Executive Order 12954: Ensuring the Economical and Efficient Administration and Completion of Federal Government Contracts

President: Bill Clinton

Sought to bar federal contracts with employers that permanently replaced lawful strikers; the courts held the procurement policy pre-empted by federal labor law.

Status: Revoked. Is Executive Order 12954 still in effect? No. Executive Order 12954 was revoked. See Executive Order 13208: Amendment to Executive Order 13202, Preservation of Open Competition and Government Neutrality Towards Government Contractors' Labor Relations on Federal and Federally Funded Construction Projects, Federal Register record.

What does Executive Order 12954 do?

EO 12954 directed agencies not to contract with employers that permanently replaced lawfully striking workers. It authorized the Labor Secretary to investigate complaints and recommend contract termination or debarment above the simplified acquisition threshold. In Chamber of Commerce v. Reich, the D.C. Circuit held the order regulatory in effect and pre-empted by the National Labor Relations Act. Labor removed its implementing rule, and EO 13208 formally revoked the order in 2001.

Administration position: The administration linked permanent replacements to procurement efficiency. The court concluded that federal labor law left that conduct to the balance Congress established.
SignedMarch 8, 1995
ImplementerDepartment of Labor
Court resultVoided in Chamber of Commerce v. Reich

Before and after

Before the order

Federal labor law allowed employers in some economic strikes to hire permanent replacements.

After the order

The procurement restriction was issued, judicially invalidated and then formally revoked.

Who had to do what

Agency / officeActionTiming / position
Labor SecretaryInvestigate replacement of lawful strikersUntil invalidation
Contracting agenciesTerminate or avoid covered contracts when authorizedUntil invalidation

What happened next

EO 12954 was signed.

Labor issued its final rule.

The D.C. Circuit voided the order.

Labor removed its rule.

EO 13208 revoked the order.

Reviewed court position

Court status

See the court documents in Sources by type.