U.S. Chamber Vows to Stop New Blacklisting Regs

WASHINGTON, D.C. – The United States Chamber of Commerce blasted the Administration's new federal procurement rules as "arbitrary and ambiguous" and vowed to take court action to stop the regulation from taking effect.
"We will not stand by idly while the last days of the Administration are used to issue unsupported, politically-motivated rules that would have a devastating affect on American businesses and workers," said Thomas Donohue, Chamber President and CEO. "The Administration has refused to listen to reason - even its own agencies have objected to the rule – but they cannot ignore the courts."

The Chamber, together with the Business Roundtable, will take legal action to overturn the rule, which would effectively "blacklist" companies from eligibility to receive government contracts if they do not have a "satisfactory" record of compliance with employment, tax, anti-trust, environmental, consumer protection and other laws. But there is no clear definition of what would be considered "satisfactory," according to the Chamber. Unproven, pending allegations could even be considered. Government agents would have virtually unlimited power to decide who can compete for the government's business.

"Even the most well-intentioned business can get caught in the maze of confusing and often conflicting agency rules and regulations," said Donohue. "Ask the Clinton Administration, which has had thousands of charges filed against it."

Issuing the blacklisting rule fulfills a promise Vice President Gore made to union leaders in February 1997 and follows closely on the heels of the ergonomics rule issued on November 13 by the Occupational Safety and Health Administration. Recent reports have indicated many other federal regulations will be finalized before Clinton leaves office.

The U.S. Chamber of Commerce is the world's largest business federation representing more than three million businesses and organizations of every size, sector and region.

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