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William E. Timmons's Files
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March 20, 1970
MEMORANDUM FOR BILL TIMMONS
From:
Dick Cook
Bill Kendall called to say that Postal strike has spread
to Northern New Jersey and that their District Office
has received over 50 constituent phone calls this morning -
most either blaming RN or wondering why doesn't he do
something about it.
Kendall suggested that if their experience is similar
to other affected areas that RN should consider going
on TVtto explain what brought about the situation and
the strenuous efforts he is making to improve mail service
and the lot of postal workers thru the Corporation and
overall reform.
Before retalitory moves are made against the unions for
employees, Bill's suggestion might have much merit.
Reproduced at the Richard Nixon Presidential Library
file
mr. Cook- Agi
MEMORANDUM
DATE: March 18, 1970
TO:
Gene Cowan
FROM:
Paul
N.
Carlin
SUBJECT: Postal Reform
Real
On March 12 the House PO&CS Committee voted to accept a
compromise proposal on Postal Reform. By a margin of 17
to 6 the Committee voted to substitute the language of the com-
promise for the language of H.R. 4 (the Dulski Bill) as marked
up by the Committee. This compromise has both the support of
the Administration and of the National Association of Letter
Carriers. Highlights of the compromise bill include the following
provisions:
1. Creation of a public authority, known as the U.S. Postal
Service Authority, to operate the postal system.
2. Formation of a 13-member Executive Council to direct the
activities of the Authority.
3. The formation of the 13-member Advisory Board, composed
of representatives of postal labor organizations, major mailers,
and the general public, to advise the Executive Council on rates,
services, and employee compensation.
4. The creation of postal career service. The Civil Service
Retirement System will be retained in full. Political tests or
qualifications will be prohibited.
5. Collective Bargaining will determine compensation, benefits
and terms of employment. Bargaining impasses are subject to a
90-day cooling off period with fact finding, followed by binding
arbitration, if needed. Management must (through collective bar-
gaining) reduce the waiting time for the top pay rate in-grade from
the present 21 years to 8 years or less.
6. Up to $10 billion in bonds may be issued. The Treasury may
be required to purchase up to $2 billion and can purchase more at
its option. Treasury guarantee of all bonds is authorized. The
Authority is given until January 1, 1978, to bring its costs and
revenues into balance. During the transition a general public service
subsidy is authorized. Special public service allowances will continue
indefinitely.
Reproduced at the Richard Nixon Presidential Library
-2-
7. Rates for each class of mail must cover, as a minimum, all
costs demonstrably related to that class. A panel of 3 Presidentially-
appointed Rate Commissioners will hold public hearings on rate
proposals and make its recommendations to the Executive Council.
The Executive Council has authority to change rates; only public
members, however, may vote on rate issues. Rate decisions of
the Executive Council can be overturned by a two-thirds vote of,
either House of Congress during a 60-day period.
8. Provision for a two-step salary increase for postal employees
(PFS 1-6 and rural carriers) effective January 1, 1970 (average
increase of more than 5. 4%).
No further action will be taken on the compromise bill until minority
views have been submitted. The next step will be consideration of
the bill by the House Rules Committee. Once a rule has been granted,
the bill will then go to the House floor for consideration by the entire
membership, probably during the first half of April.
After concluding its open hearings, the Senate PO&CS Committee deferred
action on postal reform until the House Committee reported its bill. The
Senate Committee staff. has drafted a proposed bill which is described in the
enclosed attachment. There are numerous objectionable features in this
proposed Committee draft. - which was only released to the Committee
members this morning - a few hours before their Executive Session.
We strongly favor the version of H.R. 4 which is described in this memorandum.
Reproduced at the Richard Nixon Presidential Library
RESUME OF PROPOSED BILL DRAFTED BY SENATE PO&CS COMMITTEE
1. The Post Office Department would continue as
an executive department with the Postmaster General
appointed by the President for 10. term of seven years.
2. The Postmaster General is authorized to borrow
up to $10 billion from the Secretary of the Treasury by
issuing postal bonds which shall be amortized over a
period of 30 years and repaid by direct appropriations
from the Congress and not by postal revenues.
3. The Postmaster General is authorized to bargain
collectively with recognized employee unions with provi-
sions for binding arbitration in the event of labor
disputes.
4. The Postmaster General is authorized to set
postage rates through an independent Postal Rate
Commission which rates shall not be submitted to
Congress for approval;
5. Establishes a public service allowance equal
to 10% of annual costs of operations to be appropriated
by the Congress. In determining the necessity for a
rate increase the Postmaster General shall subtract
from estimated expenditures 10% plus 1/2 of the amount
spent for postal modernization out of bond revenues.
If the estimated revenue does not equal estimated
expenditures as redućed, he shall request a rate increase
6. The Postmaster General is authorized to classify
mail through the Rate Commission.
7. All mailers within any class of mail shall
pay the same rate, but for a period of 10 years after
enactment, non-profit organizations and other mailers
who now pay preferential or special rates shall be
given special rate treatment to absorb the necessary.
adjustment. Regular mailers (newspapers and business
mailers) who now pay less than cost, but not at in-
tentionally preferential rates by law, will have a five-
year period of adjustment.
Reproduced at the Richard Nixon Presidential Library
2
8. Postal employees remain in the competitive
civil service and retain civil service retirement and
veterans' preference benefits. Other fringe benefits
may be negotiated, but any direct or indirect money
benefits now received shall continue in effect until
changed by negotiations.
9. The transportation provisions of the bill provide:
a. Star route carriers will have their contracts
negotiated only where the rate exceeds
$25,000 per year;
b. Motor common carriers are authorized to
carry the mail by contract;
C. The Postmaster General is authorized to
contract for the air carriage of mail
under limited circumstances with CAB
approval or without CAB approval where no
scheduled carrier serves the route and
authorizes by law the present air taxi
program.
Reproduced at the Richard Nixon Presidential Library
Postal
Refun
January 23, 1970
MEMORANDUM FOR THE POSTMASTER GENERAL
FROM:
JOHN EHRLICHMAN
SUBJECT:
POSTAL PAY
I agree with you that it is important that the Administration's
position on the postal pay question be very explicitly stated and
that all of us involved in the issue take a consistent line. The
following reflects my understanding of the Administration's
position with which you and I are in agreement based on our
phone conversation this morning.
"It is the position of the Administration that the
comparability issue cannot be related to the postal
pay reform package now being considered. Postal
employees will be treated on the same basis as all
other Federal employees while they remain in the
Federal service. As to any subsequent Federal
pay legislation which may be recommended by or
approved by the President, the adjustment contained
in the present legislation will not be deducted.
The Administration's comparability pay recommend-
ations contained in the budget include postal employees."
The foregoing leaves all of the President's options open as to when
and what basis he will accept comparability. It does say that we will
not treat postal employees differently if and when there is a general
Federal pay increase.
I do not suggest that we issue this statement publicly but rather that
it be a guide for all of us in dealing with Congress and/or the unions.
Reproduced at the Richard Nixon Presidential Library
MEMORANDUM
THE WHITE HOUSE
WASHINGTON
filestal
Pay
November 20, 1969
TO:
EUGENE COWEN
BILL TIMMONS
FROM:
HENRY C. CASHEN I
SUBJECT:
H.R. 13000
Attached is a rough outline from Bob Hampton with
respect to his position on H. R. 13000. As I think
I told you, Hampton and Red Blount met with Senators
McGhee and Fong to discuss the possibility of
trading a pay increase for postal reform. Bob Mayo
has approved the pay increase which Blount is talking
about and Senator McGhee will approach the unions.
Mayo strongly suggests, and I agree, that the White
House should be involved prior to Blount's considering
proposal.
any counter-offer Dah " " by the unions to his pay increase
11/21
Attachment.
Reproduced at the Richard Nixon Presidential Library
OUTLINE OF APPROACH TO BE TAKEN IN TESTIMONY ON H. R. 13000
(Assuming no opportunity for acceptance of
Administration proposal)
1. Very strong opposition to H. R. 13000 -- reasons in President's letter
and others on principle.
2. Pay is essentially a problem of Employee Management Relations.
3. Weakness in present system is not so much a concern with principle of
pay comparability with private enterprise but a feeling of inadequate
participation of employee unions and representatives in the pay-setting
process.
4. H. R. 13000 gives this type participation to employees but at the same
time denies the President, the Chief Executive Officer, a true opportunity
to exercise his responsibility in any meaningful way.
5. Present circumstances
-- strong pressure for a pay increase from postal unions
-- desire of classified to be treated equally
-- Administration's postal reform proposal setting negotiating
rights with postal unions on pay
-- severe budgetary restrictions for fiscal '70
-- exclusion of the President from pay setting machinery
make it practically impossible to come up with meaningful pay reform
proposals which address themselves to solving the principal problems.
This does not mean that the Executive wants to
diminish the important role of the Congress in
setting pay policy or in reviewing administrative
decisions respecting changes in pay levels or
structure.
Reproduced at the Richard Nixon Presidential Library
2
6. It is our recommendation:
One: that H. R. 13000 be rejected by this committee.
Two: that for the next year the committee mandate the Administration
to:
A. Extend, under present system spelled out in 1962 Act,
meaningful consultation to the unions in the pay setting
procedures to the maximum extent possible.
B. Establish comparability rates effective April 1, 1970 and
an additional pay increase April 1, 1971.
C. Meet with qualified union representatives within the next
few months with the objective of submitting a joint pay
reform proposal to the Congress.
This proposal shall recognize the three essential elements in
the pay picture.
(1) The Role of Congress --- Which of course we would not
attempt to determine - as our proposal would be
submitted to the Congress not in the form of a bill --
but a study leaving a total option on this point to the
will of Congress.
(2) The Role of Unions -- In terms of participation on
structure of survey -- setting of payline -- machinery
to resolve differences with the President's agents (BOB
and CSC).
(3) The Role of the Executive Branch -- In terms of Presidential
responsibility -- operations of systems -- principles to be
followed.
In summation -- in order to establish effective machinery, recognition must be
given to the employer-employee relationship ⑉⑉ principles and policy binding
on both parties as established by Congress -- credibility in terms of proper
pay for employees and acceptance by the taxpayer.
Only by meeting these principles will we be able to meet our obligation in a
acceptable to the parties involved reduce acrimony -- and truly establish
way a better system for handling pay (which gives due recognition to contemporary
problems).
Reproduced at the Richard Nixon Presidential Library
Postal Reform
MAJOR PROVISIONS OF THE
POSTAL REFORM AND SALARY ADJUSTMENT ACT OF 1970
CREATION OF A PUBLIC AUTHORITY, KNOWN AS THE U.S. POSTAL
SERVICE AUTHORITY, TO OPERATE THE POSTAL SYSTEM.
FORMATION OF A 13-MEMBER EXECUTIVE COUNCIL TO DIRECT THE
ACTIVITIES OF THE AUTHORITY.
TWO-STEP SALARY INCREASE FOR PFS EMPLOYEES EFFECTIVE
JANUARY 1, 1970 (AVERAGE 5.4% INCREASE).
Reproduced at the Richard Nixon Presidential Library
THE EXECUTIVE COUNCIL
(13 MEMBERS)
2 FULL-TIME MEMBERS
7 MEMBERS APPOINTED
SELECTED BY PRESIDENTIALLY
BY PRESIDENT,
APPOINTED COUNCILORS
CONFIRMED BY
THE SENATE
*
4 MEMBERS OF CONGRESS
DESIGNATED BY
DIRECTOR
GENERAL
SPEAKER OF HOUSE
HOUSE MINORITY LEADER
DEPUTY
PRESIDENT PRO TEM OF
DIRECTOR
SENATE
GENERAL
SENATE MINORITY LEADER
THE POSTAL SERVICE
*
NO MORE THAN 4 FROM SAME POLITICAL PARTY
Reproduced at the Richard Nixon Presidential Library
THE ADVISORY COUNCIL
(13 MEMBERS)
REPRESENTING
PUBLIC AT LARGE
BY
REPRESENTING
APPOINTE
REPRESENTING
POSTAL LABOR
MAJOR MAILERS
DIRECTOR
GENERAL
VICE
CHAIRMAN
DEPUTY
CHAIRMAN
DIRECTOR
GENERAL
ADVISES EXECUTIVE COUNCIL ON RATES,
SERVICES AND EMPLOYEE COMPENSATION
Reproduced at the Richard Nixon Presidential Library
PERSONNEL
POSTAL CAREER SERVICE
Civil Service Retirement System retained in full
Political tests or qualifications prohibited
Veterans' Preference retained
CSC must approve adverse action procedures for non-represented
employees
COLLECTIVE BARGAINING TO DETERMINE COMPENSATION, BENEFITS,
TERMS OF EMPLOYMENT
Initial contract to be effective January 2, 1971
Bargaining impasses subject to 90-day cooling-off period, followed
by automatic binding arbitration, if needed
No bargaining over fringe benefits for first two years
Reproduced at the Richard Nixon Presidential Library
FINANCES AND RATES
Up to $10 billion of Bonds may be issued, maximum of $2 billion per year.
Treasury may be required to purchase up to $2 billion and, at its discretion,
may purchase more.
Authority given until January 1, 1978 to balance costs and revenues (augmented
by public service appropriations).
Rates for each class of mail must cover all costs demonstrably related to
that class.
Panel of Rate Commissioners holds public hearings on rate proposals and makes
its recommendations to Executive Council.
Executive Council has authority to make rate adjustments.
Public hearings required prior to major service changes.
Reproduced at the Richard Nixon Presidential Library
BILL INCORPORATES MANY FEATURES OF H.R. 4, INCLUDING
HOUSE COMMITTEE AMENDMENTS
DECLARATION OF POLICY
FUNCTIONS OF POSTAL MODERNIZATION AUTHORITY
STATUTORY RECOGNITION OF EMPLOYEE ORGANIZATIONS
PROHIBITION ON POLITICAL INFLUENCE
TRANSPORTATION PROVISIONS
COMPTROLLER GENERAL FREEDOM TO DETERMINE FREQUENCY
AND EXTENT OF AUDITS
Reproduced at the Richard Nixon Presidential Library
AND, IN GENERAL, THE PROVISIONS
OF H.R. 11750 RELATING TO:
POSTAL SERVICES AND MAIL MATTER
COMPARABILITY OF POSTAL COMPENSATION AND BENEFITS WITH
THE NON-FEDERAL SECTOR
CONTINUATION OF PRIVATE EXPRESS & INTERNATIONAL MAIL STATUTES
CONTINUATION OF CRIMINAL LAWS (FRAUD, OBSCENITY, THEFT OF
MAIL, ETC.) AS STATUTES
EXPLICIT RESERVATION OF POWERS TO THE CONGRESS
Reproduced at the Richard Nixon Presidential Library
MAJOR PROVISIONS OF THE
POSTAL REFORM AND SALARY ADJUSTMENT ACT OF 1970
CREATION OF A PUBLIC AUTHORITY, KNOWN AS THE U.S. POSTAL
SERVICE AUTHORITY, TO OPERATE THE POSTAL SYSTEM.
FORMATION OF A 13-MEMBER EXECUTIVE COUNCIL TO DIRECT THE
ACTIVITIES OF THE AUTHORITY.
TWO-STEP SALARY INCREASE FOR PFS EMPLOYEES EFFECTIVE
JANUARY 1,1970 (AVERAGE 5.4% INCREASE).
Reproduced at the Richard Nixon Presidential Library
THE EXECUTIVE COUNCIL
(13 MEMBERS)
2 FULL-TIME MEMBERS
7 MEMBERS APPOINTED
SELECTED BY PRESIDENTIALLY
BY PRESIDENT,
APPOINTED COUNCILORS
CONFIRMED BY
THE SENATE
*
4 MEMBERS OF CONGRESS
DIRECTOR
DESIGNATED BY
GENERAL
SPEAKER OF HOUSE
HOUSE MINORITY LEADER
DEPUTY
PRESIDENT PRO TEM OF
DIRECTOR
SENATE
GENERAL
SENATE MINORITY LEADER
THE POSTAL SERVICE
NO MORE THAN 4 FROM SAME POLITICAL PARTY
Reproduced at the Richard Nixon Presidential Library
THE ADVISORY COUNCIL
(13 MEMBERS)
REPRESENTING
PUBLIC AT LARGE
BY
REPRESENTING
POSTAL LABOR
APPOINTE
REPRESENTING
MAJOR MAILERS
DIRECTOR
GENERAL
VICE
CHAIRMAN
DEPUTY
DIRECTOR
CHAIRMAN
GENERAL
ADVISES EXECUTIVE COUNCIL ON RATES,
SERVICES AND EMPLOYEE COMPENSATION
Reproduced at the Richard Nixon Presidential Library
PERSONNEL
POSTAL CAREER SERVICE
Civil Service Retirement System retained in full
Political tests or qualifications prohibited
Veterans' Preference retained
CSC must approve adverse action procedures for non-represented
employees
COLLECTIVE BARGAINING TO DETERMINE COMPENSATION, BENEFITS,
TERMS OF EMPLOYMENT
Initial contract to be effective January 2, 1971
Bargaining impasses subject to 90-day cooling-off period, followed
by automatic binding arbitration, if needed
No bargaining over fringe benefits for first two years
Reproduced at the Richard Nixon Presidential Library
FINANCES AND RATES
Up to $10 billion of Bonds may be issued, maximum of $2 billion per year.
Treasury may be required to purchase up to $2 billion and, at its discretion,
may purchase more.
Authority given until January 1, 1978 to balance costs and revenues (augmented
by public service appropriations).
Rates for each class of mail must cover all costs demonstrably related to
that class.
Panel of Rate Commissioners holds public hearings on rate proposals and makes
its recommendations to Executive Council.
Executive Council has authority to make rate adjustments.
Public hearings required prior to major service changes.
Reproduced at the Richard Nixon Presidential Library
BILL INCORPORATES MANY FEATURES OF H.R. 4, INCLUDING
HOUSE COMMITTEE AMENDMENTS
DECLARATION OF POLICY
FUNCTIONS OF POSTAL MODERNIZATION AUTHORITY
STATUTORY RECOGNITION OF EMPLOYEE ORGANIZATIONS
PROHIBITION ON POLITICAL INFLUENCE
TRANSPORTATION PROVISIONS
COMPTROLLER GENERAL FREEDOM TO DETERMINE FREQUENCY
AND EXTENT OF AUDITS
Reproduced at the Richard Nixon Presidential Library
AND, IN GENERAL, THE PROVISIONS
OF H.R. 11750 RELATING TO:
POSTAL SERVICES AND MAIL MATTER
COMPARABILITY OF POSTAL COMPENSATION AND BENEFITS WITH
THE NON-FEDERAL SECTOR
CONTINUATION OF PRIVATE EXPRESS & INTERNATIONAL MAIL STATUTES
CONTINUATION OF CRIMINAL LAWS (FRAUD, OBSCENITY, THEFT OF
MAIL, ETC.) AS STATUTES
EXPLICIT RESERVATION OF POWERS TO THE CONGRESS
Reproduced at the Richard Nixon Presidential Library
June 11, 1970
MEMORANDUM FOR BILL TIMMONS
FROM:
DICK COOK
The House Committee on Rules this afternoon granted a rule to
the Postal Reform bill. It provides for four hours, open rule,
waiving points of order against the Committee-reported bill and
the Udall-Derwinski substitute, making it in order for the House
to consider the Udall-Derwinski bill as an amendment in the nature
of a substitute, and the Committee reported amendments as an
original bill for the purpose of amendments.
The rule is everything we wanted except for denial of the request
that the rule provide for the deletion of the retroactive pay feature
from the Udall-Derwinski substitute. This would have been highly
irregular.
In any event, we will now have to seek to have the May 15 retroactive
pay date removed by Floor amendment -- a difficult task unless the
unions under Biemiller's direction realize approval of the Henderson
amendment hinges on deletion of retroactivity.
CC: Henry Cashen
Bill Casselman
Reproduced at the Richard Nixon Presidential Library
EYES ONLY
THE WHITE HOUSE
WASHINGTON
ROUTE SLIP
APPROVAL
DATE
BT
KB
DG
M
EC
DC
JN
BC
After circulation, please return to:
B.C.
Reproduced at the Richard Nixon Presidential Library
Good job end
excellent
conclusion.
D.C.
Reproduced at the Richard Nixon Presidential Library
Pls BC - circulate BI staff
EYES ONLY
March 25, 1970
MEMORANDUM FOR: JOHN EHRLICHMAN
BRYCE HARLOW
FROM:
DAVID A. NELSON
SUBJECT:
Deficiencies in S. 3613
As requested earlier today by the Postmaster General,
here is a brief outline of some of the deficiencies in the
McGee-Fong postal reform bill. We did not see this 106-page
bill until last Friday, and we have, of course, been occupied
by other matters since then. Because of the haste in which the
bill was reviewed and the summary prepared, this memorandum
may contain some errors of commission: in any event, we have
certainly omitted much that could have been said. The outline
will, however, give you the general trend of our thinking.
Reproduced at the Richard Nixon Presidential Library
EYES ONLY
ORGANIZATION
The Post Office would remain an Executive department,
subject to a variety of rigid statutory constraints with
respect to personnel, fiscal and other matters.
Postmaster General would have a statutory seven-year
term, and could not be fired for mediocre performance.
While the President would be free to drop the Postmaster
General from his Cabinet if desired, the Postmaster
General -- even when not of the President's party --
would remain in the statutory line of succession to the
Presidency, directly behind the Attorney General.
PERSONNEL
Postmasters and all other postal employees except "the
heads of such offices as the Postmaster General deter-
mines" would be appointed in the Competitive Civil
Service. This makes it difficult for the Department to
hire the right kind of people in the numbers that are
needed, forces us to hire the wrong kind of people for
many j obs, and locks us in to a cumbersome personnel
program that is very poorly adapted to the needs of a
modern commercial enterprise.
Collective bargaining unit determinations, representation
questions and unfair labor practice proceedings would all
be left with the Assistant Secretary of Labor, rather than
the NLRB. While the NLRB leaves much to be desired,
it is somewhat more insulated from political pressures
than the Assistant Secretary of Labor is, and it has
statutory enforcement powers that the Assistant Secretary
of Labor lacks.
Reproduced at the Richard Nixon Presidential Library
EYES ONLY
The criminal sanctions of the Labor-Management
Reporting Act (Landrum-Griffin) would not apply to
the postal unions.
The union shop would not be a bargainable issue, even in
non-right-to-work states. While this is arguably an
advantage, Ted Klassen believes that the power to bargain
over the union shop, where not prohibited by state law,
would give us tremendous leverage in negotiations with
the unions, and could be of critical importance in making
the fundamental reforms in our personnel program that
are essential to an efficient operation.
The Norris-LaGuardia Act would be made applicable,
and Federal courts could not issue temporary restraining
orders or injunctions against strikes like those experienced
in the past week.
2
Reproduced at the Richard Nixon Presidential Library
EYES ONLY
FINANCES AND RATES
The Post Office Department would never be self-sustaining.
-
Congress would be subsidizing the Department and thus the
mail users by huge annual appropriations equal (under my
interpretation of some very ambiguous language) to the
revenue foregone on free and reduced rate mail, plus 10%
of the sum of the Department's operating costs and 1/2 of
the amount expended from borrowed funds on capital im-
provements. The deficit that Congress would underwrite for-
ever, under this formula, would be substantially in excess
of $1 billion a year. A subsidy of this magnitude would
insure excessive political influence on the Post
Office through the Congress;
encourage excessive use of the postal system
in preference to other forms of communication;
and
promote sloppy and inefficient management
practices.
While the Postmaster General could borrow a total of up to
$10 billion, as under H.R. 4, he could not borrow more than
$750, 000, 000 in any one year. H.R. 4 permits annual
borrowings of up to $2 billion, of which $500, 000, 000 could
be for operating expenses. Under S. 3613, borrowed money
could be spent only on capital improvements.
All borrowings would necessarily be from the Treasury;
direct access to private investment capital would be barred.
This has at least two drawbacks:
the discipline of having to satisfy private lenders.
of the efficiency of our operation would be lost;
and
all of our borrowings would necessarily be in-
cluded in the portion of the public debt that is
subject to the statutory debt ceiling.
Reproduced at the Richard 3 Nixon Presidential Library
EYES ONLY
GAO apparently would be given power to disallow Post
Office Department expenditures.
The Bureau of the Budget would apparently retain its
power of apportionment with respect to capital improvement
funds. (This question was very thoroughly discussed when
the Administration's original reform proposal received BoB
clearance. At that time Dr. Burns argued very persuasively --
and successfully -- that the apportionment power is inappro-
priate insofar as a reformed Post Office is concerned.
The Department's power to forgive claims against its own
employees and others would be unreasonably restricted and
would be made subject to GAO control to an undesirable
degree.
The postal rate structure could apparently be changed only
once a year, thereby ruling out the continuous "fine tuning"
of the rate structure that we ought to have.
A rate commission appointed in a way that could well make
it a highly political body would make annual recommendations
on rate changes to the Postmaster General; the Postmaster
General could only accept or reject these recommendations,
and could not make appropriate modifications.
In lieu of a Congressional veto over rate changes, the courts
would be empowered to overturn rate changes not considered
to be supported by substantial evidence on the record. The
bill would make no provision for interim rates pending
litigation -- a glaring deficiency in view of the abor-intensive
character of the postal business. The third class mailers
have been lobbying very hard indeed for exactly this type of
rate setting mechanism, and Senator McGee (or his staff)
obviously got the message.
Mail classification would be handled in accordance with the
same unworkable procedures.
Reproduced at the Richard Nixon Presidential Library
EYES ONLY
TRANSPORTATION
Authority to contract with supplemental air carriers
granted under H.R. 4 -- would be eliminated.
Authority to contract with certificated air carriers would be
limited to situations in which at least 5, 000 pounds of mail
no more than 5% of which could consist of letter mail --
would be transported on each flight. The CAB would have
a veto power over any such contract. All such contracts
would have to run for at least one year. None of these
restrictions is found in H.R. 4.
SUMMARY
The President began his message of May 27, 1969, by saying
that "Total reform of the nation's postal system is absolutely
essential. 11
S. 3613 would private halfway reform.
While substantially increasing the Postmaster General's
authority, it would leave an excessive degree of control in the hands
of Congress and the Congressional committees. The Department would
thus continue to be exposed to the kinds of political influences that
have historically been the bane of its existence.
Whatever legislation is enacted now may well prove to be
something we shall have to live with for a long time to come; we
had better get it right the first time, because we may not have a
second chance.
The President is sure to get much of the credit -- or blame --
for whatever reform bill is passed. The public is not likely to
discriminate very carefully among the different brands of postal
reform now being peddled; in the public eye, any legislation enacted
under the postal reform label is going to be widely accepted as the
"total reform" called for by the President. No reform at all - -
for the time being -- might well be preferable to a reform bill that
fails to give us the tools we need to do the job right.
5
Reproduced at the Richard Nixon Presidential Library
Henry Cashen
discussed Williams
resolution w/
Edrlichman +
agrees it should
be held
2:25 2:
Reproduced at the Richard Nixon Presidential Library
THE WHITE House
wASHINGTON
BT
I have "unofficially" informed
Holland of the WH and POD positions
on the Williams resoluátion.The
Senate will take no action either
today or Saturday.
Holland recommends that we get
back to him Monday AM with an
updated reading.
BC 3/20
Reproduced at the Richard Nixon Presidential Library
Kill
Recil Holland, Gritfin
uriliims Resolution
same of Senate Readetion, nevalters
fed crimal offense
1
PMG take meanus enfore
2
Atty. Gen. 11 11111
3
Aely actu un resolutin - in colender.
lleverliste curester curl firing -- theat
that ven way out.
nodemacher -- Nature STube.
Baulen aboutly as Ceyan To, voise whge. elevedutty
enfore the - blording .
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Reproduced at the Richard Nixon Presidential Library
BT
Carlin just came out of a meeting with the PMG.
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the Williams resolution. and instead take up They do
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Reproduced at the Richard Nixon Presidential Library
Post Post of
September 9, 1969
TO:
Bryce N. Harlow
FROM: Bill Timmons
The PMG called me at 7:00 a.m. this morning to
make certain that Postal Reform was on the
Presidential "MUST" list. I assured him it was.
Also, this week sometime Blount requests a meeting
with you to develop strategy for movinggthe reform
measure through the PO & CS committee. He'll call
after he gets a firmer nose count.
Reproduced at the Richard Nixon Presidential Library
MEMORANDUM
THE WHITE HOUSE
WASHINGTON
April 14 - 4:45 p.m.
POST OFFICE DEPARTMENT REPORT
1.)
On April 13 the House of Rep. passed the
Treasury and Post Office Departments and
Executive Office of the President Appropriations
bill for fiscal 71. The bill earmarks $8.2
billion for the Post Office Department.
2).
The House of REpresentatives today passed by
voice vote, legislation to provide a 6%
salary increase for federal employees, thus
clearing the bill for the President's signature.
3).
The Transportation Subcommittee of the House
Interstate & Foreign Commerce Comm. -- H.R.
16879, a bill to amend the Federal Aviation Act
of 1958 by providing for the establishment
of mail rates by a tariff filing procedure, today
heard testimony in support of the bill from
the CAB and the Air Transportation Association
of America.
Reproduced at the Richard Nixon Presidential Library
MEMORANDUM
THE WHITE HOUSE
WASHINGTON
April 2, 1970 - 5:00 p.m.
POST OFFICE DEPARTMENT LEGISLATIVE REPORT
1.
Senate P.O. & C.S. Committee met in executive session
legislation. today to continue consideration of postal reform
2.
Government and postal union negotiators today agreed
on a 6% pay increase for all federal employees and
military personnel retroactive to December 27, 1969 and
and additional 8% increase for postal workers will
be provided following enactment of postal reform
legislation.
3.
Yesterday Congressional Liaison gave advance notice
to members of congress of the appointment of Carl Wessell
as Deputy Regional Director for the Post Office
Department at Chicago.
Reproduced at the Richard Nixon Presidential Library
MEMORANDUM
THE WHITE HOUSE
WASHINGTON
April 13, 1970
MEMORANDUM FOR WILLIAM CASSELMAN
AND BILL TIMMONS
FROM:
HENRY C. CASHEN II
I. Substantive elements of new proposed postal reorganization
and pay bill:
Organizational Structure
(a) Reorganized Post Office Department known as "The
United States Postal Services" becomes an independent
establishment in the Executive branch of government.
(b) Postmaster General appointed by, serves at pleasure of,
Commission on Postal Costs and Revenues, which has 9 public
members named by President and confirmed by Senate.
Labor Relations
(a) Collective bargaining on wages and working conditions
as in private sector.
(b) Ban on federal employee strikes continues, binding arbitration
if bargaining impasse persists 180 days from start of bargaining.
(c) NLRB supervises union elections and enforces unfair labor
practice actions.
Finance, Rates, and Rate-Making
(a) Post Office can borrow up to $10 billion from Treasury or
general public.
(b) Rate changes subject to public hearing before 3-man Postal
Rate Board named by President; final rate decision by Commission
Reproduced at the Richard Nixon Presidential Library
Page 2
on Postal Costs and Revenues, but subject to veto by two-
thirds vote of either House or Senate.
(c) Post Office to be generally self-supporting by January 1,
1978.
Pay
(a) 8% pay increase for employees of Post Office Department
effective upon enactment.
(b) Promptly after enactment, collective bargaining will be
required on wages, hours, and working conditions. Resulting
agreement will compress to 8 years the time for postal employees
to reach top step in whatever labor grade may be established.
II. Talking points :
(1) The participants who in one form or another helped to negotiate
the agreement and legislation, such as George Meaney; the
Postmaster General; Secretary Shultz; Deputy Postmaster General
Ted Klassen; Assistant Secretary Bill Usery, and other union
leaders present, should be congratulated on the outstanding job
which they have done in reasonably and effectively achieving this
agreement on postal reorganization.
(2) The job of the labor unionSand the Executive Branch of the
Government is now completed and the President should recommend
that Congress move as expeditiously as possible in enacting this
legislation on postal reorganization. Congress has been most
cooperative and understanding with respect to the various events
which have tran spired over the past three weeks. It is now the responsib
responsibility of the leaders of both the House and the Senate who
are assembled here to insure passage of the legislation that will
bring a new fairness to postal employees, a new efficiency to the
system itself, and a long overdue equity to the taxpayer.
(3) The President should reemphasize that each part of this
agreement which he believes to be a solution to our postal problem
is related to the other parts; together, they make up a package
of fairness that the public and the workers deserve.
(4) Attached is a copy of the revised pay rate schedule.
Reproduced at the Richard Nixon Presidential Library
March 12, 1970
TELEPHONE CALLS
CONGRESSIONAL
Rep. Ed Derwinski (R-I11)
RECOMMENDED BY:
William E. Timmons
REASON:
To thank him for his help on postal reform.
TALKING POINTS:
1. Today the House Post Office & Civil Service Committee
reported out the Administration's substitute for
Chairman Dulski's postal reform bill, HR 4.
2. Berwinski was the most aggressive Republican leader,
holding GOP troops, and arguing for meaningful
postal reform. (We're told Bob Corbett, the senior
Republican, had the courage to vote "present.")
H.R. Gross voted against the substitute and another
GOP opponent, Bill Scott, was absent. Otherwise
good party support.
3. The President may want to ask Ed about the chances
for a good Rule and quick House action.
4. Rep. Morris Udall (D-Ariz) was the most helpful
Democrat in Committee. However, no telephone
recommendation is made because of "Mo's" political
ambition in Arizona.
Reproduced at the Richard Nixon Presidential Library
P.O.
March 12, 1970
MEMORANDUM FOR THE PRESIDENT
From: William E. Timmons
After months of frustration the Administration's
postal reform bill was reported out of the House
Post Office Committee this morning 17-6. Actually,
the Post Office Department's version was offered
as a substitute fo Chairman Dulski's bill.
Much credit goes to Postmaster General Blount for
this signal victory.
Reproduced at the Richard Nixon Presidential Library
MEMORANDUM
THE WHITE HOUSE
WASHINGTON
April 16, 1970
4:45 p.m.
POST OFFICE DEPARTMENT LEGISLATIVE REPORT
1).
The President announced the agreement reached between the
Post Office Department and representatives of the Postal
Union on reorganization of the Post Office and
additional wage increases for postal employees.
The agreement includes a reorganizationof the Post
Office Department as an independent self-supporting
agency within the Executive Branch of the government
with removal of the Postmaster General from the Cabinet.
Also included is an 8% salary increase for postal
employees effective upon enac tment of the reorganization
plan.
2)
Congressional Liaison gave advance notice of the
postal reorganization/salary increase agrement
to the congre-sional leadership and Members of the
House & Senate Post Office & Civil Service Committees.
An outlineand fact sheet of the proposal was made
available to every Member of Congress by late after-
noon.
Reproduced at the Richard Nixon Presidential Library
4-16
THE WHITE HOUSE
WASHINGTON
B J
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buffed the Postal Uniox
types. - We will out still
get the Members
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out for Dulski $ Corbert
Reproduced at the Richard Nixon Presidential
the WHITE HOUSE
WASHINGTON
April 15, 1970
MEMORANDUM FOR THE PRESIDENT
From:
William E. Timmons
Subject:
Postal Reorganization Briefing
Thursday, April 16, 1970
11:00 a.m.
The Cabinet Room
A list of participants is in Tab A.
A suggested agenda is in Tab
The principal features of the postal reorganization
agreement are in Tab C.
You may wish to lead your guests from the 10:45 a.m.
meeting into the Cabinet Room where some of the bi-
partisan leaders and officers of the postal unions will
be assembled.
Ron Ziegler will be prepared to bring into the Cabinet
Room photographers from the White House press corps.
You will probably want to congratulate the labor
officials and members of the Executive Branch on
achieving the postal reorganization agreement.
Reproduced at the Richard Nixon Presidential Library
IN THE CABINET ROOM AND ALL
MEMBERS HAVE BEEN INFORMED TO ENTER SOUTHWEST GATE AT 11:00 or
earlier.
April 16, 1970
PARTICIPANTS
Executive
()
The President
Winton Blount, The Postmaster General
E. T. Klassen, Deputy Postmaster General
Congress
Senator Mike Mansfield
Senator Gale McGee
Senator Hiram Fong
Rep. Carl Albert
Rep. Gerald Ford
Rep. Thaddeus Dulski
Rep. Robert Corbett
Labor
George Meany, President, AFL-CIO
Francis S. Filbey, President, United Federation of Postal
Clerks
James H. Rademacher, President, National Association of
Letter Carriers
Herbert F. Alfrey, President, National Rural Letter
Carriers Association
Lonnie Johnson, President, National Association of Post
Office Mail Handlers, Watchmen, Messengers & Group Leaders
Monroe Crable, President, National Association of Post
Office and General Services Maintenance Employees
Chester W. Parris, President, National Federation of
Post Office Motor Vehicle Employees
Michael J. Cullen, President, National Association of
Special Delivery Messengers
James J. LaPenta, Director of the Laborers' Federal
Public Service Division
James C. Gildea, Executive Assistant to Mr. Meany
Andrew J. Biemiller, Legislative Director, AFL-CIO
Staff
Bryce N. Harlow
John Ehrlichman
Bill Timmons
Henry Cashen
Ron Ziegler
Herb Klein
Paul Carlin, Executive Assistant to the Postmaster General
Ken BeLieu
Lyn Nofziger
Reproduced at the Richard Nixon Presidential Library
April 15, 1970
MEMORANDUM FOR THE STAFF SECRETARY
From: William E. Timmons
On the Pastmaster General's request we are adding
three guests to the 11:00 a.m. meeting on postal
reorganization in the Cabinet Room, Thursday,
April 16.
They are:
1. Mr. Lane Kirkland
Secretary-Treasurer, AFL-CIO
2. Mr. Tom Harris
General Counsel, AFL-CIO
3. Mr. David Nelson
General Counsel, Post Office Department
CO: John Ehrlichman
Dwight Chapin
Henry Cashen
Ron Ziegler
White House Police
Chief Usher
Reproduced at the Richard Nixon Presidential Library
April 16, 1970
AGENDA
11.00 - 11.85 a.m.
Greeting and photos
The President S Office
11:00 - 11:10 a.m.
Photo opportunity for press corps
The Cabinet Room
11:10 - 11:15 a.m.
President's remarks
11:15 - 11:30 a.m.
Briefing on Agreement by
Postmaster General Blount
11:30 - 11:35 a.m.
Response by George Meany
11:35 - 11:45 a.m.
Leaders' Discussion
11:45 a.m.
Adjournment
11:50 a.m.
Press briefing by Blount and
Meany
The Press Room
Reproduced at the Richard Nixon Presidential Library
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Reproduced at the Richard Nixon Presidential Library
THE WHITE HOUSE 4-16
WASHINGTON
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Reproduced at the Richard Nixon Presidential Library
POSTAL REORGANIZATION AND SALARY ADJUSTMENT ACT OF 1970
CHART EXPLANATION
CHART 1 - TITLE
The Postal Reorganization and Salary Adjustment Act
of 1970 is the embodiment of an agreement between
the U.S. Post Office Department and the nationally
recognized postal unions.
CHART 2 - HIGHLIGHTS
Reorganizes the Post Office Department as an independent
establishment within the government, having continuity of
top management, workable methods of finance, and
appropriate control over postal rates. The Act provides
for collective bargaining over wages, hours and working
conditions and an 8% salary increase for postal employees
effective upon enactment.
CHART 3 - COMMISSION ON POSTAL COSTS AND REVENUES
The 11 member Commission is composed of 9 public members
appointed by the President and confirmed by the Senate and
the Postmaster General and Deputy Postmaster General, who
are selected by the 9 public members.
CHART 4 - THE ADVISORY COUNCIL
The Council consists of 13 presidentially appointed members:
3 representing the public at large, 4 representing postal labor
and 4 representing major mailers. The Postmaster General
serves as Chairman of the Council. The Council advises the
Commission on rates, services, and employee compensation.
Reproduced at the Richard Nixon Presidential Library
- 2 -
CHART 5 - PERSONNEL - CAREER SERVICE
Civil Service retirement benefits for all postal employees
are retained in full. Political tests or qualifications are
prohibited. Veterans preference retained.
CHART 6 - PERSONNEL - COLLECTIVE BARGAINING
Negotiations between labor and management must begin
promptly upon enactment. Prohibition against federal
employee strikes is continued. Binding arbitration is
provided to settle impasses still unresolved by the
parties 180 days after the start of bargaining.
Compensation and benefits must be comparable with
the private sector. Through collective bargaining,
the top in-grade pay rate must be compressed from
the present 21 years to 8 years or less.
NLRB will supervise union elections and enforce unfair
labor practice actions.
CHART 7 - FINANCES
The Postal Service can borrow up to $10 billion from the
Treasury or general public. The Postal Service must be
self-supporting by January 1, 1978.
CHART 8 - RATES
Rates for each class of mail must cover, as a minimum,
all costs demonstrably related to that class.
The Postmaster General proposes rate changes, the Postal
Rate Board holds public hearings and makes rate recom-
mendations to the Commission on Postal Costs and Revenues.
Public members of the Commission vote on rate issues.
Reproduced at the Richard Nixon Presidential Library
- 3 -
Rate decisions of the Commission may be overturned
by two-thirds vote of either House of Congress during
a 60-day period.
CHART 9 - TIMETABLE
This chart lists the principal events which will take
place upon enactment of this legislation.
Reproduced at the Richard Nixon Presidential Library
April 13, 1970
PROPOSED POSTAL REORGANIZATION AND PAY BILL
Organizational Structure
Reorganized United States Postal Service becomes an independent
establishment within the Executive Branch of the Government.
Postmaster General appointed by and serves at the pleasure of the
Commission on Postal Costs and Revenues, which has 9 public
members named by the President and confirmed by the Senate.
Labor Relations
Collective bargaining on wages and working conditions to be authorized
as in the private sector.
Ban on federal employee strikes continues; binding arbitration if
bargaining impasse persists 180 days from start of bargaining.
National Labor Relations Board to supervise union elections and
enforce unfair labor practice actions.
Finance, Rates, and Rate-Making
Post Office can borrow up to $10 billion from the Treasury or
general public.
Rate changes subject to public hearing before 3-man Postal Rate
Board named by President; final rate decision by Commission on
Postal Costs and Revenues, but subject to veto by two-thirds vote
of either the U.S. House of Representatives or the U.S. Senate.
Post Office to be generally self-supporting by January 1, 1978.
Pay
8% pay increase for employees of Post Office Department effective
upon enactment.
Promptly after enactment, collective bargaining will be required on
wages, hours, and working conditions. Resulting agreement will
compress to 8 years the time for postal employees to reach top step
in whatever labor grade may be established through collective
bargaining.
Reproduced at the Richard Nixon Presidential Library
3rd Draft - Postal Reorganization
4/13/70
Safire/Nelson/Cashen/Harper
TO THE CONGRESS OF THE UNITED STATES
My message of April 3 outlined the preliminary agreement
that the Government reached with its postal employees after the end
of the recent postal work stoppage.
In that agreement, the Post Office Department and the
postal employee organizations affiliated with the AFL-CIO under-
took to negotiate and jointly sponsor a postal reorganization and
pay bill to be recommended to the Congress as a measure that
might ultimately lead to a cure of the problems that have been
festering for years in the postal system.
The negotiations went forward in an atmosphere of good
will and good faith on both sides, and they have now culminated in
agreement on a legislative proposal that would
-- Convert the Post Office Department into an
independent establishment in the Executive Branch of the
Government, freed from direct political pressures and endowed
with the means of building a truly superior mail service,
Reproduced at the Richard Nixon Presidential Library
-2-
-- Provide a framework within which postal employees
in all parts of the country can bargain collectively with postal
management over pay and working conditions, and
- - Increase the pay of postal employees by 8%, over
and above the Government-wide increase of 6%, and shorten the
time required to reach the top pay step for most postal jobs
I support the legislation that has been agreed to in the
negotiations between the Post Office Department and the postal
unions, and in transmitting it to the Congress I urge that it be
given prompt and favorable consideration.
I. The United States Postal Service
The negotiators quickly agreed that the structure of the
nation's postal establishment should be one that will permit the
postal system to operate on an independent, self-contained basis.
This means that for the first time in generations, the Post Office
will be run by people whose authority will be commensurate with
their responsibilities, it means that the Post Office will carry its
own burden and not be a burden to the taxpayer, and it means that the
Post Office will be run in the public interest of all Americans and
not in the political interest of any individuals.
Reproduced at the Richard Nixon Presidential Library
-3-
Fourteen months ago, I pledged that this Administration
would do its best to end the system of political patronage that has
been plaguing the Post Office for the better part of the past two
centuries. We have kept that promise; looking to the future, only
basic changes can provide permanent insurance against a rebirth
of partisan politics in the Post Office.
The legislation that the postal negotiators have agreed
upon, and that I now endorse, would build a firewall between postal
affairs and political patronage.
I propose that the Post Office Department be reorganized
as an independent establishment. known as "The United States Postal
Service. 11 The new establishment would be organized in a way de-
signed to make it at least as free from partisan political pressure
as such presently existing independent establishments as the Federal
Reserve System, the Securities and Exchange Commission, and the
National Aeronautics and Space Administration.
The Postmaster General would no longer be a member of
the Cabinet, under this proposal, and the Postal Service would be
insulated from direct control by the President, the Bureau of the
Budget and the Congress.
Reproduced at the Richard Nixon Presidential Library
-4-
Instead of being appointed directly by the President, the
Postmaster General would be selected by nine public members of
a bipartisan Commission on Postal Costs and Revenues. These
nine Commissioners not more than five of whom could be from
the same political party -- would serve nine-year statutory terms,
under appoint by the President withthe advice and consent of the
Senate. The Postmaster General, who would hold office at the
pleasure of the Commissioners, would be vested with full authority
to manage the day-to-day operations of the Postal Service
The legislation would provide the new Postal Service with
the means of achieving
-- Continuity of top management, withthe tenure of the
Postmaster General based on performance and not on politics,
-- - Appropriate control over postal rates, with a Postal
Rate Board holding full and fair hearings on rate changes proposed
by the Postmaster General, and with either House of Congress
being empowered to veto proposed rate changes by a two-thirds
vote,
-- - A self-supporting postal system,
- A workable method of raising necessary funds by
borrowing from the Treasury Department or from the general
public, and
Reproduced at the Richard Nixon Presidential Library
-5-
-- Collective bargaining over wages, hours and, in general,
all working conditions that are subject to collective bargaining in the
private sector
These were essentially the goals spelled out in the proposal
for postal reform that I sent to the Congress in May of last year. The
independent postal establishment on which agreement has now been
reached would provide an excellent means of achieving those goals.
Any proposal for massive reform of a Government organization
as important as the Post Office Department is bound to generate opposition
from those who have a vested interest in preserving the status quo. In
this instance, however, the initial opposition to postal reform has
largely melted away in the face of the urgent national requirement for
a better postal system. Further delay in starting on the road towards
postal excellence would be indefensible.
II. Postal Employee-Management Relations
The negotiators have agreed that there should be a statutory
framework for collective bargaining in the postal establishment
resembling that of private industry.
The people of this nation cannot and will not submit to the
coersion of strikes by employees of the Federal Government. Since
strikes by employees of the new Postal Service must be prohibited,
a workable alternative to strikes must be provided -- an absolutely
Reproduced at the Richard Nixon Presidential Library
-6-,
impartial means of resolving differences between postal management
and postal employees without the public being subjected to interruptions
in the postal service. That is what the proposed legislation agreed
upon by the postal negotiators provides.
I propose that the new United States Postal Service be
empowered to engage in collective bargaining with recognized
employee organizations over wages, hours, and working conditions
generally, with negotiating impasses being finally resolved, if
necessary, by binding arbitration.
Determination of collective bargaining units, recognition of
collective bargaining representatives and adjudication of unfair labor
practice charges would be handled by the National Labor Relations
Board under procedures similar to those that have long been followed
in the private sector.
In addition to wages and hours, matters that are subject to
collective bargaining would include such things as grievance procedures,
final and binding arbitration of disputes, seniority rights, holidays
and vacations, life insurance, medical insurance, training and
promotion procedures. Employee benefits enjoyed today would be
carried forward, and, in the case of rank and file postal employees,
any change in such benefits would be subject to the collective bargaining
process.
Reproduced at the Richard Nixon Presidential Library
-7-
Negotiations over new labor agreements would be expected
to begin ninety days before the expiration of existing agreements, and
there would be a statutory guarantee of final and binding third party
arbitration to resolve negotiating impasses after a ninety day cooling-
off period, an outside fact-finding panel would try to assist the parties
in reaching agreement, and opportunities for mediation and conciliation
would be provided.
All postal employees would retain their full benefits under the
Civil Service retirement system and under the existing Federal
workmen's compensation laws. The provisions of the Veterans
Preference Act would continue 10 apply, as would the provisions of
Title VI of the Civil Rights Act of 1964. The labor standards provisions
to which Government contracts are made subject would be made
applicable to contracts entered into by the new Postal Service.
Finally, the right of every postal employee to petition Congress
would be expressly preserved by statute.
III. Postal Pay
In many parts of the country -- particularly in our great urban
areas the pay of postal employees has lagged seriously behind the
pay received for comparable work by employees in private industry.
The general 6% increase has alleviated that problem for most employees
Reproduced at the Richard Nixon Presidential Library
-8-
of the Federal Government, but it fails to take into account two
important considerations that are unique to the Postal Service
- - The need to offset the limited opportunities for job
advancement that most postal workers have traditionally faced, and
-- The need to allow postal workers to share the benefits
of the increases in efficiency and productivity that should be attainable
under a properly reorganized postal system.
These factors played an important part in the thinking of the pos tal
negotiators during their di scussions on the pay question.
I propose an additional pay increase of 8% for postal
employees, effective immediately upon enactment of the reorganization
law, with prompt collective bargaining over pay schedules under which
the time required for rank and file postal employees to reach the top
pay step in their respective labor grades will be compressed to not
more than eight years.
IV. Postal Rates
As the new Postal Service will be self-contained, so should it
be self-supporting, as it will be non-profit, SO should it be non-loss.
If the pay increases that the postal negotiators have agreed to
recommend are put into effect promptly, and if postal rates were to
remain where they are today, postal expenditures would exceed postal
Reproduced at the Richard Nixon Presidential Library
-9-
income in 1971 by approximately two and one-half billion dollars
A postal deficit of this magnitude would be indefensible at
any time, during a period when inflation is threatening the economic
well-being of every American family, such a deficit would be totally
irresponsible.
Last week I proposed a plan for raising first, second and
third class postage rates to a level that would bring postal income
fully into balance with anticipated postal expenditures. This plan
included a proposal for increasing the price of the first class stamp
to ten cents. Understandably, this met with limited enthusiasm, yet
it provided a specific illustration of the true cost to the user of our
mail service.
In the course of negotiations, an alternative proposal was
made to cushion the immediate effect of the application of the
principle of pay-as-you-go on the users of the mail. Under this
plan, the general taxpayer would pay 10% of the total cost of the new
postal service in the first year, with that percentage of support de-
clining each year until the mails were completely self-supporting by
the end of calendar 1977.
Though the goal would be delayed, the acceptance of the
principle of pay-as-you-go -- even in stages is a fundamental
breakthrough.
Reproduced at the Richard Nixon Presidential Library
-10-
I prefer an immediate end to subsidication, but since the
principles of pay-as-you-go and postal reform are so important,
I am ready to accept this gradual but steady approach to that goal.
I also prefer the method of raising most of the needed new
revenues from first-class users, since three out of four letters in
this classification are business mail, first class mail -- contrary
to popular belief does not now pay its own way. Again, however,
I consider the principles of pay-as-you-go and postal reform to
be overriding, and I am willing to make adjustments in my original
proposals so as to raise more revenues from other classes of mail
as well.
In the interest of making realistic progress toward the
objectivé of bringing postal expenditures into balance with postal
revenues, I now propose to
-- Increase the price of the first class stamp to eight cents;
-- Keep the price of the air mail stamp at ten cents,
- - Increase second class postage rates an average of 50%, and
-- Increase third class bulk rates an average of one third
(the same percentage increase as first-class), while increasing
third class single piece rates from six cents to eight cents.
Reproduced at the Richard Nixon Presidential Library
--11-
These rate increases will generate additional revenues of
$
, enough to put the new, independent United States
Postal Service on the road to a sound, pay-as-you-go basis, with
the 10% contribution by the Federal taxpayer completely phased out
in 1977.
V. Toward Postal Excellence
Neither better pay nor better organization will, in and of
itself, guarantee better mail service.
Laws do not move the mail, nor do dollars. What moves
the mail is people -- people who have the will to excel, the will to
do their work to the very best of their ability.
The United States is fortunate to have such people in its
postal system today. As the Postmaster General has urged, these
people must be retained, in the years ahead, more like them must be
recruited. This legislation would represent an important step toward
that end.
Enactment of the legislation that I now propose would give
our postal employees the means to attain a goal they have never before
had the means of attaining -- the goal of building, in America, the
best postal system in the world.
Reproduced at the Richard Nixon Presidential Library
--12-
That is a goal worth striving for. With this postal reform
legislation, it is a goal that can be achieved.
Mail users, postal employees and the nation as a whole
have gone through a long ordeal in reaching the threshold of basic
postal reform - - but we have come a long way.
The Congress is now presented with the opportunity to
pass legislation that will bring a new fairness to postal employees,
a new efficiency to the system itself, and long overdue equity to
the taxpayer.
Taken together, this is a package of fairness, and I urge
the Congress to deliver it promptly; it is eagerly awaited by those
who need better mail service and those who need greater opportunity
in a revitalized postal system.
0
Reproduced at the Richard Nixon Presidential Library
THE WHITE house
WASHINGTON
POST OFFICE
1. The House PO & CS Cte met in Executive Session both
this morning and afternoon to continue consideration of
a H.R. 17070, the Postal reorg and sałary adjustment act
of 1970. Chairman Dulski announced that the Cte will
continue afternoon and evening sessions until action is
completed on the postal reform bill.
2. The Senate PO & X CS has scheduled Executive ssession
for Tuesday, May 12th to consider postal reform leg.
Reproduced at the Richard Nixon Presidential Library
MEMORANDUM
THE WHITE HOUSE
WASHINGTON
May 7, 1970 - 4:30 p.m.
POST OFFICE DEPARTMENT LEGISLATIVE REPORT
The House P.O. & C.S. Committee met in executive sesssion
to consider the House Benefits bill and take up amendments
to the Postal Reform legislation.
No action was taken.
Reproduced at the Richard Nixon Presidential Library
MEMORANDUM
THE WHITE HOUSE
WASHINGTON
May 20, 1970
POST OFFICE REPORT
1. The Postmaster General met with Minority Leader Jerry Ford
to discuss strategy for enactment of H.R. 17070, the Postal
Reorganization and Salary Adjustment Act of 1970.
2. The House Subcommittee on postal rates continued its hearings
on postal rate increase legislation. Testimony was heard from the
American Association of Nurseymen, Mail Order Association of
Nurserymen, and the National Newspaper Association in opposition
to the proposed rate increases.
Reproduced at the Richard Nixon Presidential Library
MEMORANDUM
THE WHITE HOUSE
WASHINGTON
May 13, 1970
POST OFFICE DEPARTMENT REPORT
1. The Senate P.O. & C.S. Committee met to hear an
explanation of a new committee print on postal reform legislation
submitted late last night by Chairman McGee. Chairman McGee
gave a brief explanation of the proposal, characterizing it as
a "compromise". Following the committee meeting Senator McGee
made a statement to the press in which he expressed the hope that
the committee would favorably report the proposal by Thursday
afternoon or Friday at the latest. The proposal provides for
several changes in the rate-making procedure and includes a 10%
"public service" subsidy for the postal service.
2.
The House Subcommittee on Postal Rates continued hearings
on postal rates increases. Testimony was heard from the Magazine
Publishers Association, Newsweek Magazine, American Newspaper Publishe
Association and other representatives of the media.
Reproduced at the Richard Nixon Presidential Library
MEMORANDUM
THE WHITE HOUSE
WASHINGTON
May 14, 1970
POST OFFICE DEPARTMENT REPORT
The House Subcommittee on Postal Rates continued hearings on
postal rate increase legislation. Testimony was heard from former
Postmaster General J. Edward Day, representing the direct mail
advertising association, and representatives of the Agricultural
Publishers Association and the Associated Third Class Mail Users.
Mr Day expressed his continued opposition to postal reform
along the coporate idea, but admitted that it now appears that postal
reform will be enacted by this Congress.
Reproduced at the Richard Nixon Presidential Library
May 21 - 5:00 p.m.
POST OFFICE DEPARTMENT LEGISLATIVE REPORT
1.
The scheduled meeting of the Senate P.O. & C.S.
was postponed until Friday, May 22 when Chairman
McGee returns from Wyoming.
2.
The scheduled executive session of the House P.O. & C.S.
was cancelled due to lack of business.
Reproduced at the Richard Nixon Presidential Library
MEMORANDUM
THE WHITE HOUSE
WASHINGTON
May 20, 1970
POST OFFICE REPORT
1. The Postmaster General met with Minority Leader Jerry Ford
to discuss strategy for enactment of H.R. 17070, the Postal
Reorganization and Salary Adjustment Act of 1970.
2. The House Subcommittee on postal rates continued its hearings
on postal rate increase legislation. Testimony was heard from the
American Association of Nurseymen, Mail Order Association of
Nurserymen, and the National Newspaper Association in opposition
to the proposed rate increases.
Reproduced at the Richard Nixon Presidential Library
MEMORANDUM
THE WHITE HOUSE
WASHINGTON
May 14, 1970
POST OFFICE DEPARTMENT REPORT
The House Subcommittee on Postal Rates continued hearings on
postal rate increase legislation. Testimony was heard from former
Postmaster General J. Edward Day, representing the direct mail
advertising association, and representatives of the Agricultural
Publishers Association and the Associated Third Class Mail Users.
Mr Day expressed his continued opposition to postal reform
along the coporate idea, but admitted that it now appears that postal
reform will be enacted by this Congress.
Reproduced at the Richard Nixon Presidential Library
To:B ill Timmons
Office of the President
The White House
Dich must watch! 30
From-
Hugh Newton
Reproduced at the Richard Nixon Presidential Library
MEMORANDUM
THE WHITE HOUSE
WASHINGTON
May 13, 1970
POST OFFICE DEPARTMENT REPORT
1. The Senate P.O. & C.S. Committee met to hear an
explanation of a new committee print on postal reform legislation
submitted late last night by Chairman McGee. Chairman McGee
gave a brief explanation of the proposal, characterizing it as
a "compromise". Following the committee meeting Senator McGee
made a statement to the press in which he expressed the hope that
the committee would favorably report the proposal by Thursday
afternoon or Friday at the latest. The proposal provides for
several changes in the rate-making procedure and includes a 10%
"public service" subsidy for the postal service.
2.
The House Subcommittee on Postal Rates continued hearings
on postal rates increases. Testimony was heard from the Magazine
Publishers Association, Newsweek Magazine, American Newspaper Publishe
Association and other representatives of the media.
Reproduced at the Richard Nixon Presidential Library
Past Office
A COALITION OF EMPLOYEES AND EMPLOYERS
RIGHT TO WORK
NATIONAL RIGHT TO WORK COMMITTEE
1900 L STREET, N. W.
.
WASHINGTON, D. C. 20036
TELEPHONE: 296-0720-AREA CODE 202
The following statement was released by Congressman David N. Henderson
(D-North Carolina) Thursday, May 14.
"I have recently been quoted by the press as saying that while I plan
to offer on the House floor an amendment to H.R. 17070 guaranteeing to all
postal employees the right to join or refrain from joining unions that I
'don't have any confidence that it will pass.
'
"This is in error. I did express a lack of optimism about the prospects
for my amendment to be approved by the House Post Office and Civil Service
Committee, but I have consistently stated that I felt considerably more
optimistic about its chances of approval by the House.
"As a matter of fact, if the Republican members honor the pledge made in
their 1968 national platform, I have no doubt that it will pass. They have
a plank in that platform opposing compulsory unionism, and if they support
their platform, they will vote for my amendment. Their vote, coupled with
that of those on the Democratic side who we can depend upon, will be enough
to assure passage. "
Hugh C. Newton
Director of Information
National Right to Work Committee
Reproduced at the Richard Nixon Presidential Library
DAILY NEWS, FRIDAY, MAY 15, 1970
53
HN
DAILY NEWS
The Inquiring
THE DARK AT THE TOP OF THE STAIRS
120 East 42d St.
NEW YORK'S PICTURE NEWSPAPER=
(212) MU 2-1234
Fotographer
Great
Published daily except Sunday by New York News Inc.
President, F. M. Flynn Secretary, W H. lames Treasurer, J. J: 1.ynch
Address: 220 E. 42d St. New York. N. Y 10017
By JIMMY JEMAIL
/ have
THE NEWS will pay $10 for each
Mail subscription rates per year: U.S. Daily $22.00; Daily and Sunday $33.00.
Canada, Mexico. Central and South America Daily $25.00; Daily and Sunday $38.50.
question accepted for this column.
Original
Armed Forces Special Rates Daily $14.00; Daily and Sunday $21.25.
Today's award goes to A. Cleve-
land, P.O. Box 684, Sag Harbor, L.I.
MEMBER OF THE ASSOCIATED PRESS
ad
The Associated Press is entilled exclusively to the use for republication of all
THE QUESTION
the local news printed in this newspaper as well as all AP news dispatches.
Admissions officers at Ivy
POST OFFICE REFORM
League colleges fear rising costs
will drive away middle-class stu-
seems to be making some progress in Congress, spurred
dents. What do you think?
by threats of a possible second postal strike.
WHERE ASKED
The Senate Post Office Committee-chairman, Sen:
Uptown Manhattan
Gale W McGee (D-Wyo.)-agreed
THE ANSWERS
Wednesday on a compromise bill
Robert H. Warren, Broadway,
reported to suit the Nixon ad-
drugstore own-
ministration.
er: "This seems
to be a distinct
This measure carries an 8%
danger. The
pay boost for postal workers, and
middle class is
provides for a nine-member board
being hit hard-
to run a postal authority, with a
est by the in-
separate commission to fix rates
creasing costs
of a college edu-
subject to the Postmaster Gen-
cation. The rich
eral's veto.
can absorb the
POSTAL
All this sounds promising, and
higher costs,
a revamped postal system may be
while the poor are subsidized. The
REFORM
middle class should be equally en-
operational before too long.
titled to a subsidy."
It is much to be hoped,
Sen. Gale McGee
though, in our opinion, that Con-
Floyd P Pettiford, Piscataway,
(D-Wyo.)
gress will find the courage to rule
J., concert
promoter: "If
compulsory unionism out of any new postal setup. Many
these admission
labor leaders are hot for the union shop form of semi-
fficers fear
slavery to be riveted on the postal workers, as a step toward
that this is
trend, there
similarly serii-enslaving most if not all civil servants.
must be some
The scheme, we are convinced, should be nipped in the
solid reasons for
bud, and, to repeat, we devoutly hope Congress will find
it. Personally, I
the nerve to do the nipping.
think that every-
one who ca n
qualify for col-
MORE ON FOULED-UP STREETS
lege, Ivy League or not, should
go and the government should
VOICE OF THE PEOPLE
The city's streets on average are filthier than ever be-
pay the cost."
fore. Sanitation union boss J J DeLury says SO.
Please give name and address with letter. We will withhold both on request.
There is talk-plenty of it-that Mr DeLury's men
Mrs. Helen Kantrowitz, Bronx,
secretary: "It's
THE CAMBODIAN AFFAIR
DEFINITIONS
could markedly increase their productivity without hurting
happening, and
Brooklyn: Many in this country
Manhattan: Sen. Javits, for-
their health or their equipment.
not only in the
would have us pull out of South-
Ivy -League
lornly trying to remain contem-
However, it is a fact, as reported in yesterday's NEWS
by Daniel O'Grady and Martin McLaughlin, that bureau-
schools The
east Asia now. They would
porary, has borrowed from the
middle class is
snuggle under the security of the
radical left argot and charged the
Reproduced at the Richard Nixon Presidential Library
MEMORANDUM
THE WHITE HOUSE
WASHINGTON
/
March 26 - 3.45 p.m.
PAUL CARLIN CALLED TO REPORT
Negotiators will go back in at 4:00 p.m.
Senate Conferees on H.R. 13000 adopted motion for retroactive pay
that it should not be later than January 1, 1970.
1. Recommendations will be made when (either or)
1. President submits statement based on negotiations
or
2. Parties (government and postal unions) announce that
they have reached an impasse.
House conferees - issued a statement of regret on possibility
that House democrats may discharge conferees - that is then
giving them option on Floor to accept amendment.
Can't do anything til Monday.
No roll call votes without 48 hour notice.
Reproduced at the Richard Nixon Presidential Library
April 21, 1970
MEMORANDUM FOR BILL GIFFORD
Special Assistant
for Legislative Affairs
Department of Labor
Bill Timmons would appreciate having your comments
on the attached correspondence relating to the
applicability of Section 14 B of the Taft Hartley Act
to postal reorganization legislation.
Thank you.
William E. Casselman, II
Deputy Special Assistant to
the President
bcc: Bill Timmons
Reproduced at the Richard Nixon Presidential Library
April 21, 1970
MEMORANDUM FOR PAUL CARLIN
Executive Assistant to
Postmaster General
Post Office Department
Bill Timmons would appreciate having your comments
on the attached corrspondence relating to the applica-
bility of Section 14 B of the Taft Hartley Act to
postal reorganization legislation.
Thank you.
William E. Casselman, II
Deputy Special Assistant to
the President
bcc:
Bill Timmons
Reproduced at the Richard Nixon Presidential Library
April 21, 1970
MEMORANDUM FOR JOHN DEAN
Associate Deputy Attorney General
for Legislation
Department of Justice
Bill Timmons would appreciate having your comments
on the attached correspondence relating to the
applicability of Section 14 B of the Taft Hartley
Act to postal reorganization legislation.
Thank you.
William B. Casselman, II
Deputy Special Assistant to
the President
bcc: Bill Timmons
Reproduced at the Richard Nixon Presidential Library
April 21, 1970
MEMORANDUM FOR HENRY CASHEN
From:
Bill Casselman
Bill Timmons would appreciate having your comments
on the attached correspondence relating to the
applicability of Section 14 B of the Taft Hartley Act
to postal reorganization legislation.
Thank you.
bcc:
Bill Timmons
Reproduced at the Richard Nixon Presidential Library
Bill
Will you quickly
xuox copies to
Kilcullen + Nelson
exchange and shoot
them to Daue carlin,
Bill Gifford, John Dean
and Henry Cashen for
comment. This could
he important !!
Thank
B,
Reproduced at the Richard Nixon Presidential Library
BC/
4/21/70
ARE you CHASING
DOWN THE 14-B
PROBLEM WITH
POSTAL REDRGANIZATION?
I HAVE TO GET BACK
TO SEN. BAKER ASAP.
BT
Reproduced at the Richard Nixon Presidential Library
JENNINGS RANDOLPH, W. VA., CHAIRMAN
STEPHEN M. YOUNG, OHIO
JOHN SHERMAN COOPER, KY.
EDMUND S. MUSKIE, MAINE
J. CALEB BOGGS, DEL.
B. EVERETT JORDAN, N.C.
HOWARD H. BAKER, JR., TENN.
BIRCH BAYH, IND.
ROBERT J. DOLE, KANS.
JOSEPH M. MONTOYA, N. MEX.
EDWARD J. GURNEY, FLA.
william B. SPONG, JR., VA.
ROBERT W. PACKWOOD, OREG.
THOMAS F. EAGLETON, MO.
United States Senate
MIKE gravel, alaska
COMMITTEE ON PUBLIC works
RICHARD B. ROYCE, CHIEF CLERK AND STAFF DIRECTOR
J. B. HUYETT, JR., ASSISTANT CHIEF CLERK
WASHINGTON, D.C. 20510
M. BARRY MEYER, COUNSEL
April 20, 1970
MEMORANDUM TO. WILLIAM E. TIMMONS
FROM Hugh Branson, Administrative Assistant to
Senator Howard H. Baker, Jr.
Please find enclosed correspondence from David A.
Nelson, General Counsel, Post Office Department, and
John L. Kilcullen which we discussed by phone
this afternoon.
Hugh Bransan
Enclosure
Reproduced at the Richard Nixon Presidential Library
THE GENERAL COUNSEL
POST OFFICE DEPARTMENT
WASHINGTON, D. C. 20260
March 12, 1970
Honorable David H. Henderson
Chairman, Subcommittee on Manpower
and Civil Service
Committee on Post Office and Civil Service
House of Representatives
Washington, D. C. 20315
Dear Mr. Chairman:
This is in response to your request for my opinion as to whether
the proposed postal reform legislation contained in the Committee Print
of March 6, 1970, if enacted into law, would override state right-to-
work laws and authorize the Postal Service Authority to enter into union
shop agreements applicable to postal employees in right-to-work states.
In my view the postal reform legislation would not authorize the
Postal Service Authority to enter into or attempt to enforce a union
shop agreement in any state having a law that prohibits the execution
or application of agreements requiring membership in a labor organization
as a condition of employment.
This opinion is based on the fact that section 102 of the proposed
postal reform bill would add a section to title 39 of the United States
Code providing, in pertinent part, that "labor-management relations
shall, to the extent not inconsistent with provisions of this title,
be subject to the provisions of chapter 7
of title 29." (39
U.S.C. 807, as set forth on page 60 of the Committee Print.) Chapter
7 of title 29 contains a provision - originally enacted as Section 14(b)
of the National Labor Relations Act, as amended by the Labor-Management
Relations Act of 1947 - stating that:
"Nothing in this subchapter shall be construed as authorizing the
execution or application of agreements requiring membership in a
labor organization as a condition of employment in any State or
Territory in which such execution or application is prohibited by
State or Territorial law." (29 U.S.C. 164(b))
The subchapter in question affirmatively provides that it shall be an
unfair labor practice for an employer "by discrimination in regard to
hire or tenure of employment or any term or condition of employment to
encourage or discourage membership in any labor organization." 29 U.S.C.
Reproduced at the Richard Nixon Presidential Library
158(a)(3). A subsequent proviso in Section 158(a)(3) states that an
employer shall not be precluded from making an agreement with a recognized
collective bargaining representative requiring union membership as a con-
dition of employment after the 30th day from the beginning of such em-
ployment; but, as indicated above, section 14(b) has the effect of making
this proviso inapplicable in those states that have adopted laws prohibiting
the execution or application of agreements requiring membership in a
labor organization as a condition of employment. See Retail Clerks v.
Schermerhorn, 375 U.S. 96, 103 (1963), where the United States Supreme
Court, in discussing the status of state right-to-work laws in the light
of 29 U.S.C. 158(a)(3) and 29 U.S.C. 164(b), stated:
"There is thus a conflict between State and Federal law; but
it is a conflict sanctioned by Congress with directions to give
the right of way to State laws barring the execution and enforce-
ment of union-security agreements."
From a constitutional standpoint, there is no reason why Congress,
by duly enacted statute, may not "give the right of way" to state right-
to-work laws insofar as employees of a Federal instrumentality are con-
cerned, whether such employees work in an enclave over which the United
States has exclusive legislative jurisdiction or whether they-work in an
area over which the state government has jurisdiction. In my opinion,
this is precisely what Congress would do if it enacted a postal reform
bill containing the provisions set forth in the Committee Print of March 6;
nowhere in the Committee Print is there any provision that is inconsistent
with a Congressional intent to defer to state right-to-work laws across the
board.
I am aware of the fact that the National Right to Work Committee has
suggested, a least by innuendo, that the provisions of state right-to-work
laws might not apply to postal employees, under the kind of legislation
now being considered, to the extent that such employees may work on Federal
reservations. The Committee has referred, in this connection, to the fact
that certain attorneys employed by the Department of Defense are said to
be insisting that state right-to-work laws do not apply to private employees
working on Federal enclaves, and the position of the Department of Defense
on this question is claimed to be at variance with the position that Post-
master General Blount enunciated when he testified on postal reform before
the House Post Office and Civil Service Committee last summer.
I see no inconsistency at all between the position taken by the Post-
master General and that said to have been adopted by the Department of
Defense, and I strongly disagree with the suggestion that there is even a
remote possibility that the proposed postal reform legislation might make
a nullity of state right-to-work laws. By incorporating the Labor Manage-
ment Relations Act of 1947, the postal reform legislation would adopt a
policy of deference to state law on the right-to-work issue, in those states
2
Reproduced at the Richard Nixon Presidential Library
having right-to-work laws, thus putting the Postal Service Authority
in exactly the same position, with regard to the union shop, that it
would occupy were it a private business enterprise. The power of
Congress to adopt such an approach is clear, and its intent to do so,
as expressed in the postal reform measure, seems to me to be equally
clear. I am not aware of any comparable statute applicable to Defense
Department contractors working on Federal enclaves, and the reference
to the Department of Defense situation seems to me to be wholly inappo-
site.
I trust that the foregoing adequately covers the question in which
you expressed an interest.
Sincerely,
David a. Milson
David A. Nelson
General Counsel
3
Reproduced at the Richard Nixon Presidential Library
Law Offices of
Gall, Lane, Powell and Kilcullen
1250 Connecticut Avenue
JEROME POWELL
JOHN C. GALL (1941-1957)
JOHN L. KILCULLEN
ROBERT M. SCOTT
Washington, DC. 20036
WILLIAM F. HOWE (1943-1963)
WILLIAM H. WILLCOX
JOHN F. LANE
J. JAMES MCKENNA
-
JOHN ERIS POWELL
PETER F. HEALEY
COUNSEL
TELEPHONE
(202) 659 1600
April 3, 1970
Mr. Reed Larson
National Right to Work Committee
1900 L Street, N. W.
Washington, D. C. 20036
Dear Reed:
By letter dated March 25, 1970 Congressman David N.
Henderson forwarded to you a copy of a letter from David A.
Nelson, General Counsel of the Post Office Department, setting
forth the reasons why, in Mr. Nelson's opinion, the proposed
postal reform legislation would not permit the Postal Service
Authority to enforce compulsory union shop agreements in Right
to Work states.
Mr. Nelson's letter argues that the proposed postal
reform bill, by providing that labor-management relations of
the Postal Authority shall be subject to the provisions of the
National Labor Relations Act, as amended, automatically incor-
porates section 14 (b) of that Act SO as to preclude enforcement
of compulsory unionism agreements in the nineteen Right to Work
states.
An important point overlooked by Mr. Nelson is that
some state Right to Work laws by their very terms are inap-
plicable to public employees, either state or federal. For
example, the Georgia Right to Work law (54-901 Code of Ga. An-
notated) contains the following definition of employer:
"(a) The Term 'Employer' includes any person
acting in the interest of an employer, directly
or indirectly, but shall not include the United
States, or any State, or any political subdivi-
sion thereof, or any person subject to the Rail-
way Labor Act, as amended from time to time, or
any labor organization (other than when acting
Reproduced at the Richard Nixon Presidential Library
Gall, Lane, Powell and Kilculten
Mr. Reed Larson
-2-
April 3, 1970
as an employer), or any one acting in the capa-
city of officer or agent or agent of such labor
organization.
=
It is quite clear that if the Georgia Right to Work law by its
terms does not apply to federal employees it would not apply
to employees of the Postal Service Authority, and the Authority
could proceed under the proposed law to enforce a compulsory
unionism agreement in the state of Georgia notwithstanding the
fact that it is a Right to Work state. A similar conclusion
could be reached under the language of other state Right to Work
laws including the North Carolina Right to Work law, which, al-
though it does not contain the specific exclusionary language
of the Georgia law, uses the term "employer" in a manner that
could be construed as applying only to private employers and
not governmental agencies.
In dealing with the even more critical question of
whether state Right to Work laws would have applicability on
federally owned Post Office properties over which the United
States exercises exclusive jurisdiction, Mr. Nelson argues that
the proposed bill would permit the application of such laws re-
gardless of whether postal employees work in an enclave over
which the United States has exclusive legislative jurisdiction
or whether they work in an area over which the state government
has jurisdiction. "In my opinion, Mr. Nelson states, "this is
precisely what Congress would do if it enacted a postal reform
bill containing the provisions set forth in the Committee Print
of March 6; nowhere in the Committee Print is there any provi-
sion that is inconsistent with a Congressional intent to defer
to state right-to-work laws across the board.' In this connec-
tion Mr. Nelson takes note of the position expressed by Depart-
ment of Defense attorneys that state Right to Work laws do not
apply to private employees working on federal enclaves, but goes
on to state "I see no inconsistency at all between the position
taken by the Postmaster General and that said to have been a-
dopted by the Department of Defense.' Mr. Nelson's argument on
this point is that by incorporating the Taft Hartley Act the
postal reform legislation would have the effect of "putting the
Reproduced at the Richard Nixon Presidential Library
Gall, Lane, Powell and Kilcullen
Mr. Reed Larson
-3-
April 3, 1970
Postal Service Authority in exactly the same position, with
regard to the union shop, that it would occupy were it a pri-
vate business enterprise."
The assumptions on' which Mr. Nelson's arguments are
based are completely inconsistent with established law and
court decisions interpreting applicable constitutional provi-
sions. The federal enclave question is a much more complex
problem than he makes it out to be, and a close reading of the
proposed postal legislation shows nothing to indicate a Con-
gressional intention to waive the federal government's exclu-
sive legislative jurisdiction over Post Office properties in
Right to Work states. Such a result does not flow, as Mr.
Nelson assumes it would, from the provision that labor-manage-
ment relations shall be subject to the Taft Hartley Act.
The United States Constitution (Article I, Section 8,
clause 17) grants Congress the right to exercise exclusive
jurisdiction over property it purchases within a state if con-
sent is given by the legislature of the state. Most if not all
states have enacted statutes expressly consenting to assumption
of exclusive federal jurisdiction over federally-owned proper-
ties, with the result that post office properties are with few,
if any, exceptions, exclusive federal enclaves. Under control-
ling judicial decisions state civil law is applicable to a fed-
eral enclave only if such law was in effect at the time the fed-
eral government acquired exclusive jurisdiction over the enclave.
This was clearly spelled out by the Supreme Court in James
Stewart Co. V. Sadrukula, 309 U.S. 94 (1940), a case which in-
volved the precise question of whether the requirements of a
state safety law were applicable to a post office building being
constructed in New York City. Since state Right to Work laws
are a fairly recent development (the earliest having been en-
acted in 1944) it is a safe assumption that they were not in ef-
fect prior to acquisition of most of the federal properties on
which Post Offices are now situated, and would therefore not
apply to such properties under the rule of the James Stewart
case. A similar line of reasoning has been followed by Army
attorneys in concluding that state Right to Work laws have no
applicability on military reservations acquired prior to adoption
of such laws.
Reproduced at the Richard Nixon Presidential Library
Gall, Lane, Powell and Kilcullen
Mr. Reed Larson
-4-
April 3, 1970
Mr. Nelson apparently feels, however, that the postal
reform bill shows a Congressional purpose and intent to retro-
cede exclusive federal jurisdiction on post office properties
in favor of state Right to Work laws. He says that the language
of the bill "gives the right of way" to such laws "insofar as
employees of a federal instrumentality are concerned." This,
however, does not appear to be the case. It is an established
rule that retrocession of exclusive federal jurisdiction can be
accomplished only by an express and explicit Congressional re-
linquishment, divesture of the government's proprietary interest
in the property, or the occurrence of the conditions specified
in the state cession statute for reversion of jurisdiction to
the state. See, Report of the Interdepartmental Committee for
the Study of Jurisdiction over Federal areas within the States,
Part II, submitted to the Attorney General June 1957, pp 83-104;
Offutt Housing Company V. Sarpy County, 351 U.S. 253 (1956) ;
Johnson V. Yellow Cab Co., 321 U.S. 383 (1949) ; Fort Leavenworth
RR V. Lowe, 114 U.S. 525 (1885). It would thus appear that a
mere statement in the postal reform bill that labor-management
relations of the Postal Service Authority will be subject to the
Taft Hartley Act is not such an explicit act of renunciation of
exclusive federal jurisdiction as to bring about the result Mr.
Nelson suggests.
Mr. Nelson's argument that the proposed law has the
effect of "putting the Postal Service Authority in exactly the
same position with regard to the union shop that it would occupy
were it a private business enterprise, is no answer at all to
the federal enclave problem. Although private employers are now
subject to Taft Hartley, and to the 14 (b) provisions of Taft
Hartley, their employees are nonetheless within exclusive fed-
eral jurisdiction when they are engaged on a federal reserva-
tion, and state civil statutes enacted prior to the time the
federal property was acquired are inapplicable.
On the basis of the above considerations it is my
opinior. that there is a serious doubt that state Right to Work
laws would have any applicability at all to postal service em--
ployees under the proposed legislation. It can be predicted
Reproduced at the Richard Nixon Presidential Library
Gall, Lane, Powell and Kilcullen
Mr. Reed Larson
.
-5-
April 3, 1970
with absolute certitude that in the event the proposed bill is
enacted into law the postal unions will take this position and
will insist that there was no expressed intent in the legisla-
tion to relinquish exclusive federal jurisdiction over postal
enclaves in the Right to Work' states. In the absence of any
more precise language than that now contained in the proposed
bill the courts would undoubtedly sustain their position.
Very truly yours,
IS
John h. Kelaullum
John L. Kilcullen
JLK: jd
Reproduced at the Richard Nixon Presidential Library
THE WHITE HOUSE
WASHINGTON
May 25, 1970
POST OFFICE DEPARTMENT REPORT
Senate P.O. C&S Committee met in
Executive Session today to discuss
postal reform legislation.
Reproduced at the Richard Nixon Presidential Library
MEMORANDUM
THE WHITE HOUSE
WASHINGTON
May 26, 1970
POST OFFICE DEPARTMENT REPORT
1.
The Senate P.O. & C.S. committee today favorably
reported S. 3842 i postal reform bill. Senator
Yarborough reserved the right to file a minority
report.
2.
On May 25, Senators RAndolph and Boggs joined
as cosponsors of S. 3842.
3.
The Postmaster General today presented testimony
before the Senate Postal Appropriations Subcommittee
on Post Office Department budget for FY 71.
4.
House Subcommittee on Postal Rates continued
hearings on postal rate increase legislation.
The testimony was generally in opposition to
the proposed rate increases.
Reproduced at the Richard Nixon Presidential Library
MEMORANDUM
THE WHITE HOUSE
WASHINGTON
PAUL CARLIN CALLED 12 50 pm 5/26/70
The Postal Reform Bill was reported out of the Senate PO &CS Committe
today. The transportation aspect is the only bad feature, thinks
we can live with the rest of the bill
Reproduced at the Richard Nixon Presidential Library
MEMORANDUM
THE WHITE HOUSE
WASHINGTON
April 20 - 4:00 p.m.
POST OFFICE DEAPRTMENT REPORT
1.
Senator Gale McGee (D-Wyo) sharply criticized
the Administration for attempting to dictate to Congress the
terms of postal reorganization legislation. He contended that
it takes no postal corporation to get effective labor management
by law, overdue pay or compression from 21 years to 8 years
for advancement (in-grade).
2.
On Tuesday, April 21, the Postmaster Genearl and the
Assistant Postmaster General for Finance and Administration
will testify before the House P.O. & C.S. on postal rates
on proposed postal rates changes.
3. On Wednesday, April 22, the Postmaster General will testify
before the House P.O. & C.S. On H.R. 17070, the postal
reorganization and salary adjustment act of 1970. The Committee
April 23.
will continue its open hearings on postal reform on Thursday
Reproduced at the Richard Nixon Presidential Library
To: Bill Timmons
For your information, Senator
Geldwater speak S on postal what?
you're BC monitory stuff
POD Right?
From-
Hugh Newton
Reproduced at the Richard Nixon Presidential Library
Barry Goldwater
Compulsory Unionization
MAY
Sought By George Meany
A legislative device which
cluded provision for postal
might eventually pave the way
reform as well as provision for
for compulsory unionization of
an 8 percent raise in the pay of
some 12 million government
postal workers.
employees federal, state and
It now becomes clear that the
local is tied up in the strong
compulsory union feature was
drive for postal reform.
the major goal of the AFL-CIO.
Although little attention has
Meany's testimony before the
been drawn to the fact, four
House Post Office and Civil
bills sent to Congress with the
Service Committee made this
endorsement of Postmaster
absolutely clear.
General Winton Blount contain
The AFL-CIO president
authority for the compulsory
declared that he would oppose
unionism of 750,000 postal
the measure if an amendment
workers. If the concept is
was inserted in the legislative
enacted by Congress, the action
program to maintain the right
could serve as a precedent for
to work for postal workers.
extending the compulsion to all
The amendment in question
government workers.
was offered by Rep. David
The bills are deceiving. All of
Henderson of North Carolina. It
them contain long needed
would not alter any part of the
provisions for reforming our
bill except to protect a worker's
postal system, the bulk of which
right to join or not to join a
enjoy the support of most con-
union. In effect, Meany told the
gressmen and a majority of
committee that he would reject
taxpayers.
an 8 percent raise in pay for
There is no intention here to
postal workers, improved
contest the great need for
pension benefits and a reduction
changes in the present system,
in the number of years
where postal rates keep rising,
necessary to attain maximum
DANVILLE
postal deficits keep increasing
pay scale should the Henderson
and postal service continues to
(VA.)
amendment be adopted.
decline.
A question arises as to
REGISTER
But the need for these
whether Meany is saying that
reforms does not justify the
he isn't as concerned about im-
cancellation of rights presently
proving the working conditions
May 17, 1970
enjoyed by postal employees.
of the union's present mem-
The law gives them the specific
bership as he is about extending
right to join a union if they
that membership by force of
want to; it also gives them the
law.
right not to join a union if this
It should not be overlooked
is their choice.
that Meany has said the
This basic right to work for
significance of his agreement
government employees has been
with the Post Office Depart-
upheld by both the late Presi-
ment "will not be lost on people
dent John Kennedy and Presi-
whose job it is to deal with
dent Richard Nixon in executive
public employees on the state
orders. In addition, the 1968
and local level."
Republicanplatform
This is, of course, an open
specifically gave GOP support
suggestion that union leaders in
to the right of free choice for
states and municipalities strive
individual federal workers.
to duplicate the compulsory
The pertinent wording in that
membership feature of the
platform reads: "Further, we
postal reform agreement if
pledge to protect federal
Congress is foolish enough to
employees in the exercise of
enact Meany's pet provision.
their right freely and without
fear of penalty or reprisal to
form, join or assist any
employee organization or to
refrain from any such ac-
tivities."
Regardless, the postmaster
general has incorporated
language in his reform
measures that would authorize
the abolition of the right of free
choice by the postal workers.
This, apparently, was the
major objective behind the
agreement which the Post Of-
fice Department reached with
AFL-CIO President George
Meany At the time of the
partial strike of postal workers.
Meany and the unions agreed to
a package program which in-
Reproduced at the Richard Nixon Presidential Library