Bush moves to reverse pro-union Clinton rules

By Staff -- Purchasing, 3/22/2001

President Bush's swift reversal of Clinton administration rules guaranteeing certain union workers' rights in federal contracts has won praise from business lobbies and attack from the AFL-CIO . The rules, contained in a series of executive orders, also apply to subcontracts as well as prime contracts. The President also has delayed for a six-month review another Clinton regulation that could be used to deny federal contracts to companies that have a record of violations of labor and other federal laws.

White House Press Secretary Ari Fleischer says the executive orders are designed to assure "a level playing field" for contractors, particularly small, minority- or women-owned businesses.

The executive orders do not apply to existing contracts. Depending on how rigorously they are enforced by procurement agents in various government agencies, the Bush orders could increase the opportunities on future contracts for non-union contractors or subcontractors.

Commenting on the orders, Randel Johnson, vice president for labor policy at the U.S. Chamber of Commerce, says: "They will undo some of the more blatant attempts by the previous administration to favor organized labor ... The taxpayer will benefit ... through better products and lower prices that come from increased competition."

AFL-CIO President John Sweeney expressed outrage at the orders. Sweeney also charges that the President's action "breeches an understanding with the White House Chief of Staff to have discussions with us on issues whether we are in agreement or not."

The executive orders direct that:

• Government contracting agencies cannot require or prohibit contractors or subcontractors "to enter into or adhere to agreements with one or more labor organizations, on the same or other related construction project(s); or otherwise discriminate against (them) for becoming or refusing" to sign or adhere to labor agreements.

• With respect to (service) contracts for public buildings, that a new contractor does not have to offer a right of first refusal of employment to employees of the prior contractor.

• With respect to union contributions to political activity, contractors must notify their employees that if they "do not want to pay that portion of dues or fees used to support activities not related to collective bargaining (and other union-management relations) (they) are entitled to ... an appropriate reduction in their payments."

Meanwhile, the business community is also expressing relief at delay of a Clinton rule that it terms a "blacklisting" club for federal contracting officers. When it came out, the National Association of Manufacturers called it a "political move to solidify union support." The so-called Contractor Responsibility Rule issued by Clinton last December would require companies seeking federal business to have a satisfactory record of complying with federal health, labor, consumer, civil rights, environment and other laws.

In issuing the rule, the Clinton administration denied this, claiming that the rule allowed companies to answer any procurement officer's determination (before award of a contract) that might disbar them.

Three senior Democratic Senators-Joseph Lieberman (Conn.), Edward Kennedy (Mass.) and Richard Durbin (Ill.)-wrote Office of Management and Budget Director Mitchell Daniels, Jr., claiming the delay is likely unlawful.