Federal union scorns budget veto

''A smoke screen and a farce.'' That's what Kenneth T. Blaylock, president of the American Federation of Government Employees (AFGE), said Monday of President Reagan's budget veto, Monitor correspondent Peter Grier reports.

''If there really is an appropriations crisis,'' Mr. Blaylock said, ''why doesn't he have to lay everybody off? There are 2 million federal workers. He's only proposing to furlough 400,000.''

The union represents 700,000 federal workers. It is telling members who perform essential services, as defined by President Reagan, to report to work. Those whose jobs are less critical are to demand assurance they will be paid.

''If there is no assurance, turn around and go home,'' said Blaylock. ''AFGE's position remains no pay, no work.''

Blaylock added that the union is considering a court case, charging that the administration does not have the authority to not operate the federal government.