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From Jim Keogh to Haldeman, Henry Loomies task force report, "Labor Incomes and Manpoer Policies," 30 pgs. [Report], 11/11/1968
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From Jim Keogh to Haldeman, Henry Loomies task force report, "Labor Incomes and Manpoer Policies," 30 pgs. [Report], 11/11/1968
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Richard Nixon Presidential Library
White House Special Files Collection
Folder List
Box Number Folder Number Document Date Document Type Document Description
32
41
11/11/1968
Report
From Jim Keogh to Haldeman, Henry
Loomies task force report, "Labor Incomes
and Manpoer Policies," 30 pgs.
Tuesday, August 05, 2008
Page 1 of 1
To Bob Report
From
Jem Keogh
Here's Task Force
Report MOI from
Henry Loomis. He
Jave the "official"
copy to Pete Flaxigon
I thought + should
pass this one on
to you,
JK
November 11, 1968
LABOR, INCOMES, AND MANPOWER POLICIES
These three areas of policy, each with significant
content of its own, each touching matters with explosive
potential, analytical controversy and bi-partisan support,
are closely related to each other and to any general strategy
of economic policy. Actions in one area will have important
consequences for the others. We will examine each area
separately but we stress at the beginning the need for con-
sistency of thought and integration of effort.
Our recommendations have a common philosophic base.
We emphasize the importance of high employment as a goal
in itself and as a necessary condition for success with vital
manpower efforts, while recognizing and trying to deal with
the tension between this goal and that of reasonable price
stability. We cannot overstate the importance of placing
on unions and companies the responsibility for making
particular decisions free from government intervention
and for accepting the consequences to themselves of these
decisions. We believe that government should emphasize
-- establishing the general ervironment in which
individual wage, price, and employment
decisions are made;
-- help to leaders of unions and managements
in understanding this environment and in
acquiring realistic expectations of govern-
ment responses to their behavior; and
-- help to individuals in the development of
their own pattern of participation in job
activities.
Our more specific recommendations are a mixture of
the positive and the negative; and we give emphasis to both
as part of the mixture. It is as important to refrain from
questionable though oft-repeated remedies as it is to move
constructively and vigorously on other fronts.
On labor relations:
-- Government should minimize its White House and
Cabinet level intervention in labor disputes; but
-- Provide strong mediation services using the most
gifted private mediators as well as full time
employees of government;
-- Supplement the operating mediators with strong
staff and analytical work;
-- Seek improvement in the environment of labor
relations through administrative means rather
than legislative change; and
-- Study on an internal basis, but as a matter of
the highest priority, the problems of labor
relations among employees of government, Federal,
state and local.
2
On incomes policy:
-- Hold out no hope within the Administration or to
the public that "guidelines" or other policies
of voluntary or compulsory restraint can play
a significant role in retarding price and wage
increases;
-- Develop in every possible way the competitive
checks that operate in product and labor markets,
including use of the Government power as a buyer
of products and trainer of labor;
-- Seek ways to cushion the impact of unemployment
on the unemployed and spread its burden more
equitably among the population.
On manpower policy:
-- Maintain an expanding economy and low unemploy-
ment as necessary conditions for success with
manpower programs, especially those designed
to draw private industry into this effort;
-- Retain for the present and probably increase
subsequently the present level of Federal
effort with remedial programs; but
-- Change sharply the method of their administra-
tion, shifting from a program basis to a service-
oriented basis and simplifying the process of
moving funds from Washington into the field;
3
-- Develop the participation of the private sector
in remedial programs, building especially on
the strong start already made by the National
Alliance of Business in its JOBS program.
We have confined our attention to what we consider
the most important points and have not tried to deal with these
in a detailed manner. It may be noted that our somewhat diverse
group was able to agree on the main lines of recommended action
and inaction. The group did specialize to some degree. Further
detail could be sought from individuals as follows:
Labor-Management: Livernash, Brown, Mason,
Livingston, Smith *
Incomes Policy:
Reder, Brown
Manpower:
Mangum, Mason, Callender **
*
Smith could not participate in our final session but
earlier indicated his feeling of greater urgency as to
timing for legislative change in labor-management statutes
than was felt by the others.
**
Callender was unable to participate in our meetings
but could be a valuable source of ideas and reactions,
especially on employment problems of ghetto youth.
4
I. LABOR RELATIONS POLICY
Policy and action in the labor relations area may
be considered from two points of view: (A) legislative and
(B) administrative.
A. Legislative Policy and Action.
There will be strong industry pressure to seek
changes in labor legislation - quite basic and far-reaching
legislative change, including application of the antitrust
laws to labor. We question both the necessity and the
wisdom of this course of action; there is a strong consensus
within our group, including two professional industry repre-
sentatives, that now is not the time to seek changes in labor
legislation and that emphasis should be placed upon adminis-
trative policy and action.
There are several reasons why we do not support
seeking near-term legislative change: (1) Such change is
not at present urgently required. Industry can live with
the law as it stands and so can the unions. (2) A great
deal can be accomplished through changes in the administra-
tion of the labor laws. For example, while none of us agree
with recent elaborations in the duty to bargain in good faith,
a very significant change could be made by not issuing these
types of complaints and thus, indirectly, giving broader
scope to dispute resolution through arbitration. Again,
5
as an example, significant change in the functioning of the
Railway Labor Act could be accomplished by refusing to take
cases formally into mediation and emergency board procedures
until genuine bargaining has taken place. (3) Labor leaders
greatly fear "anti-labor" legislation. A drive for legis-
lative changes would confirm their worst fears. The labor
climate presently is one of militancy, with labor leaders
confronted by many internal problems. A working relationship
needs to be established with labor. Finally, (4) the outcome
of opening up labor legislation appears highly uncertain,
while the unsettling effects of the accompanying acrimony
are predictable. We have little confidence that controlled
and truly constructive change could now be accomplished.
We are, however, attaching as Appendix A a brief list of
limited legislative changes which might be considered if
and when the political climate appears appropriate.
B. Administrative Policy and Action
We believe that policy with respect to intervention
in major crisis situations is of crucial importance. That
policy should emphasize resolution of disputes through free
collective bargaining and be one of reluctance to intervene.
If intervention is nevertheless necessary, we support a
hard-nosed type of intervention. By this we mean as balanced
a view of the equities as can be achieved rather than an
6
opportunistic search for labor peace without regard to its
price. The hope would be that both parties would regard
high-level administrative intervention (and this would apply
either to the Secretary of Labor or the White House)
as both remote and less than attractive.
The above point of view does not mean that the
Department of Labor should not be strengthened in its labor
relations function. In fact, the Department should be
strengthened and reorganized from various points of view.
First, we envisage some shift in emphasis in the role of
the Secretary of Labor. While the Secretary should be a
man commanding respect for his labor relations capacity,
experience, and knowledge, the primary orientation of the
position should be shifted toward manpower policies and
administration. This subject is separately discussed.
Second, we suggest (administratively if possible through
the Reorganization Act, legislatively if necessary)
abolition of the artificial distinction between the
Mediation Service and the Department of Labor. The official
in charge of this expanded labor-management function should
rank as an Under-Secretary of the Department of Labor,
on a par with an Under-Secretary for Manpower Programs.
Finally, under this official there would be an operating
function (mediation) and a strengthened administrative
7
division carrying out a labor relations research and techni-
cal assistance function. These organizational changes are
not inconsistent with a basic policy of non-intervention
in crisis situations.
This research and technical assistance function
has a number of related purposes. It should build knowledge
and understanding of problems and issues in key negotiation
situations in the country. This involves following and
studying in depth the negotiation calendar for each year.
In addition, this research and assistance to the parties
and to government officials should carry out special studies,
some on a commissioned basis. These studies should be done
under various organizational formats depending upon the
purpose and character of the particular study. Some should
be done in close relationship with the parties. Some should
evaluate legislative effects. Some should study problems
with a focus on alternative legislative proposals. An
immediate topic of importance for research is the structure
of negotiations (coalition bargaining, multi-craft bargain-
ing, etc.)
C. Current Problems
Currently a joint (Department of Labor -
Mediation Service) study unit should be established to
study the 1969 negotiation scene. An initial review of
8
the calendar and of the deferred wage increase pattern is
now in process in the Department of Labor. Fortunately,
as an aside, 1969 is the light year in the three year
bargaining cycle which exists in the country. The year
is primarily characterized by the inclusion of the
General Electric - Westinghouse negotiation. Fortunately,
also, the level of already negotiated wage increases
becoming effective in 1969 will be lower than first-year
amounts negotiated for 1968. "Front-end loading" in three
year contracts has produced to date a 1968 wage increase
level of about 7.5 percent in major contracts. Second-year
adjustments will be significantly lower.
The Administration must do its best not to be
caught unprepared with respect to near-term potential
crisis situations. Immediate attention should be given
to the airline negotiations with the mechanics which open
January 1, 1969. The Administration may be confronted in
this situation with a vital and precedent-setting initial
crisis. It could be the most difficult situation to arise
during the year. The Administration will be tested as
well as the parties. Unplanned action needs to be mini-
mized. A second possible crisis could be East Coast
longshoremen. The hope is that this dispute will be
resolved prior to January 20th but it must be followed.
A third potential crisis, electrical manufacturing, is
not an immediate problem.
9
Finally, a most important and difficult problem
area is that of public employees. We suggest an almost
off-the-record, high-level internal task force to assess
the appropriate detailed approach. This should not be
simply a Department of Labor study, nor, in our judgment,
initially a widely announced commission or participative
group study. Over a period of time the Federal government
will inevitably become more deeply involved in this problem
at the state and local level. The question of the degree
of seriousness of potential problems at the Federal level
should be given early consideration. An evaluation of
Executive Order 10988 is now under way and its results
should be studied with care.
10
II. WAGE-PRICE POLICY
The presumed objective of national wage-price
policy is to reduce the inflationary effect of a monetary-
fiscal policy intended to facilitate economic expansion.
But the evidence from this country and abroad is that
voluntary restraints such as guideposts will not be ef-
fective and that statutory restraints will not be accepted
and would soon lose whatever initial effectiveness they
might have. The consequences of applying monetary-fiscal
brakes are so painful as frequently to tempt political
authorities to try to curb a wage-price spiral by threat
or exhortation rather than by holding down aggregate de-
mand. The temptation must be resisted, especially as to
the activities of the Council of Economic Advisers in
their efforts to influence particular wage and price
decisions. By implication, the normal reaction of the
government toward a key bargain or price change ought, at
most, to be an expression of hope that the parties will
not price themselves out of the market and an offer of
mediation services.
The only constructive role for direct government
intervention in wage-price setting can arise in the context
of sharp unexpected changes in the near term economic out-
look. War scares, the need for drastic increases in
11
expenditure to maintain domestic order and/or to offset
national disasters, exemplify the type of situation we
have in mind. Under such circumstances the ability of
the Treasury and the Fed to avert inflation may well be
doubted no matter how great their resolution nor how
firm their pronouncements. Because the effect of
monetary-fiscal action is usually felt only after a con-
siderable time interval, inflationary expectations may
therefore develop regardless of current policy. This
can create a situation in which the alternatives are
financial "crisis" or de facto acceptance of inflation.
Barring this limited role, we see no construc-
tive function for overall wage-price guidelines or direct
wage-price controls. Inflation must be resisted by re-
straining aggregate expenditure. Unfortunately such re-
straint tends to exact a price in terms of increased
unemployment. Usually, as at present, it is possible to
delay the arrival of unemployment by continuing the in-
flationary process. Political prudence often suggests
such delay; however such delay may have a price. (Like
most economists, we differ in our estimates of the size
of this price and in our degree of certainty that it must
be paid.) This price is (a) once inflationary expecta-
tions have taken hold, the onset of a recession and of
12
increased unemployment is difficult to defer except by ac-
celerating the pace of the inflation and (b) the faster the
inflation, the sharper the subsequent increase in unemploy-
ment may be. To trade current unemployment for a current
increase in the price level may also be to trade a lesser
increase in unemployment today for a greater increase later.
Nevertheless, we strongly urge against any tenden-
cy toward insensitivity to the consequences of increased
unemployment. At any time, these are likely to be serious
but especially so in the present circumstances. In our
view any increase in unemployment in the immediate future
will fall most heavily upon the minority groups, especial-
ly young workers, now being assisted to regular employment
by the programs described below. An increase in unemploy-
ment will substantially reduce the ability of the private
sector to absorb further contingents of marginally quali-
fied workers or even to retain those it now has. Unfor-
tunately this will continue to be true for at least the
next several years.
"Structural changes" such as those suggested below
will soften this conflict between increased economic oppor-
tunity for minority groups and greater price level stability.
Ultimately such changes may soften this conflict consider-
ably, but we do not believe that this desirable state of
13
affairs can even be approximated in the next four years.
Regretfully, we warn of a continuing diet of hard choices.
Softening the Choices
While the pain of reversing a process of economic
expansion cannot be eliminated, it can be reduced. The
following measures should help:
(1) Increase levels of unemployment compensa-
tion to two-thirds of take-home pay. Eligibility periods
for young workers should be inversely related to the local
unemployment rate.
(2) In states where now prohibited, permit laid
off workers eligible for unemployment compensation to re-
ceive training allowances without loss of benefits, there-
by encouraging prompt return to a work routine. In addi-
tion, institutional-type training opportunities should be
expanded in periods of rising unemployment.
(3) Expand on-the-job type training programs,
especially in construction, to take up slack in new hirings
in other industries. Try to strengthen the NAB set-up in
the construction industry and arrange for expanded appren-
ticeship programs. Requiring minimum ratios of apprentices
to Journeymen on government construction contracts, as in
a new California law, could increase employment of youth,
14
including minority youth, in construction; this requirement
could be imposed by an Executive Order of the President.
(4) Despite the great and obvious difficulties,
mobilize state employment services, local NAB chapters,
Urban Coalitions, and other interested parties to identify
as many job vacancies as possible and to publicize these
vacancies in establishments where layoffs are expected.
The present job vacancy statistics program of the Depart-
ment of Labor provides an established foundation on which
to build this program.
(5) At all times, part of the unemployment pool
consists of persons who could find jobs elsewhere if only
they would move. Moving allowances and subsidies will help
to encourage such movement. A successful pilot program
has been operated for three years under the Manpower Develop-
ment and Training Act and should be made into a permanent
part of manpower policy.
Improvements in Wage-Price Setting Machinery
We reject, for reasons of principle and practicality
the idea of governmental intervention in the process of deter-
mining specific wage rates and product prices. However,
without violating this principle, it is possible to improve
15
substantially the wage-price setting process in particular
industries. We will discuss the construction industry to
illustrate the types of things that might be done. Another
problem area of importance is medical and health services.
At present, wages and prices in the construction
industry are "excessive." This industry has long been a
prime example of undesirable labor market behavior. Several
corrective measures are possible: (1) The Davis-Bacon Act
should be administered more carefully with special concern
to find the rates actually prevailing for comparable work
rather than simply the union scale. At present, it serves
as an engine for spreading local wage increases and mini-
mizing contractors' fear of being priced out of the market,
thereby reducing their concern about union wage demands.
Indeed, the automatic application of this law in new
appropriations should be resisted and the possibility
of repeal studied. (2) It is essential that artificial
barriers to entry to the construction trades be eliminated
so that there can be a large and rapid expansion of the
number of building tradesmen, especially among minority
groups. Suitable apprenticeship programs should be spon-
sored by all levels of government, with union participation
where possible. Training methods should be revised and train-
ing periods shortened; state and local licensure laws should
be amended where necessary. The recent collective agreement
for the Boston area is an example of what concessions unions
16
can be induced to make in pursuit of this Jective, where
a quid pro quo of additional employment opportunities is
provided. (3) Efforts now underway to understand clearly
the causes and possible cures of seasonality in construction
work and to dampen monthly swings in the income of construction
workers should be pursued aggressively.
Another important aspect of the wage-price environ-
ment involves the role of international competition, tariff
policy and other import regulating devices. International
competition is already an important factor in steel and it
is increasing in automobiles and in many other areas. Tariff
reduction, or at least no increase and no quotas, would pro-
mote such competition and, for automobiles, so would liber-
alized tourist allowances. Steps to encourage purchase of
smaller cars, where foreign producers are more competitive,
such as taxes based on size or horsepower would obviously
encourage imports and might be desirable on other grounds
as well. "Buy American" clauses in legislation are bad and
should be resisted and/or ignored wherever possible.
Still further, we advocate continued surveillance
of product price fixing arrangements, by the Antitrust Divi-
sion. Where unions are vehicles of product price fixing they,
too, should be prosecuted.
17
III. MANPOWER POLICY
From time to time the federal government finds
itself with a legitimate interest in the processes by
which people are prepared for and find their way into jobs.
Examples are the concern in the 1950's that the numbers of
scientists, engineers and technicians and other professionals
were not expanding rapidly enough for purposes of national
security. Continuing federal support of vocational
education is another example. As pointed out earlier,
a restricted or too slowly growing supply of trained man-
power in certain fields, such as construction and health
may result in large wage increases and thereby aggravate
the wage-price problem. During the 1960's, however, the
emphasis in federal policy has been on the employment needs
of those who, for a variety of reasons, are at a disadvan-
tage in competing for available jobs. We agree with this
current priority and direct our suggestions to ways in
which this administration can capitalize on the experience
with current manpower programs.
Strengths and Weaknesses of Current Policies
The manpower policies and programs of the 1960's
have been useful experiments which offer a base of experi-
ence upon which to build a solid effective program. (See
Appendix B for a brief description and assessment of
current programs). The key problems were:
18
1. The backlog of unemployed and underemployed
people demanded remedial efforts to the neglect of pre-
ventive ones.
2. The ad hoc crisis by crisis, legislative
approach resulted in an overlapping, almost unmanageable
proliferation of programs.
3. The federal initiative created nationally
uniform programs not sufficiently adaptable to local
situations.
4. The program by program structure required
confining clients within program requirements rather than
conforming services to individual needs.
Nevertheless, the groundwork has been laid. Ex-
perience has accumulated and a nucleus of capable adminis-
trators is developing. Especially hopeful has been the
degree of commitment shown by private employers who are
hiring and training the disadvantaged under the National
Alliance of Businessmen's JOBS program. Unfortunately,
this commendable program is extraordinarily sensitive to
rises in unemployment. Another important new effort is
Project Transition, through which the Department of Defense
has, on a limited, experimental basis, given those returning
veterans not likely to take advantage of educational
benefits, training and other assistance to improve their
job outlook. For them to return from combat to unemploy-
ment is unfair and socially dangerous. This effort should
19
be expanded.
In total, the manpower programs have been more
successful than might have been expected, considering the
unfamiliarity of the terrain and the complexity of the
problems. The needs are pressing and the potential gains
promising. More important than the relative success or
failure of these programs has been the identification of
the variety of manpower services needed in various combina-
tions by disadvantaged persons and groups (see Appendix C
for a listing of these services). Any successful effort
to bring satisfactory employment to the competitively dis-
advantaged will require efficient delivery of these
services. The challenge is to improve administrative
capability, then expand rather than contract expenditures
to levels more commensurate with need.
Several recent legislative and administrative
decisions provide opportunities but the full exploitation
of past experience will require new legislation. Congress
has acted to reduce the proliferation of programs and to
strengthen the administrative machinery in the manpower
area. The present administration is in the midst of a
desirable reorganization within the Labor Department's
Manpower Administration. The new administration can build
upon these developments to its credit and the nation's
welfare.
20
Currently Unexploited Opportunities
Several opportunities for important improvements
in the administration of manpower programs were opened by
legislative and administrative decisions made too near to
the close of 1968 to be exploited by the current Adminis-
tration. It is significant that each of the legislative
developments was either broadly bipartisan or under
primarily Republican sponsorship.
1. Though the prevention of manpower problems
was neglected through most of the 1960's, the bipartisan
Vocational Education Act of 1968 offers the potential in
both authority and resources to develop an effective
system of preparation for employment. Whether the Act
fulfills its potential depends largely upon the leadership
provided by the U.S. Office of Education, highlighting the
importance of the choice of Commissioner of Education.
2. Title I-B of the Economic Opportunity Act
was amended nearly a year ago to allow communities to
propose comprehensive manpower programs in place of the
now separate NYC, Work Experience and aining, Operation
Mainstream, Special Impact and New Careers programs.
Guidelines have been prepared but this flexibility has
yet to be implemented.
3. MDTA amendments in 1968 directed expenditure
of two per cent of that program's budge to staff training.
21
This offers great opportunities for improved adminis-
tration. It is important that training and technical
assistance be provided federally to give adequate
guidance and reduce the waste of duplicative efforts.
4. A new Title V was also added to MDTA
providing federal matching funds to enable states
to plan and mount their own programs to supplement,
coordinate, improve or correct imbalances in federal
manpower programs.
5. In addition to this legislation, a recent
administrative decision wipes out all existing bureaus
within the Manpower Administration of the Labor Depart-
ment, providing an opportunity for administrative
rearrangement and better management. This decision
is now under attack and in jeopardy. Both the new
Administration and every state governor have everything
to gain and nothing to lose in encouraging completion
of this reorganization. Employment Services have
maintained autonomy vis-a-vis both their governors
and the federal government by playing off each against
the other.
6. Examination of the operation of all these
programs highlights the importance of the job, Assistant
Secretary for Manpower Programs. This job might well be
22
elevated to Under Secretary status, as suggested
earlier. In any case, it is essential to fill the
job with a person of great professional competence,
and personal prestige.
A Comprehensive Manpower Bill
Though these opportunities can be exploited
immediately by administrative decision, the priority need
for the remedial programs is a comprehensive manpower
bill, consolidating the lessons of experience into a
single manageable program offering services adapted to
community and individual need.
The bill should authorize a single appropriation
for all remedial manpower services. It should list the
services to be made available (as, for instance, the
list in Appendix C) but should not fix the proportion of
available moneys to be allocated to each service or function.
Authorizing all the services within a single piece of legis-
lation and funding them with a single appropriation would
imply, though not necessarily require, putting the entire
manpower budget within one federal agency. Appropriations
committees should allow distribution of funds without
fixing in advance the proportions to be spent for various
services.
While the federal agency should maintain a strong
presence by issuing guidelines, approving or disapproving
23
plans and proposals, evaluating performance and providing
technical assistance, the actual delivery of services,
except in rare circumstances, should be the responsibility
of units of state and local governments.
Allocation of most of the manpower funds should
be through state governments and controlled by a formula
encompassing population, labor force, unemployment and
poverty criteria. However, the allocation should include a
"pass through" requirement to assure that funds are avail-
able to meet the needs of the larger cities. Some propor-
tion of the total appropriation, probably about one third,
should be left in the hands of the federal agency for
interstate programs such as the NABS - JOBS effort and for
research, experimentation, technical assistance and staff
training, and service to populations neglected by recalci-
trant states.
Two alternatives occur to us for actual delivery
of services at the state and local level, each of which has
relative strength and weaknesses. Responsibility might be
assigned to a single state agency such as the state employ-
ment service. This agency, following federal guidelines
permissive enough to allow adaptation to local circumstances
but specific enough to assure service of adequate quality
to appropriate target groups, would then be responsible for
delivering the necessary services to clients throughout the
24
state.
Alternatively, each state and each large
metropolitan area within a state could be encouraged to
prepare and update annually a long range plan for use of
its share of funds in relation to other available resources.
The planning structure and the assignment of responsibility
for delivery of service could vary according to state and
local preference, though requiring federal approval.
The first alternative is administratively
simpler, but the latter would allow greater state and
local discretion. In either case, the complexity and
unfamiliarity of the problems being addressed, the general
shortage of experience and competence in this field, and
the fact that the target groups are often the victims of
discrimination, make necessary a meaningful federal review
and approval of plans and activities.
Regardless of the alternative chosen, there
must be at the community level a single contact point at
which the individual client can gain access to the available
services. Giving a single agency responsibility for the
delivery of services to the client does not imply that the
agency should itself provide all the necessary services.
What is needed is a single agency representing and planning
jointly with the applicant according to his needs, with
the authority to purchase from public or private sources what-
ever services are required to make him employable, find him
a satisfactory job, and help him to progress within it.
25
APPENDIX A
Legislative Policy on Labor Relations
The following compilation illustrates the type of
legislative change that might be expected if this subject is
opened up. The intent is to be illustrative rather than
definitive and to suggest types of subjects rather than pre-
sent final judgments.
A. The National Labor Relations Act.
1. A major National Labor Relations Act concern to
employers is the frequent change in doctrine, especially
the continuous elaboration of the duty to bargain in
good faith. Employers could probably live with less
difficulty under existing law (in spite of vagueness
and subjectivity of standards) if the law could achieve
greater stability. A contribution toward this end might
be the creation of ten year terms for NLRB members. This
change could be effectuated presumably either through
changing the term for new members or for new and exist-
ing members. This difference could involve a consider-
able political difficulty.
2.
The conviction is that there are two National Labor
Relations Act areas of great significance to the future
of collective bargaining in the United States. One area
is the refusal to bargain in good faith; the second area
is the potential development of an elaborate legal frame-
work surrounding the negotiation unit and the negotiation
structure (coalition bargaining, multiemployer and multi-
craft bargaining, etc.) In each of these areas the hope
would be to secure maximum freedom from legal restraint
for the parties. An important reason for advancing this
point of view is the growing risk and use of gamesman-
ship. The belief is that collective bargaining would be
healthier absent these legal complications. In the first
area this goal would require cutting back on existing law;
in the second area this goal requires the avoidance of a
future elaboration of structural prohibitions.
As to bargaining in good faith, three possibilities
might be considered:
(a) Delete 8(a)5 and (b)3 from the law.
(b) Without regard for more refined language,
provide that 8(a)5 and (b)3 complaints
could not be issued relative to well estab-
lished bargaining relationships.
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APPENDIX A (Cont.)
(c) Following a 1950 suggestion by Dunlop
and Cox provide that "during the term
of a collective bargaining agreement
an offer to follow the contract grievance
[and grievance arbitration] procedure
satisfies any duty to bargain collec-
tively with respect to P matter to which
the contract grievance [and grievance
arbitration] procedure may apply.
In view of Supreme Court decisions giving great im-
portance and scope to grievance arbitration, a particularly
strong case can be made for (c) above.
As to the second area noted it is hoped that sug-
gestions to preserve freedom to the parties to develop
bargaining structures without significant legal restraints
might stem from the previously suggested study of this
topic. It appears unwise to move quickly to any specific
legal approach which might now be suggested. There are
obviously many ramifications to this problem.
3. A good case can be made for making no changes in the
emergency disputes provisions of the law.
4. The NLRB should probably not issue so-called "bargaining
orders" absent an independent unfair labor practice violation.
A very clear case ought to exist to refuse the election pro-
cedure to an employer in certification cases.
5. The multi-faceted situations now deemed to be within the
purview of NLRA successorship doctrine have given rise to
great uncertainty and controversy. The successorship issue
requires careful administrative re-examination.
6. The question of enforcement of NLRB decisions should
be given special study. Some procedure for allowing in-
junctions relating to violation of no-strike contract
provisions may well be appropriate. This might well involve
modifications of Norris-LaGuardia.
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APPENDIX A (Cont.)
7.
If legislative changes in the NLRA are sought
the issue of revision of section 14(b) must be
faced.
B.
Special study should be given to the Railway Labor
Act and its administration. It is not clear that
identical policy changes are appropriate for the
different industries involved. The adjustment board
procedure might well be abolished.
C.
It is not recommended that the situs picketing
bill be supported.
D.
It is specifically suggested that no changes be
made in the Reporting and Disclosures Act. Additional
experience is appropriate.
E.
Policy with respect to federal employees.
With respect to federal policy the principal
problem areas, existing or potential, are
1.
The lack of any prescribed or adequate procedures
and standards for bargaining unit determination.
2. The lack of adequate procedures for the enforce-
ment of the bargaining obligation.
3.
The question whether EO 10988 is too restrictive
respecting the scope of collective bargaining, as to
subject matter.
4.
The lack of any code of union or employee unfair
labor practices.
These areas should be reviewed and desired changes
effectuated either through legislation (preferably) or
through amendment of EO 10988. In general, the federal
labor scene thus far has been fairly peaceful, but query
whether the obvious militancy of unions at state and
local levels will not increasingly extend to the federal
level?
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APPENDIX B
Status of Current Manpower Programs
The Manpower Development and Training, Economic
Opportunity, Vocational Education, Vocational Rehabilitation
and Social Security Acts have spawned a variety of manpower
programs which are more valuable as tests of various services
than as permanent administrative structures. The Manpower
Development and Training Act has been the most effective and
most popular. It has proved the ability of remedial basic
education and skill taining to enhance the employability of
reasonably well-motivated but underprepared people. The
skill centers developed under MDTA have provided a new con-
cept in remedial institutions.
The Neighborhood Youth Corps in-school program
made it possible for poor youth to earn money and stay in
school. The summer program, in the absence of anything
better, kept them off the street and provided "riot insur-
ance. The NYC out-of-school program offered needed income
but added nothing to employability, suggesting that training
of the MDTA type would have been a better use of the en-
rollee's time and the public's money. The Job Corps developed
better ways of training very disadvantaged youth but could
not demonstrate that the high expense of residential facil-
ities was necessary for other than those from areas of
sparse population. Consideration is currently being given
to turning the Job Corps centers over to state educational
systems to be used for the latter purpose.
The Work Experience and Training program, designed
to provide training and/or useful work experiences to wel-
fare recipients and other adult poor, was unsuccessful
as a whole yet it did demonstrate the necessity for a public
employment program in depressed rural areas where older,
immobile, illiterate workers with obsolete skills had no
alternative earning opportunities and where the lack of com-
munity services and facilities made their efforts valuable.
Operation Mainstream capitalized effectively on this experi-
ence with useful public service jobs for older workers. The
New Careers program has opened a limited number of sub-pro-
fessional jobs to the most able of the poor. Its progress
has been slow, administration complex and resistance consid-
erable. Its potential is limited but important. Special
Impact, de igned to promote job development in areas with
concentrations of low income people has made little differ-
ence. The Work Incentive program to give training and jobs
to welfare recipients has not been tested.
-1-
The Job Opportunities in the Business Sector
program with its National Alliance of Businessmen is also
new and has its difficulties. Despite these, the impres-
sive commitment of many businessmen and the commendable
efforts of their companies in hiring and training the dis-
advantaged give the program great promise. Interest has
grown from a sensitive combination of social concern, pub-
licity, subsidy and labor shortage and maintaining it may
prove somewhat tenuous. The administration should be
aware that any substantial rise in unemployment will make
participation untenable for companies with people on lay-
off.
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APPENDIX C
Manpower Services Currently
Available Among Various Programs
1. Outreach to seek the discouraged and undermotivated
and encourage them to partake of available services.
2. Adult basic education, to remedy the lack of limited
experience to alternative occupational choices.
3. Prevocational orientation to expose those of limited
experience to alternative occupational choices.
4. Training for entry level skills for those unprepared
to profit from the normally more advanced training
which assumes mastery of rudimentary education.
5. Training allowances, to provide support and an incen-
tive for those undergoing training.
6. Residential facilities for those from areas of sparse
population or whose home environment precludes success-
ful rehabilitation.
7. Work experience, for those unaccustomed to the disci-
pline of the work place.
8. Job development, efforts to solicit job opportunities
suited to the abilities of the disadvantaged job
seeker.
9. Relocation and transportation assistance to bring the
workers to where the jobs are.
10. Subsidization of private employment for the disadvan-
taged.
11. Job coaching to work out supervisor-worker adjustments
after a Job is found.
12. Creation of public service jobs tailored to the needs
of job seekers not absorbed in the competitive market.
13. Supportive services, such as medical aid, for those
who needed corrective measures to enter or resume
positions in the world of work, or day-care centers
for mothers with small children.
14. Relocation allowances for residents in labor surplus
areas and special inducements to employers to bring
jobs to those stranded in depressed areas.