U.S. Chamber Hails Decision to Rethink Blacklisting Rules

WASHINGTON, D.C. – The United States Chamber of Commerce welcomed the news that the Bush administration has begun the process to reconsider former President Clinton's ill conceived and politically motivated blacklisting regulation.

"We have fought this political payback to the unions every step of the way," said Randel Johnson, Chamber vice president for labor policy. "This rule is completely unworkable and we are confident that an open and fair rulemaking will justify its repeal."

The blacklisting rule – if implemented – would have effectively prevented companies receiving government contracts if they did not have a "satisfactory" record of compliance with all federal laws (including employment, labor, tax, anti-trust, environmental or consumer protection laws), and all state and international laws. But there is no definition of what would be considered "satisfactory" compliance with this vast matrix of complex laws, according to the Chamber, and even unproven allegations could be considered. Government agents would have had virtually unlimited, arbitrary power to decide who could compete for the government's business.

The General Accounting Office estimates that companies with federal contracts and subcontracts employ 23 million American workers. A federal contracting officer's subjective decision to deny a company a federal contract, could put that company and its employees out of business, according to the Chamber, and would hit small businesses especially hard.

"The rule is indefensible and loaded with errors," said Johnson. "The government's own contracting officers and federal agencies that rely on contractor services opposed the rule. "

The Chamber, together with the Business Roundtable and other associations, have filed suit to overturn the regulation in the Federal District Court for the District of Columbia.

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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