AFL-CIO Sues to Bar U.S. Wage Penalty
The AFL-CIO, in a legal counter offensive against President CarterÛªs anti-inflation program, filed suit in federal court here yesterday to bar the administration from penalizing violators of the ÛÏvoluntary" wage guidelines.</br></br>The huge{ ?labor federation, joined by nine affiliated unions with major contract negotiations this year, charged there is no basis in law for the administrationÛªs only official sanction against violators: withholding federal contracts.</br></br>ÛÏWe believe that 'penaltiesÛª for Û÷violatorsÛª clearly makes the wage controls mandatory and not voluntary,Û said AFL-CIO President George Meany at a press conference to announce filing of the svdt, which was authorized by the federationÛªs; executive council last month.</br></br>ÛÏSince there is no statutory ~baMs for this action," Meany added,'Û¢ÛÏwe have asked the court for an injunction prohibiting the use of such tactics.Û</br></br>If the case,, which was assigned to U.S. District Court Judge Barrington Parker, results in a victory for the AFL-CIO. the administration would be free to seek voluntary compliance with its program .ÛÓ but without any penalties for violators unless they are enacted by Congress. The AFL-CIO ha<jl. advocated congressional enactment of across-the-board controls on the whole economy.