Newspapers / The Charlotte Labor Journal … / March 7, 1946, edition 1 / Page 1
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VOL. XV; No. 43 Published Weekly CHARLOTTE. N. C. DAY. MARCH 7, 1946 Price 5c per Copy Subscription Price $2.00 Per Y’ear F \RM NEWS) A Newspaper Dedicated To The Carolina Federation of Labor Union and Affiliated Crafts—Endorsed By North By The American Federation of Labor. GREEN OPPOSES WAGE FORMULA Washington, D. C.—AFL Presi dent William Green warned Presi dent Truman at a White House conference against the dangers of imposing a rigid wage formula up on American workers during peacetime. Mr. Green visited the President after reading newspaper reports indicating that Administration leaders are seeking to evolve a wage-price formula as a solution to current CIO strikes in mass production industries. “I told the President,” Mr. Green informed newsmen in the White House lobby, ‘‘that the American Federation of Labor will gladly co-operate with him to develop maximum production and full employment. After all, that’s the most effective way of prevent ing inflation. “Meanwhile, price controls must be retained in order to proteci our economy and consumers. “But it would be unwise and im practical to attempt to re-establish any rigid wage formula similar to the Little Steel formula which pre vailed during the war. Wages should be adjusted through collec tive bargaining.” Asked whether the President had given any clue to his plans for future wage-price collective bar gaining said: “What he wants to do is to straighten out and stabilize the whole situation and develop the highest production of the many things the nation urgently needs.” Meanwhile, rumors were rife in Washington of a shakeup of the President’s official family dealing with economic problems. Accord ing to these reports, Chester Bowles is due to become Economic Stabilization Director and Paul Porter is slated to succeed Bowles as Price Administrator. Further reports indicate the possibility of the resignation of Secretary of La bor Schwellenbach in the near fu ture. -> New Order On Wages .. Washington, D. C.—That por tion of the President’s executive order dealing with the now wage regulations follows: 3. (a) The National Wage Stab ilization Board or other wage or salary stabilization agency having jurisdiction with respect to the wages or salaries involved shall ap prove any wage or salary increase, j or part thereof, which it finds is consistent with the general pattern of wage or salary adjustments, which has been established in the industry or local labor market area, between August 18, 1945, and the effective date of this order, or where there is no such general pattern, which it finds necessary to eliminate gross inequities as be tween related industries, plants or job classifications, to correct sub standards of living, or to correct disparities between the increase in wage or salary rates in the appro priate unit since Jan., 1941, and the increase in the cost of living be tween January, 1941, and Septem ber, 1945. The board or other des ignated agency shall have author ity, with the approval of the Sta bilization Administrator, to estab lish special standards for approval of wage or salary increases, dif fering from the foregoing general standards, to be applied in partic ular industries or classes of cases if it finds that such action is nec essary to effectuate the purposes of this order. (b) The Stabilization Admini strator may, by regulation, specify classes of wage or salary increases which will in .his judgment? have no unstabilizing consequences and which may be deemed approved within the meaning of this order without prior consideration by the wage or salary stabilization agen ces. Such regulations may maze special provisions for cases, among others, in which (1) the increase is to be of limited amount, or (2) a small number of employes will be involved, or (3) there will be in all probability no substantial ef fect upon price or rent ceilings or costs to the United tSaes. (c) Except as the Stabilisation Administrator may by regulation otherwise provide, the making, after effective date of this order, of any wage or salary increase pursuant to Part IV, section 1, of Executive Order 9599, without the prior approval of the National Wage Stabilization Board or other designated wage or salary stabili zation agency having Jurisdiction with respect to the wages or sal aries involved, shall constitute a waiver of any right of the em ployer to use such increase, at any time daring the continuation of the stabilisation laws, as a basis for seeking an increase in price or rent ceilings or, in the case of products or services being furnish ed under contract with a federal procurement agency, as a basis for increasing costs to the United States. The Stabilization Admin istrator shall have authority to provide by regulation that wage or salary increases of a particular class shall be unlawful unless made ! with the prior approval of the board or other designated agency, if in his judgment such action is necessary to prevent wage or sa- j lary increases inconsistent with the 1 purpose! of the stabilization laws. (d) In accordance with and sub ject to the provisions of Section 2 of this order, any wage or salary increase heretofore lawfully made, or made in accordgo^e with a gov ernmental recommendation in a w age controversy announced prior to the effective date of this order, shall be deemed to have been ap proved within the meaning of this order, and may be taken into ac count as a basis for increasing price or rent ceilings or, in the case of products or services being furnished under contract with a federal procurement agency, as a basis for increasing costs to the United States. (e) All arbitration awards, and all recommendations of publicly appointed fact-finding panels, with respect to wage or salary issues shall conform with the standards of this order and the regulations and directives issued thereunder. No wage or salary increases shall be put into effect in accordance with any such awards or recom mendations, hereafter announced, unless and until approved by the appropriate wage or salary stabi lization agency or unless such awards or recommendations are voluntarily accepted by the parties l on the basis stated in the first sen tence or subsection (c) of this sec tion. 4. The Stabilization Administra tor, in the Office of War Mobiliza tion, and Reconverion, shall have full authority to issue such orders and directives as may be necessary, in his judgment, to carry out the purpose of this order. 5. Any provision of any prior Executive Order in conflict here with is hereby superseded to the extent of such conflict. 6. This order shall become effec tive February 14, 1946. £ THE WAY IP LOOK AT IT -fesHi I I SHUCKS, HE'S f NOT A BURDEN K HES MY BROTHER r<«»rf»«w * —r 7mr Disability Insurance Asked For New York and California Washington, D. C.—Labor or ganizations in the two most popu ous states—New York and Cali fornia—are taking the lead in a battle to put over legislation call ing for payments to workers while sick or disabled. In the Empire State bills along :hat line have been introduced in both chambers of the legislature, at the request of the New York Sate Federation of Labor. Under the federation’s program lick and disabled workers would receive a minimum of $15 a week if their normal earnings are $31 or less. Benefits would rise in pro portion to earnings, up to maxi mum of $21 for those whose wages exceed $41. Another important section would provide similar benefits for unem ployed persons who become ill ahile idle. At present, their job less compensation ceases if be- j cause of sickness they are not j available for employment. An an- | ditional section would set up ma ternity benefits, as well. Payments under the bill would start after one week's waiting pe riod and continue for as much as 26 weeks for any single continu ous illness or disability. The pro gram would be financed by a one half of one per cent tax on em ployers' pay rolls with the State contributing a like amount out of general taxation. Somewhat similar legislation was introduced in California legis lature several weeks ago, with the indorsement of Governor Earl Warren and the backing of organ ized labor. Warren sponsored an identical bill at a previous session, but it was killed, in large part as a result of opposition by a medical lobby. TRIBUTE TO SERVICE WOMEN rW mbJMk Official Army Photo WAC MEDAL WINNER. In Buying Victory Bonds you are a fellow shareholder In the Nation with 173 □otse Robertson, Oak Park, III., prho was given a Bronze Star by Raj. Oen. J. L. Prink for her work n Manila. U. S. Treasury Department AFL Accorded Recognition To Represent N. Y. City Workers New York City. — William J. Powell, Commisiioner of the De partment of Sanitation, issued a ipecial order informing depart ment employes that unite of the American Federation of Labor pould be recognized as official jnions for them. The order was taken as a slap it the Congress of Industrial Or ganizations, which has been active imong the 9,000 employes of the Sanitation Department. Mr. Powell said that 80 to 90 percent of the personnel in the Sanitation Department had been iffiliated with AFL units. He remarked that the order was in keeping with the policy of the lepartment for the last 5 years. The labor policy of the Sanita tion Department differs somewhat from that of the Board of Trans portation. In the latter depart ment , the commissioner* have dealt with as many as 16 spokes men from various labor units who are employed by the rapid transit lines. This was the result of the unification of the city's subway, elevated, bus and street car lines. It was explained at Mr. Powell’s office that while his assistants would have a chance to listen also to assertions of CIO members, their complaints about wares and hours must come through AFL channels. Mr. Powell said the AFL had been in control of the working force in the Sanitation Department for a number of years. There was no comment about the order from Mayor O’Dwyer’s office. The order follows: “The organisations making up joint board of institution locals of the American Federation of State, County and Municipal Employes (affiliated with the AFL) are as follows: “Local 43, Borough of Queens, Michael Morro, president; Local 111, Boroughs of Manhattan and Richmond, Elias Shapiro, presi dent; Local 238, Borough of Brooklyn, Anthony Grego, presi dent; Local 308, Borough of Bronx, John DeLurjr, president; Local 760, all boroughs, James Dugan, president. "This department will recognise only the heads of the above men tioned organisations as the duly authorised representatives of the men and will confer with them on problems relating to their work- 1 ing conditions.” NEW POLICY MAY CAUSE INFLATION Washington, D. C. AFL Presi dent William Green expressed strong opposition to the govern ment’s new wage-price policy an nounced by President Truman. He charged it would cause a dangerous bulge in the line against inflation and militate against free collective bargaining by restoring wage-fixing by the government. Obviously, the main purpose of the new policy was to break the bottleneck to speedy reconversion caused by FIO strikes in mass pro duction of industries. After weeks of pulling and haul- j ing and sending up trial balloon, President’s advisers came up with j a schema which, on *' e one hand, guarantees profits t> ndustry at the prosperous 1936-1939 rate and,j on the other, pushes labor bade to the wartime status of requiring j approval by the National Wage Stabilisation Board before a wage J increase can go into effect. The pattern for reconversion' wage rate increases set up under the new policy will Apparently be the 18 cents on hour boost granted the steel workers, unless a differ Hit standard already has been es tablished for a particular indus try. Although it was formulated for—— the avowed objective of heading off inflation, the new wage-price pol icy may have the effect of hasten ing inflation. Even OPA Admin istrator Chester * Bowles, kicked upstairs to the empty — in more ways than one -post of economic stabilization director, warned of an inflation “explosion.” Mr. Green, who had warned President Trumun in advance not to rc-impose wage controls, de clared: “The government’s new wage price policy is unsatisfactory to the American Federation of Labor and unacceptable. “It constitutes a backward step — a return to wartime economic (Please Turn to Page 4) Truman Explains Plan Washington, D. C.—Partial text ( waiver of rights to ask for price erf statement by President Truman; relief. explaining Iff* new wagr-pnrv tw.i icy follows: I am modifying °ur wage-price policy to permit wage increases within certain limits and to permit any industry placed in a hardshp position by an approved increase to seek adjustments without wait ing until the end of a six months' test period, as previously required. If the general level of prices is to remain in the next few critical months, the immediate price relief in such eases must be conserva tively appraisal. It must, however, be sufficient to assure profitable operation in the test period to an industry not producing a low vol ume. If the expected improvement in earnings should fail to materialize' in any industry, OPA will move promptly to review its action. Ap propriate relief in line with the modified policy may la? accorded, where practicable, to individual firms. I am authorizing the National Wage Stabilization Board to ap prove any wage or salary increase or part thereof, which is found to be consistent with the general pat tern of wage or salary adjustments' established in the industry or lo cal labor market area since August 18, 1945. Where there is no such general pattern, provision is made for the approval of increases found necessary to eliminate gross in equities as between related in dustries, plants or job classifica tions, or to correct substandards of living or to correct diparities be tween the increase in wage or sal ary rates since January, 1941, and the increase in the cost of living between that date and September, 1945. This wage program, therefore,' takes into account the thousands( of wage agreements reached before and after VJ Day. While many ■ groups of wage’ and salary earn-1 era may qualify for increases under ( this policy, in order to bring their pay into line with the increased cost of living, or wth the exist-, ing wage levels of the industry or ( area, the program is not to be in terpreted as permitting indiscrim inate wage increases. The executive order provides that the stabilisation administra- • tor shall determine those classes >t cases in which a wage increase nay be put into effect without re- 1 juiring prior Wage Stabilisation Hoard approval and without my "-~Tne« caws trm 7HCUMB ait -those in which the increase will clearly not have an unstHhifizihg effect. It is contemplated that many of tff<:>»e increases corning within the present pattern of wage increases will not have to have ..individual approval,. 1 hope that free collec tive bargaining will Ije used to the fullest possible extent. Increases outside and beyond this general policy cannot Ire ap proved without subjecting the workers and the public to the dapger of inflation. It is to the best advantage of the American worker, above ail oher groups, that the price line be held. The change now being made in our wage and pricing standards can succeed only with the support of business, labor, Congress, all the cgencies of the administra tion, and the rank and hie of the American people. I am directing that all admin istrative agencies use their full legal powers, including emergency powers delegated to them under the Second War Powers Act, to as sist the Office of Price Adminis tration in‘.meeting the govern ment's responsibility for retaining control over the forces of inflation. Priorities and allocations pow ers will be used vigorously wher ever necessary to prevent increases in prices. There will be a strict - enforcement of inventory controls. The resources of the Treasury and Justice Departments will be called upon when necessary to assit in enforcing thee controls. I trust that the Congress will: (1) extend the stabilization stat utes witeouf' amendment and will do So 4Tith all possible speed so that there may be no question in one's mind concerning the determ ination of the Congress to see the ** fight against inflation through to the finish; (2) exend th subsidy program for another full ^ear; (3) enact promptly the Patman bill to establish price controls over lousing ("present speculation in the real estate market is one of ;he most dangerous aspects of the present situation and one which vorks paricular hardship on our tuitions of returning veterans and heir families); (4) extend prompt y the Second War Powers Act, so hat the emergency powers we ound necessary during the war nay continue to be exercised wher 4‘ 1 (Please Turn to Page 4)
The Charlotte Labor Journal and Dixie Farm News (Charlotte, N.C.)
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March 7, 1946, edition 1
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