In March 2003 the Bush administration proposed a change in the way employers are required to pay overtime to workers. The standard, since the passage of the 1938 Fair Labor Standards Act, has pretty much been that nonsalaried employees must be paid time and a half for all hours worked in excess of 40 in a week. The Bush administration proposal would have changed the regulations and excluded more than 8 million workers from the 1938 standard. Americans should make no mistake – this effort by the Bush administration was designed to be a “giveaway” to giant corporations, which would save billions of dollars in overtime costs.

The Bush-proposed regulations would enable employers to force employees to work beyond 40 hours for not only straight-time pay but, incredibly, without any pay at all at times. In the “no pay-banked hours” scheme the hours in excess of 40 would be “credited” to an employee’s account and the time could be then taken off with pay at a later date. The time off would be scheduled by the employer and at the convenience of the employer – not the employee.

The 1938 act was designed by Congress to, among other things, accomplish two goals at a time when our nation was in the throes of an economic depression. First Congress determined that paying employees time and a half after 40 hours would put more money in the hands of workers who would then spend it and provide a spark to fire up the depressed economy. Secondly, Congress envisioned that it would provide an incentive to employers to hire more of the unemployed people as opposed to paying the time-and-a-half premium. The hiring of the unemployed would then provide another source of spark for the economy.

It cannot be disputed that the Bush proposals take earnings out of the pockets of workers by providing incentive to employers to work the employee more for less. Every American president has endeavored to enhance the lives of Americans in one way or another and to create more jobs. Not only has President Bush failed to create more jobs than existed when he took office, his proposed overtime changes will serve to discourage job creation.

To be sure, a few Americans who have been excluded from overtime to date will become entitled to overtime payments in the future as a result of the proposed Bush regulations. But those who will lose overtime far outnumber those who will begin receiving it. President Bush could have enabled the overtime for those who had been excluded without insuring the loss of overtime for those who now are receiving it. He chose not to do so and he must be asked why. The obvious answer is that his method of tampering with the overtime regulations benefits corporations that contribute to his campaign coffers. And where is the incentive to create jobs if employers are free to simply work the existing workers harder and for less pay?

Earlier this year the Bush administration listened to the relatively small number of employers who will be negatively affected by their proposed regulation. Those employers will face the prospect of paying overtime to employees who are not currently entitled to it. What was the Bush administration’s comfort to those employers who would face increased cost? Secretary of Labor Elaine Chao issued a letter to these employers suggesting that to hold their costs down they should reduce the hourly wage paid to employees so that even when they receive overtime pay they will then be paid the same gross wages as they are currently paid. Ms. Chao’s letter is proof that the administration has only the employer’s interests in mind and not the worker.

Because of the efforts of organizations like the Economic Policy Institute and the AFL-CIO, along with Dem-ocrats in Congress, President Bush has been unable to issue his change in regulations. On several occasions many congressional Republicans have joined the Democrats in passing amendments to legislation which would bar the administration from changing the overtime regulations.

At one point the Republicans even withdrew a bill because they could not get enough support to pass it without an attached provision limiting the president’s right to change the overtime regulations. The result is that the administration has been frustrated since March 2003 in achieving its goal of eliminating overtime for millions of workers and enriching American employers.

Bush this week announced a change in his proposed regulations that he hopes will soften the blow and reduce resistance to his plan. But the changes in his proposal are still onerous for millions of Americans. Bush can easily fix the lack of overtime for those who don’t currently get it if indeed that is his motive. Americans with wisdom will only be able to conclude one thing – what Bush wants to do is reward his friends in the business community at the expense of working Americans.

Duane Lugdon of Bradley is an international representative for PACE International Union representing Maine’s paper industry employees.