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"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 NM4 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

daily. We are certain that Communist elements will take advantage of any lessening of security in the Canal Zone. Past history of the Communist method of operation prove this

It is believed that the proposed reduction in security positions is ill-advised and will eventually lead to the de facto loss of security control to the Republic of Panama. U.S. control over police, fire and other security oriented activities are absolutely essential in case of civil disturbances. Even in ordinary times residents must have absolute assurance of swift and sufficient assistance in case of isolated emergencies. Such assurance cannot be guaranteed under the proposed new security criteria.

It is the request of the Ad Hoc Committee of U.S. Labor Organizations and Civic Councils that the President of the Canal Zone Central Labor Union-Metal Trades Council be included as a full member of the Security Position Review Committee. We feel that this request is justified on the grounds of the historical role of the AFL-CIO in protecting the national security of the United States.

2. CANAL ZONE HOUSING CRITERIA

The poll conducted by the Ad Hoc Committee among the U.S. citizen residents of the Canal Zone indicates opposition to the Panama Canal Company's proposed changes in the present housing criteria. Under the section of the poll sheet entitled "General Comments", a picture emerged as to why U.S. citizen residents of the Canal Zone opposed the change. They indicated their opposition for the following reasons:

a. The housing situation in the U.S. townsites is poor at the present time. There is a shortage of quarters and too many sub-standard units. The GAO report on Canal Zone housing indicates a shortage of 331 units of acceptable housing by 1978. This situation will not be improved by adding more eligible employees to the housing list.

b. The proposal does not resolve the primary problem but merely continues the present discriminatory policy. There is no reason why a select group of non-U.S. citizens employed by the Panama Canal Company should be allowed privileges which are not offered other non-U.S. citizens employed by the Company.

c. All U.S. citizen employees below the pay grade cut off for housing, regardless of his or her repatriation rights or any other status, should be eligible for quarters in Latin American communities.

d. That paragraph B in the proposed housing criteria be eliminated. The U.S. citizen of the Canal Zone does not subscribe to a policy that permits 250 "official assignments". If the housing in the Canal Zone is to be merged, then we believe all housing be included and official assignments be no exception.

3. PROPOSED CLOSING OF LATIN AMERICAN SCHOOLS

The Ad Hoc Committee of U.S. citizen Labor Organizations and Civic Councils will respond to this proposal in two parts. The first part will speak to the Latin American student issue and the second part to the Latin American teacher issue.

PART I. THE TRANSFER OF LATIN AMERICAN STUDENTS INTO CANAL ZONE SCHOOLS

The survey conducted by the Ad Hoc Committee among U.S. citizen employees residing in the Canal Zone indicates opposition to the proposed plan to merge Latin American students into the Canal Zone school system for the following

reasons:

A. The U.S. citizens of the Canal Zone are convinced that cultural background is important to any student regardless of his or her nationality. Therefore, the merging of Latin American students into a United States culturally oriented school system is not in the best interests of Latin American students. B. The U.S. citizens polled feel that to educate Latin American dependents of Latin Americans residing in the Canal Zone is unfair to Latin American employees residing in the Republic of Panama. We believe it would be in the best interest of the Company/Government to eliminate this discriminatory practice. C. The Latin American schools provide free education for Panamanian citizen children who reside in the Canal Zone. The primary purpose of the Latin

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American school system, which was instituted in 1955, is to prepare the students for higher education or employment in the Republic of Panama. The curriculum is patterned after the public school curriculum of the Republic of Panama and is taught in Spanish with special effort being made to provide an intensive orientation into the Latin culture and Panamanian history and geography. The conversion from an English to Spanish oriented program was brought about through the efforts of non-U.S. citizen spokesmen and the Panama Government. Their desire was to have the Panama Canal Company provide "Panamanian schools" for Panamanian residents of the Canal Zone.

Certain Government officials and labor leaders have grasped the only tool which they believe will serve their purpose. They continue to harbor the notion that the basic purpose of the Latin American school system is to perpetuate racial segregation and they rely heavily on the Supreme Court decision of 1954. In point of fact, a reply received to a recent telegram sent to several Congressmen concerning this matter made direct reference to the proposed merger of the Canal Zone school system and "that this is the way the schools in the United States are operated today since the Supreme Court decision of 1954."

We cannot agree with this interpretation since the Supreme Court decision only applies to U.S. citizens and cannot be forced on or applied to a foreign national. If it were possible to apply this ruling to foreign citizens, then we would like to know why the Department of Defense does not operate or permit entrance by foreign nationals to schools in such places as Germany, Japan, Spain, and other overseas areas.

PART II. THE TRANSFER OF LATIN AMERICAN SCHOOL TEACHERS INTO THE
CANAL ZONE SCHOOL SYSTEM

The Ad Hoc Committee of U.S. Labor Organizations and Civic Councils are opposed to the proposed transfer of Latin American school teachers into the Canal Zone school system. As the poll of U.S. citizen employees indicates (attachment #2), this issue was the most protested. The reasons are as follows: A. It is recognized by all educational leaders and sociologists that the classroom is the place where the minds of the young are molded to a great degree as to their future actions and reasoning during their adult lives. We are opposed to this molding being in the hands of anyone who is not a U.S. citizen. Furthermore, we feel that as American taxpaying citizens we are entitled to an American education for our children and a "say so" as to who is going to teach them. Due to the emotional situation in the Republic of Panama at the present time, and in all probability in the future, we do not want our children exposed to the nationalistic and possibly anti-American attitude of a Latin American teacher. In all fairness to Latin American teachers, it could be said that not all of them or any of them might teach anti-American attitudes. However, we are not willing to take that chance. Children go through once. We want that once to be our way, and our way is a school system with U.S. citizen teachers.

B. Non-U.S. citizen teachers have stated in the past that they should be permitted to teach in the Canal Zone school system, regardless of Public Law 86-91, on the grounds that they have been employed, during their off time, to teach courses to military personnel We do not concur with this reasoning. We are concerned with the molding of the minds of the young and adolescent student. The minds of adult students are already molded, so the role of the nonU.S. teacher in the case of teaching adults is limited to course instruction and nothing more.

C. The State radio of the Republic of Panama broadcasts a violently antiAmerican position on an official basis daily. This type of propaganda could well influence non-U.S. citizen teachers, and this influence is bound to spill over on any students they teach.

D. United States citizens in the Canal Zone pay income tax to the United States Government. Their children should have the privilege of attending U.S. schools, with U.S. curriculum, U.S. accreditation, and U.S. citizen teachers who meet DOD requirements in order to transfer to schools within the United States without penalty. Federal legislation covering the operation of the Department of Defense dependent schools, P.L. 86-91, mandates U.S. citizen teachers except for foreign languages. It should be noted that approximately two-thirds of the children in the Canal Zone school system are Department of Defense dependents.

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