeding into the
many divisions. The structural change force by CETA has
left a sharply over-graded and apparently over-staffed
organization.
Since the FY 74 Budget (the first post-CETA budget)
the MA has not been able to provide justification for its
personnel levels. Most effort has gone into supporting
current levels, not developing workload factors. As a
result there has been considerable pressure to reduce staf-
fing. The MA has not responded with a manpower development
program keyed to new responsibilities.
2. In the process of CETA development, we had urged
development of an MA strategy that would take into account
its full responsibilities: manpower policy development,
training and employment programs, WIN, ES/UI, apprentice-
ship. The Department successfully argued that the process
of obtaining basic decategorized manpower legislation could
be muddied by dealing with these other issues. There has
been little evidence in the post-CETA period of this strategy
question being addressed.
FORD & LIBRARY GERALD
III-A
Labor-Management
Pension Reform
(Labor-Management Services Administration)
The new pension reform law that was signed September 2,
1974 gives the Secretary of Labor new responsibilities
affecting over 35 million participants and beneficiaries
in over 750,000 welfare and pension plans. Implementa-
tion of these responsibilities is the subject of close
business, employee and congressional scrutiny and has
important implications for Federal administrative expenses,
employer costs and cash contributions, assets management
practices, and employee benefits.
DOL's first six month implementation effort has been
dangerously slow. For example, no overall implementation
plans exist, no workload priorities have been established,
major substantive issues remain unresolved, and staffing-
up for this new activity has been sluggish.
The FY 1975 budget estimate for the implementation of the
new pension reform law is $14.7 million and 435 positions.
The DOL requested an additional 529 positions in FY 1976,
but was denied because of the lack of workload data to
justify such an-increase. However, the DOL was informed
at that time that if workload data becomes available which
shows that the present resources are not enough to carry
out the Department's responsibilities under the new law,
we will consider requesting a supplemental appropriation
for FY 1976.
FORDO & LIBRARY GERALD
III-B
Labor-Management
Federal Labor-Management Relations
(Labor Management Services Administration)
Background
The Assistant Secretary for Labor-Management Services has
responsibilities under E.O. 11491 dealing with labor-
management relations within agencies of the Federal Govern-
ment. As a result of recommendations by the Federal Labor
Relations Council, E.O. 11491 was amended by E.O. 11838
issued on February 6, 1975. The amendments to the execu-
tive order should go a long way towards quelling the
criticisms of some of its opponents, expanding the scope
of bargaining, and permitting the Assistant Secretary to
take a more active role in unfair labor practice cases.
However, the amendments stop way short of what some union
officials would like to see, such as giving the Assistant
Secretary the prosecutorial role, the creation of a tri-
partite Federal Labor Relations Board and more flexible
provisions regarding unlawful job actions. Therefore we
can expect the reintroduction of legislation to replace
Executive Order 11838.
Recommendation
Secretary Dunlp should be made aware of the authority of
the Assistant Secretary under the new executive order, and
that the effective usé of this authority is the Administra-
tion's best way to avoid legislation in this area. If
additional resources are needed to carry out the new execu-
tive order, a supplemental appropriation should be requested.
FORD i LIBRARY 938839
III-C
Labor-Management
Federal Law for State and Local Public
Sector Labor Relations
(Special Departmental Task Force)
There has been substantial pressure building in recent
years for a Federal statute to regulate State and local
government labor relations. This is partly in response
to the pace of public sector unionization and also to
the perceived proliferation of public employee strikes.
The basic alternatives have been (a) simply applying
intact the provisions of the current National Labor
Relations Act, or (b) drafting a discrete statute tailored
to this sector.
Administration spokesmen have consistently argued against
any Federal law in this area on the grounds that we dó not
know enough about the appropriate path to take in light of
the wide variance in State and local laws now on the books,
the impact of such a Federal statute on State and local
policy setting and budgetary systems, and the generic ap-
propriateness of Federal regulation in this area.
However, internally we have recognized the growing need
for substantive analysis that might suggest acceptable
positions on key points should legislation become desirable
or inevitable.
To this end, the Department of Labor was asked last fall to
undertake the necessary analysis. A Labor task force had
apparently already started work. To date nothing has been
forthcoming from the Department.
There is a court case pending® that re-raises the issue of
the constitutionality of Federal regulations of State and
local employment (in the context of the Fair Labor Standards
Act) which may be delaying Labor's response. The analysis
needs to be pursued without regard to the case, since the
pressure for enactment of a statute may produce the need for
Administration positions before the case is decided.
FORDO & LIBRARY GERALD
III-D
Labor-Management
Labor-Management Reporting and
Disclosure Act (Landrum-Griffin)
(Labor Management Services Administration)
The National Commission on Industrial Peace, of which
Mr. Dunlop was an ex officio member, recommended a
"comprehensive review and examination" of LMRDA, par-
ticularly Title I, to see if it inhibits the exercise
of leadership by labor representatives. Some argue
that these "union democracy" provisions permit small
minorities to impose their wills and prevent settle-
ments of labor disputes. Mr. Dunlop may wish to
initiate such a review.
FORD is LIBRARY DERALD
IV-A
Employment Standards
Eliminating Discrimination and Setting Wage
Levels Through the Procurement Process
(Employment Standards Administration)
Background
The Employment Standards Administration (ESA) is responsible
for implementing several social-economic programs using the
Government's procurement system. These include: (1) setting
of wage levels and (2) the elimination of discrimination.
The magnitude of the Government's outlays for procurement
creates ample opportunity to use the system to accomplish
selected national goals unrelated to the primary purpose of
the procurement. However, this process is not without its
problems. Its effectiveness in accomplishing these goals
is perhaps over-rated. Each new program dependent upon the
procurement system adds an additional burden to Federal con-
tractors and becomes more costly and time consuming to
administer.
Wage Determinations
The Davis-Bacon and related Acts and the Service Contract
Act are intended to insure that the purchasing power of the
Government is not used to support wage rates and labor stan-
dards below those prevailing in the various localities where
the contracts are performed. Government-set wage and fringe
benefits under both programs are frequently criticized by
labor organizations, employer associations, Government agen-
cies and other interested parties as being too low or too
high.
The ESA wage determination program under the Davis-Bacon
and related Acts has been one, of the causes of rapid wage
escalation in the construction industry, with its resulting
inflationary pressures, and greater costs to the Government.
Because of its inflationary nature, the President suspended
the Davis-Bacon provisions for six weeks in 1971. The sus-
pension was rescinded in March of 1971 and a wage-price
stabilization mechanism was set up, including a tripartite
Industry Stabilization Committee, with John Dunlop as Chairman.
While the DOL's administration of the SCA has been under
just as much criticism as that of the Davis-Bacon Act, some
movement has been made towards resolving the problems it
has generated.
FORD & LIBRARY GERALD
IV-A-2
DOL and the major procurement agencies have formed a task
force to study the problems and have developed proposals
for their solution.
Elimination of Discrimination
E.O. 11246, Section 504 of the Vocational Rehabilitation
Act, and Title IV of the Vietnam Era Veterans' Readjustment
Assistance Act all require Federal contractors to take
affirmative action to increase employment opportunities
for selected groups of people. Such action must now be
directed toward increased employment of minorities, women,
handicapped, and veterans. All of these programs are
based upon the Federal contract compliance program for
minority employment, whose impact after eight years of
operation is questionable. A large part of the program's
ineffectiveness can be directly related to poor manage-
ment. However, continuing to add requirements for other
groups dilutes the effort and makes accomplishment of
employment goals for any one group more difficult. Yet
the number of programs modeled after this first Government
compliance effort continues to grow despite the burden
they place on Federal contracts, increasing cost to the
Government and lack of visible signs of impact.
GERALD FORD LIBRARY
V-A
Occupational Safety and Health
General
(Occupational Safety and Health Administration)
There are severe pressures on the DOL administration of
the Occupational Safety and Health Act. Its management
will have to be extremely sensitive because of the high
levels of concern and criticism from organized labor,
industry, small business, States, and other Federal agen-
cies.
Organized labor can be expected to exert pressure to
impede transfer of enforcement authority to the States
under the Act, or to end DOL support of State programs
altogether. They will urge strengthening of Federal
enforcement powers, increases in numbers of inspectors,
and faster issuance of standards. They can be expected
to strongly criticize the Administration requirement to
study inflationary impact as it affects OSHA regulations.
They may object to occupational safety and health enforce-
ment activities by agencies other than DOL (by DOT, for
example).
Industry will continue concern about the cost of compliance
with OSHA standards and the effect of DOL actions on labor-
management relations. They can be expected to continue
exhaustive court challenges to OSHA enforcement actions and
regulations and to strongly criticize it through the media
and political channels.
Small business interests and agriculture will continue to
complain about DOL "harassment", their special difficulties
with the Act, DOL administration, and cost of compliance.
They will seek special assistance or exemptions from coverage
even though a large proportion of occupational accidents and
illnesses occur in small workplaces.
States are concerned about continued Federal support, fear
excessive Federal monitoring, and will consider dropping
out of the program, thus increasing Federal costs. Con-
flicts with other agencies will continue because of over-
lapping authorities regarding the same items in differing
situations (e.g., hazardous materials) or regulations for
different purposes (e.g., public safety and worker safety)
FORD & LIBRARY GERALD
V-A-2
About 100 bills were introduced into the 93rd Congress to
amend the broad powers of the OSH Act and a large number
of these would have amended the OSHA relationship to small
business. Many have been reintroduced. DOL has taken the
position that any amendments to the Act would be premature
before several years experience in administering this dif-
ficult program. Although hearings have not been held on
any of these bills, FY 75 appropriations language was
passed to limit recordkeeping requirements for small busi-
nesses and $5 million was earmarked for consultative ser-
vices to small business, evidence that pressures to amend
the Act have grown. The Senate Committee on Labor and
Public Welfare began oversight hearings last year and sent
DOL for comment many GAO criticisms of program operations.
Oversight hearings will be held again this year.
Almost every public action of this small and highly visible
program is carefully watched by the interested groups for
possible challenge. DOL should be aware of the difficulty
of providing responsible management of such a program at a
time of increasing public awareness of workplace hazards
and the need to balance safety and health protection with
its costs.
FORD i LIBRARY 038470
V-B
Occupational Safety and Health
Health Standards
(Occupational Safety and Health Administration)
Except for the early adoption of national concensus standards,
DOL has not been able to develop timely, widely acceptable
workplace health standards. Much of the delay is due to
the inherent difficulties in the occupational health field.
Nevertheless, these problems have been enhanced by manage-
ment problems, the fear of legal challenges, problems of
coordination or agreement with other agencies regulating
similar areas, and the OSHA relationship with the National
Institute for Occupational Safety and Health (NIOSH) in
HEW. NIOSH does most of the research upon which new OSHA
standards are based. Cooperation between DOL and NIOSH is
critical to progress in this area, and the DOL/HEW record
of agreement on objectives has been dismal. (However, there
are some signs of a better working relationship at the
OSHA/NIOSH staff level on standards-related research.)
DOL has completed promulgation of only three new health
standards (asbestos, fourteen carcinogens, vinyl chloride)
and portions of two of these are being challenged in court.
Eight have been proposed and a few more proposals are ex-
pected soon, but the backlog of hazards under study and of
NIOSH research not yet converted into standards is huge.
Another embarrassing problem is the EPA/DOL disagreement,
in full public view, over DOL's proposed noise standards.
DOL has requested that OSHA standards be exempted from the
executive order and -OMB circular requiring inflation impact
studies. (They did not assert that the requirement would
impede standards development.) OSHA currently performs
some economic impact studies for proposed standards but
does not compare benefits with costs or measure inflationary
impact. OMB believes that the E.O. requirements are not in
basic conflict with DOL practices or needs.
FORD
is
GERALD
LIBRARY
V-C
Occupational Safety and Health
Interagency Jurisdiction Problems
(Occupational Safety and Health
Administration; Office of Solicitor)
The Occupational Safety and Health Act of 1970 states DOL's
broad safety and health regulatory powers do not apply where
other Federal agencies exercise jurisdiction. The law also
required the Secretary of Labor to report to Congress in
April, 1974 his legislative recommendations to avoid duplica-
tion and achieve coordination. Since passage, differing
agency interpretations of legal powers and duties have fore-
stalled most efforts to define interagency jurisdictional
boundaries and eliminate gaps and overlaps. DOL has opposed
any amendments to the OSH Act. OMB has encouraged negotiated
jurisdictional agreements to give employers and employees an
understanding of which Federal agency is responsible for what.
Only one such agreement (with MESA in Interior) has been
reached and DOL has shown some reluctance to follow it.
The DOL draft report to Congress, now almost one year over
due, was strongly criticized by other departments (Commerce,
Defense, Interior and Transportation). It reflects an apparent
strategy of relying on a series of court cases to resolve
jurisdictional issues. In the absence of interagency agree-
ments OMB has not cleared the report. A recent meeting among
DOL, DOT, and OMB resulted in agreement on a method to resolve
the issues between the two Departments. DOT is now taking
positive actions to regulate worker safety and health in
transportation areas, which may speed up agreements with six
agencies of that Department. However, previous difficulties
between the Departments suggest that some degree of OMB or
other intervention may be necessary to achieve formal agreement.
ERALD FORD LIBRARY
V-D
Occupational Safety and Health
State Programs
(Occupational Safety and Health Administration)
The Occupational Safety and Health Act allows States to
take over Federal occupational safety and health regula-
tory jurisdiction and receive up to 50% Federal financing
under OSHA approved plans. OSHA monitors State operations
to assure program effectiveness equal to the Federal occu-
pational safety and health program. Organized labor has
led opposition to the State programs because of the
generally poor State performance prior to the OSH Act.
DOL has encouraged the States to get into the program but
has been slow to relinquish enforcement authority and re-
deploy inspectors. Although the incentives allowed by the
OSH Act are not great, 26 States are operating OSH programs
under various stages of development and DOL approval.
Three important industrial States (New York, New Jersey,
Illinois) with DOL-approved plans but no basic enabling
legislation were recently given deadlines for that legis-
lation by DOL and are expected to withdrawy by June 30.
The absence of such States poses a threat to the Adminis-
tration's design for a Federal-State occupational safety
and health partnership and immediately raises issues of
the size and deployment of the OSHA enforcement staff.
Although DOL agreed to develop OSHA enforcement strategies
to increase State participation, no plans are yet available.
FORD is LIBRARI DERALD
V-E
Occupational Safety and Health
Federal Enforcement Staffing
(Occupational Safety and Health Administration)
Because of emphasis in the Occupational Safety and Health
Act and strong private sector interest, the size and manage-
ment of the OSHA Federal inspector and State program monitor
force will continue to be important issues. OMB has long
sought from DOL a rational system for targeting inspections
to achieve maximum impact of use of a necessarily limited
inspection staff. (An annual inspection of each of the
2.5 million workplaces not covered by State or other Federal
agencies could require 15,000 to 20,000 OSHA inspectors.)
DOL resisted, and did not develop any plan until a Presidential
decision in December 1974 to defer funds for 180 inspectors
included in the FY 75 appropriation above the Budget request.
DOL submitted and OMB approved an initial plan that included
use of a computer model to allocate inspectors by State in
rough proporation to the existence of workplace hazards.
Inspections can also be roughly targeted according to accident
rates. While usable for allocating a given number of in-
spectors and State program monitors, it cannot determine a
needed inspector level or plan inspection targetting to
maximize reductions in injuries or diseases. DOL has been
asked to work on these deficiencies, other refinements and
serious information gaps and to report progress to OMB.
OSHA can be expected to move soon to add inspection impact
information in hopes of justifying some larger level of
Federal inspectors. We believe it is more important to use
that information to determine what should be inspected to
achieve the maximum impact, and to develop other strategies
when inspections have little impact.
FORD is LIBRAR 038478
VI-A
General
Departmental Mechanisms for Policy
Decisions and Follow-up
The Department of Labor has often not been able to produce
quality analyses and recommendations for consideration in
the development of Administration policy. There are also
failures in attempts to carry out policy once decided.
Much of this problem appears to be caused by the lack of
an effective Departmental staff organization that can
secure, distill, and integrate relevant inputs from all
parts of the Department. As a result, reliance is placed
upon the individual agencies, which necessarily have
narrower perspectives.
Attempts have been made to establish such a staff, but at
present three separate staffs claim to perform all or part
of the overall function. None of the three now have strong
leadership or top quality people. Policy and program de-
velopment is assigned to the Assistant Secretary for Policy,
Evaluation and Research (ASPER). Within his organization
the Office of Policy Development is charged with developing
and analyzing new programs or major program changes. The
Office of Program Analysis and Special Studies is respon-
sible for developing long term program strategy and annual
programs for the entire Department, pulling together and
analyzing available information on needs and program effec-
tiveness. Lack of leadership in the offices has resulted
in a dissipation of staff, so that little talent remains.
Legislative development is handled primarily in the Solicitor's
office, which relies primarily on its own staff and that of
the agencies. The Assistant Secretary for Administration
and Management has an Office of Budget, with responsibilities
for annual program development, and an Office of Operations
Review, responsible for tracking accomplishments against plans.
Although these two Assistant Secretaries and the Solicitor
now sit with the Under Secretary on the Program and Budget
Review Committee, their separate staff support tends to
treat legislation, budget, and management issues affecting
the same programs as isolated transactions. What is needed
is the development of solid staff work to enable the Secretary
and Under Secretary to choose and implement a consistent
policy and emphasis, and to provide the quality advice needed
by the President.
FORDO is LIBRARY
VI-A-2
This problem is not unique to the Department of Labor, and
the existence of the Program and Budget Review Committee
is a positive step that could be a base on which to build
a Departmental staff capability.
Recommendation
It may be appropriate in your meeting to emphasize your need
for well researched, quality advice and alternatives from the
Department, as well as effective mechanisms to track policy
implementation, and to suggest that attention be given to the
need for a strong central staff organization.
FORD s LIBRARY GERALD
D Environments
THE WHITE HOUSE
WASHINGTON
August 18, 1975) 1975
Davie lim
This pasic
should be
Dear Dick:
um fronted
Thank you for your letter of August 4 regarding
the issue of collective bargaining by public
in
employees. I have passed it along to the proper
people in our policymaking bureaucracy but will
in addition keep it in my own mind when and if
Sou
the subject surfaces at the President's level.
Kind personal regards.
discussions
Sincerely,
ROBERT T. HARTMANN
Counsellor to the President
Mr. Richard D. Obenshain
Co-Chairman
Republican National Committee
310 First Street, S.E.
Washington, D. C. 20003
bcc: James J. Cannon III
vna. W 20
FORD & LIBRARY
Republican
National
Committee.
August 4, 1975
Richard D. Obenshain
Co-Chairman
The Honorable Robert T. Hartmann
Counsellor to the President
The White House
Washington, D.C.
Dear Bob:
I really enjoyed having lunch with you a couple of weeks ago,
even though the subject was such a tough one.
I hope you will not mind if, on occasion, I pass along my informal
personal comments on a pending political issue. As you have already
found out, I have a tendency to do this.
I am convinced that one of the most important, although still per-
haps latent, political issues is that of collective bargaining for
public employees. The recent garbage workers strike in New York,
as well as the thinly veiled threat of a postal workers strike,
has brought this issue to attention again.
I do not want to belabor the issue in detail. I believe, however,
that this issue is important to the future peace and happiness of
this country. I think we must resist the growing tide of agitation
for compulsory public-employee bargaining and take a strong and
definite position on that subject.
The basic issue is, simply, whether the expenditure of taxpayers'
funds is to be dictated by elected officials of local, state and
national governments, or whether wages, salaries and benefits paid
to public employees are to be established in a bargaining process
by parties who have no responsibility to the electorate for these
decisions. Secondarily, as has been demonstrated in almost every
major showdown between public employees and their governmental em-
ployers, the threat of a strike is always effective and is never
thwarted by the legal restrictions against strikes by public em-
ployees.
I hope it will not be presumptuous if I enclose a copy of the bench-
mark article on this subject by my old New York University Law School
professor, Sylvestor Petro. I am not suggesting it for your own bed-
time reading, but felt it might be helpful to whichever of your assoc-
FORD is LIBRARY GERALD
Dwight D. Eisenhower Republican Center: 310 First Street Southeast, Washington, D.C. 20003. (202) 484-6500.
Hon. Robert T. Hartmann
Page Two
ciates might have a primary role in developing the President's future
positions and statements on this subject.
One reason that this subject is still somewhat latent is because it
has thus far been faced on a state-by-state level. Thus, faced with
relentless pressure from liberal Democrats in the General Assembly,
Virginia Republicans have become very concerned about this issue in
Virginia. As a result of these local battles, a great many Republi-
cans have developed a very strong, emotional commitment to the princi-
ple of preserving the legislator's ultimate right to determine the
allocation of public money. They will be quite zealous in support
of this principle in the coming election and, conversely, I believe
they would be quite shaken if we were less than strong in our oppo-
sition to public-employee collective bargaining.
Please forgive me for going on so long, but my experience with this
issue in Virginia has led me to be very concerned about its potential
effect upon our national effort in 1976.
With kindest personal regards.
Sincerely,
Dide
Richard D. Obenshain
Enc.
Richmond Times-Dispatch
DAVID TENNANT BRYAN, Chairman and Publisher
ALAN S. DONNAHOE, President and Associate Publisher
JOHN E LEARD, Executive Editor ALF GOODYKOONTZ, Managing Editor
EDWARD GRIMSLEY, Editor of the Editorial Page
FORD
Thursday, July 3, 1975
The New Tyranny ARY
ERALO
L18
As the nation approaches its
in some places, for laws forcing
bicentennial, Americans are in
public employes to become union
grave danger of losing their
members.
freedom to public employe unions.
A few courageous public
As this is written, New York City
workers are striking back at forced
is in chaos, Pennsylvania's state
union membership laws. Fifty-
government has come to a virtual
seven Portland, Ore., city
standstill, and at other places
employes have filed suit attacking
across the country services vital to
an ordinance under which they
the well-being of the people are
must pay union dues. Twenty com-
threatened by militant actions of
munity college faculty members in
unions of public workers.
Minnesota have gone to court to
The nation is facing a showdown
claim that compulsory unionism
THE WHITE HOUSE
WASHINGTON
August 28, 1975
or
MEMORANDUM TO: JIM CANNON
one
FROM:
PAUL THEIS
SUBJECT:
AFL-CIO Labor Day Speech
Attached are proposed remarks for the President's use
at the AFL-CIO Labor Day Celebration and Benefit in
Augusta, Maine, on Saturday, August 30. The President
will address approximately 6, 000 people at the Augusta
Civic Center.
May we have your comments, along with your initials on
the attached clearance form by 10:00 a. m., tomorrow,
Friday, August 29?
Thanks.
Attachments
FOR ? LIBRARY & CERALD
CLEARANCE FORM FOR PRESIDENTIAL SPEECH MATERIAL
TO:
THE PRESIDENT
VIA:
ROBERT HARTMANN
FROM:
PAUL A. THEIS
SUBJECT:
AFL-CIO Speech
TIME, DATE AND PLACE OF PRESIDENTIAL USE:
10:15 a. m., Saturday, August 30, 1975, Augus ta, Maine
SPEECHWRITER: Friedman
EDITED BY:
Theis
BASIC RESEARCH/SPEECH MATERIAL SUPPLIED BY:
AFL-CIO, Research and Scheduling Offices
CLEARED BY (Please initial):
(X) OPERATIONS (Rumsfeld)
(X) CONGRESSIONAL/PUBLIC LIAISON (Marsh)
(x) PRESS (Nessen)
( ) LEGAL (Buchen)
(X) ECONOMIC POLICY BOARD (Seidman)
(X) OFFICE OF MANAGEMENT AND BUDGET (Lynn)
(X) DOMESTIC COUNCIL (Cannon)
( ) NATIONAL SECURITY COUNCIL (Scowcroft)
(X) RESEARCH (Waldron)
GERALD FCRD
(x) MARGITA WHITE (FYI)
( ) ENERGY RESOURCES COUNCIL (Zarb)
(X) COUNCIL OF ECONOMIC ADVISERS (Greenspan)
( ) OFFICE OF PUBLIC LIAISON (Baroody)
(X) SECRETARY DUNLOP
(Friedman)
August 28, 1975
First Draft
REMARKS OF THE PRESIDENT AT THE AFL-CIO RALLY,
SATURDAY, AUGUST 30, 1975, AUGUSTA, MAINE
I can think of no better way to celebrate this special day than
by your compassionate project to help the unfortunate children re-
ceiving treatment at the Pineland Hospital and Training Center. What
you are doing for Pineland brings new pride to the Pine Tree State.
A person never stands so high as when he or she stoops to help a child.
I am honored to participate. The efforts of the AFL-CIO of the
State of Maine, and of all others here, to build something necessary
for the children of Pineland are especially appropriate on Labor Day
weekend. As a Nation, we pause this weekend to pay tribute to our
country's working people. Let us this year give this weekend special
meaning by considering, not only the working people, but the millions
of our fellow citizens who are out of work through no fault of their own.
FORD
(more)
- 2 -
Here in Maine, and throughout New England, you have a work
ethic of individual enterprise, Yankee ingenuity, skilled craftsmanship,
and an independent spirit devoted to freedom. Your determination is as
enduring as your legendary rock-ribbed coasts.
But you have endúred more than your share. You are among
the Americans who suffered the heaviest impact of recession, inflation,
unemployment, and the energy crisis. I am aware of the special burden
of the energy crunch on Maine and neighboring States. I am also aware
of the frustration of individuals on fixed incomes. Today, I want to
address myself to the working people -- and those who are temporarily
unemployed -- in Maine, elsewhere in New England, and throughout
America.
It is the people in line for jobs as well as the laboring men and
women of America -- organized and unorganized - -whom we will honor
on Monday.
(more)
GCRALE FORD
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Just as America is unique, so is our Labor Day a uniquely American
holiday. In America, unlike some other countries, the goal of workers is
to share in the national bounty, not to destroy the system that produces
the bounty. Today, that system produces 85 million jobs. This represents
26 million more jobs than existed in America a quarter-century ago.
It represents about 1.2 million more than just last March. American incomes
and American working conditions are envied throughout the world.
Yet, all is not well this Labor Day weekend. This is no holiday
for those who are out of work. It is no real comfort to point to statistics
in other nations. The level of unemployment in the United States is too
high by any standard.
I have heard references to so-called "acceptable" rates of unemploy-
ment. I do not recognize the acceptability of any level of unemployment
as long as there are people who want to work and can't find employment.
The policies of my Administration are designed to hasten the day when
FORD
(more)
(Friedman)
August 28, 1975
First Draft
REMARKS OF THE PRESIDENT AT THE AFL-CIO RALLY,
SATURDAY, AUGUST 30, 1975, AUGUSTA, MAINE
I can think of no better way to celebrate this special day than
by your compassionate project to help the unfortunate children re-
ceiving treatment at the Pineland Hospital and Training Center. What
you are doing for Pineland brings new pride to the Pine Tree State.
A person never stands so high as when he or she stoops to help a child.
I am honored to participate. The efforts of the AFL-CIO of the
State of Maine, and of all others here, to build something necessary
for the children of Pineland are especially appropriate on Labor Day
weekend. As a Nation, we pause this weekend to pay tribute to our
country's working people. Let us this year give this weekend special
meaning by considering, not only the working people, but the millions
of our fellow citizens who are out of work through no fault of their own,
FORD
(more)
- 2 -
Here in Maine, and throughout New England, you have a work
ethic of individual enterprise, Yankee ingenuity, skilled craftsmanship,
and an independent spirit devoted to freedom. Your determination is as
enduring as your legendary rock-ribbed coasts.
But you have endured more than your share. You are among
the Americans who suffered the heaviest impact of recession, inflation,
unemployment, and the energy crisis. I am aware of the special burden
of the energy crunch on Maine and neighboring States. I am also aware
of the frustration of individuals on fixed incomes. Today, I want to
address myself to the working people -- and those who are temporarily
unemployed -- in Maine, elsewhere in New England, and throughout
America.
It is the people in line for jobs as well as the laboring men and
women of America -- organized and unorganized - -whom we will honor
on Monday.
FORD
(more)
- 3 -
Just as America is unique, so is our Labor Day a uniquely American
holiday. In America, unlike some other countries, the goal of workers is
to share in the national bounty, not to destroy the system that produces
the bounty. Today, that system produces 85 million jobs. This represents
26 million more jobs than existed in America a quarter-century ago.
It represents about 1.2 million more than just last March. American incomes
and American working conditions are envied throughout the world.
Yet, all is not well this Labor Day weekend. This is no holiday
for those who are out of work. It is no real comfort to point to statistics
in other nations. The level of unemployment in the United States is too
high by any standard.
I have heard references to so-called "acceptable" rates of unemploy-
ment. I do not recognize the acceptability of any level of unemployment
as long as there are people who want to work and can't find employment.
The policies of my Administration are designed to hasten the day when
(more)
BERALOR FORD
- 4 -
enough new jobs are created, on a sound economic base, to make every
day "Labor Day, 11 with all its rewards.
When statistics are published on the loss of jobs, there are some
losses which are not published. I refer to the loss of hope among the
high school and college graduates seeking their first job, the loss of
self-esteem among the heads of household who are laid off, the loss of
security and standards of living that people worked for years to achieve, and,
most important of all, the loss of faith in America's future. These are
tragic losses. They are losses that the United States of America cannot endure.
I pledge today to do everything in my power to generate new jobs.
But to achieve the job stability we want, I will continue to oppose stop-gap
programs that we cannot afford -- programs, conceived in panic and
partisanship, that will lead to nothing but new rounds of inflation and even
worse unemployment.
I agree with George Meany that jobs are what Labor Day is all
2072 LIBRA &
about. I join with all working people on this occasion when America
- 5 -
honors its workers -- organized and unorganized -- in a determined
resolve to put America back to work.
The door of the White House is open, as it has been since I
became President, to those who champion the cause of America's
working people. As long as I remain in office, this door will remain
open. Nor will I close my heart to the plight of the millions who are
unable to find work.
There have been favorable indicators of an easing of recession.
The rate of inflation this year is less than it was in 1974. But putting
America back to work is going to be a tough job for all of us. Making
sure that the jobs our economy provides are good jobs with a good
future -- real jobs and not make-work jobs -- is going to be even
tougher.
We have been making progress. Since March, more than one
FORD &
- 6 -
million persons have found jobs. But to get back to where we were
just a year ago, we are going to have to produce 3.2 million more jobs.
And each year from now until 1980, as our labor force expands, our
economy is going to have to provide work for another 1.6 million
people. By 1980, we must create over 11 million new jobs.
That is a big order. It cannot be filled by government alone,
or by industry alone or by unions or politicians acting on their own.
But the problem can and will be solved if we all work together,
just as you in this hall are today united to help less fortunate human
beings.
While the government can't do everything, it can do some
things.
It can help stimulate the private sector of the economy to create
(more)
TORD
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the jobs needed to put people to work and to provide work for those
entering the labor force. During the past year, American workers
1
and businesses received a tax cut to increase purchasing power and
stimulate growth. It helped to create jobs and to enable us to move
toward economic recovery.
Government can also provide the ground rules for fair play so that
all workers have an equal chance to find a secure job that pays good
wages under decent conditions.
During the past year, continuing improvements have been made
in those laws designed to protect and advance the welfare of American
workers.
A year ago, on Labor Day, I signed the Employee Retirement
Income Security Act -- the long-awaited pension reform law -- to protect
retirement and other earned benefits.
(more)
FORD i LIBRARY SERVIC
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We have also implemented a program to help American workers
adversely affected by imports under the Trade Act. We have further
revitalized training for the unemployed and marginally employed
through revenue sharing with State and local governments. This
Administration has próvided for 310, 000 public service jobs for the
unemployed.
During the year, there has been a further increase in the minimum
wage under 1974 amendments to the Fair Labor Standards Act and more
people are now protected by the law against age discrimination in
employment. We are in the process of developing new standards to
protect the safety and health of American workers on the job, and have
stepped up our attack against occupational diseases.
We are continuing to make improvements in programs
to end discrimination because of sex, race, religion, age, national
origin or physical or mental handicap in'the workplaces of America.
(more)
FORD & LIBRARY
- 9 -
This year, International Women's year, we are making an even
greater effort to help women achieve true equality in all areas of our
society, including jobs.
There have been improvements during the year in programs to help
returning servicemen find decent jobs. We have broadened our program
for creative labor-management relations in the Federal Government.
The government must do the best possible job to protect the unemployed
worker. While by no means an answer to the problem of unemployment,
the unemployment insurance system keeps individuals and society functioning.
Some $20 billion in benefits will be disbursed in 1975, providing
a means of temporary income maintenance for unemployed workers. That
money, pumped into the economy, serves as another built-in stabilizer
by providing purchasing power to the unemployed worker.
FORD & LIBRARY
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It temporarily sustains the unemployed and even creates some new
jobs.
I have proposed to the Congress necessary improvements to be
made in areas such as adequacy and duration of coverage. Using new
insights and experience, we will work with the Congress to improve
the system.
I am aware that some workers in Maine and elsewhere have lost
their jobs as a result of imports from abroad. Last May some 300 employees
of the Allen Quimby Veneer Company in Bingham, Maine, became
the first workers to be certified under the Trade Act of 1974 as eligible
to apply for trade adjustment assistance.
For the first time in the nearly forty-year history of unemployment
compensation in the State of Maine, your state applied this month for a
(more)
FORD & LIBRARY
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$2. 4 million Federal loan to pay for unemployment insurance benefits
starting in September. I am pleased to say today that we are granting
Maine's request.
This Administration recognizes the equal importance to recovery
of controlling inflation and of creating good jobs. These joint goals are
essential to our program of restoring the strength our economy needs.
All of us -- labor, management and government -- must work
together if we are to secure long-term health for our economy. This
is the only course that will bring real jobs for all those who want
and need them, and paychecks with stable purchasing power to maintain
a decent standard of living.
We must increase productivity; improve our competitive
position in world markets; provide needed new capital for
(more)
FORD & LIBRARY GERALD
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industrial growth at home; and develop new energy sources to meet our
growing requirements. If we continue to make progress on all these
fronts, we can make even more gains in creating jobs and in reducing
inflation.
I call on business and industry to do everything possible to bring
back laid-off workers, to reassess the job assignments of those employed
beneath their true qualifications, and to give opportunities to young people
eager to join the labor force.
I appeal not only to the patriotism and courage of America's working
people but to these same qualities in business and industry.
I ask businessmen and industrialists to take a new look at ways
in which productivity can be increased by rehiring and new hiring. I ask them to
be more aggressive in seeking new markets at home and abroad to create
new jobs.
One Labor Day point I want to make goes for every day of the year,
(more)
GERALE FORD 1
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It does no good to call for wage restraint by labor without calling for
price restraint by business and industry. Inflation -- whether caused by
prices, wages, or taxes -- must be kept under control.
Economic progress depends on our ability to foster capital investment
and increase the productivity of our workers. The share of our gross national
product committed to
private
investment must increase significantly
over the next few years if we are to reach our economic potential. Economists
estimate that total investment requirements could go as high as $4 trillion.
Our financial ability to increase production is declining. This decline
is curtailing needed growth in jobs and income It undermines our ability
to compete internationally.
I am confident once this becomes clear to the American people
they will understand the need for tax policies that will help to channel
sufficient resources into the expansion of productive capacity.
FORD
(more)
- 14 1. -
We must not condemn our fellow citizens to unemployment because
the modern tools needed to compete in world markets are lacking.
This Administration has proposed reforms to the Congress to
stimulate what economists call "capital formation" through tax incentives.
But I prefer the term "job creation. " That is what my proposals are
all about.
I ask the Congress to join with me in this commitment to our Nation's
future, to more jobs, income and full economic recovery.
Additional capital cannot by itself revitalize the American economy
and our free market system. We must also take steps to help restore
the vitality of the marketplace. Effective competition is the way to do it.
Our Government too often has stifled competition in the name of
economic regulation to the detriment of the consumer and job seeker.
(more)
FORD LIBRAR
- 15 -
In many industries, transportation, energy, communication,
and others, Federal regulatory commissions have actually restrained
free competition with a bondage of red tape.
Some regulations are necessary and appropriate. I refer to those
protecting health, safety and the environment. But the reforms that we
seek would eliminate the impractical and outdated.
As part of this effort to insure that we have a strong economic
system, we must maintain an anti-trust policy which validates our commit-
ment to competitive markets.
As we reduce Government regulation of business, we must be
*absolutely certain that our anti-trust laws are vigorously enforced.
Competition, when freed of Government regulation and supported
by anti-trust laws, is the driving force of our economy. It will drive
costs down and assure new jobs. That is the story of America's amazing growth.
To seek more jobs, my Administration will look at the whole range
(more)
GERALD FORD LIBRAST
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of Government sanctioned monopoly -- from the small franchises
protected by Federal regulations, which rule out competition, all
the way to Government -endorsed cartels involving entire industries.
The Government has, in the past, done as much to create and perpetuate
monopoly as it has done to control or eliminate it.
If companies combine to raise prices, it violates our anti-trust
laws. But no laws are violated if an industry can get the Federal
Government to build trade barriers, to increase support prices for the
goods or services that it produces, or to restrain potential competitors
or pricecutters. Growth is constricted. Again, jobs are at stake.
The Government too often walks with industry along the road to
monopoly.
The result of such special treatment provides special benefits for a
few, but powerful, groups in the economy at the expense of the taxpayer.
(more)
GEEAL FORD CIBRAET
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the consumer, and the unemployed.
Let me emphasize this is not an Administration of special interests;
not of business interests; not of labor interests.
This is an Administration of the public interest.
We will not permit the continuation of monopoly privilege, which
is not in the public interest. It is my job and your job to open the
American marketplace. It is our-job to create new jobs.
As we work together to overcome problems of individuals, let us
remember our Founding Fathers' vision of a Nation in which people work
for the common good of the Nation.
I have often stated my conviction that we must have a
national defense second to none. Labor has stood at the forefront of the
defense of liberty, in war as in peace. But defense must rest upon more
than arms and armies. Defense depends upon the strength of the American
individual, the unity of the American family, the food in the American
kitchen, and the self-esteem that goes with the American paycheck
FORD
(more)
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We must maintain the social fabric of America for the national
defense to be credible. If we cannot believe in ourselves and in our future
**
as a Nation, what will there be left to defend?
Two hundred years ago the patriots from Maine and other states
risked their lives so that this Nation might be born. To win independence,
they surmounted great individual differences in background, culture and
outlook. They worked, and fought and died together for a common cause
none of them could achieve alone.
Although conditions have changed greatly in two hundred years,
I am fully confident that the spirit that saw us through in 1776 will guide
us to a great future. I know that America's working men and women will
be in the forefront. We depend upon you and we honor you.
###
FORD & LIBRARY GERALD