This report describes the results of a survey designed to explore the problem of deficiencies in the basic skills of secondary school students. Three perspectives were sought: that of the corporate sector, of labor unions, and of school systems. Information in the report is based on (1) survey returns from nearly 200 businesses and 123 school systems throughout the United States; (2) an examination of literature on basic skills competencies and on industry-school relationships; and (3) interviews and correspondence with labor leaders, business, and school system officials. First, definitions of the terms "basic skills" and "competency" are explored. The present nature of basic skills deficiencies among secondary school graduates, as described by businesses participating in the survey, is then reviewed. Among the areas discussed are reading, writing, mathematics, reasoning, speaking and listening, and science. Productivity costs resulting from these deficiencies are outlined. Finally, activities that may be undertaken by both the corporate and public education sector in order to redress the problems described are explored, with a focus on industry-school cooperation. Appended to the report are further discussions of the study's methodology and analytical categories, as well as more detailed presentations of data collected. Also attached are brief descriptions of various corporate and cooperative basic skills training programs. (GC)