While in office, he took a strong position against labor unions. He spoke out publicly against the Industrial Workers of the World, claiming that it terrorized labor and would cripple industry following several instances of I.W.W. threats to disrput production in 1917. He organized veterans of the Spanish-American War into an Oregon State Defense force, and encouraged citizens in Eastern Oregon to form self-defence committees to defend the state against violent labor agitators. Withycomb used his powers as Governor to shipyard prevent a strike in Astoria, by calling out the National Guard.