The Madison daily leader. [volume] (Madison, S.D.) 1890-current, 1921-05-19
WAGE REDUCTION
TO ALL CLASSES
WAGE CUT FOR UNSkILLED EN-.
PLOYES FORECAST BY RAIL
BOARD TO BE MADE BASIS
FOR OTHERS.

Chicago, May 19.-The general
reduction of wages for unskilled
railroad employees effective July l
which was forecast by the railroad
labor board in an announcement last
night, will be made the basis of re
ductions extending to all classes Of
railroad labor, it was understood to-
day.
Although only the Chicago Great
Western, the Chicago and Alton, and
few other roads have requested
that the wage reduction was made
by the board in its petitions up TO
June and it is believed that 9TH
ers of the $50 class A roads will
amend their applications to include
shop, train service and other classes
of employees. The new applications
filed up to June 6, the boards an
nouncement said, will be decided 20
take effect also on July /.
No intimation was given in the
boards announcement as to the
probable extent of the cut Last
July the board increased wages of
unskilled labor and some other class
cs 20 per cent making it retroactive
to May l, 1920.
"The general effect of the dCci-
sion will be to retard track work"
said S. M. FELTON,, president of the
Chicago Great Western. Disap-
pointment was expressed by various
railroad executives that the cut was
to be delayed until July l, as by that
time, it was said, the heaviest part
of track rehabilitation work is gen
orally completed The decision last
July affected approximately 1000
600 men and granted increases to-
falling nearly $600,000,000 a year.
The announcement, which said
prevailing conditions justify to
some extent, yet to be determined,
a readjustment downward of wag-
es," was unexpected and came only
Il few hours after the close OF the
hearings which have been in progress
since early in April.
On July 20, 1920, the board in
creased the pay of all classes of rail
way employees approximately II per
cent of about $600,000,000 year.
Several months ago several roads
announced that they could no longer
operate under this wage award and
announced pay reductions averaging
about 20 per cent for unskilled en-
Dloyes. The workers appealed 20
he board which decided that the
Dads could not make summary re-
ductions but must first hold confer
noes with their men and then, if no
agreement could be reached submit
he case to the board.
Practically every large road then
held conferences with its unskilled
employees and then the employees re-
used to accept cuts, carried the case
TO the board. About 98 cases were
thus appealed and the board decided
10 hear them as unit.
The roads pleaded that they were
being forced to pay more for labor
han they could employe it for in the
open market; that reduction in the
cost of living justified a reduction
IN wages that they were being forced
20 operate in many cases at loss
nd that they wished to reduce their
rates for the benefit of the public
but could not do so while forced to
pay a wartime scale to labor.
The employees charged that the fl
nancial embarrassment of the roads
yas due to gross mismanagement;
hat increased rentals had practic-
ally nullified and decreases in other
necessities and that the wages were
:till below those paid in other lines
Railway officials expressed them
elves as being pleased at the boards
| statement and expressed the opinion
/ hat the same conditions which il
was found applied to unskilled la
Dor would also be applied to skilled
workers,