The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1921-03-07
WINS OUT
IN WAGE FIGHT
Railway Labor Board Decision
Today Makes Precedent.
Erie r.. r. Ordered "a Per Cent
Cut on Common Labor.
BOARD DECLARES CUT ILLEGAL
Road Chiefs Contend Common
Labor Not Affected.
Other r. r.. Call Conference To-
morrow to Consider Case.
BOARD DECLARES CUT ILLEGAL

Chicago, March THE railway la
Dor board today handed down a de-
cision ruling that the Erie railroad
had violated previous board rulings in
six respects, particularly in reducing
the wages of employees and in failing
to cancel these reductions when or
dered to do so by the board. The
road had contended that the board
must hold a hearing before ordering
restoration of previous rates of pay.
The board declared that the position
taken by the Erie in cutting wages and
hours of work without it's sanction was
highly provocative" of a strike of the
employes.
Railroad Must Rescind Order.
If a carrier may arbitrarily reduce
wages the decision said, mo reason
appears why railroad employees may
not announce an immediate Intention
of striking unless demands for in
creased wages and more favorable
working conditions are met.
The board announced it would not
consider the Erie case further until
the company had rescinded its order
reducing wages and has paid employees
in accordance with the scale set by the
board.
No further action may be taken by
1.-The board as the transportation act
provides FOR no penalties for violation
| of its rulings.
Labor Wins Every Point.
The boards decision upho1ds labor's
contentious in every instance The
position of the board regarding the
question of inability to pay the wages
| ordered was set forth as follows:
at is the judgment of the board that
no carrier may, in case its revenue for
any month should be estimated to be
| insufficient to meet its expenses, 1or
labor and material for that month,
| arbitrarily appropriate to itself wages
! due its ernpIoye in such amount as to
| make expenses for labor and material
equal or exceed revenues for that
month
| The decision sets a precedent In
railroad wage reduction controversies
| The Erie railroad ordered II pei
cent cut in unskil1ed labor rates eff
Elective February 1 and subsequently
| ignored the boards order to restore
the rates of the July, 1920, wage
award.
| Protest against the retrenchmeni
order which reduced common labor
pay and deducted one days pay g
week from the salaries of all EN-
ployes paid on a monthly basis. was
made to the board soon after it be
came effective. The board ordered 9
nearing IN a ru1nS issued cUTudTs
i12 meanwhile directing the road tt
| confer with its employees and to make
no change in rates OF pay or working
| conditions except by agreement witt
the employees
Claim law Violated.
When the case came before tht
board on February 23 the employe'
/ charged violation of the transporta
ton act in setting aside the provision
of decision number two, the wag'
award, applying to common labor.
Erie representatives admitted tina
a reduction had been made and wa
still in effect. They denied, however
that the road had violated the trans
portation act and contended that ;
hearing was necessary before tn
board could order its wage award con
tinued. Business depression, reduces
cost of living and reveneus below op
Grating expenses were given by tn
road as the reason for the reduction
order.
VIII Set Precedent.
/ The road maintained its right t
hire common labor at the prevailing
local rates, declaring this class o
workers was governed by the law 0
supply and demand.
A decision favorable to the Fri
would pave the way for other roads Z
make similar wage cuts, it was said
and would preface flood of contro
versies upon the board. Numerou
| eastern lines have already announce
conference set for tomorrow on tn
question of maintenance of wage re
ductions. The Erie decision, ii wa
| said, would play a considerable par
in these negotiations.