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 IWW threats to disrupt 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. Withycombe used his powers as Governor to prevent a shipyard strike in Astoria, by calling out the National Guard.