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and shift-differential payments. I will run through these comparisons quickly for you. FROM NOV. 1950
7A INCREASINA STRAIGHT TIME
Chart 7-A shows the increases in straight-time hourly earnings for the same industries starting with increases in December 1950. The steelworkers have received a substantial relative increase in straighttime earnings.
The increase is projected in chart 7-B to include the Wage Stabilization Board recommendations in steel. The effect on the straighttime average hourly earnings of the Wage Stabilization Board reeommendations, effective January 1, 1953, is 19 cents per hour as shown. This is composed of 1712 cents for base-rate increase, 1.2 cents for increased shift differentials, and 0.3 cent for reduction of southern differential. It can be seen that the steelworkers under the Wage Stabilization Board recommendation will be doing so well that wages in those other industries would certainly be "unstabilized” by their relative loss in wage position. This is not wage stabilization; it is a continuation of past wage inflation.
Chart 8-A shows increases in straight-time earnings since Korea. In this period the steel industry shows an increase in straight-time hourly earnings of 20 cents. The largest increase shown is 27 cents for agricultural machinery, and the smallest increase in 17.8 cents for shipbuilding.
The effect of projected increases on straight-time hourly earnings in steel is pictured in chart 8-B. The effect of the Wage Stabilization Board steel recommendations is to make the steel wage increase far greater than that for any of the other industries cited by Mr. Feinsinger.
Here, on chart 9-A, are shown the increases in straight-time earnings in these industries from the Board's stabilization base period of January 1950. In this period the increase in steel straight-time hourly earnings is less than that of five of the industries and greater than that of the two others.
Chart 9-B shows the effect of the Wage Stabilization Board steel recommendation on steel straight-time earnings at January 1, 1953. Again the total steel increase would be much more than the largest increase for any of the other industries which Mr. Feinsinger compared with steel.
Now, it must be evident that, no matter how the official Government wage statistics are compared, the steelworkers' wage increases, including the Wage Stabilization Board recommendations, would be so high that it is incorrect to state, as Mr. Feinsinger has, that they would not lead to increases in other industries.
Since so much has been said about relative wages in the steel and auto industries, I would like to show you a longer-range comparison between average hourly earnings in these two industries.
On chart 10 are shown the Bureau of Labor Statistics average hourly earnings of production workers in these two industries by months starting with January 1939. It can be seen that with few exceptions throughout this period auto wages have exceeded steel wages, on the average, and at the end of 1951 auto workers' wages were in their customary relationship with steel wages.
Mr. Feinsinger has said that, because of the annual improvement increases in the auto industry, auto wages will exceed steel wages even after the full wage increase recommended for steel workers. Is this a fact?
We have added the increases in steel wages recommended by the Wage Stabilization Board and also have projected auto wages, assuming that the cost-of-living index will continue to be at the March 1952 level and including annual improvement increases in 1952 and again in 1953. Thus, it can be seen that, based on official Government wage statistics, steel wages would have leaped ahead of auto wages and would stay ahead unless further increases are granted to auto workers. They in turn would then be in a catch-up position. To reverse the historical wage relationships of these industries during a period of wage stabilization would seem to be contrary to stabilization policy.
Senator Moody. Does it have the same relationship with hourly wage rates? Do you have a chart on that?
Mr. STEPHENS. We haven't a chart on wage rates. We have in the steel industry what is known as 32 job classifications.
Senator Moody. In the "Hourly earnings" figures there is how many hours they work, how much overtime, the shift differentials, and so forth. I am trying to see if the hour rates would be the same. Your chart is "Hourly earnings.” Do you have one on average wage rates?