State and labour in the U.S. : the Carter administration and the AFL-CIO, 1976-1980 : political strategy and the National Accord
The Accord was a political exchange whereby the labour leadership participated in the wage restraint programme in return for consultative rights and specific quid pro quo policies, including countercyclical measures to offset fiscal austerity. The President subsequently sustained a policy of fiscal and monetary restraint despite the approaching election and the increasing protests of organized labour. However, in the face of strong opposition from some of Carter's senior economists, the labour leaders secured significant modifications to the second year of the pay standard. The 1980 presidential election renewed incentives for continuing cooperation when economic policy otherwise jeopardized relations.