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Bush Rolls Back Rules For Deadbeat Contractors

January 3, 2002

President Bush sent workers an unwanted holiday gift by quietly repealing a rule aimed at preventing contractors who violate labor, environmental and consumer protection law from obtaining federal contracts.

Bushs move drew little attention due to its timing during the week between Christmas and New Years. He had imposed a nine-month suspension of the rule in April.

The regulation, signed into law by former President Clinton just before he left office, fulfilled a promise made by the Clinton administration not to reward with federal jobs those companies who violate labor laws. Under the rules, federal contractors would have been required to certify in writing a three-year record of "satisfactory compliance" with federal laws and a "satisfactory record" of integrity and business ethics.

"This rollback is clearly a favor bought and paid for by big business," said IBEW President Edwin D. Hill. "Now the offending companies can feel free to disregard U.S. labor law and be rewarded with more federal money as their only consequence."

The U.S. Chamber of Commerce has been vocal in its opposition to the rules. The organization lobbied hard against the provision.

David Ruffin, AFL-CIO deputy director of public affairs, called the repeal an "outrage."

"We are definitely going to register our outrage and disappointment."

The House of Representative voted last summer not to pay for enforcement of the rule but the Senate did not act.


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