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EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT AND BUDGET WASHINGTON, D.C. 20503 December 30, 1970 MEMORANDUM FOR JOHN R. BROWN III Re: Administration's Stance Towards Organized Labor I believe that we should have an issue-by-issue stance towards organized labor, not hesitant to oppose or to take on their opposition and at the same time ready to work with them on issues where we agree. This is possible if it is against a background of generally friendly personal relationships such as those the President has developed with virtually all the top leadership of organized labor and of acceptance of unions as worthwhile institutions in society. The basic assumption in the Walker paper that organized labor always opposes us on all important issues is not true. No public leader of note stood more firmly with the President in the critical days of Cambodia than George Meany. Furthermore, Meany carried virtually all of the American labor movement with him. Organized labor also supported the ABM decision, the family assistance plan, and was most helpful on postal reform, unemployment insurance and job safety. The Treasury found themselves opposed by organized labor on tax reform. This need not have happened, since the objectives of the Administration and of organized labor were fairly close on this issue. George Meany and Andy Biemiller both talked to me about it and I pleaded with Secretary Kennedy to work with them, or at least listen to their views. Nothing was ever done that I know of to take the labor people up on this invi- tation. From the standpoint of the economy, certainly wages in the construction industry and in trucking are a major problem. Leaving those areas to the side, I do not think the rest of the wage picture is all that bad. In fact, it seems to me that the idea of solving inflation by somehow talking or coercing