Senate Majority Leader Tom Daschle called Bush's proposal "a power grab of unprecedented magnitude" that would undermine the nonpolitical government civil service system and threaten labor union rights and protections for one-third of the workers.
"We're not going to roll over when it comes to principles and beliefs we hold to be very, very important," said Daschle, D-S.D.
The White House and its Republican congressional allies also dug in their heels. Tom Ridge, the president's point man on homeland security, said the new department needs broader powers to hire, fire, promote or demote and pay employees -- and waive union rights in matters of national security -- to meet emerging terrorist threats.
"The president has indicated it's not just a matter of reconfiguring letterheads and addresses," Ridge told reporters after meeting privately with Republican senators.
The Senate GOP leader, Trent Lott of Mississippi, predicted Bush would bring enough political pressure to bear to get much of what he wants in the end.
"It's about doing the job," Lott said. "If we get into this political folderol ... I think that's a mistake."
The president met Tuesday with GOP senators at the White House to reinforce his demands for the new Cabinet agency and planned similar sessions later this week with Democrats.
"I don't recall the term veto being used by the president but he made it very clear that the bill had to be acceptable to him, that he wasn't going to accept some -- these are my words -- weak compromise," Sen. Bob Smith, R-N.H., told reporters afterward.
Presidential power to waive union collective bargaining rights for federal employees for national security reasons has existed since 1977, said Sen. Fred Thompson, R-Tenn. Congress has approved more flexible personnel systems for agencies such as the Internal Revenue Service, the Department of Housing and Urban Development, the Federal Aviation Administration and the new Transportation Security Administration.
Even though there was no immediate sign of compromise on the personnel dispute, both sides predicted the Senate would pass a Homeland Security bill later this month. That would set up negotiations on a final version with the House, which in July approved a measure much like Bush's original plan.
Both bills would merge all or parts of 22 agencies into a single department focused on protecting Americans against terrorism at home. The Coast Guard, Transportation Security Administration, Customs Service, Border Patrol, Secret Service and Federal Emergency Management Agency are among those to be moved.
Both measures also would set up a new intelligence analysis office -- the Senate's version is more powerful -- that would sift through data produced by the CIA, FBI and others to identify potential threats and take action to protect targets or prevent terrorist acts.
The chief Senate sponsor, Democrat Joseph Lieberman of Connecticut, said the areas of agreement were too important to let the legislation founder over the worker issues.
"If we marshal these strengths of ours, we can make another Sept. 11-type attack impossible," Lieberman said. "We stand broadly on common ground even as we remain debating some of these differences between us."
The threat of extended delay, or filibuster, evaporated Tuesday when Sen. Robert Byrd, D-W.Va., announced he would support bringing the legislation to the floor. Byrd had resisted immediate consideration of the House-passed bill in July, arguing that such a massive reorganization plan deserved more deliberate scrutiny.
"What counts in the end is not when it's done, but what the product is," said Byrd, chairman of the Senate Appropriations Committee.
Other difficult issues to be debated would:
- Exempt private industry from the Freedom of Information Act in some cases.
- Delay by one year the deadline for airports to begin screening checked baggage for explosives.
- Allow the president to shift money around within the new department without congressional approval.
Copyright 2002. Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
