RECOMMENDATIONS OF RAILWAY EMERGENCY BOARD THE Emergency Board appointed September 10, 1941, under the Railway Labor Act, reported to the President on November 5, recommending wage increases much smaller than those demanded by employee organizations, and these increases were proposed merely as "temporary additions to wages." The unions refused to accept the recommendations, but after further mediatory efforts by the Board a compromise settlement was reached on December 1. The increases, it was agreed, were to be changes in basic rates, not temporary adjustments. The Board's proposed increase of 7.5 percent for operating employees was raised to 9.5 cents per hour, and its proposed increase of 9 cents for nonoperating employees was raised to 10 cents.1 Background of the Controversy The controversy between the railroad carriers and their employees had a long and somewhat complicated history. It involved the three main groups of carriers-Eastern, Western, and Southeastern-and the two main groups of employees, commonly described as the operating and nonoperating groups. The operating employees formed the five Brotherhoods 2 represented in the Conference Committee of Transportation Organizations. The nonoperating employees were represented in the controversy by the Conference Committee of Fourteen Cooperating Railway Labor Organizations.3 One of the questions at issue was raised as early as May 20, 1940, when some of the nonoperating organizations of workers served notice on various railroad companies demanding paid vacations. On May 25, 1940, western carriers made a counterproposal for reducing rates of pay as an offset to paid vacations. After the failure of lengthy negotiations, the 14 nonoperating labor unions on February 15, 1941, submitted a strike ballot to their members. The National Mediation Board then offered its services and conducted mediation proceedings 1 Report to the President by the Emergency Board, appointed September 10, 1911, under section 10 of the Railway Labor Act, to investigate the facts as to the disputes between certain common carriers by rail and certain of their employees respecting vacations with pay, rules of service, and wage increases, and to report thereon. Washington, November 5, 1941. An additional report followed the final agreement of December 1. The Board consisted of Wayne L. Morse (chairman), Thomas Reed Powell, James C. Bonbright, Joseph H. Willits, and Huston Thompson. * Brotherhood of Locomotive Engineers: Brotherhood of Locomotive Firemen and Enginemen; Order of Railway Conductors of America; Brotherhood of Railroad Trainmen; and Switchmen's Union of North America. 3 International Association of Machinists; International Brotherhood of Boilermakers, Iron Ship Builders and Helpers of America; International Brotherhood of Blacksmiths. Drop Forgers and Helpers; Sheet Metal Workers' International Association; International Brotherhood of Electrical Workers; Brotherhood of Railway Carmen of America; international Brotherhood of Firemen, Oilers, Helpers, Roundhouse and Railway Shop Laborers; the Order of Railroad Telegraphers; Brotherhood of Railway and Steamship Clerks. Freight Handlers, Express and Station Employees; Brotherhood of Maintenance of Way Employees; Brotherhood of Railroad Signalmen of America; National Organization Masters, Mates and Pilots of America; National Marine Engineers' Beneficial Association; and International Longshoremen's Association. between March 14 and May 31, 1941. On the latter date, the Mediation Board advised the parties to the controversy that no further mediation was possible. On May 26, 1941, major trunk-line carriers in the East and West notified the Brotherhoods representing the operating employees of proposed changes in rules of service. On June 2, the southeastern carriers made similar proposals. On June 9, the western carriers proposed changes in nonoperating rules affecting the members of the nonoperating organizations and in this proposal the western carriers were joined by most of the southeastern carriers. The proposals for changes in rules were rejected by the employee organizations and this phase of the controversy also came before the National Mediation Board. On June 10, 1941, both the operating and nonoperating employee organizations made detailed proposals regarding advances in wages to be effective July 10, 1941. Negotiations between the unions and the carriers ended in the rejection of these proposals by the carriers. On August 5, 1941, strike ballots were circulated, returnable September 5. The strike ballots listed the various issues that had been raised. On August 11, 1941, the National Mediation Board served notice that the carriers had invoked its services and on that date mediation proceedings began, embracing all parties and all disputes. On September 4, all mediation proceedings except those relating to the rules affecting members of the five operating Brotherhoods were terminated by the National Mediation Board, with an offer of arbitration which was accepted by the carriers but rejected by the employee groups. The 14 nonoperating organizations then called a strike for September 11, 1941, and the five operating Brotherhoods ordered a strike to become effective on September 15, 16, and 17. It was under these circumstances that the President issued a proclamation on September 10, 1941, creating the Emergency Board. The proposal of the unions regarding vacations with pay called for a period of 2 consecutive calendar weeks each year for all regularly employed workers upon the completion of 1 year's service. It was proposed that employees other than those regularly at work be given an annual vacation of 1 working day with pay for each month in which they earned compensation during the preceding calendar year. The proposals for changing the rules of work were detailed and technical in nature. The report of the Emergency Board summarizes them as proposing "to revise some rules, so that, while recognizing and confirming the existence of craft and class lines, essential work may be accomplished without disproportionate sacrifice of reasonable efficiency and economy, so that the rules may be clarified to permit some flexibility in hours, assignments, and starting times, and so that the revised rules would place on a uniform basis the limita tion provisions for the presentation and handling of claims and grievances of employees." The unions challenged the need for the proposed revisions of the rules for the purposes indicated. The wage proposals made by the operating employees were to the effect that beginning on July 10, 1941, all existing basic daily wage rates, miscellaneous rates, special allowances, etc., be increased 30 percent, the minimum increase in basic daily rates to be $1.80. The nonoperating employees proposed that beginning on July 10, 1941, all rates be increased 30 cents an hour, with a minimum hourly rate of 70 cents. A counterproposal was made by the carriers near the close of the hearings before the Emergency Board. This proposal was a sliding-scale "emergency compensation payment" for the period from November 1, 1941, to December 31, 1942. The proposal was to apply only to basic rates of pay and the additional payments were to be restricted to not more than $4.50 per week, the payments within this maximum to be determined by variations in a composite index based on gross revenue and cost of living. Findings of Board The Emergency Board, after extensive hearings and detailed analysis and evaluation of arguments, presented its conclusions and recommendations on November 5, after two extensions of time for completing its report, these extensions having been agreed upon by the parties to the controversy. The Board summarized its major findings and recommendations as follows: (1) The Board believes that the many uncertainties besetting any analysis of the economy of this country for the duration of the existing national emergency makes it unwise to recommend changes in basic wage rates at this time except for minimum rates hereinafter suggested for the railroads. Therefore, all wage increases recommended by the Board are proposed as temporary additions to wages, effective as of September 1, 1941, and to terminate automatically on December 31, 1942, unless the parties extend the arrangement by agreement. This Board recommends that on or about December 31, 1942, the wage structure in the railroad industry should be examined in light of the existing economic conditions of the railroad industry and of the country. (2) The employees in the five operating Brotherhoods should receive a wage increase of 71⁄2 percent over their present wage rates. (3) The employees in the fourteen cooperating railroad labor organizations should receive an addition of 9 cents per hour-equivalent to an average increase of 131⁄2 percent. (4) A week's vacation of 6 consecutive working days, effective January 1, 1942, should be granted during the year of 1942 and each year thereafter to those employees of the fourteen cooperating railroad labor organizations who were regularly attached to the railroad industry during the year preceding their vacation. It shall be understood that wherever more favorable arrangements exist with regard to vacations either by agreement or custom, these arrangements shall be continued, (5) The rules dispute between the carriers and the employees in the fourteen cooperating railroad labor organizations should be re-submitted for further consideration and determination under the procedures of the Railway Labor Act. This Board assumes that whatever changes may be made in the application of present rules, the basic guaranties to railroad labor as to seniority and craft and class lines will be preserved. It is the Board's opinion that the rules dispute is one which lends itself to settlement by negotiation, mediation, arbitration, or hearings before a special emergency board. It is not one which should be settled by a test of economie force. If a special emergency board is appointed to hear the dispute, it should have among its members persons thoroughly versed in the practical problems of railroad labor and of railroad operations. (6) The employees of the Railway Express Agency should receive a wage increase of 72 cents per hour. (7) It is to be understood that the wage increases recommended by the Board for the period to December 31, 1942, shall be added to present wage rates. However, the Board further recommends that a permanent basic minimum wage of 40 cents per hour shall be established for the employees of the so-called Short Lines, and a permanent basic minimum wage of 45 cents per hour shall be established for all other employees in the railroad industry, including the Railway Express Agency, and that no one shall be paid below these basic wage figures for his class of employment. Except for the employees of the Short Lines, these recommendations involve no further monetary addition since the wage increases as recommended will bring railroad workers in their respective classes up to or above the suggested basic minimum wage rates. (8) The Emergency Board is unable to recommend a specific wage increase for the employees of the so-called Short Lines beyond the proposed 40-cent minimum, because the record of the case does not contain sufficient data on which to base an intelligent wage recommendation applicable to them. Most of the Short Lines are in a precarious financial condition and are characterized by other distinguishing factors justifying further consideration of their wage problem through the procedures of the Railway Labor Act. Hence, it is the opinion of the Board that some wage increase for the employees of the Short Lines should be agreed upon among the parties through the processes of negotiation, mediation, arbitration, and if necessary, the findings of another Emergency Board. (9) The above recommendations, except insofar as they are qualified in this report, shall be applied to the employees of all parties listed in the proclamation of September 10, 1941. Action on Board's Recommendations Representatives of the five operating Brotherhoods, meeting in Chicago on November 7, rejected the recommendation of the Board and made plans for carrying out the strike authorized on September 5. The date of the strike was set for December 5, upon the expiration of the 30-day interval required by law after the making of a recommendation by an emergency board. The strike date was later extended to December 7. The 14 nonoperating labor organizations also announced their dissent from the recommendations of the Board and their determination to seek additional concessions from the railroad companies. The parties here referred to are the labor organizations mentioned in footnotes 2 and 3 (p. 1421). Failure of further negotiations was followed on November 25 by a resumption of hearings by the Emergency Board, which, on December 1, arranged a compromise settlement. All wage increases were to be changes in basic rates and not temporary adjustments. The increases recommended on November 5 were to be retroactive from September 1 to December 1. Beginning on December 1, the increase of 7.5 percent for members of the 5 operating unions was to become 9.5 cents per hour, and the increase of 9 cents per hour for nonoperating employees was to become 10 cents. Slight additional concessions for paid vacations were obtained by the workers. Changes in rules were to be waived by both parties for the period of the national emergency. ACTIVITIES OF NATIONAL DEFENSE MEDIATION BOARD, OCTOBER-NOVEMBER 1941 INCLUDING the 25 cases certified to the National Defense Mediation Board during October-November 1941, the number of disputes referred to the Board thus far for settlement totals 106. The status of cases as of November 23 is shown in the table below. Status of Recent National Defense Mediation Board Cases, October-November 1941 |