PRESS STATEMENT
-For Immediate Release-
July 31, 2014

Contact: Brian Gumm, bgumm@foreffectivegov.org, 202-683-4812

Center for Effective Government Applauds New Executive Order to Rein in
Government Contractors with History of Labor Violations

Statement of Katherine McFate, President and CEO of the Center for Effective Government,
on Executive Order 13673

"We applaud the new executive order requiring that federal agencies consider the record of labor violations of companies competing for federal contracts. For too long, companies with a long history of substantial violations of labor law have continued to be awarded profitable government contracts while treating employees abysmally and violating the law. Congress's investigative arm, the Government Accountability Office (GAO), has reported that billions of dollars in taxpayer monies are annually awarded to companies that routinely violate our labor standards.

"Executive Order 13673 is a first step toward correcting this situation.

"An effective and responsible system of government contracting requires that firms receiving public contracts abide by the law – as a condition of receiving public support. A history of serious past legal violations should disqualify a private company from receiving public support.

"The president’s actions are a positive step to restoring integrity to the contracting process by ensuring that any business that benefits from public funds be a responsible and law-abiding employer."

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