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American Morning

Interview With Elaine Chao

Aired September 02, 2002 - 09:15   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

DARYN KAGAN, CNN ANCHOR: Economic uncertainty, watch words on this Labor Day. More workers are not working this Labor Day. Some from the lingering effects of 9/11, some because of corporate scandals and bankruptcies.
Is the glass half full or half empty?

Earlier this morning, I had a chance to speak with Labor Secretary Elaine Chao.

(BEGIN VIDEOTAPE)

KAGAN (on camera): Some of the biggest labor news over the weekend was Major League Baseball averting its strike. Can you comment on that as labor secretary, please?

ELAINE CHAO, LABOR SECRETARY: Well, obviously, everyone is delighted that there will be no strike. And I think the baseball owners and the baseball players are acting in the best interest of their fans, and I applaud that heartily.

KAGAN: Meanwhile, on possibly on more serious issues, you have 10,000 longshoremen threatening to shut down ports on the West Coast, you have 10,000 janitors in Boston threatening to go on strike, and also 25,000 Boeing employees that might go out on strike. Does the administration plan to get involved in any of these issues?

CHAO: Well, I think the administration has said very firmly that we encourage both sides to come to the bargaining table and negotiate in good faith. There are lots and lots of things at stake for these situations. I mean, clearly, in terms of the West Coast situation, 40 percent of our ocean-borne commerce comes through the West Coast ports, and economic interests are vitally at stake.

But again, we are not going to talk about the merits. We urge both sides in all of these situations to come to the negotiating table and negotiate in good faith for the good of this country.

KAGAN: So would that be a no, you don't plan to get involved directly right now?

CHAO: I don't think that either side should predict what the government should do. And at this point, again, I want to emphasize that we encourage both sides to come to the table.

KAGAN: On this Labor Day, clearly, not enough Americans are working. Unemployment almost at 6 percent. In 2000, it was down at 3.9 percent.

What do you say to the millions of Americans who out of work on this Labor Day, particularly Americans who have lost their job in corporate scandals, like Enron and WorldCom?

CHAO: I think it's worthwhile noting that the attacks of September 11 sent shock waves through our economy, and that the attacks on our country...

KAGAN: But Madam Secretary, if I could just jump in here for a second.

CHAO: Yes.

KAGAN: WorldCom and Enron have nothing with September 11.

CHAO: Well, let me just finish. I think it's important to remember that the attacks of September 11 caused a loss of 1.5 million jobs. Now, the president has focused on security, and that includes economic security and that includes jobs. And he has said in terms of the corporate scandals, which have plagued the markets, that he demands accountability, integrity and transparency in our financial market.

We have also vigorously enforced the law against those corporate leaders who have displayed any abuses of the public trust. Just last week, two corporate executives were indicted, and you can be assured that others who are involved will be prosecuted to the fullest extent of the law.

Now, the Congress passed, and the president signed, the Corporate Responsibility Act. And that act, again, required, among other things, that CFOs, chief financial officers, and corporate executives sign off on the integrity of their financial markets. That occurred on August 14, and that seems to have reassured the markets as well. So...

KAGAN: And -- I'm sorry -- our time is very short. Labor Secretary Elaine Chao, thank you for your time.

CHAO: Thank you.

(END VIDEOTAPE)

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