Clinton Administration officials have decided to postpone a decision on whether to implement a long-discussed proposal that would require agencies to weigh a company's labor-relations history before awarding federal contracts. The proposal is strongly backed by labor unions but resisted by business interests, who charge that it amounts to official blacklisting in a market worth $200 billion annually.
Late last week, officials from the Office of Federal Procurement Policy met with White House chief of staff Erskine Bowles. Though a source said the OFPP officials assumed the meeting would result in a formal approval of the proposed changes, it instead concluded with a decision to wait three more weeks before choosing a plan of action.
The timing of the decision was relevant this week because it coincided with an AFL-CIO executive council meeting in Las Vegas this week. Vice President Al Gore first announced his interest in changing the procurement law at last year's AFL-CIO meeting, a move widely viewed as a way to build support among labor voters in preparation for a presidential bid in 2000.
Gore did not mention the issue at the Las Vegas meeting, an AFL-CIO official said.
The National Alliance Against Blacklisting, a group of 700 companies and trade associations fighting the change, expressed cautious optimism about the result of the Bowles meeting.
"We think the administration has every intention of going ahead with the change," said a source within the alliance. "But the postponement is a good sign. It shows what we're doing is having an effect."
The proposal would amend section 9 of the Federal Acquisition Regulation. In addition to punishing companies for certain labor violations, the proposed changes may also include a ban on reimbursing companies for costs incurred defending themselves against unfair labor practice complaints or for actions that oppose union organizing efforts.
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