sick-out-announced openly to take place at public rallies and meetings. What would have been the outcome were the Panamanian workforce to have called such a "sick-out"? I dare say that almost all of those calling in "sick" would have been confronted with that no-strike statement, and, they probably would all be looking for mass union representation. Apparently the "strikers" wonwhile the Panamanian worker who remained faithful was ridiculed for his loyalty displayed during the "sick-out".

13. The Company should seek to place in those job related positions that in effect paralized the waterway during the sick-out, a maximum number of Panamanian employees, who proved their undivided loyalty to the Canal Government. The sick-out really showed who can and did very effectively, tie up the waterway. Our group joins the labor force in requesting the total elimination of the security protected positions. Twice have U.S. citizens paralized the international waterway-The Panama Canal-in 1973 and again in 1976. Will this Subcommittee and the Canal organization allow this to occur again?

14. The Congress of LatAm Civic Councils reiterates that any treaty arrived at between the Republic of Panama and the United States of America should include the protection of all employee gains-U.S. and Panamanian—and should guarantee that the employee will maintain his employment under any new agreement. Our organization further feels that there should be no erosion of fringe benefits acquired over the years of the Canal Zone Co./Government's operation. We are inclined to believe the assurances of those in high offices, whom have asserted time and again that the labor annex of the new treaty would include the facts mentioned.

15. Governor Parfitt has the unequivocal respect and esteem of the communities represented by the Congress of LatAm Civic Councils. His recent assignments were tough ones, however, he faced the task with valor and bravery. We, as a group, are affected by many of the recent announcements, but, we visual better days, when, hopefully, we would have overcome this "slump".

16. On April 14, 1976, The Housing Consolidation Plan will go into effect. Much of our efforts over the many years are now materializing. With the assistance of this Subcommittee, former Chairman Leggett, and Chairman Metcalfe, we can begin to enjoy what should have been done 70 yrs. ago-the coming of that One Canal Zone Community where all can live, work, and enjoy the best that life has to offer here at the Crossroad of the World.

17. The amalgamation of the Schools has gone into the first phase-that of incorporating students from K thru grade 4 from the Latin American Schools into the U.S. Schools. Hopefully, next yr.-1977-the second phase should be implemented. The teaching staff and remaining students should be incorporated at that time into the One Canal Zone School System which also should have been accomplished 70 yrs. ago,

18. Iti s not the intention nor purpose of the Congress of LatAm Civic Councils to prolong issues that would further "fractionize" groups, however, it is our conviction that the basic reason for the recent U.S. citizens actions stems from the announced decisions to amalgamate the schools and to integrate the communities. The reasons used for the actions displayed by those workersU.S. were uniquely disguised. Let no one be tempted to perpetrate the belief that we will be continually fooled!

19. Our organization affirms that whatever gains obtained over the many years by any group should be maintained, i.e. tropical differential. Nevertheless, we support the position of our labor groups in that all Panamanian employees should receive a cost-of-living compensation commensurate with that extra bonus given to the U.S. Citizen employee. We all buy from the same Supermarket-we pay the same price for that loaf of bread. Therefore, our across the board overall pay schedule should be equalized.

20. Those who went on sick-calls won-again! The recent action made fools out of some senators and representatives who claimed that only the U.S. could keep the canal open. Unfortunately, the U.S. fell flat on its face; the canal was closed twice, no less, within a couple of years. We hope that Congress, that this Subcommittee and that the Panama Canal Company/Canal Zone Government will make every and all moves to preclude future threats and closures of this nature.

Mr. Chairman-Gentlemen of the Subcommittee on the Panama Canalenclosed pls find several items of interest that will assist you in obtaining a clearer view of some of the recent events, i.e. photos, papers, etc. The Congress

of LatAm. Civic Councils will be, continually, the stalwart organization which fights relentlessly in order to obtain for its members their rightful and proper place in this great enterprise-one of the world's greatest wonders-the Panama Canal.

22. Our organization request that: (a) We be kept abreast of any and all new treaty developments concerning the total Canal's workforce in the labor annex; (b) That Congress and/or this Subcommittee assist the Company/Government in finding the means to solve the present 14 million dollar deficit; (c) And, that Congress and/or this Subcommittee assist in preparing the groundwork whereby the labor unions will obtain the process for collective bargaining here in Canal Zone.

On behalf of the Congress of Latin American Civic Councils, accept our sincerest thanks for permitting us to have included for the records our comments and concern.

[From a Panamanian newspaper]

'SICKOUT' CONTINUES; SHIP LOGJAM CLIMBS TO 140

Hundreds of citizen employees of the Canal Zone today completely ignored Gov. Harold R. Parfitt's compromise to modify the controversial wage proposals which ignited the slowdown last Saturday-and geared themselves to prolong their so-called “sickout”.

As a result, a record backlog of more than 140 vessels lined up outside the Panama Canal this morning awaiting transit, four U.S. schools were shut tight, and absenteeism ranged in the vicinty of 500 of a total of 3,600 US employes. At press time, efforts to obtain the correct figure on absenteeism proved futile as Panama Canal Information officials and heads of the Canal Administration were in closed-door sessions to analyze the unexpected change of events. Reported closed were the Curundu Jr. High, Cristobal High, Margarita and Coco Solito elementary schools. All Latin American Schools attended by non-US citizens remained opened.

Of some 80 pilots called to duty this morning, only about six responded, it was unofficially reported.

Because of the shortage of pilots only six vessels were tentatively scheduled to make the transit today-four Northbound and two Southbound.

Only one vessel made the complete ocean-to-ocean transit of the 51-mile waterway Thursday, compared with an average of about 37 daily.

About 700 of the 3,600 U.S. Canal employes are participating in the sickout, declared "illegal" by Gov. Parfitt and lacking union support.

None of the 11,000 Panamanians employed in the Panama Canal are said to be participating in the sickout.

The strikers are protesting a proposed freezing of salaries in several categories, the elimination of certain fringe benefits, housing and school integration in the Canal Zone.

State Department secrecy in negotiations for an eventual turnover of the 62-year-old Panama Canal is also said to be a factor, with workers fearing they will be permanently replaced by Panamanians once U.S. jurisdiction is ended. Today's backlog of over 140 vessels is a new record. The previous record backlog was 118 vesseds, tied up in 1973 during a Canal pilots' strike.

Meanwhile, International President Jerry Wurf of the American Federation of State, County and Municipal Employes, AFL-CIO, parent body of Local 900 and 907, said today the memorandum of understanding reached between Gov. H. R. Parfitt and Canal Zone labor unions Thursday is a “constructive instrument on which sound collective bargaining procedures can be developed”.

Wurf said collective bargaining is the only feasible approach toward proper labor-management relations in the Canal Zone.

AFSCME Area Director William H. Sinclair said "we believe all workers should resume full work schedules in the Canal Zone, and give the collective bargaining process a chance to work.

In addition, Local 907 president Luis A. Anderson and Sinclair called on Gen. D. P. McAuliffe, Commander in chief US Southern Command at 4:30 p.m. Thursday, and were assumed that he supports the Memorandum of Understanding reached between the Canal Administration and Labor unions.

The memorandum of understanding follows:

"At a meeting with representatives of the Panama Canal Pilots Association, American Federation of State, County and Municipal Employees, the Central Labor Union-Metal Trades Council, and the National Maritime Union held at 10:00 a.m., on Thursday, March 18, 1976, the Governor agreed to the following: "1. To recommend and fully support the following adjustment to the recent proposals of the Canal Zone Civilian Personnel Policy Coordinating Board (CZCPPCB):

"a. Withdraw their application to MG-10, and equivalent, as well as NM-6. "b. Incumbents in NM-4 and NM-5 would continue to be paid on the U.S. wage scale and would receive all subsequent pay increases.

"2. The impact of this action would result in nullifying any adverse impact of the tropical differential proposal as it affects current employees.

"3. To initiate action, without commitment as to results, to solicit the active participation of experts from Washington, D.C., to commence a study, with full participation of unions, of all ramifications of the application of Executive Order 11941, as amended, to the employees of the Panama Canal Company/ Canal Zone Government."

[From the Panama American, Friday, March 19, 1976]

PANAMANIANS MORE RELIABLE THAN U.S. CITIZENS

LOCALS 900, 907 DEMAND ELIMINATION OF CANAL "SECURITY" JOB CLASSIFICATION Locals 900 and 907 will immediately demand a complete de-classification of the so-called "security" positions on the payrolls of the Panama Canal organization, Local 900 President Saturnin G. Mauge last night told of meeting of some 1000 Canal employees gathered at the Paraiso ball park.

The positions in question are now limited to United States citizens. "Now the entire world can see who really constitutes security risk in keeping the Panama Canal open to world commerce", Mauge said in an obvious reference to the current "sickout" by U.S. citizen pilots and tugboat operator's which has virtually paralyzed the international water way to world trade since last Saturday.

Teachers in the Canal Zone U.S. school have also been taking part in the "sickout".

"Participation by non-U.S. citizens (Panamanians) in the movement has been negligible, according to official Panama Canal sources.

"What is happening now proves that Panamanians can be more relied upon than the U.S. citizens", Mauge declared to the applause of the gathering.

This is the second time in the 62-year history of the waterway that it has been almost closed down by "sickouts". In 1973 the pilots also staged a similar movement.

Both Mauge and Luis Anderson, secretary-general of Local 907, pointed out that not a single Panamanian has ever in history been guilty of sabotaging or otherwise doing anything to hinder efficient operation of the Canal and safe passage of vessels using the waterway.

Eugene Johnson, president of the Congress of Canal Zone Latin American Civic Council told the gathering that the proposed merging of the now segregated housing on the Canal Zone was a farce.

He noted that under the proposal an employe would have to be in at least grade NM-7, earning between $10,600 and $13,800 per year, or between $890 and $1150 per month, to be eligible for housing in the U.S. communities.

His recommendation is that assignments to all Canal Zone housing be open to all employes, regardless of nationality or pay grade level.

In his talk Anderson pointed to the fact that Local 907 has always opposed the double standard of wages on the Canal Zone, and has been traditionally calling for elimination of the "locality" or Canal Zone wage base so that all jobs may be paid on the U.S. base.

He also called for a total elimination of the "security" tab on certain Canal Zone positions for which Panamanians are barred from competition.

Both Mauge and AFS-CME area representative William H. Sinclair joined in making it clear that collective bargaining is the ultimate goal of Locals 900 and 907.

"Our unions would stand with dignity, and the voices of our workers would be heard around the bargaining table", they both said in calling upon the audience for a voice vote on the proposals offered by Canal Zone Gov. Harold R. Parfitt yesterday morning.

A solid affirmative vote gave the union support to continue negotiations for implementation of the memorandum of understanding which the governor issued.

When the floor was opened for those in attendance to voice their views, two members rose.

Clarence G. Gordon of Santa Cruz took the microphone to air his objections to the Governor's proposal to scale down grades NM-4 and NM-5 for those to be employed in future and only allow present incumbents to continue on the U.S. wage base.

He felt that with prices climbing every day, future employes would be confronted with even higher living costs and should not be forced to accept lower wages.

The other speaker, Oscar Paz Arias, expressed fears that if higher wages are paid it would mean loss of jobs. "Heads of families are becoming concerned”, he said. "With families to maintain, kids to send to school one must be worried," he continued.

Arias also called attention to the fact that shipping through the Panama Canal has fallen off and ships are being diverted to the Suez Canal, causing the current economic plight of the Isthmian waterway.

On the merging of schools, he said that he was not in favor of Panamanian children being educated and trained under a foreign culture.

INTRODUCTION OF AD HOC COMMITTEE

This position paper is being presented by the joint Ad Hoc Committee of United States citizen Labor Organizations and United States citizen Civic Councils in the Canal Zone.

The Ad Hoc Committee of U.S. Labor Organizations and Civic Councils was formed as a result of the concern of all U.S. citizen employees of the Panama Canal Company and Canal Zone Government as to the present and future possibility of changing Company/Government policy, which has an adverse affect on all of us. In order to get the true feelings of U.S. citizen employees on the Governor's proposals of November 10, 1975, we polled the entire Canal Zone concerning these proposals and asked for general comments.

The results of the poll are reflected in the position paper and position statement herein enclosed. We are also including the results of the survey on a percentage basis, broken down into four sections, and we are also including a sample of some of the comments received. We feel that we have done an honest job of reporting the results of the poll. We also believe that the officials of the Company/Government should be aware of the growing apprehensiveness of the U.S. citizen employee in regard to his future with the Panama Canal Company/ Government. The morale of the U.S. citizen employee is bad and is growing worse by the day. Neither Organized Labor nor the Civic Councils want to see this situation continue. We hope the Company/Government doesn't either.

INTRODUCTION STATEMENT

The Ad Hoc Committee of U.S. Labor Organizations and Civic Councils wishes to go on record as being opposed to all forms of racial and ethnic discrimination policies established by the Panama Canal organization. We concur with the present position of the Company/Government that communities established with nationality barriers are contrary to American democratic principles. However, we believe that the proposals outlined by the Company/Government to change regulations concerning housing, schools and security positions do not provide for equal distribution of adjustment among all segments of the Canal Zone community, but instead perpetuates discriminatory policies toward all. Attachments.

AD HOC COMMITTEE POSITION STATEMENT

MAJ. GEN. HAROLD R. PARFITT,
Governor of the Canal Zone,
Balboa Heights, Canal Zone

Dear Governor Parfitt: The Ad Hoc Committee of U.S. Labor Orzanigations and Civic Councils, as the representative body of the residents of the U.S. communities of the Canal Zone, polled these communities regarding your proposals of 10 November 1975. As our position paper (attachment #1) and the poll results (attachment #2) show, we are opposed to all of your proposals. Certain comments made by respondents to the poll are enclosed for your perusal. They perhaps give the real feelings of the residents of the U.S. Canal Zone communities. (Attachment #3).

The Canal Zone U.S. citizen work force is comprised of a well educated, widely diverse cross section of highly skilled technical and professional people. We believe that our opinions should be received as the opinions of an intelligent body of people. We contend that your proposals are both contrary to logic and are un-American, since they are beneficial to foreign nationals at the expense of United States citizens, and will therefore result in jeopardizing U.S. control over the Panama Canal.

Considering that a Treaty is in force at present, and that a new one is being negotiated which may make drastic changes here in the Canal Zone, we feel that these proposals, if implemented, would be a form of "executive order" with the purpose of achieving goals envisioned in a new treaty, thus implementing without the "advice and consent" of the Congress of the United States. This would be contravention of the Supreme Law of our land (i.e. U.S. Constitution and Treaty of 1903).

We therefore demand that you refrain from making any changes through transmittal of executive order until such time that Congress has had the opportunity to ratify a new treaty. These are the same demands that were made by the Panama Canal Sub-Committee of President Ford on 23 April 1975, by unanimous resolution. (Attachment #4).

Based on the foregoing, we conclude that you should withdraw your proposals of 10 November 1975, refrain from making any others, and thus obey the spirit and intent of the law regarding the Canal Zone until such time as the Congress of the United States authorizes changes to be made.

Respectfully,

ALFRED J. GRAHAM, Chairman, Ad Hoc Committee.

POSITION PAPER OF THE AD HOC COMMITTEE OF U.S. LABOR ORGANIZATIONS

AND CIVIC COUNCILS

1. SECURITY POSITIONS

As a result of the present attitude of the Government of the Republic of Panama, the Ad Hoc Committee of U.S. Labor organizations and Civic Councils are opposed to any change in the Company/Government security position structure at the present time.

It has been argued by opponents to the security position structure of the Company/Government that no act of sabotage has ever been committed by any non-U.S. citizen employee in the history of the Panama Canal. We do not believe that this type of loyalty can be counted on at this time. It must be remembered that during the 1964 anti-American riots, photographs were taken of non-U.S. citizen employees throwing rocks at U.S. troops at the Canal Zone border.

Another example of a security violation can be cited in the case of a confidential document falling into the hands of a non-U.S. Civic Council official who used this document to support testimony before a Congressional Committee, much to the embarrassment of the United States Government

The Government of Panama is daily inciting its populace into anti-American sentiment and bitterness over the Panama Canal Treaty issue. We are convinced that acts of sabotage will actually occur and that some of these acts will be directed at the waterway itself if a future Panama-U.S. confrontation takes place. Communist influence in the Republic of Panama seems to be growing