Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-02-06
REDUCTIONS NOTED
in LABOR Turnover.
American Corporations Are
Economizing by Maintenance
of Steady Forces.
BY ]. c. ROYLE.

Most of them come under the head Of
what might be termed mitigating cir
cumstances. One such, according to
the officials of the Department of Labor,
lies in the cutting down of labor turn
over.
Labor Turnover.
Labor turnover is one of the major
overhead costs in industry and its re-
duction is a constant problem faced by
all employers. The cost of labor turn
over to a certain extent is tentative, but
officials of the Department of Labor
placed the actual cost in dollars of the
replacement of each worker, including
common labor, at SIS. In the skilled
trades, such as the building and con-
struction workers, the machiniStS, the
electricians the SteamfitterS and others,
the cost is far higher. 1t is estimated
by officials here that it costs at least
$110 to replace moderate skilled ar
tisan and this figure is low one
since it does not include the cost OF
wasted materials.
Constant efforts are being made by
employers all over the country to cut
down labor turnover. They consider
money well spent which is devoted to
the betterment of the physical condi-
ton of the employees and their mental
attitude. It is this desire to keep the
workers contented which has dictated
the equipment of athletic fields, the en-
enlargement of social activities and the
organization of welfare bodies by thou
sands of corporations.
Some large employers of labor have
succeeded IN reducing their annual
labor turnover to between Is and 20
per cent, but the statisticians consider
that a corporation which can report
changes of less than 35 per cent is
presenting a most excellent record.
President William Green Of the Amer
lean Federation of Labor estimates that
there are 100000 unemployed workers
in the country today. This is eliminat-
ing part of the labor turnover. On
the basis that $50 Of the workers out
of every 1000 normally change employ
ment each year, and, estimating the
cost at SIS a laborer, the annual cost
of this investment waste normally is
S26.250 for every 1000 employees. or
$l49, 625,0OO. 1t is perfectly OBVIOUS
that the cost of having 100000 men
out of employment far exceeds any
profit which may be derived from re-
duction of turnover, but at least the
potential saving of nearly Sl50,000,00O
is scarcely of minor Importance.
Construction Projects.
Government officials are extremely
reluctant to try to translate the efforts
of the Presidents Emergency Commit
tee for Employment into jobs. The
committee itself points to stimulated
construction and bodybuilding activ-
tiles, but it heSitates to state how many
jobs are being provided or to make any
estimate of the number. The super
Using architect of the Treasury De-
partment is the authority for the state
EN- nm nm cDnOt
on construction 1000 workers are re-
CURED on the task and that incidental
work is provided for 5000 additional
men.
Many economists are regarding the
pressure for putting construction prof.
ects into immediate effect, with rather
wary eve for the future. They, as well
as some Government officials, point OUT
that if funds which ordinarily would
be held up tor some time are used now,
they will be lacking for future work.
In other words, If contemplated build
ing is being converted into actual
building and road developments pushed
when they would be left till later, there
might be a shortage of construction en-
deavor later on and consequent unem-
ployment and reduced purchasing power.
Watch Situation in India.
The proposal for a revised constitu- |
tional status for British India, al
though it is being considered on the
opposite side of the world, is having |
today a most potent bearing on the con- |
dition of the cotton industry OF the |
United States. Cotton exporters have |
done a most unsatisfactory business in |
the last year and are watching the |
DEVELOPMENTS with the closest attention. |
There was a decided feeling OF relief |
when Mahatma Gandhi was released |
from prison, but later developments |
have not been so favorable so far as
the abandonment of the embargo |
against the British textile products Is
concerned.
The effect of the disturbances in
India has not been felt materially by |
American cotton textile manufacturers.
The latter do not cater TO the Indian
trade However, the British cotton
manufacturers make special appeal Z
for this business. They produce eX-
actly the type of cotton textile which
are required in India. The curtailment
of the sales of the British manufac-
turers has resulted in drop in the pur-
chases Of American raw cotton by the
English mills. AS a result, stocks in
this country are extremely heavy, ana
dealers are protesting bitterly against
the Farm Board marketing plan In con-
sequence.
The Indian situation also is affecting
Japan, which is fighting for the India
and China markets The textile indus
try of Japan has grown to an aston
ishing degree in late years, and its pros
perity is dependent on the volume OF
goods sold in the Orient This has been
small in the last II months, and in con-
sequence the business situation of Japan
has suffered and SO has American trade
with that country.
Cotton dealers in the South declare
that the policy of the Farm Board is
checking exports of cotton. They say
that the American Cotton Cooperative
Association is selling its cotton as rap
idly as possible and is replacing 1t with
future contracts in the New Orleans
and New York future markets. No one
knows how much the American Co
operative Association has sold, but it
is estimated that the future holdings
of the co-operatives total between $780,
900 and 100000 bales.
Substitute Cotton.
Uncertainty as to what will be done
to these future holdings is alleged to
be retarding purchases by spinners and
inducing foreign spinnerS to substitute
cotton of other countries for American
cotton wherever possible. How long the
foreign spinners will be able to use
this substitute cotton Is Stlll queS-
ton which is having a wide effect on
the price of the commodity.
There is a huge carry-over of cotton
from the season of 1929-1930. Late
fiugres indicate that world carry-over
which is available for shipment to
non-cotton- producing countries at the
present time aggregates 37,800,0O0
bales. The consumption in 1929-1930
amounted to 24,718,000 bales. 1t is
estimated that American surplus for
export amounts TO over 14,500,O00
bales.
These are the arguments that are