Inside Report (2)

There's a heap 'o fence mendin' to be done out Washington way.

Relations between the US Labor Department and the AFL-CIO, at least at the policy level, are a total zero. After being cleared over the summer of accusations that he had dealt with members of organized crime, Labor Secretary Ray Donovan vowed to mending fences with the AFL-CIO. But Donovan so far has failed to telephone federation president Lane Kirkland to start the fence-mending. But it sounds like Kirkland isn't in much of a fence-mending mood either.

Says a source close to the labor leader, ''He won't get an answer when he does [call].''m