Conversation 067-001

On July 30, 1971, President Richard M. Nixon and representatives from the United Transportation Union and railroad management, including Stephen Ailes, John P. ("Jack") Hiltz, Charles Luna, George P. Shultz, James D. Hodgson, John A. Volpe, Gen. George A. Lincoln, Willie J. Usery, Jr., Arnold R. Weber, Paul W. McCracken, and Ronald L. Ziegler, met in the Cabinet Room of the White House at an unknown time between 9:37 am and 10:23 am. The Cabinet Room taping system captured this recording, which is known as Conversation 067-001 of the White House Tapes.

Conversation No. 67-1

Date: July 30, 1971
Time: 9:37 am - unknown before 10:23 am
Location: Cabinet Room

The President met with Stephen Ailes, John P. (“Jack”) Hiltz, Jr., Charles Luna, George P.
Shultz, James D. Hodgson, John A. Volpe, General George A. Lincoln, Willie J. Usery, Jr.,
Arnold R. Weber, and Paul W. McCracken

     Labor disputes
          -Railroad strike
                -Effect
                      -New York Times article of July 30, 1971
                      -Public attitude
                -The administration’s attitude
                      -Belief in collective bargaining
                      -Railroads
                            -The private versus public sector
                            -Difference from other industries
                                  -Legal restrictions
                      -Effect of strike
                            -Timing
                            -Impact on unions
                                  -Public reaction
                            -Government intervention
          -Responsibilities of labor and management
          -Effect on economy
          -Railroad industry problems
                -Compared to other countries
                      -Government-operated railways
                -Public reaction
                -Possible Congressional reaction
          -Effect
                -Illinois
          -Settlement
                -Hiltz
                -Obstacles
                      -Negotiating by committee
          -Administration efforts at resolution
                -Usery, Hodgson
                -Luna, Hiltz
                -Collective bargaining

                      -Perceptions of issues
                            -Railway engineers
                 -Purpose of meeting
                 -Meetings of railroad presidents
                 -Effect on other industries
                      -Steel industry

******************************************************************************

[Previous archivists categorized this section as unintelligible. It has been rereviewed and
released 08/16/2019.]
[Unintelligible]
[067-001-w001]
[Duration: 23s]

     General conversation

******************************************************************************

Ronald L. Ziegler entered at an unknown time after 9:37 am

     Introduction of participants to Ziegler
           -Administration statement

The President left at 9:54 am

******************************************************************************

[Previous archivists categorized this section as unintelligible. It has been rereviewed and
released 08/16/2019.]
[Unintelligible]
[067-001-w002]
[Duration: 30s]

     General conversation

******************************************************************************

Ailes, et al. left at an unknown time before 10:23 am

This transcript was generated automatically by AI and has not been reviewed for accuracy. Do not cite this transcript as authoritative. Consult the Finding Aid above for verified information.

I wanted to stop him only for the purpose of indicating perhaps a broader aspect of the school.
We've discussed previously when we met with some of the people around the state leaders of labor as well.
It goes without saying that the effect of the strain on the selective tract like this is very critical at this time.
The reason it's critical, of course, is that the economy will be hungry, and many things will change.
I understand that, of course, the numbers vary to 250,000.
We believe that the railroad industry is future
that its future will be better served by being basically in the private sector rather than in the public sector.
By that I mean that we believe in a strong American railroad system, with a strong free labor union, and a strong free manager.
The collective bargaining order has to be really pursued in such an industry even more than it has in the case of others,
The dramatic impact it has all over the nation.
You must have a strike in some industries, but you can't call that much difference.
It's a cost worth paying for the free enterprise system.
We understand that.
The railroad industry is different.
That's why the railroad industry is treated differently.
The law, which many of you know, is not adequate.
But the effect of this strike at this time is that the effect of a strike in this industry is, I think, in terms of this industry and the way the nation is looking at it,
It is particularly bad at this time.
I personally don't think anything could be worse for the countries, or worse for the U.S. and the square root unions, or worse for manning.
than to have the public reaction to stombages, strikes, etc.
from the railroad union leading to a massive government intervention into this industry.
That's what I don't want to see happen.
I know that at times the management may say, if the government can get in here and fix this, that's a temporary action.
Sometimes it'll be the other side of the coin later to say, well, we wish the government could get in here and settle this.
What I'm looking at is a bigger question.
And there's a growing sentiment in this country to the effect that maybe the railroad industry just can't operate.
Maybe we ought to walk to a new approach.
I personally do not support that view.
I don't believe that's a thing for anybody concerned.
That's why I can work with this industry.
It works with the management and with labor in every way that we can strengthen it to make it a strong, healthy, positive force in our country.
And so, under these circumstances, it seems to me that those who sit on the bargaining table, those who sit on the management side, have an obligation to figure it out in the case of your obligations to your members.
Also in the case of manning of the obligation to your stockholders.
Don't get me wrong.
I know what the game is here.
You've got to represent your constituents.
Because a politician must represent his constituents, or he isn't going to be it.
So you've got to represent your managers.
Managers have got to speak for stockholders.
The labor leaders have got to speak to their union members for them.
But I think looking to their interests, then here the national interest in your interest is the same.
And here the national interest in your interest, I think, would be served, very well served, at this critical time.
to find a way to bring these stoppages to a halt on an equitable basis so that this industry can then continue to move forward with the rest of the economy, and so that the rest of the economy can move forward without having what happens in this industry affecting it.
I guess I would conclude by saying that it's so easy in this country at this time, you know, for people to speak because of their own problems.
So it's so easy to look over there and say, gee, it's that, it's the work of that railroad track and so forth, everything will be fine.
Well, it's quite that way either.
We know that that's not fair, but on the other hand,
We must realize that the Senate exists in America.
We must realize that the railroad industry has troubles.
We know this.
We talked about it in Charlie the last time.
We all agree that it has troubles in the management system.
Troubles.
But we also all know that what was really encouraging to me is that I didn't find anybody who was going to get out of it.
That means that the Manhattan side and the Lakers side still believe in it.
I remember all the unit leaders told me that, and all the managers told me that.
And therefore, if you've got faith, and I just want to see it go forward.
I've seen, like you said, and I know they're pretty, some of them that you talk about these,
The government operated rail lines in foreign countries, and so on, pretty well, and so forth.
But I've seen where that leads in those foreign countries, and this is for us.
And for anybody concerned, we just don't want it.
On the other hand, I would have to say that I can see the public sentiment developing.
And if this thing goes on, if this irresponsible industry is not able to handle its own affairs, there is going to be a massive public reaction.
There's going to be a congressional reaction.
And then I think things could happen that frankly none of us would want.
None of you would want.
None of us would want.
So I would say, first, if you would, consider the merits here.
We're kind of working out on that.
We do pre-collective bargaining.
We're just trying to arm our interest to interfere with your bargaining process.
And second, bargaining for your own interest.
Remember, this industry at the present time is being watched by the whole country.
It's being watched by the Congress, actually by this administration.
And it seems to me that
If this thing is not settled, and we have to again go down the dreary road of what's the government going to do, then that road may lead to some very bad consequences for everybody concerned about this one.
That's what I really feel strongly about, and I hope that all of you would consider that.
I know that you're kind of what we call the station of the industry, both in the labor side, and I know that you will be as reasonable as you can, but I do, I did not think you should be here without my, how you base your mind.
Political evaluation, evaluation of this economy, evaluation of the problems of this country, of critical ethnic despises, even though this is peripheral, even though it is selective, it is having a massive effect.
I come back to the point, the effect of just one nation in a future.
I have a lot of wheat on this side of the road.
It just hasn't been on this side of the road.
You know, Mr. President, wheat's been probably piled up every year.
Every year.
Every year.
You see the trouble is showing.
That's what I know.
I know that.
I saw the town there.
It's cartilaginous, but it shows you that it's an attitude that begins to develop.
It hasn't been quite like this.
I've got pictures.
That's good.
That's good.
I can show you an Illinois first grade sitting on the street all winter long.
We didn't have pictures of that.
Well, we did not.
That just shows you that's part of the way the games work.
But that doesn't indicate a major problem.
They've got to do it unless they figured it.
This is a small thing.
So we'll appreciate your questions.
I know we've got a responsibility, and I'd like to say one thing.
I know Mr. Hilton's got a job to do at the same time, and I don't hold it against him.
But any time that you've got a committee the size of Mr. Hilton's, you've got trouble.
If you couldn't get him three or more times paid, what is it?
You've got to go back.
I've never, in all my demons, in the liquor field, ever been able to settle anything with me.
You always settle them with a room, with a meeting of some individual, and then they say this is it.
And I don't think I'll be there.
With all due respect, I don't think we'll ever settle it, as long as we've got to settle it with that large committee.
I think if the presidents would take an interest in their industry, as they should, and on a committee of presidents, I think we've settled it in three hours.
When it gets down to a point like this, I think it's alright to write up a grievance.
I think it's alright to do the groundwork.
But when it gets down to what you people have just told me,
It's too big for a committee to have, and too imparted for a committee to have.
Now, the president knows that, but he don't think he knows what he's doing.
To get three hours' time to get this settled is something wrong.
I actually got negotiations settled with the IRS established for 2.30 this afternoon.
The treasurer has called to the department for that purpose, so we can get out of that here and go to work.
Can I say something, Jim, Mr. President?
People in this industry really appreciate the efforts that your folks here, like Bill Ustrey and Jim Christensen, make great parties together.
But I have to say, Governor Bolton, he and I have been doing this whole time, and Ms. Spielberg kept up all night, one night, and then...
By the trouble of labor, is that where he works?
That's just one night.
We've been up several nights.
He and I were dying the next day from labor incidents.
But Charlie is wrong if he thinks that the presence of these rebels are not...
...terribly close to this problem.
They're all sitting over at my office right now, as a matter of fact.
Number one, I'm one of the agents, and we've had just this problem.
We've had two or three special meetings since this crisis began.
This is just...
Absolutely number one on the list, and while Janet's operation may look cumbersome, the fact is they're all in very direct communication with their business.
This is just item number one for everybody, but there's no problem with that.
But our difficulty is, you know, we're not fighting for money, we're fighting for work, but you're almost with the legislation in this industry.
I believe the governor was talking earlier about a legislative package that saved the industry.
It's very important that we all get to work those things straight.
It's just a matter of major, major concern.
It's a very hard thing to work on.
It's a difficult issue for Charlie.
I will say that...
We have worked it out with all the other unions involved through collective bargaining with Bill Lester Eastman and Jim Hodgson's efforts.
We did work it out with the engineers on the precise issues that are up here.
We've got a problem with protecting that agreement and how to work this thing out.
This time, I think it's one of the few times the industry has stood up and said, we're going to fight this thing out in a traditional labor management way, take a strike, see if we can't hold firm and get what we want.
That's what we're trying to do.
Mr. Adams, you didn't truly represent the facts.
You said, oh, the rest, we're paying for the raises.
You said the engineers, the engineers taught them the totem pole.
And I guarantee for them it doesn't mean what it does to the man that's hired out here and been here for a few years.
I'm going to get a variety of interjections into this and that stuff.
It was not our purpose here.
I think it is good to know that the railroad presidents are meeting.
I take it you're going back to that meeting.
Presumably Jack is too.
Charlie, I know your people are here.
We do have a meeting set up at 2.30.
Our purpose here has been to demonstrate the concern the president has, and everybody has, of the impact of the strike, the cumulative impact of the strike, to be sure there's no misunderstanding about that, and at the same time to express our conviction, which the president has done so eloquently.
The free processes that are involved here, we want to see them work.
And not only in this industry, but in other industries, they're very much on trial.
They're on trial over there.
The motel and the steel industry right now, I think we are close to that.
So the free processes are very much on the spot.