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The words, “Wages, salaries, and other compensation"and that is what you told us to stabilize shall include all forms of remuneration to employees by their employers for personal services, including, but not limited to, vacation and holiday payments, night shift and other bonuses, incentive payments, year-end bonuses, employer contributions to or payments of insurance or welfare benefits, employer contri. butions to a pension fund or annuity, payments in kind, and premium overtime payments.

I assume that that meant that we were to adopt regulations to cover those subjects and we have done so, and you told us what kind of regulations to adopt.

The CHAIRMAN. It is on page 30, section 702 (e), on page 30.

Senator BENTON. It would be very helpful if this table could be moved back a foot, because we cannot see.

The CHAIRMAN. I would suggest Mr. Feinsinger might talk into that microphone.

Senator BRICKER. That is title VII.

Mr. FEINSINGER. It is title VII. That is what the Congress told us to stabilize, so we obviously must have regulations dealing with all of those matters.

Senator BRICKER. Now, I have one other question at this point, and I do not want to delay matters too long. Where is the provision in this law that authorized you to go into the question of the union shop?

Mr. FEINSINGER. The union shop?
Senator BRICKER. Yes.

Mr. FEINSINGER. So that there will be no misunderstanding, nobody contends that this Board, in the exercise of its disputes function, is a statutory board. That has been made perfectly plain on the record, time and time again in hearings before this committee, and in the hearings before the House Labor Committee, and it was thoroughly thrashed out in the hearings on the so-called Lucas amendment, both here and in the House. But, I would like to call your attention to title V, page 25, of the document. If you have the same document as I, entitled "Settlement of Labor Disputes" section 501.

This shows the philosophy of Congress.
This is on page 23 of the print that you have.
Section 501:

It is the intent of Congress, in order to provide for effective price and wage stabilization pursuant to title IV of this act and to maintain uninterrupted production, that there be effective procedures for the settlement of labor disputes affecting national defense.

Section 502:

The national policy shall be to place primary reliance upon the parties to any labor dispute to make every effort through negotiation and collective bargaining and the full use of mediation and conciliation facilities to effect a settlement in the national interest.

Let me say parenthetically, that the President, in issuing Executive Order 10233, amending Executive Order 10161, which is the source of our authority-all we do is advise the President and the parties-we followed every one of these safeguards.

He said:

I will not refer a case to you until after the Conciliation Service has certified that collective bargaining has been exhausted and that conciliation and mediation have failed.

So, the safeguards which I have just quoted, are in the Executive order.

The statute goes on to say, gentlemen:

To this end, the President is authorized (1) to initiate voluntary conferences between management, labor, and such persons as the President may designate to represent Government and the public, and (2) subject to the provisions of section 503, to take such action as may be agreed upon in any such conference and appropriate to carry out the provisions of this title.

The President may designate such persons or agencies as he may deem appropriate to carry out the provisions of this title.

Senator BRICKER. You do not feel that section 503 in any way limits your jurisdiction in that matter?

Mr. FEINSINGER. On the contrary, it confirms the jurisdiction that the President conferred upon us. With the exception of holding a labor-management public conference, which has not been held, and with the exception of getting an over-all no-strike, no-lock-out pledge, which would presumably have resulted from such a conference, and with the exception of setting up a Board which has jurisdiction over disputes and could make decisions or issue directive orders, as was the case in World War II, the President has said, first

I will refer to this Board only a limited group of cases; those affecting the defense effort; and secondly, I will simply ask that Board to advise the parties and me, as to the basis for a fair and equitable settlement of the dispute.

So, I say not only was he consistent with the philosophy expressed in this title, not only did he follow every safeguard, but the authority that he conferred upon this Board was extremely limited, much more limited than the authority which you conferred upon him.

Senator BRICKER. Do you concur in all that, Mr. Putnam?
Mr. PUTNAM. Yes; I concur in that.

I might say, that Senator Capehart asked me earlier if I changed my mind. One of the reasons I changed my mind about the size of this recommendation was that I checked with my own company and I found we had given, already, since January 1950, raises which total within 1 cent of the amount the steelworkers will have received if the proposals are adopted. A slight increase in the cost-of-living index would wipe out that difference entirely. When I found that out, I, therefore, could not say it was not a perfectly normal and respectable amount for steel. I have some more evidence of that.

If you want to look at that chart there for a moment, you can see a number of other companies or industries which have taken the wage lead, such as General Motors, International Harvester, Swift, Goodyear, coal, west coast shipbuilding, and so on, and we have plotted them. The black lines are the straight money increases given since January 1950, and the extensions of those lines are the fringes. The black columns are the recommendations in this steel-industry dispute, showing the comparative amounts as the various steps would go into effect.

96315—52—pt. 42

(The chart referred will be found facing this page.)

Mr. PUTNAM. I think you can see that all the way, steel has been following behind other people and not leading.

,1950 Senator BRICKER. You made your change of mind then, on the basis e Jant, of your own company?

Mr. Putnam. And then going on to check further with other companies. I had this chart prepared.

Senator BRICKER. Did you discuss with Mr. Feinsinger the union shop provision before the recommendation was made?

Mr. PUTNAM. We discussed it; but it is not an economic issue, and that I felt, was none of my business.

Senator BRICKER. Therefore, it is just a recommendation to the President, not coming through you?

Mr. PUTNAM. I did not understand that.

Senator BRICKER. It is a recommendation to the President instead of coming through you?

Mr. PUTNAM. None of their recommendations come through me. We are friends, we work together, we discuss things.

We discuss almost anything in a case like this, but the recommendation goes directly to the President. The union shop issue is not an economic issue, and I could have no interest in it except as an individual, anyway.

Senator BRICKER. I have one other thing, Mr. Chairman. I would like to have the names of all those who are here present, whom they represent.

The CHAIRMAN. Without objection, a list of those present here will be inserted in the record.

(The list referred to follows:)

With Mr. Putnam were: James McI. Henderson, General Counsel; Ben Caplan, economic adviser; and J. Fred McClerkin, counsel.

With Mr. Arnall were: Edward Phelps, Director of Price Operations; Joseph Freehill, Deputy Director; Gardner Ackley, economic adviser; Saul Nelson, deputy economic adviser; Franz Wolf, Director, Research and Statistics; Herbert T. Maletz, chief counsel; William C. Burt, deputy chief counsel; and William MacLanahan, Deputy Director, Public Information.

With Mr. Feinsinger were: Frederick H. Bullen, Vice Chairman; Isaac N. Groner, chief counsel; L. Reed Tripp, Director, Office of Economic Analysis; and George J. Kuehnl, assistant to the Chairman.

From the Office of Defense Mobilization were: Rodolfo A. Correa, General Counsel; Matthew Hale, Deputy General Counsel; and Vaughn C. Ball, Assistant General Counsel.

The ChairMAN. Will you also supply for the record the Executive order you referred to? (The Executive order referred to follows:)



Whereas the maintenance of wage stabilization under the Defense Production Act of 1950 is essential at this time in the interest of the national defense; and

Whereas the maintenance of effective wage stabilization imposes limitations on the processes of free collective bargaining, making necessary the development of machinery to facilitate the settlement of labor disputes in conjunction with the administration of wage stabilization; and

Whereas on April 17, 1951, the National Advisory Board on Mobilization Policy made the following recommendation to the President:

1. The Wage Stabilization Board shall be reconstituted as an 18 man tripartite Board with six representing the public, six representing management, and six representing labor.

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DEC. 409. Any wage action taken by the Board with respect to any case submitted or referred to it under section 405 shall be consistent with stabilization policies.

"Sec. 410. Such panels and subsidiary agencies of the Board as may be deemed necessary may be constituted under this Part, and in order to carry out its func

17, 1951, the National Advisory Board on Mobilization


made the following recommendation to the President:

cas on

Stabilization Board shall be reconstituted as an 18 man

with six representing the public, six representing manage'1. The Wage Dartite Board nt, and six representing labor.

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