Financing and borrowing authority transactions The DMEA program was financed by Defense Production Act funds from which $35.8 million had been certified by the Office of Emergency Planning as of June 30, 1967. Of this amount $35 million has been borrowed from the Treasury on notes signed by the Secretary of the Interior. The following statement is a summary of the borrowing transactions as of June 30, 1967: 1. Total value of contracts_ 2. Government's share___. 3. Amount released by terminations and cancellations_. 4. Government's share spent- 5. Royalty repayments_-‒‒ 6. Writeoffs (losses on contracts permanently closed). 7. Outstanding balances against disbursements (line 4 less lines 5 and 6). 8. Realized losses consisting of: Writeoffs Treasury interest_. Administrative expenses-- Total 9. Estimated Treasury interest (fiscal years 1967 through 1971) 1– 1 10. Probable ultimate net cost (lines 7, 8, and 9)2 $56, 770, 000 34, 805, 000 11, 459, 000 23, 346, 000 6, 245, 000 12, 123, 000 4,978, 000 12, 123, 000 8,962, 000 8, 392, 000 29, 477, 000 4, 269, 000 38, 724, 000 1 Treasury notes formerly matured every 2 years and interest became due on date of maturity. Under recent agreement with Treasury, notes are now written for a 10-year period, and this postpones the interest payment previously estimated as becoming due in 1970. Therefore, the amount of the estimated interest shown here is less than the amount stated in last year's report, which projected estimated interest through 1970. Royalty receipts are decreasing. Borrowing authority has been increased to $39,300,000 to finance interest payments through fiscal year 1969 and the rutile and titaniferous materials development program. 2 This does not include royalty receipts estimated at $490,000 through 1971. LABOR DEPARTMENT U.S. DEPARTMENT OF LABOR, OFFICE OF THE SECRETARY, Washington, September 13, 1967. Hon. WRIGHT PATMAN, Chairman, Joint Committee on Defense Production, DEAR MR. CHAIRMAN: In response to your request of July 19, 1967, enclosed is the Department of Labor's annual report which summarizes our mobilization activities for the fiscal year ending June 30, 1967. We have followed the same format used in previous years. It covers the relevant points applicable to the civil and defense mobilization activities of the Department of Labor. us. If additional information would be useful to your committee, please call upon Sincerely, W. WILLARD WIRTZ, GENERAL INFORMATION A. AUTHORITIES FOR THE DEPARTMENT'S ACTIVITIES The Department derives its responsibilities for general mobilization planning from the following: The act of March 4, 1913, as amended (5 U.S.C. 611); R.S. 161 (5 U.S.C. 301); Reorganization Plan No. 6 of 1950 (5 U.S.C. 133z-15 note); Executive Order 10346 of April 17, 1952, as amended (50 App. U.S.C. 2292 note); Executive Order 10480 of August 14, 1953, as amended (5 App. U.SC. 2153 note); Reorganization Plan No. 1 of 1958, as amended (5 U.S.C. 133z-15 note); Executive Order 11000 of February 16, 1962 (5 U.S.C. 611 note, 3 CFR 1959-63 Comp., p. 553); Executive Order 11179 of September 22, 1964 (50 App. U.S.C., 2153 note). B. BASIC MOBILIZATION RESPONSIBILITIES OF THE DEPARTMENT Executive Order 11000 authorizes the Secretary of Labor to: 1. Civilian manpower mobilization.-Develop plans and issue guidance designed to utilize to the maximum extent civilian manpower resources, such plans and guidance to be developed with the active participation and assistance of the States and local political subdivisions thereof, and of other organizations and agencies concerned with the mobilization of the people of the United States. Such plans shall include, but not necessarily be limited to: (a) Manpower management.-Recruitment, selection and referral, training, employment stabilization (including appeals procedures), proper utilization, and determination of the skill categories critical to meeting the labor requirements of defense and essential civilian activities. (b) Priorities.-Procedures for translating survival and production urgencies into manpower priorities to be used as guides for allocating available workers. (c) National guidance.-Technical guidance to States for the utilization of the nationwide system of public employment offices and other appropriate agencies for screening, recruiting, and referring workers, and for other appropriate activities to meet mobilization and civil defense needs in each community. (d) Improving mobilization base.-Programs for more effective utilization of limited manpower resources, and in cooperation with other appro priate agencies, programs for recruitment, training, allocation, and utilization of persons possessing specialized competence or aptitude in acquiring such competence. 2. Wage and salary stabilization.-Develop plans and procedures for wage and salary stabilization and for the national and field organization necessary for the administration of such a program in an emergency, including investigation, compliance and appeals procedures, statistical studies of wages, salaries and prices for policy decisions, and to assist operating stabilization agencies to carry out their functions. 3. Worker incentives and protection.-Develop plans and procedures for wage and salary compensation and death and disability compensation for authorized civil defense workers and, as appropriate, measures for unemployment payments, reemployment rights, and occupational safety, and other protection and incentives for the civilian labor force during an emergency. 4. Resources.-Periodically assess manpower resources in total, by specific skill categories and occupations, and by geographical locations in order to estimate availability under an emergency situation, analyze resource estimates in relation to estimated requirements in order to identify problem areas, and to develop appropriate recommendations and programs. Provide data and assistance before and after attack for national resource evaluation purposes of the Office of Emergency Planning. 5. Requirements.-Develop, in coordination with manpower-using agencies, plans, procedures, and standards for presenting claims for civilian manpower; periodically obtain and analyze or make estimates of requirements for manpower, in total and by specific skill categories and occuptions currently and for any emergency, taking into account the estimates of needs for military and civilian purposes; and advise other agencies on the manpower implications of alternative program decisions. Such evaluation shall take into consideration the geographical distribution of requirements under emergency conditions. 6. Claimancy.-Prepare plans to claim materials, equipment, supplies, and services needed in support of assigned responsibilities and other essential functions of the Department from appropriate agencies, and work with such agencies in developing programs to insure the availability of such resources in an emergency. 7. Skill development and training.-Initiate current action programs to overcome or offset present or anticipated manpower deficiencies, including those identified as a result of resources and requirements studies. 8. Labor-management relations.-Develop plans and procedures for the maintenance of effective labor-management relations during a national emergency after consultation with the Department of Commerce, the Department of Defense, the National Labor Relations Board, the Federal Mediation and Conciliation Service, the National Mediation Board, and other appropriate agencies and groups, including representatives of labor and management. 9. Damage assessment.-Maintain a capability to assess the effects of attack upon manpower resources, departmental installations, and State employment security agencies, both at national and field levels, and provide data to the Department of Defense. 10. Critical occupations.-Develop and maintain a list of critical occupations for use, when appropriate, with lists of essential activities as developed by the Department of Commerce. With the Secretary of Defense, the Director. of Selective Service System, and such other persons as the President may designate, the Secretary shall develop policies applicable to the deferment of registrants whose employment in occupations or activities is necessary to the maintenance of the national health, safety, or interest. 11. Research.-Within the framework of Federal research objectives, supervise or conduct research directly concerned with carrying out emergency preparedness responsibilities, designate representatives for necessary ad hoc or task force groups, and provide advice and assistance to other agencies in planning for research in areas involving the Department's interest. WORK PERFORMED BY THE DEPARTMENT DURING FISCAL YEAR 1967 A. CIVILIAN MANPOWER MOBILIZATION The Department of Labor has accepted the responsibility placed upon it by Executive Order 11000 to develop preparedness programs covering civilian manpower mobilization, more effective utilization of limited manpower resources, and skill development and training. In developing such programs, the Department has drawn upon its past experience as the primary manpower agency of Government. During fiscal year 1967, our emergency organization was revised. We are now in the process of developing functional statements to describe the specific role of each person assigned to this organization. Our basic assumptions regarding manpower mobilization are that manpower in an emergency must include everyone capable of effort, and that shortages and maldistribution of manpower will occur and appropriate Government action to correct them will have to be taken. Our objective is to coordinate the use of resources to meet demands generated by international tension, limited war, or general war, and to use economic strength for national security purposes. It includes such measures as manpower programs and policies, central programing, State and local operations where centralized decisionmaking is necessary, and guidance to and cooperation with the private sector of the economy. In view of the situation in Vietnam, it is especially important that we be prepared for any eventuality. The Vietnam conflict already has resulted in a few shortages of manpower in some occupations and in some geographic areas. As a result, the Department of Labor has oriented its manpower training and utilization programs to meeting the present defense needs and the prospective shortages if the Vietnam conflict continues. Systems for insuring the availability of an adequate labor force have been devised. These systems are based on coordinated participation among the Federal Government, State and local governments, labor and management, and community organizations. Manpower for purposes other than the Armed Forces would be provided primarily through the Federal-State employment security system. Manpower needs for civilian activities essential to the successful execution of the total mobilization program would be met by placing maximum reliance on voluntary measures and by designing manpower management measures which would induce or stimulate voluntary cooperation. The manpower needs of essential activities would have priority over the manpower needs of other civilian activities. The basic concept in planning is that the most feasible processing of workers is at the local level. Policies are made at the national level, but effective manpower programs are those directed by local officials where the sources of production and manpower exist. It is of special significance to plan for local autonomy if the Nation is subjected to devastating attacks that would sever all or most communications between cities and among States. Under these circumstances, local civilian authorities determine how best to meet local manpower needs. The fundamental tools for operating manpower programs in emergencies are already in being. These include State employment security agencies and their approximately 2,200 local employment services with trained manpower specialists and facilities for recruiting, testing, counseling, and placing workers. These offices would administer the manpower program in any emergency from limited war to a nuclear holocaust. They must be ready to match workers and needs in any emergency. In some cases, they might have to work independently, cut off from State or Federal direction and assistance; hence, their readiness must be built in. Guidelines have been established for local office operations in a preattack mobilization period, in a limited war, and in a postattack situation for immediate survival and reconstruction. Streamlined procedures to get needed workers immediately on the job in any emergency have been developed and prepositioned with each State and local office. One of the major problems facing the Nation in an emergency will be the logistics of the manpower program; namely, the moving of persons with certain skills to areas where those skills are in short supply. This requires both planning and economic intelligence of a high order. It will be essential that we know where the surpluses of skilled manpower are, as well as where they are needed. New and imaginative techniques for identifying available manpower by occupation and area have been developed. The process for managing civilian manpower in a State in a nuclear attack emergency involves two series of actions. First, essential immediate needs are identified and actions taken to supply these needs. Secondly, and as soon as possible, continuing needs and expected future supplies are estimated. Decisions are made and actions are taken to channel these expected future supplies to meet the continuing needs that are most essential to survival and recovery of the Nation. The State manpower organization and its local organizations are developing, in cooperation wtih other organizations of the State government, policies and guidance consistent with State and Federal objectives. The purpose of these policies is to assure application through the State of compatible measures for the management of manpower to assure that essential needs for manpower are identified and met within the supplies available in accordance with the policy on priority use of manpower. The manpower organization acts on requests for assistance and arranges for the transfer of available manpower within the State and, if possible, for interstate transfer to correct local supply shortages. If the shortages cannot be corrected, the State manpower officials will recommend adjustments of the Governor's policy on the authorized use of manpower in the State. As soon as possible after an attack, the State manpower organization, in collaboration with other State agencies representing major activities within the States that use manpower, evaluate future continuing needs and allocates manpower available to the State to meet ongoing demands of authorized essential users. The following actions will be taken to meet the immediate supply problems: 1. Assure, on behalf of the Governor, policies and guidance applicable throughout the State covering the management and utilization of manpower within the State. 2. Conform with the Selective Service System State headquarters the activiation of joint plans to augment the facilities of local employment offices in the location of civilian manpower to meet urgent emergency needs. 3. Arrange for the transfer of manpower available in the State and, if possible, from other States to meet shortages. 4. Identify manpower skills in short supply and critically needed to staff essential activities. 5. Advise the Selective Service System State headquarters of critical civilian requirements for manpower skills for use in administering deferments. 6. Receive and act upon requests for assistance from health authorities in locating and referring health manpower. 7. Activate arrangements for area-level consultations with representatives of labor and management through area labor-management committees, if possible. As soon as activities to meet essential immediate needs in the localities are underway, the State manpower organization will take the following actions to anticipate future continuing needs and to arrange for continuing supplies to meet these needs: 1. Consult with State civil defense officials, Federal military officials, and appropriate State resource officals to obtain their estimates of continuing requirements for civilian manpower that will be needed in the State during an ensuing 90-day period. 2. Obtain estimates from the Selective Service System State headquarters of probable draft calls in the State during the ensuing 90-day period. 3. Estimate civilian manpower that will be available to the State during the ensuing 90-day period. 4. If estimated supply of manpower to meet estimated requirements and adjustments in requirements cannot be negotiated, refer conflicts in demand to a priorities board for recommendations to the Governor on relative urgencies among competing programs. 5. Issue revised State policy on the priority issues of manpower to conform with the Governor's decision. Streamlined procedures to get emergency workers immediately on the job postattack have been developed and prepositioned with each State and local office. These procedures are contained in the Defense Readiness Handbook for State Employment Security Agencies. This material is based on the experience gained by the U.S. Employment Service in World War II, the Korean conflict, and many years of filling employers' requests for manpower. Procedures and programs are regularly revised and updated in the light of new experience. In recent months particular attention has been directed to a limited war situation. Among other activities designed to meet our emergency responsibilities are the following: 1. Expand the present experimental program for prepositioning standby orders for key skills to all Federal agencies. 2. Determine the activities and skills in which foreign nationals may be needed in event of an emergency and determine the potential foreign sources of supply for such skills. |