TEXT     

Efficient economic performance and productivity are directly
related to the existence of cooperative working relationships
between employers and employees.  When Federal contractors become
involved in prolonged labor disputes with their employees, the
Federal Government's economy, efficiency, and cost of operations
are adversely affected.  In order to operate as effectively as
possible, by receiving timely goods and quality services, the
Federal Government must assist the entities with which it has
contractual relations to develop stable relationships with their
employees. 

An important aspect of a stable collective bargaining
relationship is the balance between allowing businesses to
operate during a strike and preserving worker rights.  This
balance is disrupted when permanent replacement employees are
hired.  It has been found that strikes involving permanent
replacement workers are longer in duration than other strikes. 
In addition, the use of permanent replacements can change a
limited dispute into a broader, more contentious struggle,
thereby exacerbating the problems that initially led to the
strike.  By permanently replacing its workers, an employer loses
the accumulated knowledge, experience, skill, and expertise of
its incumbent employees.  These circumstances then adversely
affect the businesses and entities, such as the Federal
Government, which rely on that employer to provide high quality
and reliable goods or services.

NOW, THEREFORE, to ensure the economical and efficient
administration and completion of Federal Government contracts,
and by the authority vested in me as President by the
Constitution and the laws of the United States of America,
including 40 U.S.C. 486 (a) and 3 U.S.C. 301, it is hereby
ordered as follows:

Section 1.  It is the policy of the executive branch in procuring
goods and services that, to ensure the economical and efficient
administration and completion of Federal Government contracts,
contracting agencies shall not contract with employers that
permanently replace lawfully striking employees.  All discretion
under this Executive order shall be exercised consistent with
this policy.

Sec. 2.  (a) The Secretary of Labor ("Secretary") may investigate
an organizational unit of a Federal contractor to determine
whether the unit has permanently replaced lawfully striking
workers.  Such investigation shall be conducted in accordance
with procedures established by the Secretary.

  (b)  The Secretary shall receive and may investigate complaints
by employees of any entity covered under section 2(a) of this
order where such complaints allege lawfully striking employees
have been permanently replaced.
         
  (c)  The Secretary may hold such hearings, public or private,
as he or she deems advisable, to determine whether an entity
covered under section 2(a) has permanently replaced lawfully
striking employees. 

Sec. 3. (a) When the Secretary determines that a contractor has
permanently replaced lawfully striking employees, the Secretary
may make a finding that it is appropriate to terminate the
contract for convenience.  The Secretary shall transmit that
finding to the head of any department or agency that contracts
with the contractor. 

  (b) The head of the contracting department or agency may object
to the termination for convenience of a contract or contracts of
a contractor determined to have permanently replaced legally
striking employees.  If the head of the agency so objects, he or
she shall set forth the reasons for not terminating the contract
or contracts in a response in writing to the Secretary.  In such
case, the termination for convenience shall not be issued.  The
head of the contracting agency or department shall report to the
Secretary those contracts that have been terminated for
convenience under this section. 

Sec. 4. (a) When the Secretary determines that a contractor has
permanently replaced lawfully striking employees, the Secretary
may debar the contractor, thereby making the contractor
ineligible to receive government contracts.  The Secretary shall
notify the Administrator of the General Services Administration
of the debarment, and the Administrator shall include the
contractor on the consolidated list of debarred contractors. 
Departments and agencies shall not solicit offers from, award
contracts to, or consent to subcontracts with these contractors
unless the head of the agency or his or her designee determines,
in writing, that there is a compelling reason for such action, in
accordance with the Federal Acquisition Regulation.
  (b) The scope of the debarment normally will be limited to
those organizational units of a Federal contractor that the
Secretary finds to have permanently replaced lawfully striking
workers.
  (c) The period of the debarment may not extend beyond the date
when the labor dispute precipitating the permanent replacement of
lawfully striking workers has been resolved, at determined by the
Secretary. 

Sec. 5. The Secretary shall publish or cause to be published, in
the Federal Register, the names of contractors that have, in the
judgement of the Secretary, permanently replaced lawfully
striking employees and have been the subject of debarment.

Sec. 6.  The Secretary shall he responsible for the
administration and enforcement of this order.  The Secretary,
after consultation with the Secretary of Defense, the
Administrator of the General Services, the Administrator of the
National Aeronautics and Space Administration, and the
Administrator of the Office of Federal Procurement Policy, may
adopt such rules and regulations and issue such orders at may be
deemed necessary and appropriate to achieve the purposes of this
order.

Sec. 7. Each contracting department and agency shall cooperate
with the Secretary and provide such information and assistance as
the Secretary may require in the performance of the Secretary's
functions under this order.

Sec. 8. The Secretary may delegate any function or duty of the
Secretary under this order to any officer in the Department of
Labor or to any other officer in the executive branch of the
Government, with the consent of the head of the department or
agency in which that officer serves.

Sec. 9. The Secretary of Defense, the Administrator of the
General Services, and the Administrator of the National
Aeronautics and Space Administration, after consultation with the
Administrator of the Office of Federal Procurement Policy, shall
take whatever action is appropriate to implement the provisions
of this order and of any related rules, regulations or orders of
the Secretary issued pursuant to this order.

Sec. 10.  This to is order is not intended, and should not be
construed, to create any right or benefit, substantive or
procedural, enforceable at law by a party against the United
States, its agencies, its officers, or its employees.  This order
is not intended, however, to preclude judicial review of final
agency decisions in accordance with the Administrative Procedure
Act. 5 U.S.C. 701 et seq.

Sec. 11. The meaning of the term "organizational unit of a
Federal contractor" as used in this order shall be defined in
regulations that shall be issued by the Secretary of labor, in
consultation with affected agencies.  This order shall apply only
to contracts in excess of the Simplified Acquisition Threshold.

Sec, 12. (a) The provisions of section 3 of this order shall only
apply to situations in which contractors have permanently




replaced lawfully striking employees after the effective date of
this order.

  (h)  This order is effective immediately.

                         /s/William J. Clinton


THE WHITE HOUSE,
March 8, 1995.