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VOLUME XXIII, No. 2
MARCH 1981
P U B L IC
A publication of the Oregon Public Employes Union
Combating Reagan’s budget cuts
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With Ronald Reagan’s election to
the White House and substantial
gains by conservatives in Congress,
there was widespread concern in
the labor movement over possible
loss of worker rights and benefits.
The President’s proposed eco
nomic programs, which he outlined
in an address to Congress and the
nation on Feb. 18, confirmed these
fears.
Lane Kirkland, president of the
14-million member AFL-CIO — of
which OPEU is a part — typified
labors* response to Reagan’s pro
posals. “ The AFL-CIO agrees with
the proposition that inflation must
be reduced, the number of jobs in
creased and that federal programs
must be made more effective and ef
ficient. But we cannot agree that the
measures the president outlined will
achieve those goals,” he said.
“ Reagan’s budget cuts would
cost the economy at least a million
jobs — a high-stakes gamble in
which only the wealthy would win.”
Thomas Donahue, AFL-CIO
Secretary-Treasurer, says that de
spite organized labor’s efforts to
policy, unless Congress overturns
many of Reagan's economic pro
posals and recent administrative ac
tions.
He also had a caution for man
agement.
“ Those in management who be
lieve that with a conservative ad
ministration and a Republican ma
jority in the Senate, that they have
an ace in the whole in Washington
to protect them from any ill affects
caused by mistakes in bargaining
strategy, had better think again.
"Any negotiator who believes that
the election is a mandate for him to
be hard-nosed and vindictive is
seriously misreading the political
situation and underestimating the
overall strength of the union move
ment in this country.”
Donahue cited a few areas where
the new administration's economic
policies could have a direct impact
on many negotiations.
“ The sudden deregulation of
energy prices is creating an infla
tionary pressure on the paychecks
of workers. When this administra
tion removed pricing regulations
d e fe a t R eagan and re-elect Jim m y
th e y to ld th e p u b lic th a t th e c o s t o f
Carter, its response to Reagan’s
economic proposals are not politi
cal in nature. “ Organized labor has
no ax to grind with the new admin-
sitration."
Even so, a confrontation between
much of organized labor and
political conservatives seems to be
shaping up.
“ Conservative coalitions are put
ting substantial pressure on Con
gress and the White House, accord
ing to Ray Denison, AFL-CIO
legislative director. He said that a
conservative drive against the labor
movement is showing signs of
developing, but that he hopes
moderate forces will prevail.
“ There is no percentage to be
gained if warfare in Congress pits
the American labor movement
against hard-nosed, right-wing
zealots.”
Denison said that the drive to pro
tect worker rights will take place on
two fronts — in Congress and state
legislatures, and at the bargaining
table.
Labor's first move will be to gain
congressional support for its
legislative agenda. Denison said
measures to put Americans back to
work and to restore the vitality of
the nation’s productive capacity will
be the major thrust of organized
labor in the 97th Congress.
Secondly, and probably most im
portant, wilt be labor’s considerable
efforts to protect gains made in
social programs and workers’ rights
and safety; gains which Reagan’s
budget-cutters are pointing a sharp
knife towards.
Donahue warned that American
workers will be forced to press for
greater gains at the bargaining table
to make up for losses brought on by
changes in economic or social
gasoline would only Increase three-
cents a gallon; already the cost has
gone up nine-cents a gallon. This is
an added financial burden that
many unions will be looking to off
set,” he said.
Donahue said that Reagan's pro
posed tax cuts will provide little
relief for workers in terms of spend
able income. “This will further in
crease the gap between the wealthy
and the American worker," he add
ed.
“ Similarly, proposals by Reagan’s
Social Security advisory panel to in
crease the age at which retirees can
collect full benefits is simply a way
of cutting benefits. In addition, this
proposal will reduce the value of
protection young people are now
paying for. Such action will motivate
unions to take steps to aid their
members and retirees in union con
tracts.”
Donahue noted that the new
president has tremendous latitude
to alter programs through ad
ministrative action (such as when
he deregulated oil prices). He
warned that any attempts to weaken
occupational safety and health laws
would be matched by efforts at the
bargaining table to make certain
that the health of union members is
not endangered.
“ Labor will also turn to the
bargaining table to counteract
Reagan’s proposed cuts in unem
ploym ent insurance and any
legislative or administrative moves
that would weaken workers’ com
pensation guarantees,” Donahue
warned. “ In addition, unions will not
stand stilt for any tinkering with the
Consumer Price Index that might
alter terms of collective bargaining
agreements.”
Continued on page 5
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